The Short Guide for the Israeli Businessman in Greece

Table of Contents

Introduction:
Comparison between countries: Israel vs. Greece / 2023
Greece - General Information: 3.1. Political Structure
3.2. Population
3.3. Language
3.4. Visa, Residence, and Work Permit Requirements
3.5. Cost of Living
3.6. Working Hours
3.7. Housing
Business Environment: 4.1. Background
4.2. Women in Business
4.3. Currency and Foreign Exchange Regulations
4.4. Marketing Strategy
4.5. Athens Stock Exchange (ATHEX)
4.6. Dress Code
4.7. Names and Titles
4.8. Scheduling Meetings
4.9. Negotiation
Behavioral Norms
Basic Greek Words and Common Phrases:
www.israelgreece.com
Introduction

The Israel-Greece Chamber of Commerce and Industry is a registered non-profit association (registration number 580641108) in the State of Israel, aimed at strengthening and promoting the unique economic and commercial relations between Israel and Greece in various fields: trade (import, export), investments, research, and development.

Since March 2018 (after about 14 months of intensive work to re-establish it), the Chamber renewed its activities with the goal of increasing awareness among businesspeople, companies, entrepreneurs, and economic and cultural organizations about the importance of maintaining economic ties and fostering business cooperation between Israel and Greece.

The Chamber focuses on trade-related issues and business matters that may arise when working with organizations, institutions, and governmental entities. It also promotes and disseminates business opportunities, projects, exhibitions, and seminars, in addition to organizing professional conferences and meetings concerning Israel-Greece relations.

As part of its ongoing activities, the Chamber benefits from close cooperation with the Greek Embassy in Israel, the Israeli Embassy in Greece, the Greece-Israel Chamber of Commerce, the Israeli Chamber of Commerce Union, the umbrella organization for bi-national chambers of commerce, government ministries, local authorities, academic centers, the Israeli Association of Advanced Technology Industries, and other related organizations.

You are invited to contact the Chamber's management at com.israelgreece@chamber regarding the content of this guide.

The information presented in the following pages is current as of the specified date and may be subject to changes. It should be used for general informational purposes only. For specific matters, it is recommended that entrepreneurs obtain additional information and seek professional advice before making any decisions. This publication is accurate as of April 2024.

We are happy to assist you in creating and promoting business in Greece.
Edition No. 2 / 04/2024 3 Greece - General Information

3.1 Political Structure
Greece is a parliamentary republic. The Prime Minister and the government hold executive powers. The President is elected by a 300-member parliament for a five-year term. The most recent elections in Greece took place on Sunday, June 25, 2023, which were expedited elections. These elections led to a decisive victory for Prime Minister Kyriakos Mitsotakis's party, NEA DEMOKRATIA.

3.2 Population
Greece’s population is currently around 10.5 million, almost equally divided between men and women, with approximately 3.6 million in the workforce. About 40% of the population resides in the Attica region, which mainly includes Athens and Piraeus, areas that concentrate over 50% of Greece's industry and commerce. Thessaloniki, in northern Greece, is the second-largest city, with over 1 million residents. Patras, in the northwest of the Peloponnese, has a population of about 216,000, and Larissa, in central Greece, has about 164,000 residents.

Greece has several islands located in the Ionian Sea and the Cyclades in the Aegean Sea. The population on these islands has been growing due to improvements in transportation. Crete is the largest Greek island with two major cities: Heraklion, with around 179,000 residents, and Chania, with around 111,000. While the population is mostly homogeneous, Athens, and to a lesser extent other large cities, also have a significant international community. Many non-Greek residents prefer living on various Greek islands, particularly in Corfu, Rhodes, Mykonos, and Paros, where the cost of living is lower than in major urban areas and the weather is excellent.

3.3 Language
The official language is Greek. Today, younger generations speak English, Spanish, French, Italian, German, and some also speak Chinese and Japanese. French is popular among the older generation. Visitors are highly encouraged to learn and use some common Greek words like "hello," "thank you," "please," "excuse me," "goodbye," "good morning," "good evening," "good night," "enjoy your meal," and other words that can be found in Section 6 of this guide. **3.4 Visa, Residency, and Work Permit Requirements**

Citizens of European Union member states must apply for a residence permit if they wish to work or plan to obtain citizenship in Greece. Visits of up to three months do not require a permit. Non-EU residents must apply for a work permit before arriving in Greece if they want to work there and apply for citizenship upon arrival. The process for obtaining a work permit is lengthy, so applicants are advised to start this process well before their planned arrival date. Non-EU citizens may also need visas to enter Greece, even for vacations or short business trips.

Non-EU citizens investing in Greek real estate worth €250,000 (in specific areas after recent government changes) or more may apply for and receive a five-year visa, allowing them and their families to stay in Greece and move freely within EU countries.

**3.5 Cost of Living**

The cost of living in Greece has decreased from levels in some EU countries but has risen compared to the period of the major economic crisis. This increase is due to inflation, rising energy prices, high demand relative to supply for goods, rents, and services. Contributing factors to reduced disposable income include significant pension reductions, high income tax burden, property taxation, deductions for other taxes, and social security contributions. Another factor is that parents often support their unemployed children and grandchildren.

**3.6 Working Hours**

Bank hours are from 8:00 AM to 2:30 PM Monday through Thursday and from 8:00 AM to 2:00 PM on Friday. Public sector hours are usually similar to bank hours. Private sector hours vary but are generally from 9:00 AM to 5:00 PM, Monday through Friday. Shops are usually open from 8:30 AM to 3:00 PM on Monday, Wednesday, and Saturday, and from 8:30 AM to 2:00 PM and 5:00 PM to 8:30 PM on Tuesday, Thursday, and Friday. Department stores and supermarkets operate continuously from 8:30 AM to 9:00 PM, Monday through Saturday. Some stores now stay open late at night.

According to OECD findings, Greece has one of the highest employment rates among OECD countries, with 61.8% of the labor force employed. The workweek is typically 40 hours over five days, with 12 official holidays, including:

- New Year's Day (January 1)
- Epiphany (January 6)
- Clean Monday
- Independence Day (March 25)
- Good Friday
- Easter Monday
- Labor Day (May 1)
- Whit Monday
- Assumption of Mary (August 15)
- National Day (October 28)
- Christmas Day (December 25)
- Boxing Day (December 26)

**3.7 Housing**

High-quality, modern housing is now more available than in the past, at prices still lower than pre-economic crisis peaks. Demand has also risen due to strong interest from foreign investors, including from Israel. Immigrants in the Attica region often choose to rent, even though there are generally no restrictions on foreigners purchasing real estate.

**4. Business Environment**

**4.1 Background**

Greece’s ancient history, known as Hellenic civilization, dates back to antiquity and is associated with developments in mathematics (Pythagoras of Samos), medicine (Hippocrates), and philosophy (Aristotle), as well as being the birthplace of democracy. Throughout its history, Greece's borders have expanded and contracted, and the country has been under foreign rule (Roman, Ottoman) at various times. However, it has developed as an independent nation since the 18th century.

Greece joined the European Community in 1981 and became a member of the Economic and Monetary Union (EMU) in 2001. Despite the financial crisis of recent years, Greece’s past high growth rates allowed it to join the Eurozone, host the 2004 Olympics, and, according to experts, contributed to the economic downturn.

Greece's GDP was worth $219 billion in 2022, as reported by the World Bank. In 2023, the economy grew by 2%, primarily due to a slowdown in exports to EU countries. Additionally, in 2023, Greece regained a solid credit rating, boosting confidence in the country's economic recovery, which has been driven mainly by export growth, as shown in recent statistics from the national statistics agency.

Despite ongoing economic challenges, there are prominent Greek companies contributing to the global economy, such as shipping companies, wine and olive oil producers, pharmaceutical companies, and new ventures in IT. Tourism continues to be a major contributor to the national economy and is rebounding to pre-COVID levels.

**4.2 Women in Business**

A formal handshake is appropriate, though women often greet with a cheek kiss. Women in management are highly regarded, seen as cosmopolitan, professional, and respectable. A woman looking to start a business in Greece, whether on her own or as part of an organization, will generally be well-received and treated professionally.

Greece is relatively progressive in terms of workplace gender equality, and foreign businesswomen are treated with respect. However, it is important to maintain a professional demeanor and appropriate boundaries with male colleagues. Increasingly, Greek women are rising to senior management roles in Greek-owned organizations, and many multinational companies are promoting Greek women to positions of authority.

Foreign businesswomen may find Greek men complimenting them on their appearance or fashion sense—this is often considered part of a traditional Greek charm and should be taken in stride.

**4.3 Currency and Foreign Exchange Regulations**

Since January 1, 2002, Greece’s monetary unit has been the euro (€), allowing for free transfer of funds for all economic functions. Due to the economic crisis, confidence in the Greek banking system reached an all-time low, leading to capital outflows to other European countries. To prevent this, the Greek government imposed strict capital controls in 2015, which were partially eased by July 2016. Currently, Greece’s banking system is undergoing organizational changes, including new banking consortia to increase competition.

Under capital control measures, there are restrictions on foreign exchange control, though these are largely mitigated by efficient handling from banks and relevant authorities. All monetary transfers abroad must go through Greek commercial banks, which are required to ensure that the payments are subject to withholding tax.

Payments and transfers for current transactions between residents and non-residents must also be conducted through the same channels.7. With the increase in deposits in the private sector and access to the international capital market, Greek banks have weaned off central bank support.

### 4.4 Marketing Strategy
#### 4.4.1 Strategy
Investors interested in investing in Greece are advised to review relevant regulations with legal experts, tax specialists, and other business consultants to avoid potential startup issues, as the Greek market has its unique characteristics, especially regarding the acquisition of government tenders. In June 2016, the government enacted Law No. 4399 "Institutional Framework for Establishing Private Assistance Programs for the Regional and Economic Development of the Country - Establishment of the Development Council and Other Provisions" (https://www.ependyseis.gr). Certain provisions of previous legislation "Acceleration and Transparency of Strategic Investment Law Implementation 3894/2010" (commonly referred to as the Fast-Track Investment Law) still apply. Additionally, on February 1, 2011, the Greek Parliament passed a new incentive law, No. 3908, and some of its conditions remain relevant. The Hellenic Investment Centre (ELKE), Greece's national investment agency, can provide initial assistance in dealing with government institutions.

#### 4.4.2 Market Access
Greece is the strategic link of Europe to the large and emerging markets of the Balkans, the Black Sea, Eastern Europe, and the Middle East.

#### 4.4.3 Key Market Opportunities
Services, including tourism and professional services, represent the largest and fastest-growing sector in the Greek economy. Tourism, shipping, transportation, insurance, healthcare, education, and communications are now among the sectors previously mentioned. Greece's food industry is expanding rapidly into foreign markets as well as neighboring countries. Its main export items include yogurt, fresh and processed fruits and vegetables, olive oil, wheat, wine, and tobacco. Agriculture holds central socio-economic importance. The agricultural workforce is approximately 1.2 million compared to 1.4 million employed in 2000, with a trend of young unemployed people returning to their villages and farms.

Other sectors important for investors include energy, telecommunications, security, e-commerce, information communication services, medical equipment, pharmaceuticals, environmental engineering services, franchises, tourism infrastructure, safety, and security. The mining sector, despite its declared reserves, remains small and largely unexplored, as mining initiatives face challenges. Greek companies enjoy strong trade ties with both the Central and Eastern European markets, including the Black Sea area. Foreign companies may wish to focus on these markets from Greece or consider integrated arrangements with Greek companies or partners.

### 4.5 Athens Stock Exchange (ATHEX)
The Athens Stock Exchange (ASE or ATHEX; Greek: Χρηματιστήριο Αθηνών) is the stock exchange of Greece, headquartered in Athens. Established in 1876, ATHEX currently operates five markets: a regulated securities market, a regulated derivatives market, an alternative market, a carbon market (for EUAs), and an OTC market. In the regulated securities market, investors can trade stocks, bonds, ETFs, and related securities. Currently, 172 stocks representing 166 companies are traded on the exchange.

ATHEX has over 30 indices. The six main indices are: General Index (GD), Athex/FTSE Large Cap (FTSEA), FTSE/Athex Market Index (FTSEM), FTSE/Athex Mid Cap Index, FTSE/ATHEX Factor-Weighted Index, and FTSE/ATHEX Global Traders Index Plus. On August 23, 2023, the company established EuroCTP as a joint venture with 13 other exchanges to provide a consolidated hub for the European Union as part of the capital markets union proposed by the European Commission.

### 4.6 Dress Code
Business dress in Greece:
It’s important to look presentable and respectable. Men tend to wear a sport jacket, trousers, and a shirt (sometimes with a tie), while in certain sectors, a standard business suit is more common. Women tend to wear business suits with either a skirt or trousers. Keep in mind that Greece’s summer, particularly in the Athens area, is hot and humid, so wearing light and comfortable clothing is recommended.

### 4.7 Names and Titles
Names typically consist of a given name, a patronymic, and a family name. In conversations, it’s customary to use only the first name. In formal and business discussions, it’s common to mention the family name along with the title, Mr./Ms.

### 4.8 Meeting Scheduling
Greek businesspeople highly value knowing the subject and purpose of the meeting before arranging it. However, it’s often possible to schedule meetings on short notice, as Greeks are also known for their opportunistic approach. Punctuality is important but not critical for a meeting, so expect some delays. It’s recommended to dress conservatively, with men ideally in suits and ties and women in dresses or skirts.

In Greece, each planned meeting is expected to have an agenda detailing most topics for discussion. However, the flexibility of the Greek approach means that topics not explicitly on the agenda can still be introduced for discussion during the meeting, though they may not receive full attention. Generally, it’s common to bring up one or two main topics rather than a collection of ideas or initiatives in a row. Open discussions are considered stimulating and essential in the decision-making process. It is common for many people to speak simultaneously during meetings. It is also very common to hold business meetings over lunch or dinner, so an extended lunch/dinner is not unusual. Such invitations are appreciated as they provide opportunities for closer relationships in a relaxed environment.

### 4.9 Negotiations
In Greece, business tends to begin by focusing on personal connections and relationships before proceeding to “do business,” so dedicating time to personal familiarity and relationship-building is crucial. Meetings typically begin with a brief, informal conversation. It’s very rare to see deals closed through phone conversations alone, as eye contact and personal familiarity are essential for conducting business in Greece.

### 5. Etiquette and Courtesy in Greece
#### Dos and Don’ts in Greek Business
- Greet with a handshake, smile, and maintain eye contact.
- Address senior colleagues by their title and last name in business, professional, and organizational settings.
- Be prepared to socialize and spend “Greek time” to get to know your associates.
- Be ready for lengthy negotiations and bargaining.
- Ensure that official documents and business cards are in English. It’s recommended to have business cards with Greek translations on the reverse side. Digital business cards are not widely used but highly appreciated.
- Avoid being late, even if your Greek colleagues are delayed.
- Don’t reject personal questions. Greeks are warm and often curious.

#### Things Not to Say in Greece
- Avoid sarcastic remarks about sharing food from the same plate.
- Don’t complain about the amount of oil in the food.
- Don’t ask for ketchup at a taverna.
- Don’t tell Greek businesspeople they’re in distress or that their business is troubled, implying that’s why you’re there.
- Don’t ask if Greeks still worship ancient gods.
- Don’t ask a Greek about Turks, and vice versa.
- Avoid ordering “Turkish coffee.” Ask for Greek coffee.
- Don’t say “Istanbul” (the city was called Constantinople).
- Don’t suggest that Greeks work fewer hours than others or are less efficient.

### 6. Basic Greek Words and Phrases
- Hello: "Soo-YAH" (casual) or "Yah" (to a group, "sas-YAH").
- Nice to meet you: "HA-ree-ka po-LEE".
- How are you? "tee-KAH-nis?"
- Good morning: "ah-MER-lee-kah" (until noon).
- Good afternoon/evening: "ah-SPER-lee-kah" (from late afternoon).
- Good night: "tah-NEEKH-lee-kah" (usually when going to bed).
- Thank you: "STOE-ri-kha-eff".
- Please / You’re welcome: "LOH-kah-para".
- Sorry/Excuse me: "See-ghno-me".
- My name is: "may LEH-Neh".
- What’s your name? "pos-oh LEH-neh".
- Goodbye: "soo-yah" (or "Yah" for a more casual farewell).

Did you find this guide useful? Great!

Are you looking for more information? Contact us!
Chamber@israelgreece.com; CB@israelgreece.com
www.israelgreece.com

Some of the information is collected from public sources.
* Some recommendations in this guide are based on extensive experience and longstanding familiarity with Greek society and business professionals.
* This document is intended for informational purposes only and should in no way be interpreted or applied to create any liability for the Israel-Greece Chamber of Commerce, its founders, the association, chamber managers, and chamber members, of any kind, explicitly or implicitly, regarding the information contained within this document.

Written and edited by: Kobi Biton, CEO of the Israel-Greece Chamber of Commerce

**Philotimo – FILOTIMO**
Philotimo is a Greek word with no precise definition but impacts the world beyond imagination. The word philotimo derives from the Greek roots “filos,” meaning friend, and “timi,” meaning honor. Philotimo’s meaning extends far beyond the words friend and honor. Philotimo encompasses the concepts of self-pride, pride in family, pride in community, and doing the right thing.