Greece has introduced a new legal framework designed to strengthen its capital market and promote entrepreneurship. Law 5193/2025, titled "Enhancing the Capital Market," includes tax incentives and regulatory updates that aim to attract both domestic and international investors. A particular focus has been placed on angel investors, startups, and SMEs, as the government continues to cultivate a more dynamic and investment-friendly financial ecosystem.
Understanding Angel Investors in Greece
Angel investors—private individuals who fund early-stage startups in exchange for equity—play a pivotal role in driving innovation and economic growth. Greece has taken legislative action to support these investors through Article 70A of the Income Tax Code, most recently amended by Law 5162/2024. The key features include:
- Tax Deduction: Investors may deduct 50% of their capital contributions to approved startups from their taxable income.
- Annual Contribution Cap: The total deductible amount is limited to €900,000 annually, with a cap of €300,000 per startup or venture capital fund (A.K.E.S.).
- Bank Transfer Requirement: All investments must be made via bank deposits to ensure traceability and compliance.
- Eligibility Criteria: A joint ministerial decision provides the classification guidelines and procedures for qualifying as an angel investor.
These measures have been instrumental in stimulating early-stage investment and strengthening the Greek startup ecosystem.
Law 5193/2025: Key Developments for Investors
The recently enacted Law 5193/2025, published in the Government Gazette, aims to further improve capital access and make Greece a more competitive investment destination. Highlights of the law include:
1. Tax Incentives for SME Listings (Article 24)
SMEs planning to list on a regulated market may benefit from a 100% increased tax deduction for listing-related expenses, up to €200,000. This incentive eases the financial strain associated with going public and encourages more companies to raise funds through the capital market.
2. Reduced Tax on Corporate Bond Interest (Article 25)
To boost investment in corporate bonds, the tax rate on interest income for individual investors will be reduced from 15% to 5%. This is expected to increase retail participation and help SMEs diversify their funding sources.
3. Expanded Angel Investor Incentives (Article 26)
A significant addition is the extension of angel investor benefits to include investments in companies listed on Multilateral Trading Facilities (MTFs). This adjustment broadens the range of eligible investments and promotes growth among innovative, high-potential businesses that may not yet be listed on a traditional exchange.
Eurofast's Take
These legislative reforms mark an encouraging shift in the Greek investment landscape. By aligning tax incentives with global best practices, Greece is making strides toward becoming a more attractive environment for early-stage and long-term investors.
At Eurofast, we support clients in understanding, applying, and benefiting from these incentives. Whether you are an angel investor, a startup founder, or an SME preparing for listing or bond issuance, our legal and tax experts in Athens provide tailored advice and full compliance support.
Our 46+ years of experience across Southeast Europe and the Middle East position us to assist with investment structuring, international tax planning, and corporate formation in Greece and beyond.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
