Do I Need a Local Entity to Hire in Greece?

In Greece, a "local entity" typically refers to a legally recognized presence, such as a subsidiary or branch office, allowing you to act as an employer and fulfill local payroll and employment obligations. This setup is crucial for managing employee contracts, tax registrations, and social security contributions.

Without establishing a local entity, you can't effectively register as an employer, manage payroll with the necessary withholdings, or issue compliant employment contracts. Greece's tax authority, the Independent Authority for Public Revenue (IAPR), outlines the responsibilities for employer registrations and social contributions, which are essential for compliance.

What is Required to Employ Someone in Greece?

• Local employing entity required to directly employ? Yes (you need a local entity to manage employment obligations)
• Payroll registration required? Yes (mandatory registration with IAPR for payroll compliance)
• Withholding/tax remittance required? Yes (employers must withhold income tax and social security contributions)
• Social contributions required? Yes (mandatory employer contributions to social security funds)
• Local employment agreement required? Yes (written contracts are required for all employees)
• Mandatory benefits to budget? Yes (includes paid leave, health insurance, and pension contributions)
• Works council/collective agreements considerations? Often (many sectors are subject to collective agreements)

Best Options If You're Hiring in Greece

Can I Hire Contractors Instead of Setting Up an Entity?

Yes, but it’s essential to tread carefully. Hiring contractors in Greece can be a viable option if the work is genuinely project-based and the contractor operates independently.

However, misclassification risks exist if the contractor's role resembles that of an employee. Authorities may scrutinize the relationship, especially if:

• the contractor works exclusively for your company
• you control their work hours or methods
• the contractor is integrated into your team

How Long Does Entity Setup Take And What Does It Cost?

Typical entity setup timeline: It often takes 4–8 weeks to set up an entity in Greece, depending on the type of entity and required registrations.

Ongoing cost categories (entity route):

• Accounting, bookkeeping, and statutory filings: Estimated €300–€600 per month ($320–$640)
• Payroll provider: Estimated €20–€50 per employee per month ($21–$53)
• Employer registrations and recurring compliance: Estimated €1,000–€2,000 per year ($1,070–$2,140)
• Corporate tax filings and annual reporting: Estimated €1,500–€3,000 per year ($1,600–$3,200)

EOR cost components (no-entity route):

• A per-employee EOR service fee (from $399 per month with Playroll)
• Pass-through statutory costs (e.g., employer social security contributions, typically around 24% of gross salary)
• Any optional benefits you choose to provide beyond statutory minimums

How an Employer of Record Can Help You Hire in Greece

Hiring in Greece can be complex, but it doesn’t have to require setting up a local entity or taking on long-term overhead. With an Employer of Record like Playroll, you get a simple, predictable way to hire compliantly while keeping costs transparent and under control. We help you:

• Hire employees in Greece quickly without establishing a local entity, eliminating incorporation costs and ongoing administration.
• Stay fully compliant with local payroll, tax, and employment regulations with Playroll’s managed payroll services.
• Control your total employment costs, with a clear monthly EOR service fee (from $399 per employee).
• Focus on growing your business, while we manage contracts, payroll, compliance, and labor law obligations end to end.
• Scale up or exit the market easily, without the financial or legal burden of closing a local entity.