Greece PayrollReading Time: 2 minutes
Greece’s location in southeastern Europe on the Balkan Peninsula makes it the perfect spot for trade around Europe, the Mediterranean Sea, and beyond. However, despite the beautiful scenery, you can encounter some challenges during an expansion to Greece, especially when it comes to setting up your payroll. Globalization Partners offers Greece payroll outsourcing services to help ease the stress of an expansion. As a global PEO, we’ll take on all matters of compliance, hire employees to work on your behalf, and add them to our payroll in Greece.
Existing Taxation Rules for Payroll
Employers need to worry about corporate tax rates and personal income tax rates for employees. Greece’s social security system requires contributions from employers and employees at 28.56% of payroll for employers and 16.5% of wages for employees. The corporate income tax rate is 29% for all companies.
Greece operates under a progressive income tax bracket where employees pay a greater percentage as their salary increases. For example, employees who make up to 20,000 Euro pay 22% of their wages to taxes, while individuals who earn above 40,000 Euro must pay 45% of their wages in taxes.
The Variety of Payroll Options in Greece
Companies have different payroll options in Greece, including:
- Remote: Running a remote payroll is a great option for companies that want to operate a single payroll for all employees. You can add your employees in Greece to your parent company’s payroll, but keep in mind that they will have separate regulations.
- Internal: If you’re committed to growing your company in Greece, you may opt to run payroll out of your subsidiary. However, you’ll need to hire a robust HR staff that understands all of the country’s employment compliance laws.
- Greece payroll processing company: Working with a Greece payroll processing company will help outsource your payroll, but you’ll still have to worry about compliance.
- Greece payroll outsourcing: Globalization Partners is the only Greece payroll outsourcing solution that can take care of your payroll and compliance. We’ll gladly take the stress of compliance off your shoulders.
What Is Required to Set up Payroll?
Before you can set up payroll in Greece, you have to establish a subsidiary in the country. The process can take anywhere from a few weeks to a couple of months, depending on where you incorporate and what type of entity you choose. You have to establish a subsidiary before you can hire employees and add them to your payroll. You’ll also need to establish in-country bank accounts to set up your payroll in Greece and pay employees.
Entitlement/Termination Terms Needed to Set up Payroll
When you’re ready to hire employees, you should draft an employment contract with clear entitlement and termination terms. Employers have to pay employees for the remainder of their employment contract if they terminate a fixed-term contract early. Greece also has notice periods based on an employee’s years of service.
Work With Globalization Partners
If you’re preparing to expand to Greece, work with Globalization Partners for Greece payroll outsourcing to help make the process easier. Contact us today to learn more.