Greece: An Overview

Having navigated one of the most severe sovereign debt crises in modern European history, Greece has re-emerged as a dynamic and increasingly attractive jurisdiction for domestic and international business. Structural reforms across the legal, regulatory and institutional landscape have laid the groundwork for a more competitive, transparent and investment-friendly environment.

The legal framework governing key sectors of the Greek economy has evolved considerably. Capital markets regulation has been substantially reformed, banking sector consolidation has been completed, M&A activity has matured in both volume and complexity, real estate has attracted a new generation of institutional investors, and labour law has been significantly modernised to reflect both European standards and shifting workplace expectations.

Financial Sector

The Greek financial sector has maintained a strong upward trajectory over the past two years, reflecting both macroeconomic resilience and a maturing institutional framework. A particularly significant development has been the acquisition of ATHEX by Euronext, which is expected to act as a catalyst for the further integration of the Greek market into the European financial ecosystem, materially enhancing liquidity, visibility and access to international capital.

This structural shift is complemented by the introduction of Law 5193/2025, which represents a substantive modernisation of the domestic capital markets framework, aligning it more closely with European standards and reducing barriers to market entry. By simplifying listing requirements and streamlining disclosure obligations, the new regime is likely to facilitate increased issuer activity, particularly among mid-cap and growth companies.

These developments, when viewed alongside the upgrade of the Greek market to investment-grade status by MSCI, signal a clear re-rating of Greece as an investable jurisdiction and have already translated into stronger foreign investor participation.

In the banking sector, the legal and regulatory framework continues to underpin a sustained improvement in asset quality and capital strength. The new regime governing non-performing loans has supported the transition from non-performing to re-performing exposures and the consolidation of earlier balance sheet clean-up efforts.

Greek systemic banks have, in parallel, re-established consistent access to international capital markets, as evidenced by a series of Tier 2 and MREL-eligible issuances, which have strengthened their capital base and demonstrated renewed investor confidence in the sector. The completion of the Hellenic Financial Stability Fund’s (HFSF) divestment marks a critical inflection point, effectively closing the chapter of crisis-era state intervention and restoring full strategic autonomy to the banking sector.

Taken together, these developments point to a structurally stronger and more outward-looking financial system, increasingly capable of supporting sustainable credit growth and positioning Greece as a credible participant in European capital markets.

M&A

The Greek M&A market continues to benefit from a strengthened macroeconomic environment, improved sovereign credit ratings and enhanced access to financing through domestic banks, private equity and EU-backed funding instruments. These factors have increased investor confidence and transaction capacity, supporting sustained deal activity. At the same time, global economic uncertainty continues to affect transaction dynamics, particularly in terms of deal execution, valuation alignment between sellers and buyers, and timing, requiring more structured approaches from market participants.

Cross-border transactions remain a defining feature, with international investors playing a central role in sectors such as energy and infrastructure, healthcare and pharmaceuticals, technology and tourism. A notable development is the increased activity of financial investors, particularly in the mid-market, including growing participation by Greek private equity funds, resulting in a more competitive and sophisticated environment.

Private M&A continues to dominate, reflecting the ownership structure of Greek businesses. However, public M&A has gained prominence through high-profile transactions, contributing to evolving standards in corporate governance, pricing and minority shareholder rights. Consolidation in fragmented industries and the use of M&A as a strategic growth tool, rather than just restructuring, remain key market trends.

Legislative developments on corporate transformations and cross-border restructurings have streamlined procedures and increased flexibility. More sophisticated deal structures, including earn-outs and warranty and indemnity (W&I) insurance, mitigate challenges associated with regulatory scrutiny and execution risks, thereby providing additional comfort to investors. Overall, the Greek M&A market is expected to continue its trajectory towards greater sophistication, with further convergence with international standards in both legal framework and transactional practice.

Real Estate

The Greek real estate market is entering a new phase, transitioning from recovery to increased institutional investment. In the past, the market was dominated by opportunistic investors who capitalised on significantly reduced property valuations during the financial crisis. Today, there is a clear shift toward long-term institutional investors, including global funds and organisations seeking strategic allocations within Europe. Foreign direct investment continues to rise, with real estate, particularly tourism-related assets, remaining a key focus. Interest is growing in branded hospitality projects, upgrades of existing assets, and the development of high-quality tourism infrastructure.

Despite this positive momentum, new challenges are emerging. The key constraint is no longer the availability of capital, but the shortage of large-scale, investment-ready projects. Institutional investors typically seek sizeable opportunities that require mature portfolios, large land plots, and efficient licensing and development processes.

Greenfield projects remain particularly difficult due to complex and time-consuming permitting procedures, land use and spatial planning constraints, and infrastructure gaps.

In addition, regulatory complexity may affect investor appetite. Dual screening requirements for foreign investments, involving the acquisition of hospitality assets through share deals in borderline or sensitive areas, can create additional uncertainty and may reduce the attractiveness of the Greek market, especially for non-EU investors.

The Special Spatial Plan for Tourism is expected to improve the current landscape by introducing clearer spatial rules and streamlining licensing procedures, thereby reducing ambiguity, and enhancing investor confidence, but more steps need to be taken to reduce bureaucracy and enhance legal certainty.

Overall, Greece’s strong fundamentals, its strategic location and global tourism appeal, support its ability to attract significant institutional capital. However, delivering scalable, high-quality investment products and strengthening public–private collaboration will be critical to sustaining long-term growth and positioning Greece as a leading real estate investment hub in Europe.

Labour Law

The labour law landscape in Greece has undergone a series of significant reforms in recent years, including successive codification efforts and further changes were introduced to align domestic labour law with European requirements. These measures are part of the government’s effort to increase coverage of employees in Greece under collective agreements to approximately 80%, in line with EU requirements.

At the same time, corporate practices increasingly incorporate ESG and compliance obligations, including the forthcoming implementation of the EU Pay Transparency Directive, which enhances reporting and ensures equitable remuneration. ESG metrics are embedded in employee incentive programmes, including executive compensation, stock options, equity awards, and other long-term schemes. Companies are also expected under the current legal framework to provide safe, respectful workplaces, prevent harassment or violence, and uphold labour standards and diversity principles.

These developments highlight the importance of labour and governance frameworks in supporting risk management, regulatory compliance, and organisation effectiveness, reinforcing a structured and transparent labour market in Greece.