By way of introduction, Greece has not introduced an investment screening mechanism to date. Although the EU Foreign Direct Investment Screening Regulation (i.e. Regulation 2019/452/EU) applies from 11 October 2020 onwards, each Member State is free to decide whether or not to screen a particular foreign direct investment within the framework of this Regulation.

As a matter of principle, Greece is open to foreign investments and the encouragement thereof forms part of the Greek Government’s policy. The Greek Government has undertaken EU-mandated reforms in its energy sector, opening much of it to foreign equity ownership. The fairly recent liberalization of markets, previously closed to both foreign and domestic private investors, such as the telecommunications, electricity and gas markets, has also been a significant step towards the creation of more opportunities for foreign investors. The following are some of the laws that are intended to support foreign investment, foster development, and reduce bureaucratic obstacles:

• Law 4399/2016 on the establishment of private investment aid schemes for the regional and economic development of Greece.
• Law 4146/2013 on the creation of a business-friendly environment for strategic and private investments, which introduces investment incentives.
• Law 3908/2011, provides incentives in the form of tax relief, grants and allowances on investments in all key economic sectors.
• Law 3894/2010 as amended and currently in force, provides for fast-track licensing procedures for qualifying investments in the sectors of industry, energy, tourism; technology; telecommunications; health services; waste management; and transport.
• Law 3389/2005, which regulates public-private partnerships ("PPP").

Notwithstanding the above, a relatively recent Law 4635/2019 on “Investing in Greece and other provisions”, contemplating the structure of an investment friendly environment in Greece, includes, among others, provisions on attracting strategic investments; simplifying the audits (which are performed by chartered auditors) and certification of the investment plans of the entrepreneurs interested to make an investment; creating a single digital land map; establishing a national infrastructure register, including properties owned or managed by public sector bodies; improving the operation of business parks; simplifying licensing procedures of industry activities; simplifying the institutional framework for economic activity; amending regulations concerning market inspections and digital communications; setting up a simplified national documentation program; addressing labor and insurance issues; introducing measures to address undeclared work; revising provisions concerning public procurement contracts, and a provision for a Hellenic Investment and Foreign Trade Company.

Enterprise Greece (https://www.enterprisegreece.gov.gr/) is the national investment-promotion agency, offering information, guidance and support for projects in the country, while the Ministry for Economy and Development and the Ministry of Finance provide similar services.

While the majority of restrictions on foreign investment have been abolished in recent years, the Greek legal framework still includes several provisions that may be viewed as restrictive and should be taken into consideration by foreign (especially non-EU) investors. For further information, please refer to Question 4.

By way of introduction, Greece has not introduced an investment screening mechanism/regime to date. Although the EU Foreign Direct Investment Screening Regulation (i.e. Regulation 2019/452/EU) applies from 11 October 2020 onwards, each Member State is free to decide whether or not to screen a particular foreign direct investment within the framework of this Regulation. Reviews and investigations may be relevant in specific “sensitive” activities or undertakings as defined in the pertinent legal framework. Specifically, national security considerations are relevant in the context of hydrocarbon-related activities regulated by Law 2289/1995, whereby the concession of exploration and exploitation rights may be refused to a specific entity on the basis of national security considerations. In the field of renewable energy sources, the granting of production licenses by the Regulatory Authority for Energy is, among other things, dependent on the basis of criteria relating to the protection of national security. Nonetheless, as detailed hereinbelow, restrictions also exist with regard to land purchases in border regions and on certain islands due to national security considerations. Greece is a member of the EEA and WTO while it also has in place all relevant mechanisms in order to attract foreign investments. Safeguards to protect foreign investments are also set forth by various Treaties where Greece is a signatory member. It follows that any foreign investment-associated risk should be assessed on an ad hoc basis depending on the characteristics of the potential investment.

With respect to investments involving the acquisition of real estate properties located in the areas that have been designated as “border areas” of Greece or shares of companies that own properties in border areas (please see below "What sectors are subject to Foreign Investment Restrictions screening?") foreign is defined as non-EU/ European Free Trade Association ("EFTA") individual or entity.

In general, foreign investors may freely engage in any (direct or indirect) transaction in Greece, with the exception of transactions involving in rem or contractual rights concerning real estate properties located in the areas that have been designated as “border areas” of Greece (designated as such by Law 1892/1990 as amended and currently in force).

More specifically, according to article 25 of the abovementioned law, investors (individuals and/or legal entities) coming from the European Union and/or from EFTA countries are fully exempt from any restriction, government scrutiny or prior authorization, whereas non-EU/EFTA investors are subject to prior permission by the competent decentralized administration. The same also applies in the case of indirect real estate transactions (ie transfer of companies’ shares or parts that own real estate assets in border areas).

As regards, the acquisition of in rem (eg. purchase) or contractual rights (eg. lease) over private islands or real estate properties located on private islands regardless of the islands’ geographical location, such is subject to the issuance of a special permit issued by the Minister of Defense following the consent of the General Staffs (Army, Marine and Air Force).

According to article 24 of Law 1892/1990, as it has been amended and currently in force, the following areas have been characterized as border areas: Prefectures of Dodecanese, Evros, Thesprotia, Kastoria, Kilkis, Lesvos, Xanthi, Preveza, Rodopi, Samos, Florina and Chios, the islands of Thira and Skyros, the former provinces of Nevrokopi of the former Prefecture of Drama, Pogoniou and Konitsa of the former Prefecture of Ioannina, Almopia and Edessa of the former Prefecture of Pella and Sintiki of the former Prefecture of Serres, as well as the former communities of Othon, Mathraki and Ereikoussi.

Another example is Legislative Decree 210/1973 which provides for special approval of contracts for the transfer to foreign (natural or legal) persons or the concession to such persons of the use/exploitation of mining rights.

Finally, certain sectors may have restrictions on foreign ownership (eg. the provisions governing the gas market applied to the privatization of the Hellenic Gas Transmission System Operator SA as the Greek independent gas transmission operator).

Notwithstanding the above, prior governmental or administrative approvals must be obtained to acquire holdings in (a) credit and financial institutions by the Bank of Greece or, in the case of one of the four systemic Greek banks, by the European Central Bank; (b) insurance companies by the Bank of Greece; (c) investment firms or other entities supervised by the Hellenic Capital Market Commission; (d) gaming companies by the Hellenic Gaming Commission; (e) certain energy companies by the Regulatory Authority for Energy; (f) media by the National Council for Radio and Television and, (g) entities concluded lease agreements with the Greek State for the concession of rights for the exploration and exploitation of hydrocarbons by the Council of Ministers.

Furthermore, in relation to third countries that have strategic deficiencies in their AML/CFT regimes posing significant threats to the financial system of the Union (“high-risk third countries”), the so-called obliged entities, as those are defined in the applicable AML/CFT legislation, may also need to obtain prior approvals from senior management for establishing or continuing business relationships.

On top of that, subject to the applicable threshold triggered, an anti-trust clearance pursuant to Law 3959/2011 (the "Greek Competition Law") should be granted before closing an M&A transaction. In particular, according to Greek Competition Law, an undertaking acquiring sole or joint control must notify the Hellenic Competition Commission of the concentration within 30 days from the conclusion of the agreement or the announcement of the bid, the exchange offer or the acquisition of controlling interest in the target, where the following conditions are cumulatively met: (a) the aggregate worldwide turnover of all undertakings concerned is at least EUR 150 million; and (b) the total turnover in the Greek market of each one of at least two of the undertakings concerned exceeds EUR 15 million. Foreign-to-foreign transactions may be also captured by the merger control regime.

Apart from the thresholds set from a Greek Competition Law perspective, there are no relevant thresholds triggering foreign investment restrictions nor are there any minimum capital requirements for foreign investments.

Special notification/approval requirements may apply, as already pointed out under "What sectors are subject to Foreign Investment Restrictions screening?", in accordance with the applicable regulatory framework and the transaction under consideration on a case-by-case basis.

As mentioned above, in the case that non-EU/EFTA investors want to invest in a property located in a border area, or in the case of investments in private islands or real estate properties located thereon regardless of the islands’ geographical location, a relevant permit is required. The relevant committee assesses, among others, the scope of the investment, the location of the property, the value of the transaction, etc.

Depending on the transaction and the approval/notification needed (as per our analysis under "What sectors are subject to Foreign Investment Restrictions screening?") on a case-by-case basis, the relevant approval/notification is usually required prior to closing.

It is noted that pursuant to publicized data, the net inflows of FDI in Greece for 2022 amounted to EUR 7,221 million compared to EUR 5,350 million in 2021, presenting an increase of 35 percent. The aforementioned net inflows of FDI are the highest net inflows in Greece since 2002, confirming the effort made in recent years to attract FDI in Greece. Nevertheless, the COVID-19 outbreak and the necessity for the Greek Government to establish and enhance the online and electronic operation of certain public authorities will gradually result in the decrease of Greek bureaucracy and the attraction and easier operation of foreign investors. 

As mentioned above, there is no single universal agency/authority regulating Foreign Direct Investments in Greece. To the extent that any of the above sector-specific restrictions are triggered, the relevant regulatory authority will be in charge of clearing the transaction. However, there are no official records of how regularly such regulatory authorities are reviewing, delaying, modifying or blocking foreign investments.

Please refer to the previous response. Ex-officio powers may be exercised in accordance with the specific regulatory framework.

For now, we do not expect any national regulatory developments in Greece relating to Foreign Investment Restrictions. The Greek market provides many legal tools regarding investment incentives such as aid for private investments to promote economic growth, entrepreneurship and regional cohesion and the establishment of private investment aid schemes for the regional and economic development of Greece, but depending also on the relevant market in which the prospective investor would invest, there are more incentives alternatives. For the time being and given the suffering of certain national industries from the COVID-19 outbreak, any relevant regulatory development expected would relate to mechanisms to attract, facilitate and protect foreign investors.