Greece is emerging as one of the most attractive tax destinations in Europe for shareholders, thanks to its notably low dividend tax rate.
According to the latest figures from the Tax Foundation, the country now offers one of the most competitive regimes for individual investors, with a top dividend tax rate of just 5%. This places Greece alongside Bulgaria and Georgia and well below the European average of 20.53%. The contrast is particularly stark when compared with countries that levy much heavier taxes: Ireland tops the European list at 51%, followed by Denmark at 42% and the United Kingdom at 39.35%.
At the opposite end of the spectrum are Estonia, Latvia and Malta, none of which impose any tax on dividends. Estonia and Latvia follow systems that tax profits only upon distribution, while Malta provides shareholders with full tax credits that effectively eliminate the burden.
Larger European economies paint a very different picture. France taxes dividends at 34%, the Netherlands at 33%, and Finland at 28.9%. Even countries often perceived as relatively moderate in their tax policies, such as Portugal and Spain, hold rates at 28%, with Spain set to increase its rate to 30% starting in 2025.
While several EU member states are moving toward stricter dividend taxation - Romania has raised its rate to 10%, and the Netherlands has increased its rate to 36% - Greece remains firmly among the most appealing jurisdictions for both shareholders and investors. This competitiveness is also reflected in government revenues. In 2024, taxes on distributed profits of Greek companies generated €362.33 million, a 30% increase compared with €278.60 million in 2023. The growth is attributed to improved corporate profitability and a consistent rise in dividend payouts in recent years.
In theory, doubling the individual dividend tax rate to 10% without affecting corporate or shareholder behaviour could lift revenues to around €725 million. In practice, however, tax increases rarely produce proportional gains, as they often lead companies to curtail distributions or explore more favourable tax structures. A more realistic outcome would be an increase of roughly 70%, bringing revenues to around €616 million - still significantly higher than current levels.
