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Tax system and bureaucracy the biggest obstacles for foreign investment in Greece, survey shows

Sixty percent of CEOs of multinational companies operating in Greece expect that the country’s image as investors’ destination will improve in the next years. According to a survey conducted by Metron Analysis, 83% of the respondents said the taxation was the biggest obstacle for investing in Greece.

The survey was conducted between 4. May – 19. June 2018 and its results were presented at the “InvestGR – Foreign investment in Greece’s Forum” that took place on Tuesday in Athens.

The 30 top executives who participated in the survey represent companies that have invested 2.3 billion euros in the last five years – that is a 20% of the total investment of 11.6 billion euros in the same period of time.

“Despite the positive fact of the exit from the economic crisis, a series of inherent factors remain as obstacles to attract investment and assessed negatively,” Metron Analysis CEO Stratos Fanaras said during the survey results presentation.

According to the survey, the most important obstacles are the volatile tax system, corruption, bureaucracy, the slow pace of justice, the low level of research and innovation. Some even mentioned the migration of young skilled workforce.

83% tax system

80% public administration, legislation (bureaucracy)

63% corruption

67% justice

57% research/innovation

7% workforce

7% infrastructure

90% of the respondents consider a stable taxation and legal system as most important factor to attract foreign investment. other factors are: better banking services, business-friendly policies, social stability and increased competitiveness.

8 out of 10 companies CEOs said they will invest further in Greece in the next years, with almost half of them to plan investment in the next year.

8% of these companies plan investment of more than 100 million euros and 67% investment up to 10 million euros.

the full survey is here in Greek in pdf

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