The Greece Minister of National Economy and Finance, Kostis Hatzidakis, presented the draft law for the Strengthening of the Capital Market, which was recently approved by the Cabinet.
This announcement was made by Greece National Economy and Finance on 11 February 2025.
The aim of the regulations introduced is to attract investments, protect investors by enhancing supervision over existing and new investment products, eliminate unnecessary bureaucratic restrictions, and facilitate the access—through incentives and other means—of small and medium-sized enterprises to the Stock Exchange for capital raising.
The Minister of National Economy and Finance, Kostis Hatzidakis, stated: “After restoring confidence in the economy’s prospects, achieving and maintaining reasonable surpluses, and steadily reducing the debt, a key condition for attracting investments to the country is further improving the business environment. The draft law for the Capital Market is a key tool in this direction. With the proposed regulations, we are introducing incentives and eliminating unnecessary bureaucratic obstacles to businesses’ access to the Stock Exchange. At the same time, we are introducing strict supervisory rules and providing supervisory authorities with new control tools, such as mystery shopping, which is already applied in other EU countries. Furthermore, we are introducing regulations for the supervision of cryptocurrencies, imposing penalties on those who do not comply with the legislation, and requiring investor information on the characteristics and risks associated with investments in them. With transparency, better supervision, and the removal of disincentives, we aim to further increase investments for the benefit of the national economy and Greek citizens.”
The Secretary-General for the Financial Sector and Management of Private Debt, Theoni Alampasi, stated: “An upgraded capital market is a strong lever for sustainable development. Its smooth operation enhances the release and allocation of funds aimed at supporting investments, thereby stimulating the real economy. Starting from this point, the legislative initiative presented today is expected to have a dual purpose: both strengthening the inclusion of more companies in the Athens Stock Exchange, especially small and medium-sized businesses in its alternative market, so that the capital market emerges as an alternative source of funding, and promoting the investment interest of depositors. The goal is to further strengthen the Greek capital market within the framework of the implementation of the National Strategy for its development, with a focus on the integration of capital markets at the European level promoted by the EU.”
The draft law includes four key regulatory axes:
- Tax and other incentives for strengthening the effective operation of the Stock Exchange, encouraging demand, and the introduction of companies to it.
- Institutional reinforcement of supervisory mechanisms (Capital Market Commission and Bank of Greece).
- Additional measures for the protection of investors in cryptocurrencies.
- Incorporation of European Directives and provisions for compliance with Directives/Regulations.
Incentives for Strengthening the Stock Exchange
The incentives available to angel investors and investments in the Alternative Market are extended. According to these incentives, an amount equal to 50% of their contribution is deductible from taxable income, up to EUR 300,000.
The tax deduction for expenses related to the listing of small and medium-sized enterprises on the Athens Stock Exchange is increased. Eligible expenses for the listing, increased by 100% (with a maximum increase of EUR 200,000), will be deducted from the gross revenues of the companies at the time of their incurrence, for a period of 3 years.
The tax rate on interest from listed corporate bonds for individual taxpayers—tax residents of Greece—is reduced from 15% to 5%. This creates a uniform tax regime for domestic and foreign investors on income from interest, regardless of where the bonds are traded (Greece, European Union, non-EU countries).
