International Tax Law & Cross-Border Structuring

A Strategic Guide for Investors and Corporations under EU & Greek Law

In an increasingly integrated European and global economy, tax law is no longer a compliance afterthought, it is a core strategic pillar of corporate governance, risk management, and cross-border expansion.

For investors, multinational groups, family offices, technology ventures, shipping companies, and energy enterprises operating within or through Greece, the intersection of EU tax law, Greek domestic tax legislatione delle international treaty frameworks requires careful structuring from inception.

Presso lo Studio Legale Tsamichas, we provide high-level, rigorous and commercially pragmatic tax advisory services, combining EU law expertise with in-depth knowledge of the Greek tax system and cross-border structuring mechanisms.

I. The Normative Framework: EU, Greek and International Tax Architecture

International tax advisory must be grounded in a precise understanding of the legal hierarchy governing tax matters.

EU Primary and Secondary Law

Key sources include:

• The Treaty on the Functioning of the European Union (TFEU) (freedom of establishment, free movement of capital, non-discrimination)

• The Parent-Subsidiary Directive (2011/96/EU)

• The Interest and Royalties Directive (2003/49/EC)

• The Anti-Tax Avoidance Directive I & II (ATAD) (2016/1164 & 2017/952)

• The Directive on Administrative Cooperation (DAC 1–8)

• EU State Aid jurisprudence in tax rulings

• CJEU case law on abuse of law and beneficial ownership

These instruments directly affect withholding tax exemptions, hybrid mismatch rules, CFC rules, GAAR application, and reporting obligations.

 Greek Domestic Tax Framework

Greek tax law is primarily governed by:

• Greek Income Tax Code (Law 4172/2013)

• Greek Tax Procedure Code (Law 4174/2013)

• Greek VAT Code (Law 2859/2000)

• Controlled Foreign Company rules

• Transfer pricing documentation rules

• General Anti-Avoidance Rule (GAAR)

Greece has implemented ATAD, DAC6, Pillar Two preparatory measures, and OECD BEPS standards.

International Framework

• OECD Model Tax Convention

• Bilateral Double Taxation Treaties (DTTs)

• OECD Transfer Pricing Guidelines

• BEPS Action Plans

• Global Minimum Tax (Pillar Two – 15%)

Core International Tax Risks for Cross-Border Investors

Businesses expanding into or through Greece typically face the following high-risk areas:

Permanent Establishment (PE) Exposure

Misclassification of business presence may create unintended tax liability under Article 5 OECD Model and Greek law.

Risk triggers include:

• Dependent agents

• Construction sites

• Digital economic presence

• Warehousing structures

A PE finding results in corporate income taxation in Greece and related compliance burdens.

 Withholding Tax & Substance Requirements

While EU directives provide exemptions for dividends, interest and royalties, these apply only if:

• Minimum holding thresholds are met

• Beneficial ownership exists

• Anti-abuse tests are satisfied

• Economic substance is demonstrated

Greek authorities increasingly examine:

• Board decision-making location

• Office premises

• Employees

• Operational activity

Artificial holding structures face GAAR and anti-abuse challenges.

Transfer Pricing & Intra-Group Financing

Greek law requires:

• Master File

• Local File

• Benchmarking studies

• Consistency with OECD Guidelines

Non-compliance exposes companies to:

• Primary adjustments

• Secondary adjustments (deemed dividends)

• Administrative penalties

CFC & Hybrid Mismatch Rules

Greek CFC rules (aligned with ATAD) attribute passive income of low-taxed foreign subsidiaries to Greek parent entities under certain conditions.

Hybrid mismatch arrangements are neutralized under ATAD II implementation.

Mandatory Disclosure (DAC6)

Intermediaries (including lawyers and tax advisors) must report cross-border arrangements that meet “hallmarks” of aggressive tax planning.

Non-reporting may trigger significant penalties.

A Structured Legal Procedure for International Tax Compliance & Optimization

At Tsamichas Law Firm, our international tax advisory is built on a structured, EU-aligned methodology that ensures legal certainty, regulatory resilience, and commercially sustainable tax structuring for cross-border investors and multinational groups. Our approach combines Greek domestic tax law, EU directives, OECD standards, and litigation readiness into a coherent compliance and risk-management framework.

Core Elements of Our Methodology:

• Strategic Tax Diagnostic: Corporate structure review, DTT analysis, PE and VAT exposure, substance evaluation

• EU & Treaty Compatibility: Withholding tax eligibility, beneficial ownership, anti-abuse review, CJEU and TFEU compliance

• Substance & Governance Structuring: Board and management alignment, functional analysis, TP-consistent intercompany agreements

• Transfer Pricing & Financing Compliance: Arm’s-length benchmarking, interest limitation, Greek earnings-stripping rules

• Dispute Prevention & Representation: Tax audits, administrative objections, MAP procedures, litigation before Greek Administrative Courts

Our objective is clear: to deliver transparent, defensible, and strategically optimized tax solutions under EU and Greek law.

Sector-Specific Relevance

Given Greece’s economic landscape, we frequently advise clients in:

• Energy & Renewables

• Infrastructure & rail

• Shipping

• Real estate investment

• Technology & digital services

• Venture capital & startup financing

• EU-funded projects

International investors entering Greece often underestimate VAT exposure, land transfer taxation, capital gains taxation, and local compliance obligations.

We provide end-to-end structuring from market entry to exit.

Global Minimum Tax & the Future of International Taxation

The introduction of OECD Pillar Two (15% global minimum tax) fundamentally reshapes multinational tax structuring.

Key implications include:

• Top-up taxes

• Income inclusion rules

• Undertaxed payment rules

• Safe harbour thresholds

Groups operating across EU jurisdictions must reassess holding structures and financing flows.

Early compliance planning is essential.

We understand that tax is not merely numerical, it is legal architecture.