Open a SPV Company in Greece

Learn what a special purpose vehicle (SPV) is and how to open an SPV company in Greece to isolate investment risks. Our consultants can assist you.

What is a SPV company?

A SPV company refers to a special purpose vehicle or special purpose entity/company that is set up by a parent company with the purpose of isolating the parent company from certain financial risks associated with the investments made by the SPV company.

What are the main advantages of a Greek SPV company?

There are several advantages of opening a company in Greece through an SPV, some of which are presented in the list below:

1. tax efficiency – companies organized as SPVs can benefit from specific tax advantages that can reduce the overall tax obligations of the parent;
2. isolating risks – SPVs are primarily used as a means for reducing the financial risks taken by the parent company when initiating a new investment project;
3. financing advantages – the SPV has the right to raise capital for itself.

What are the rules of law concerning securitization in Greece?

In the list below, we invite you to discover some of the key aspects of the securitization legislation in Greece:

• the Greek securitization law is given by Law 3156/2003;
• additionally, investors who will start the process of company registration in Greece for an SPV company must also observe the rules of the Greek Law 5072/2023 (which replaced Articles 1-3 of Law 4354/2015), regulating credit servicers and purchasers of non-performing loans;
• the Greek legislation also provides a legal framework for the types of assets that can be securitized – there is a special law which regulates the securitization of state receivables (the Law 2801/2000);
• additionally, specific rules on securitization derive from the Greek Civil Code, Articles 513 and 455;
• the EU legislation on securitization (Regulation (EU) 2017/2402 of the European Parliament and of the Council of 12 December 2017) is implemented into the national law of Greece.

What types of assets can be used for securitization purposes in Greece?

An SPV company in Greece can invest specific types of assets, in accordance with the applicable legislation. In Greece, there are 2 main categories of securitization assets, namely trade receivables and real estate assets.

Who are the parties involved in securitization in Greece?

In the list below, our consultants present the main parties:

1. one of the main parties is the SPV company, which acts as an entity that acquires the receivables and as the entity that issues the notes that secure the receivables;
2. another entity involved is the servicer of the receivables, which must be an entity that is licensed by the Bank of Greece;
3. another party refers to the investors who will purchase the notes issued for the receivables owned by the SPV company.

What l egal entity can I choose for a Greek SPV company ?

One of the main aspects to clarify when setting up a company in Greece as an SPV business is the legal entity under which this company can operate. In Greece, one of the main suitable options is the joint stock company (Anonymos Eteria - AE).

What is the shareholders’ liability in an SPV?

Shareholders’ liability is determined based on the type of company that they have selected for incorporation, not by the type of activity for which the company is registered. In the case of a Greek AE, the shareholders are liable only to the amount of the capital they have invested in the company.

Can I incorporate an AE as a single investor?

Yes. In the case in which a single investor will open a company in Greece as an AE, then the company’s name must also include the expression “Single Member”.

What are the institutions supervising SPV vehicles?

In Greece, one of the institutions overseeing the activities of this type of company is the Hellenic Capital Markets Commission (HCMC). Supervisory powers are also exercised by the Bank of Greece. European institutions can also get involved in the supervision and/or certification of SPV companies.

What are the mandatory registration steps I need to complete for the SPV?

The process of company registration in Greece for an SPV follows the standard incorporation rules applicable to all businesses set up in this country. For this purpose, investors must:

1. sign the articles of incorporation;
2. obtain a trade name;
3. complete the basic registration obligations imposed by the Greek Commercial Registry;
4. complete social security registration, once the company starts hiring employees, etc.

Are SPVs required to have their seat in Greece?

Yes, it is one of the basic requirements that must be completed during the process of company formation in Greece.

Do I need to obtain business permits and licenses?

It depends on the type of activities that the SPV company will engage in. For a complete presentation regarding this matter, we advise you to address our specialists in company formation in Greece.

Is it mandatory to have a Greek tax identification number?

Yes. The SPV must also complete its tax registration obligations in Greece, which includes having a Greek tax identification number (TIN).

Are SPVs liable for the payment of VAT?

The SPV can be liable for the payment of the value added tax (VAT). Exemptions from the payment of this tax can apply to certain categories of financial transactions.

How can I obtain legal representation from your team?

Our team of consultants, specialized in Greek company formation, can assist you in the process of opening an SPV company in Greece if you grant us the power of attorney, through which we can complete the entire procedure up to the moment when the company becomes fully operational.

Our team invites you to watch a short video presenting how to register a Greek SPV company:

There are other matters that are important for the registration and functioning of an SPV company, and we invite you to contact our team of Greek company formation specialists.

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