Residence permits for executives of foreign companies established in Greece and highly qualified scientific personnel: Driving Force for Global Investments

Our country, with an impressive and remarkable progress in its economic growth in recent years, has managed to enter dynamically the global map of Foreign Investment. The modern approach to tax and immigration policies has also contributed to this fact, making Greece a more attractive choice for companies with their principal place of business outside the E.U., which are planning to conduct an investigation of their economic activity in the European Area. Specifically, in the modern ever-changing international business environment, Greece presents a progressive legislation that promotes the establishment of branches of companies with their main establishment in third, non-EU countries. According to Article 17 par. 1a of L. 251/2014 (Immigration Code), third country citizens can obtain a residence permit in Greece as members of boards of directors, shareholders, managers, legal representatives, and other senior managers of domestic branches and subsidiaries of foreign legal entities that are legally conducting commercial activities in Greece.

This legislative provision and in particular the establishment of a branch of a foreign company in Greece turns to be very important for foreign companies wishing to enter in Greek market. In this way, foreign natural persons are granted the opportunity to enter in the Greek territory, while at the same time their managers or legal representatives acquire the right to reside and work in the country and free migration in Schengen country. At the same time, there is no restriction on the type of investment that the parent company will perform for the establishment of its Greek subsidiary. Therefore, the subsidiary has complete flexibility in defining its business plan, without any legal financial constraints, while it can optimize the management of its human resources, taking advantage of the highly flexible way of granting residence permits to its executives. Moreover, the renewal of these residence permits is not subject to any financial condition relating to the turnover of the parent company or the branch.

Finally, one of the important advantages of this mechanism is that it is not necessary to establish a new Greek company, which, under the provisions of the Immigration Code, is subject to the condition of employing at least 25 employees in order to obtain a residence permit for its executives. Once the process of establishing the branch of the foreign company in Greece is completed, the persons holding the above positions (board members, managers, legal representatives and executives) can apply for a national visa (Visa – Type D). This type of visa allows them to enter Greece, accompanied of their family members of course, and then they are entitled to apply for a residence permit, which is valid for a period of two years and then renewed every two years. In this respect, it is worth noting that the New Immigration Code (Law 5038/2023), which is due to enter into force on 1 April 2024, introduces new procedures and requirements for the entry and distribution of third country nationals in Greece, especially with regard to the above-mentioned residence permit.

In fact, the residence permit for board members, shareholders, managers, legal representatives and directors of companies is removed and, in its place, a new residence permit for investment purposes is introduced. Holders of this residence permit may be either shareholders of a domestic company with a paid-up capital or share value of at least 500.000,00 €, or members of boards of directors, legal representatives, and managers (without remuneration) of domestic companies or legal representatives of branches of foreign companies, which have assets or turnover of at least 4.000.000€. 

This requirement is expected to contribute to the enhancement of the Greek economy, as it is expected to attract wealthy investors (High Net Worth Individuals) and business executives who will contribute to the development of the country. For those who already hold a residence permit as executives, after its expiry, will be entitled to renew it under the category of intra-corporate transfer residence permit or special purpose employees residence permit or highly skilled employment residence permit (EU Blue Card), Of the above options, the transition to the category of highly skilled work permit, also known as the “EU Blue Card”, is interesting for the economy of our country. Although there is no clear definition in the legislation, it is accepted that for a third country national wishing to engage in highly qualified economic activity, certain qualifications are required. These qualifications are certified by the possession of evidence of higher education qualifications or, alternatively, professional experience is considered, provided that it has lasted for at least five years and has been legally acquired. 

The residence permit for highly qualified work opens new horizons for employees who are already integrated into the Greek working environment. It is an advanced and innovative approach that allows the continued presence of third-country nationals in the country, while seeking to attract a highly skilled workforce. As regards the procedure for the recall of workers in this category of residence permit, it is carried out after approval through a special procedure. in which the employers concerned must submit applications to the Decentralized Administrations of the Regions for the specific category of work they are seeking, followed by a thorough check by Public Employment Service (in Greek ΔΥΠΑ) as to the existence of a domestic workforce. For highly skilled workers it is also foreseen that the remuneration cannot be lower than 1.5 % of the average gross value of the annual salary in Greece, as derived from the data of the Hellenic Statistical Authority.

It is worth noting that in April 2023, the Joint Ministerial Decision was published in the Government Gazette (Government Gazette B’ 2189/3.4.2023), according to which the maximum number of residence permits for third-country nationals is determined for employment for the years 2023 and 2024, with the number of highly qualified employees positions set at 600, compared to the 292 positions provided for in the relevant Joint Ministerial Decision for the years 2021-2022. This option is not only a manner of maintaining the presence of highly skilled personnel in the country, but also reflects the strategy of targeted talent attraction. With the EU Blue Card, Greece seeks not only to attract but also to retain highly skilled workers, enhancing the country’s competitiveness in the international market. In this way, Greece is facing the challenge of maintaining the highest level of skills in its workforce, promoting economic growth and innovation. In conclusion, all the above-mentioned categories of residence permits enhance the image of Greece as a destination of supporting and investing in the future.The aforementioned legislation is highlighted as a key tool for creating opportunities and supporting business activity in our country.

Article written by Christina Georgaki, originally published on Lawyer – The Business Magazine