Enterprise Greece Is the Official Agency of the Greek State, Under the Supervision of the Ministry for Economy and Development
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November 2018 GREECE IN THE SPOTLIGHT: A Worldwide Destination for Global Business Services and Shared Service Centers Greece at your business' service www.enterprisegreece.gov.gr A. INTRODUCTION A global trend It is increasingly common for multinational companies to establish Global Business Services – GBS and Shared Service Centers – SSCs to provide services within the group. With the rise in volume of cross-border transac- tions and intensifying competition among multinational groups, companies often centralize the entire range of intragroup services in a single location to achieve efficiency and avoid duplication of services. This trend has led to a rise in intragroup SSCs. Why Greece? Many multinational companies have already chosen Greece as a preferred location for the establishment of Global Business Services – GBS and Shared Service Centers – SSCs. Greece presents a unique investment opportunity as it combines: An advantageous geostrategic location A highly educated and multilingual work force Competitive wages Flexible investment framework Telecommunications infrastructure Competitive real estate Excellent climate and quality of life EU member country enjoying stability, security and prosperity 3 B. GREECE AS YOUR NEXT BUSINESS LOCATION B1. GEOGRAPHIC POSITION Strategically positioned as the Flight time from Athens to (app.): gateway to 3 continents New York: 10 hours Moscow: 3 hours In a time zone (+/- 3h) Greece covers: London: 3,5 hours Dubai: 4 hours 2,4 bn people (30% of global population) Brussels: 2,5 hours Beijing: 8,5 hours ~30% of global GDP Sweden Estonia Denmark Latvia Lithuania Russia Netherlands EUROPE UK Belarus 2.000 km Poland Belgium Germany 1.500 km Ukraine Slovakia Switzerland Austria Moldova France Hungary Slovenia Romania Croatia Italy Bosnia Serbia Bulgaria Montenegro AFRICA FYROM MIDDLE EAST Albania Portugal Spain Thessaloniki Turkey Athens Tunisia Cyprus Syria Algeria Mediterranean Sea Lebanon Morocco Israel Jordan Libya Egypt 1.000 km 4 B2. TELECOM INFRASTRUCTURE Greece can satisfy all telecom infrastructure needs (fixed, mobile, data, fiber-optic networks etc.). International network: Greece is a part of • MedNautilus Submarine System-Sparkle • Asia-Africa-Europe 1 (AAE-1) • The Quantum Cable, a planned subsea ultra high speed fiber-optic cable system connecting Asia and Europe via the Mediterranean Sea Backbone network: OTEGLOBE, WIND, Vodafone, Forthnet, CYTA, among others According to the National Broadband Strategy, Next Generation Access aims are 100% broadband cov- erage with minimum speeds of 30 Mbps with at least 50% of households benefiting from100 Mbps by 2020. In line with the targets of the Gigabit Society, this should rise to 1 Gbps connectivity by 2025. Asia-Africa-Europe 1 (AAE-1) MedNautilus Submarine System Source: https://www.grnog.gr/wp-content/uploads/sites/7/2018/07/ Polyrakis-Internet-Infrastructure-in-Greece.pdf 5 BROADBAND PENETRATION IN EU 28 50 th 45 GREECE 10 40 35 30 25 20 15 10 5 0 UK Italy Malta EE-28 Spain Latvia France Greece Cyprus Finland Ireland Austria Croatia Poland Sweden Belgium Portugal Slovenia Hungary Slovakia Bulgaria Denmark Germany Esthonia Lithuania Romania Netherlands Luxembourg Czech Republic Source: Hellenic Telecommunications and Post Commission- June 2018, https://www.eett.gr/opencms/export/sites/ default/EETT/Electronic_Communications/TelecomMarket/broadbandServices/Broadband-stats-2017-Q4.pdf B3. TOP TALENT Top talent at a highly competitive cost. Density of talent is key to building 3rd in percentage of graduates in Science strong ecosystems (ITIF Report Jan 2016). Comparatively high density of developers Oslo Helsinki 0,51% 0,36% Copenhagen Stockholm Dublin 0,49% 0,65% 0,64% Amsterdam 0,61% Berlin 0,33% Paris 0,61% Zurich 0,29% Vienna Madrid 0,16% Lisbon 0,18% Rome 0,28% 0,05% Athens 0,33% Source: https://talent.balderton.com/European_Tech_Talent_Landscape.pdf 6 AMONG THE EUROPEAN LEADERS IN SCIENCE & TECHNOLOGY WORKFORCE Human resources in science and technology as a share of the active population 50,80% 48,70% 44,30% 38,50% 36,50% 36,50% 36,40% 36,30% 28,10% 27,70% France Germany Spain Greece Bulgaria Hungary Portugal Italy Turkey Romania Source: Science & technology statistics 2017 A MULTILINGUAL WORKFORCE Percentage of Managers, Professionals, Percentage of Clerical Support Workers, Service Technicians and Associate Professionals & Sales Workers who speak a foreign language who speak a foreign language Italy Italy Spain EE-28 Malta Spain EE-28 Malta Greece France Portugal Greece France Portugal Germany Germany Source: Education statistics 2015 7 B4. GREECE REMAINS HIGHLY GOMPETITIVE IN THE EU ON HOURLY LABOR COST Labour Cost per hour in Euro in the Service Sector 40,6 36,1 30,5 28,7 26,9 25,8 20,1 16,3 13,8 14,3 Belgium Greece Portugal Cyprus Spain EU Italy EU Area Germany France Belgium Source: Science & technology statistics 2017 GREECE REMAINS STRONGLY COMPETITIVE ON AVERAGE ANNUAL WAGE COST 60k 50k 40k 30k 25,1k 20k 10k 0k Italy Chile Latvia Korea Israel Spain Japan Mexico Estonia Greece Poland Finland France Austria Canada Ireland Iceland Hungary Portugal Slovenia Sweden Belgium Norway Lithuania Germany Australia Denmark Netherlands Switzerland New Zealand United StatesLuxembourg Czech Republic Slovak Republic United Kingdom Source: Employment Outlook 2017 8 B5. COMPETITIVE REAL ESTATE PRICES, AFFORDABLE LIVING COST WITH A UNIQUE LIFESTYLE COMPETITIVE REAL ESTATE MARKET IN PRIME CDB RENTS Prime CBD rents (€/sq.m./year), Q1 2018 Note: Prime rents refer to modern office space, minimum 1,000 sq m Source: Market report, European Offices Savills Vacancy rates, Q1 2018 11,00% 8,80% 8,30% 8,00% 7,00% 5,90% 5,70% 4,50% 2,30% Athens Lisbon Brussels Frankfurt Barcelona Paris CBD London City Copenhagen Luxemburg Source: Market report, European Offices Savills 9 ATHENS' OFFICE MARKET CONTINUES ON A PATH OF IMPROVEMENT B6. GREECE A UNIQUE PLACE TO LIVE Greece scores high on all major factors taken into consideration when choosing a new country for relocating, such as quality of life, regulated environment, secure living conditions in urban and rural areas, access to efficient services, residence privileges for family members, freedom to travel: Rich history and culture Natural beauty and mild climate Greek cuisine-Mediterranean diet A wide variety of educational options Modern healthcare infrastructure and highly skilled medical personnel Multilingual population Intellectual capital 10 AFFORDABLE AND COMPETITIVE LIVING COST IN A DEVELOPED MEDITERRANEAN ECONOMY Price level index for household final consumption expenditure, 2017 166 159 142 143 122 125 125 127 117 108 109 111 112 101 103 105 92 84 85 85 88 79 82 69 69 72 62 65 67 53 55 56 47 48 51 52 52 52 52 Italy Spain Malta Latvia EA-19 Serbia Turkey France Poland Cyprus Ireland Greece Croatia Austria Iceland Finland Estonia Albania Norway Sweden Belgium Bulgaria Hungary Portugal Slovenia Slovakia lithuania Romania Germany Denmark Kosovo (*) Kosovo Switzerland Montenegro Netherlands Luxembourg Czech Republic United Kingdom Former Yugoslav Republic of Macedonia Bosnia and Herzegovina (*) This designation is without prejudice to positions on status, and is in line with UNSCR 1244 and the ICJ Opinion on the Kosovo Declaration of Independence. Source: (Results are based on price surveys covering more that 2,400 consumer goods and services which were conducted across 37 European countries participating in the Eurostat-OECD Purchasing Power Parities (PPP) program QUALITY OF LIFE… Greece Ranks 1rst in # of Practicing physicians, per 100.000 inhabitants in EU, in 2009 and 2014 2009 2014 Source: 11 B7. ESTABLISHMENT OF INTRA-GROUP SERVICE CENTERS IN GREECE AND AVAILABLE FINANCING An attractive framework for businesses Intra-Group Service Centers established in Greece, under Law 3427/2005, may provide the following services to their head-offices or affiliates abroad, as well as in Greece: Consulting services, Centralized accounting services, Quality control of production, products, procedures and services, Preparation of studies, designs and contracts, Advertising and marketing services, Data processing services, Receipt and supply of Information and Research & Development services. The entities under this law are obliged to maintain a minimum size regarding the employment and operating expenses, at least 4 employees and €100.000 per year operating expenses in Greece. FRIENDLY AND CONTEMPORARY FRAMEWORK Intra-Group Service Centers enjoy the following benefits: Flexibility with regards to the type of business entity Simple, fast and transparent licensing process Legal certainty with pre-defined profit margin on costs The submission of the necessary documentation can be done electronically Residence and work permits for its foreign staff Companies wishing to establish presence in Greece for the provision of Intra-Group Services, subject to the provisions of Law 3427/2005, are required to submit to the Directorate for Foreign Capital at the Ministry of Economy and Development INVESTMENT INCENTIVES FOR INTRA-GROUP SERVICES shortly available under Law 3427/2005 The following investment incentives will be shortly introduced as an amendment to the existing Law 3427/2005 in order to provide a comprehensive investment framework for GBS and SSCs in Greece. Types of incentives: Total wage cost (wage and social security contributions) subsidies for the creation of new employment in labor intensive GBS and SSCs Total wage cost subsidies up to 50% for new scientific personnel and technical staff Subsidy