Security Alert
The promotion of charitable activity in Greece is a long-standing need. Historically, it has been highlighted the importance of reducing bureaucracy and state oversight affecting charitable institutions, including Public Benefit Foundations.
In this context, nine (9) months after the announcement by the Greek Ministry of National Economy and Finance regarding the establishment of a new framework for Public Benefit Foundations and donations to the Greek State, Law 5259/2025 was adopted by the Greek Parliament and published in the GG (A’ 228 12.12.2025).
Click here for the GR version – Πατήστε εδώ για το ελληνικό κείμενο
Overview of the new framework for public benefit foundations
The new framework regulates the same subject matter as the existing Code of Public Benefit Assets and Vacant Successions of Property (Law 4182/2013), which is henceforth repealed.
In particular, the new law comprises 131 articles (in Section I), with the new regulations for Public Benefit Foundations focusing mainly on the following:
New digitised transparency procedures requiring the mandatory posting of all acts and financial statements of public benefit assets in the new Electronic Register of Public Benefit Assets (abbreviation in Greek Η.Μ.ΚΟΙ.Π.), with constitutive publicity. The register will be publicly accessible, with exceptions for sensitive data. A relevant Joint Ministerial Decision is expected to be issued to activate its operation and provide clarifications regarding the transition process from the current Register of Public Benefit Assets of the Public Benefit Assets Directorate of the Ministry of Finance.
Mandatory regular management audit every three (3) years (instead of every 4 years) by certified auditors who issue a Report of Compliance (in accordance with the IFRS) which will be published on the Electronic Register of Public Benefit Assets.
Obligation to prepare financial statements in accordance with Greek Accounting Standards and publish them on the Electronic Register of Public Benefit Assets within four (4) months from the end of the fiscal year, providing for an administrative penalty of up to €5,000 in the event of non-compliance.
Provision of full exemption from taxation on income, inheritances and donations received by Public Benefit Foundations that are registered with the Electronic Register of Public Benefit Assets, as well as by corresponding foreign legal entities of the EU/EEA as of 01.01.2026 (see below for more details).
With regard to the establishment and operation of Public Benefit Foundations, despite the inclusion of a relevant proposal in the draft bill under consultation on the establishment of Public Benefit Foundations by joint ministerial decision instead of presidential decree, the core provisions of Law 4182/2013 are ultimately retained. In practice, establishment continues to require a presidential decree issued following a proposal by the Ministry of Economy and Finance and the competent Minister, while the consent of the Anti-Money Laundering Authority is also still required to verify the lawful origin of the assets.
Scope of application
The new regulations do not ensure universal support for charitable activities, as their scope (Article 3(1)) covers only Public Benefit Foundations, independent (public benefit) assets bequeathed to an existing legal entity, and any other assets disposed inter vivos or mortis causa in favour of the Greek State or other legal or natural person for the fulfilment of a public benefit purpose.
Furthermore, within the scope of the law, it is expressly provided that foreign foundations or trusts, as well as any type of legal entity or assets operating in Greece for public benefit purposes, are governed by the law of their place of establishment (Article 3(2) item b). It is noted that a provision initially included in the draft bill under consultation providing that the above-mentioned foreign public benefit legal entities would not be deemed to acquire tax residence or a permanent establishment in Greece solely by virtue of their activities therein was ultimately omitted. Nonetheless, the explicit inclusion of foreign public benefit legal entities is an important step towards recognising and highlighting the international dimension of charitable activity in Greece. Moreover, during the implementation of the law, said inclusion could be further strengthened through additional arrangements that would substantially facilitate the operation of foreign public benefit legal entities in Greece.
Based on the above scope of application, public benefit activities carried out by other charitable organisations – in particular civil non-profit companies (‘’AMKEs”) and public benefit associations (“Somateia”) – which demonstrably perform equally important work, continue to be unrecognised. This means that the establishment and operation of these organisations continue to be governed by the existing provisions of corporate and civil law.
The distinction between Public Benefit Foundations and other non-profit organisations (such as AMKEs and Somateia), which appears to be based exclusively on formal criteria (legal form) rather than on substantive elements demonstrating the fulfilment of charitable purposes, fosters arbitrary discrimination in the field of public benefit donations, as, when combined with unequal tax treatment (as mentioned below), it makes "large foundations" more attractive.
Tax incentives for public benefit foundations
The new framework establishes from 01.01.2026 full exemption from income, inheritance and gift tax for Public Benefit Foundations established in Greece and registered with the Electronic Register of Public Benefit Assets, as well as for corresponding foreign legal entities of the EU/EEA that demonstrably pursue charitable purposes in Greece (Articles 110-112).
Thus, as of 1 January 2026, the tax burden previously borne is eliminated, including for the Greek Public Benefit Foundations, without requiring their registration in the Electronic Register of Public Benefit Assets until it becomes operational, in accordance with the relevant transitional provisions.
It should be noted that, until now, Public Benefit Foundations and foreign non-profit legal entities did not enjoy a general exemption, but were subject to: (a) a 22% corporate income tax, with the exception of income generated in pursuit of their charitable purpose; and (b) a special regime of independent taxation, at a reduced rate of 0.50% on inheritances and donations received.
However, no such tax treatment was granted to other non-profit organisations – in particular AMKEs and Somateia — resulting in an unreasonable tax discrimination as follows:
Other provisions of interest regarding donations to the Greek state
Proposals for donations to the Greek State or to legal persons governed by public law that are supervised by the Greek State, and acceptance thereof, are registered and monitored exclusively through the Electronic Donation Platform (e-Donations) of the Electronic Register of Public Benefit Assets, with the exception of cases of national security or statutory confidentiality (particularly tax, banking, medicine) or when they are contrary to the personal data protection legislation. The Anti-Money Laundering Authority has direct access to this information, and the recipient of any donation proposal exceeding €500,000 must notify the Authority.
The process of proposing and accepting donations is being now digitised and appears to be significantly simplified, but the relevant Joint Ministerial Decision is awaited to clarify ambiguities regarding the submission and acceptance process.
From a tax perspective, the VAT exemption procedure for donations to the Greek State is also simplified. The previous requirement for ministerial approval by Joint Ministerial Decision is replaced by the acceptance of the donation proposal in accordance with the new legislation on donations to the Greece State.