Hahalis & Kounoupis, P.C. - Greek Law Group

Proud to be published in the prestigious ABA INTERNATIONAL LAW REVIEW

GREEK BANKS
Τράπεζες στην Ελλάδα
Banks in Greece have ocome a long way from the past and have improved their services. The Greek banking sector involves a few major banks and some smaller regional banks. The bank of Greece Τράπεζα Της Ελλάδαs -not to be confused with the National Bank of Greece-, is the government entity that is a central bank sort of like a Federal to ensure the viability and regulation of banks. We generally deal with banks in Greece for our USA clients in opening a bank accounts, which will include tax ID number, identity, address, and salary information.

The Bank of Greece, the capital market Commission and European Union regulations control the supervision of banks in Greece. The main banks in Greece are Pireaus, Eurobank, The National Bank of Greece. In our firm we generally deal with Greek banks on behalf of our USA clients through power of attorney to open a bank account in Greece, or to renew or reactivate accounts that have gone stale due to strict regulations requiring banks to verify who their account holders are to prevent money laundering and tax evasion.
Having acted as bank counsel in the United States for numerous of the largest banks and representing some of the largest banks in the United States also, we are fully familiar with international banking and working with Banks to accomplish the goals of our clients in Greece. 

WHAT IS GREEK ΑΦΜ?

Νομικά Θέματα Με Αριθμό Φορολογικού Μητρώου

In brief, this is the Greek tax identification number. In the United States, our Social Security number is our tax identification number for individuals in the United States . Also entities such as corporations, limited liability companies have entity, identification numbers.

The Greek tax identification number is a nine digit number. It is necessary to work in Greece to open up a bank account to buy or sell property and to have probate in Greece.The Greek online tax services of the Εφορία utilize the AFM to access a digital service called TAXIS-NET using specific codes linked to the 
ΑΦΜ .
As part of our long 30 plus years representation of Greek Americans in real estate, tax ,probate and litigation matters, we routinely open up and set up AFM numbers for them utilizing Greek Πληρεξούσια

It is important to note that conducting business transactions in Greece without registering an AFM, number is subject to possible high penalties fines and enhanced taxes. The more unlawful, the and unrecorded the real estate transactions are the higher the penalty.

GREECE CORPORATE TAX
-INTERNATIONAL TAX OF USA GREEK CORPORATIONS
Φορολογία Εταιρειών Ελλάδας Και Αμερικής

In GREECE corporations that are deemed to have a residence in Greece, including United States, subsidiaries and branches, are taxed for worldwide income. Of course these entities will also be taxed by the United States. The ability to play games with deferred income abroad in terms of United States taxation has been greatly reduced by recent tax legislation. The discussion into controlled foreign corporations and disregarded entities is a complex one but a necessary one in considering the US taxation of parent companies with foreign branches and subsidiaries, including those in Greece .Appropriate treaties and tax credits must be applied to minimize taxation. Non-Resident corporations will be taxed in Greece on any Greek source income only. The corporate tax rate of income for entities has been approximately 22%.
In looking at the entire international USA-GREECE structure, careful consideration must be given to the nature of the US ownership and management This means ,generally, the parent company or affiliated company and the nature of the Greek structure are determinative. For one thing, this is important to determine residency and presence . The Greek structure can be a corporation Ανώνυμη Εταιρεία a
limited liability company Εταιρεία Περιορισμένης Ευθύνης or a private capital company IKE. in the buying and selling of shares of such companies, Americans should be aware that capital gains taxation for overseas transactions will always be enforced in the United States. Capital gain in Greece varies such as 15% on shares taxation and interest;and to a freeze on capital gain for the sale of real estate in recent years- until DEC 2024 .Dividents if taxable are taxed at a 5% rate.

IN GREEK AMERICAN BUSINESS AND LEGAL MATTERS COMMUNICATION IS THE KEY
“ITS THE Συνεννόηση Και Κατανόηση «

I advised a major United States real estate equity fund in Greece recently with regard to continuing issues on the operation management and overview of their multimillion dollar Greek investment. Continuing problems between the managing partner and the shareholders existed. (USA LP MANAGED BY USA LLC-with various Greek IKE SUBSIDIARIES all-of which we set up) Finally i realized and explained to one of the shareholders what one of the major issues was. The American investor was a “American style “businessman“. The one shareholder was a “Greek style“ businessman. These backgrounds and business views created substantially significant differences in the way they approached legal contracs, lawyers, , documentation, reporting oversight , management etc.. Now, both are United States residents and both United States citizens. It is just that the way they grew up in their approach to business and the above matters was completely different. I have widely lectured on this at the ABA international law section. It is extremely important to take these differences into account in international business matters. Having immersed myself in both these cultures for over 37 years is critical to the way I represent clients across country lines. You need to understand legal concepts, and business concepts the way they are understood and applied by the other culture. You need to see the things that they put value in and focus on based on the way they’ve been taught and have done business over the years.

LEADING GREEK LAW FIRM
RECOGNIZED IN INTERNATIONAL LISTINGS AND INDEPENDENT RANKINGS FOR OVER 30 YEARS

For over 30 years-
The top most recognized law firm for Greek legal matters for American citizens and residents. Ability to recognize and enforce AND PROTECT the Greek legal rights of our American clients in Greece whether it be inheritance real estate business —is unmatched and has been widely recognized as the preeminent law firm for these matters.

Happy – to speak on international law for the Federal Bar Association.



www.fedbar.org

www.fedbar.org

NEGOTIATING CONSTRUCTION CONTRACTS IN GREECE
-THE RUNAWAY GREEK BUILDER

«Τώρα Το Σπίτι θα Κοστίσει Δίπλα Γιατί Ανέβηκαν τα Εργολαβικά κλπ»

 The Greeks have been building structures in Greece for thousands of years and yet it’s harder than ever to get a clean and good contract today!

 — “let’s just sign the Greek builder agreement because people just sign it. That’s the way it’s done. Don’t worry about it. Have trust. The builder will be offended if you question the terms.”

The fact of the matter is that many Greek lawyers are not familiar or comfortable with the use of representations and warranties in such agreements. They’re just not part of their culture. 

in the United States construction agreements are well negotiated. They can be firm price /cost and materials and incorporate allowances and specifications. Greek construction contracts also contain these but very often are wide open on widely fluctuating increases in price and material up charges. It is extremely important that these contracts be properly negotiated. We have negotiated and drafted millions of dollars worth of construction agreements in Greece. The variety of contracts that can be negotiated in Greek building agreements can be a flat price, a time and materials contract ,capped percentage contract, and other various provisions. These are designed to cap or limit the amount of unplanned increases in labor and materials. For example ranges in costs can be expressed and limited as a percentage of the total contract being a ceiling, and in fact, provisions can be built in for bonuses if the construction is completed on time and penalties if the contract is delayed, which is often the case in Greece. Careful drafting and negotiation is required as much risk is involved and such investments, depend on cash flow from completed projects. The longer the financing remains unpaid on these projects the longer the losses are and the losses mount on the project. Project delayed means profits denied very often. The US investors get mad and start questioning the disclosures of the investment and contemplating lawsuits .We’ve negotiated millions and millions of dollars in construction agreements representing the largest banks, developers and builders in United States .We are just this familiar with Greek contracts and can explain the differences and different risks. Many top USA  real estate investment companies choose US for legal advice in Greece. 

Proud to be asked to speak again by the prestigious, Federal Bar Association on careers and international law and international law practice.
Teaching other lawyers, United States, and Greek legal practice and international legal practice for over 30 years.
The foremost and oldest also USA BASED AND REGULATED law firm and practice for Greek legal matters

CONTINUING TO BE RECOGNIZED INTERNATIONALLY AS AMONG THE TOP IN BUSINESS LAW—USA -GREECE

We have written and published the most definitive, USA, Greece, international estate, planning programs and guides.

κληρονομικά Θέματα Και Επιφυλάξεις Σε Κληρονομιες Μεταξύ Ελλάδας Και Αμερικής

How can you properly plan in estate of a Greek-American with United States and Greek assets when you haven’t handled both United States and Greek eatates both ?We have handled separately United States estates for over 35 years and Greek states separately for over 35 years. As a result of this,JOINT experience WE ARE best able to handle Estates EXISTING joint in both countries. That is WE ARE FULLY able to understand the US estate and probate system and the Greek system simultaneously.

In this regard we
Are in a unique position and are sought nationwide to create proper estate planning between United States and Greece -when there are assets in both countries. What does this mean? It means USA estate procedures are quite different from the Greek inheritance procedures— but it may be necessary to file in both countries and take legal action in both countries.. It means understanding when to publish and file a probate in one country versus another. It means understanding the meaning of residency and citizenship as well as the site and natire of the assets upon which law applies is decided. It means understanding the applicable tax laws and treaties. It means understanding where to file first primary vs ancillary probate. it means understanding the provisions of Greek law and how they will be enforced or avoided. It means understanding when a will or trust will be applied in another country or not. It means understanding when a will has priority. It means understanding the meaning and application of American living, bypass or pour over will into trusts may be applied in Greece and how they may not be used. It means the understanding parental gifts and their uses in Greece and keep them properly utilized. It means understanding a role of guardianships in estates and how guardianship are recognized and enforced in Greece. It means being able to understand and explain to the Greek courts the exact meaning of United States court orders .Understanding the various necessary, state, federal and state tax value and applications in the US versus the Greek inheritance tax. It means properly advising and planning for the capital gains in the United States that may exist from the sale of inherited property in Greece. These considerations must all be properly coordinated to make sure that someone who leaves property in the United States and Greece has their wishes accomplished as they see fit 

GREECE
THE CROOKED GREEDY PROPERTY GRAB

Πως θα Χασίς
Την Κληρονομιά σου Και Περιουσία Σου Στην Ελλάδα

In Handling hundreds of probates /inheritances in Greece —what are the cases where we’ve had the most fights and of course, the most problems.

—Giving Greek power of attorney Πληρεξούσιο to relatives not realizing that these give them signature authority to do what they want.

—Dealing with realtors lawyers notaries advisors “internet firms” who are not lawyers ,are not bonded and protected and whi have no conflict of interest obligations — You have no protection.

— not understanding that agreements of sale /contracts/estates / deeds -the way we understand them in the USA -DO NOT EXIST IN GREECE

—Not realizing that forged wIlls, forged handwritten wills and duress wills— shall be utilized so that you need to take steps to probate United States documents and have them recognized and assert promptly your United States inheritance rights.

—Not recognizing when USA law or Greek inheritance law applies.

Not doing an adequate title search to search the proper properties and include them in the probate.

These are just some of the things we have seen and we have uncovered in dealing with fraudulent watates wherw we have recovered peoples real estate inheritance, and protected Greek Americans inheritances in Greece for over 37 years. This is why we are the choice of the top American law firms when they seek to refer to us complex inheritance matters in Greece.

AMERICANS AND GREEK BANK ACCOUNTS
Τραπεζική Λογαριασμοί Στην Ελλάδα Από Έλληνο Αμερικανούς

Why are banks in Greece continuously requiring documents and evidence for wing able to maintain bank such accounts open

This is because of international regulations in force, including FATCA for US residents

The bank must collect specific information to be submitted to the Greek tax authority ΕΦΟΡΙΑ. Most cases this information is exchanged between the United States
IRS and Greece.

You should fully expect that your Greek ΑΦΜ number is crosschecked against your Social Security number -which is your US tax identification number. Anyone that has a joint account or bank account Greece must submit the information to the individual resident. This is information providing supporting documentation as to US tax status US residency and related information proving permanent residency in the USA.

USA GREECE CHILD CUSTODY

What happens when improper advice is given in USA GREECE divorces

We been involved in multiple international lawsuitS, trying to bring back kidnapped children under the above law. Tremendous international experience is needed legally to make sure that the proper US and Greek custody visitation orders are in place to prevent a very expensive procedure under the above treaty.

WHAT HAPPENS WHEN A HUSBAND OR WIFE SUDDENLY LEAVES AND GOES TO GREECE FOR POTENTIALLY THE OTHER WAY AROUND, SOMEBODY ABANDONS A SPOUSE AND THEIR CHILDREN IN GREECE AND RUNS OFF TO THE UNITED STATES.
The spouse remained behind has the burden of the childrens support and maintenance maybe for 18 years and through college. We’ve had many of these cases over 37 years. Greece and the United States are members of a treaty which allows for the enforcement of child support from one country to the next. This requires legal action, both in the United States and Greece, which our firm with lawyers in both countries and offices in both countries can do.

Unmatched —-and one of a kind 37 year history in developing studying and interpreting GREEK LAW internationally . The Law Firm for Greek matters.

Highest recognitions and credentials .Trusted to handle your Greek matters o er 37 years.

Feel as if your Greek law firm is as trusted as your USA LAW FIRM. Why take risks why deal with fears and unkown factors.
PROVEN RECOGNITIONS BELOW.

37 years
TRUSTED IN THE USA
TRUSTED IN GREECE

At the forefront of Greek American business representation for over 37 years,

BUYING AND SELLING REAL ESTATE IN GREECE
Αγοροπωλησίες Ακίνητα

Let’s NOT use the Greek “real estate, marketing, firm” or “Internet representation firm “with a bunch of undocumented, unknown, conflicted, lawyers who may work for them instead of you. Let’s not use the cheap market web real estate firms looking for the easy buck who don’t know you and promise that they can can “help do the whole thing” for you —indeed their loyalty may be to buyer sellers realtors or other parties, including lawyers on their payroll. If you’re gonna do serious legal business, use a serious law firm. In reality, use an actual law firm and preferably one that you know and can find the United States as well as Greece. SO why do we say this?

In the United States, we use the words due diligence. This applies to Greece as well and even more so. This means the care that you are obligated to do whether you like it or not because you’re dealing with major items that can affect financially the rest of your life. What does this mean. It means that there are huge differences between the United States and Greece. For example, in buying real estate, there are no agreements of sale per se in GREECE. There are no representations and warranties to protect you against the seller. the Greek agreement of sale is a deed only AND DOES Not fullfill this function. The minor checks and balances by the public notary are simply not enough and vastly different as are used in an agreement here in the USA. Accordingly, very often in a transaction to get the protections that a buyer needs a buyer needs to do a pre-contract or as we say in Greece Προσύμφωνο .Also there are extreme risks for title because there’s no title insurance in GREECE and therefore great care must be taken in the title search, especially if there are estates in the title. It is also very common for Greek buyers to want the deed first allegedly for their bank and then promise to give the money. This can be neutralized as a risk by the utilization of experienced legal counsel such as our firm;and there are multiple other risks that we’ve learned and seen over the years -such as paying the money and not getting the property such as the builder not being able to finish the property or having numerous defects on the property and of course very often when a buyer buys a property, the money is given out to the builder who made dissappear and never finish the work.OUR FIRM has been involved in USA Greek real estate matters for 37 years and can guide you through these multiple risks and legal exposures. 

USA -GREECE FAMILY LAW
Δέματα Οικογενειακού Δικαίου-Ελλάδα Αμερική

Great care needs to be taken- for example if one of the spouses moves to Greece or wants to take the children. Maybe there are properties in both countries ;there are issues of child custody, and child support and distribution of property. The laws in the United States and Greece are very different and also the way that the laws interact with each other is very complicated. We’ve handled such matters for over 37 years. For example final enforcable divorce orders and custody orders are granted never allow a spouse to take a child to Greece without the proper orders in Greece and in the United States. Although the HAGUE convention ON child kidnapping is available, this is a difficult and long process.
In addition, acceptable property distribution orders must be incoprorated into a court order as well as related to final property distribution agreement so they can be enforced in Greece on legal recognition provisions. For child support there is a HAGUE treaty that also applies that must be carefully considered. In addition, the nationality citizenship and place of marriage of the parties as well as residence must be considered on what law applies and where the lawsuit may be brought. Law and distribution rules vary in the US with the United dates being an equitable distribution regime in Greece being an ownership based regime. As an aside, it should be noted that in many of these divorces we are retained to uncover foreign assets that are hidden by the spouse and not revealed to the United States court or Greek court.

As major United States corporate law firm for over 37 years, we’ve done significant securities and investment vehicle work in United States, including initial public offerings listings in over-the-counter markets and advice on millions of dollars of private placement memoranda. In this regard we are fully familiar what is required for listings both within the USA -and relevant blue sky laws- and Greece. The core of that knowledge we have used and our experience for advising companies to enter the Athens stock market and the Greek securities regulation environment THE MAIN CONCEPTS are very similar to the USA .These are the proper registration forms, the proper exemptions, the proper notifications and more importantly the proper disclosures. Disclosures is where the most important part is. This is that the disclosure must be accurate not only as to the Greek nature and risk of the investment but also the investors and risks they may have, in terms of the USA disclosure side. Advice guidance on management is also going to come from the United States. Parent Company may oversee the find/Greek investment to be listed in the Athens stock exchange. This must be carefully disclosed. If financial backing is coming from the United States these accounting statements must be properly shown without deviation from general accepted accounting standards and with the proper audits. Litigation risk and particular issues of various investors must be disclosed. Given our many years experience both in the Greek and United States stock markets we are most able to handle the intricate details of such business transactions.

An honor to be allowed to mentor younger lawyers as part of the American Bar Association program teaching young international lawyers how to enter into such a career .This is a pleasure after my 35 years of being an international lawyer specializing in United States and Greek law.

35 years at the center of national international litigation and policy .
A blast from the past

Here back in 1989 with a major USA, corporate law firm assisting the former federal USA attorney regarding the organized crime strikeforce of the United States.

THE RIO ANTIRIO BRIDGE

Let us be your bridge from the USA to Greece for business
Η νομική γέφυρα Για Επενδύσεις Στην Ελλάδα

Επιχειρηματικό
Δικαιο- Αμερική Και Ελλάδα

Companies doing business in Greece today from the United States must increasingly bridge significant risks. These risks include regulatory risks as well as cultural differences. That means that a company must negotiate a dense and difficult regulatory environment, as well as planning the business around significant issues so as to be competitive. To be competitive, Greece requires knowledge of all these things. Some risks for the business are serious and some are existential risks that are so high that could cause the destruction of the business itself. These risks are magnified if a United States business is in a partnership or joint venture or merger with the Greek company as so issues of control and potentially litigation in the Greek courts is implicated.
When dealing with United States, investors and shareholders, the ability of management to provide the required due diligence and reporting information to them is critical and therefore someone who can explain these Greek legal issues and risks in a way American investors and attorneys understand is also critical.

In the United States we have handled over a thousand companies orporate and legal work ,regulatory compliance , mergers and acquisitions ,taken companies public and so are familiar with how foreign corporate business operations work and representing such companies in Greece communicating in a language that their executives and officers understand. Often United States corporate lawyers will ask us questions and will be surprised when we explain in particular detail how regular proceedings or litigation proceedings may occur in Greece quite differently versus the US.They are surprised also how contract provisions they inderstand one way may be interpreted differently on Greece. They may be surprised how Greek courts may interpret forum election clauses versus in the United States or application of choice of law provision as oppossed to United States law.

We are not limiting this required expertise in talking only business and tax -we are also talking about employment law,sales regulations ,competition and tradesecret law ,privacy, regulations /environmental laws, as well as stockmarket and investment fund and related regulations including EU. For over 35 years we have been managing such risks for United States companies doing business in Greece.

Very important is the structure for management and control. Will the United States parent company for example hold all the shares of the Greek subsidiary; who will be the managers of the Greek entity so that decisions and resolution of differences can be made in a predictable way. For example if the law of New York applies to limited liability company party disputes, this is quite different from the law of Greece with regard to Greek IKE dispute resolution. Leasing and real estate agreements are different. Greece registration and operation regulations are also critical with regard to the companies’ operations. Financing and banking issues are critical as well as applying for grants for productive enterprises in Greece -requires knowledge of the documents required from the USA .The required documents for the investor to get grants in Greece would be from the United States in large part. These are areas we have worked in extensively over 35 years with both Greek and USA companies.

Greek bank compliance procedures for foreign residents and foreign investors. Greek and EU banking laws. Νομικά Θέματα Για Τραπεζικούς Λογαριασμούς Στην Ελλάδα.

Why such trouble in dealing with Greek banks? These can be in two forms, the constant requirement to reactivate an account that is deemed dormant, and also the significant time and trouble in opening up an account on Greece by Greek American or American investors.
For over 30 years, we have represented foreign companies and foreign owned companies in Greece. Steadily over those years, the regulations have become even more intense and complicated. Current rules require banks to conduct customer die diligence and compliance procedures before opening up a bank account. This is done to prevent money laundering, tax evasion, and financing of improper activities. These are both Greek and EU regulations. Very often Greek banks are not required to give specific reasons why they refused to open a bank account or to specifically disclose the results of their due diligence.

Certainly if the foreign individuals from countries such as the United States have established a permanent residence in Greece, and have been regularly filing Greek taxes it is an easier situation. With regard to foreign companies incorporated in Greece, the banks’ procedure must analyze all the members and actual beneficial owners of the foreign entity. The bank will examine the ownership structure very carefully. A bank may refuse to open an account if there’s an offshore company of uncertain ultimate beneficial ownership. New regulations in some countries such as Cyprus have also imposed beneficial ownership registration requirements. Any suspicion of a phantom company or suspicious offshore activities will cause the opening of the account to be denied.
Our ability to access understand and provide United States corporate information, certificates of good standing ,corporate information certificates, incumbency certificates, tax certificates and opinions in the United States gives us a great advantage in representing United States companies in Greece. This is because we can certify obtain and explain to the Greek bank exactly what the USA structure is and obtain all documents in the United States —since we are well versed in utilizing all said documents in our 35 year plus United States business and corporate practice.

The risks of worldwide or double taxation in Greece due to failure to register proper tax status.
Φορολογικός Κάτοικος Ελλάδας Η φορολογικός Κάτοικος Αμερικής-Οι σωστές Δηλώσεις ΔΟΥ.

We see this problem in several different ways usually. One is Greek Americans who travel to Greece and stay more than 183 days. The other is Greek Americans who begin work in Greece under a Greek tax ID number/ AFM /WHO DO NOT REALLY CONSIDER THE TAX IMPLICATIONS OF THIS. IN ADDITION, WE SEE IT WHEN GREEK RESIDENTS MOVE TO THE UNITED STATES AND ESTABLISH PERMANENT RESIDENCY IN THE UNITED STATES FOR A NEW JOB FOR EXAMPLE. in all these situations, the person potentially becomes OR CONTINUES TO BE A Greek tax resident automatically and by operation of law. The repercussions of becoming a Greek tax resident are that Greece will now seek to tax you on worldwide income. That means that you will need to declare your United States income to the Greek tax authority. of course you are always taxed by the United States whether you live in the United States or not if you are United States citizen. So Greece will tax you on the United States income and the United States will tax you on the United States income. Of course there are treaties that address double taxation, but there can still be a deficiency due to higher taxation rates in Greece. These liabilities can be substantial. The proper way to address this legally is to file a petition to change tax residency from Greek tax residency to foreign tax residency, which is done by a process with ΔΟΥ according to the law.