Form a General Partnership (OE) in Greece

The General Partnership – Ομόρρυθμη Εταιρεία (O.E.) – is the simplest business structure in Greece. It’s also the most exposed: every partner bears unlimited personal liability for the partnership’s obligations.

That trade-off – simplicity and tax efficiency in exchange for full personal risk – makes the O.E. suitable for a narrow set of circumstances. But where it fits, it works well.

STRUCTURE

An O.E. consists entirely of general partners. There is no limited partner category. Every partner has the right to manage and represent the partnership by default, and every partner’s personal assets are on the line if the business cannot meet its obligations. Liability is joint and several – meaning any single partner can be pursued by creditors for the partnership’s full debts, not just their proportional share.
This is a structure built on trust. It only works when all partners are actively involved, fully aligned, and comfortable with the level of exposure.

TAX TREATMENT

The O.E. shares the same tax advantage as the Limited Partnership (E.E.):

With single-entry bookkeeping (the default for smaller businesses), profits are taxed once at 22% at entity level. Distributions to partners are not subject to any further tax – no 5% dividend withholding, no additional income tax.
If annual revenue exceeds €1,500,000 for two consecutive years, the partnership must move to double-entry bookkeeping. At that point, the single-taxation advantage is lost: distributed profits become subject to the standard 5% withholding, the same as an IKE or SA.

The tax efficiency is real, but conditional – the same rules and thresholds that apply to the E.E. apply here.

FORMATION AND ACCOUNTING

Formation follows the same streamlined process as other Greek entities: electronic registration through GEMI, with notarial involvement only when contributions include real estate or other assets requiring formal transfer. Single-entry bookkeeping keeps accounting costs low for partnerships below the revenue threshold.

WHEN IT MAKES SENSE

The O.E. is appropriate in limited circumstances: small professional practices, family ventures, or partnerships where all participants are active in the business, trust each other fully, and accept the liability that comes with this structure. It is not suited to arrangements involving passive investors – the E.E. exists for that – or to businesses where any partner wants the protection of limited liability.

For most foreign clients, the IKE will be the better choice. But if your situation calls for a partnership and you want the simplest, most tax-efficient option available, the O.E. deserves consideration.

Contact us to discuss whether it fits your plans.