Greece Emerges as a Magnet for Global Investment Funds

Greece is emerging as an increasingly attractive destination for major international investment funds, with global asset managers considering Athens not only for investment opportunities but also as a base for their operations and senior executives.

The shift marks a significant change for Greece, where the prospect of becoming a financial centre appeared unrealistic just a decade ago.

Recent developments have strengthened that prospect. Chris Rokos, founder of Rokos Capital Management and one of Europe’s best-known hedge fund managers, announced that he will move his tax residence from Britain to Greece. His firm manages a portfolio worth around $22 billion.

Meanwhile, Millennium Management, one of the world’s largest asset managers with more than $97 billion under management, plans to open an office in Athens.

US-based Veriton Fund Management, which manages approximately $12.6 billion, also appears to be considering expanding its presence in Greece.

These moves involve some of the world’s largest asset managers and could lead to more of their operations and senior staff moving to Greece.

Athens could develop a financial services ecosystem

Market sources say other major funds are also considering similar moves, creating an opportunity for Greece to develop a financial centre offering a broad range of investment services.

Such a centre could also support a wider ecosystem of legal, tax and financial advisory firms, as well as highly paid professional positions.

Market executives point out that major financial centres such as London and Geneva have developed extensive ecosystems around asset managers. These include law firms, tax and investment advisers, banks, custodians and other specialist managers.

The same model could emerge in Athens, albeit on a smaller scale.

The incentive framework available to funds considering a move to Greece also requires their local operations to generate annual operating expenses of more than €3 million.

Government sees vote of confidence in Greece

Officials working with National Economy and Finance Minister Kyriakos Pierrakakis, who is coordinating efforts to attract major international asset managers, view the developments as another vote of confidence in the Greek economy.

Government officials point to Greece’s return to investment-grade status, economic growth of around 2% and the country’s commitment to fiscal stability as factors supporting its growing appeal.

The planned integration of the Athens Stock Exchange into Euronext, together with its upgrade to developed-market status and expected inclusion in the FTSE Russell and STOXX indices on September 21, has also helped bring Greece closer to the international investment community.

New tax framework opens the door

A new tax framework has provided another incentive for major foreign asset managers to establish a presence in Greece.

Under the new system, qualifying fund managers who transfer offices, services and executives to Greece can pay a 5% tax rate on bonuses and carried interest, compared with the previous 15% rate.

However, establishing an office in Athens or moving executives to Greece does not automatically mean that the fund itself will transfer its tax residence to Greece.

To qualify for the special tax regime, funds must also generate more than €3 million in annual operating expensesthrough their Greek facilities and economic activity.

London and Dubai developments benefit Greece

Two international developments have also strengthened Greece’s position.

Britain’s decision to end its favourable non-dom tax regime for wealthy individuals moving to the country has made London less attractive to some internationally mobile investors and executives.

At the same time, the war in the Middle East has increased security concerns surrounding Dubai, another major global financial centre.

Against this backdrop, Greece is increasingly positioning itself as an alternative base for international asset managers and the professional services that surround them.

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