New adjustments of the size criteria for enterprises and groups

Law 5164/2024, published on December 12, 2024, transposes the Commission Delegated Directive (EU) 2023/2775 into Greek law, in particular Law 4308/2014 (Greek Accounting Standards), introducing new sizing criteria for enterprises and groups in Greece.

The new legislation increases the qualifying criteria in terms of turnover and balance sheet total for micro enterprises, small enterprises and groups, as well as medium-sized enterprises and groups.  No change has been made to the criteria in relation to the average number of employees.

The aim of the introduced amendment is to align the classification of enterprises /groups based on their size, taking into account recent inflation, and to streamline administrative procedures. These updated criteria apply to financial years beginning on or after 1 January 2024.

It is expected that these amendments will expand the number of enterprises and groups that:

• qualify for the audit exemption;
• qualify for exemption from reporting obligations, such as Corporate Sustainability Reporting Directive (CSRD);
• are exempt from disclosing certain information in their financial statements as small or micro enterprises (for example, a small enterprise is not required to include specific details in its directors’ report, and a micro enterprise is not obligated to prepare a directors’ report at all);
• are allowed, as small or micro enterprises, to have a single-member management structure.

Business Classification

The updated size criteria for classifying Greek enterprises are outlined in the table below. To be classified within a particular category, the enterprise must exceed (or no longer exceed) two of the three financial thresholds for two consecutive financial years.

Limited partnerships, general partnerships, sole proprietorships and any other entity of the private sector implementing Law 4308/2014 based on tax or other law provision, are classified as micro entities, on the sole precondition that their net turnover does not exceed the amount of 1,500,000 euros.

Group Classification

New thresholds are also introduced for the classification of corporate groups as follows. To be classified within a particular category, the group must exceed (or no longer exceed) two of the three financial thresholds for two consecutive financial years.

Audit obligations

Medium-sized and large enterprises, based on their size over the last two consecutive financial years, are required annually to undergo an audit by one or more certified auditors or auditing firms in accordance with case 1 of sub. A1 of par. A, Article 2 of Law 4336/2015. Enterprises classified as small or micro enterprises for two consecutive financial years are exempt from audit requirements. However, if an enterprise is upgraded to medium-sized or large for two consecutive financial years, it becomes subject to an audit.