Commercial Transactions in Greece – EU compliance, contracts, payments, cross-border trade

Healthy cash flow in Greek commercial practice relies on clear contract terms, EU-aligned compliance and efficient recovery tools. Proper drafting, combined with financial safeguards, reduces credit risk in domestic and cross-border dealings.

Contracts and EU/Greece compliance

Set expectations upfront: define delivery (Incoterms where relevant), acceptance procedures, price and payment, warranties, liability limitations, force majeure and termination. Ensure alignment with EU consumer and competition rules, data protection (GDPR) and Greek sector regulations.

Payments and late payment rules

Late payment triggers legal or agreed interest under EU Directive 2011/7/EU (as implemented in Greece) and lump-sum recovery costs. Contracts should provide for interest, collection costs and suspension/termination for default. Use retention of title for goods sold on credit.

Safeguards and credit management

Combine legal and financial safeguards: bank guarantees, letters of credit, factoring and trade credit insurance. Maintain a reminder protocol and escalate to notarial notices, payment orders and enforcement where needed.

Cross-border trade

For EU trade, harmonized tools (European Payment Order, Small Claims) help streamline recovery and recognition. For non‑EU, pay attention to choice of law/jurisdiction or arbitration, and practical enforceability in the counterparty’s country.

Practical checklist

• Map the supply chain and delivery terms (Incoterms), including risk and insurance.
• Insert late‑payment interest, recovery costs and suspension/termination triggers.
• Use retention of title for goods and consider guarantees or letters of credit for larger exposures.
• Keep a dunning/reminder protocol and evidence trail for swift payment orders.

Typical pitfalls

• Vague acceptance criteria leading to disputes on quality or delivery dates.
• Missing jurisdiction/choice‑of‑law clauses complicating enforcement.
• Overreliance on handshake deals without written terms and evidence.

FAQs

• Are payment orders fast in Greece? – With proper documentation, they can be issued relatively quickly and are enforceable if uncontested.
• Can we charge interest above legal rates? – Contractual rates must comply with applicable law; seek advice to calibrate lawfully.