Best Venture Capital Lawyers in Santorini

About Venture Capital Law in Santorini, Greece

Venture capital activity in Santorini follows the broader Greek and EU regulatory framework. The island community may see start-ups in tourism, agri-food, and tech targeting local residents and international investors. In Greece, venture capital funds are generally organized and operated under EU directives implemented through national law and overseen by competent authorities. This means that a Santorini-based fund or startup investor must comply with EU rules on fund management, corporate governance, and data protection, as well as Greece-specific corporate and tax provisions.

Common structures include venture capital funds that are treated as alternative investment funds (AIFs) and managed by an AIF manager. Such arrangements require careful documentation, licensing where applicable, and ongoing compliance reporting. Practitioners emphasize clear term sheets, governance arrangements, and exit strategies aligned with both Greek corporate practice and EU regulatory expectations. Local counsel can help tailor these elements to Santorini's unique mix of tourism-driven business models and regional economic incentives.

Directive 2011/61/EU on Alternative Investment Fund Managers creates the EU-wide framework for vent- ure capital funds and other alternative investment funds.

Source: Gov.gr

The Greek implementation of AIFMD governs licensing, marketing, and ongoing supervision of AIFMs and AIFs within Greece.

Source: European Investment Fund

Why You May Need a Lawyer

Legal counsel helps you navigate complex fundraising, investment terms, and regulatory compliance specific to Santorini and Greece. Below are concrete, real-world scenarios where seeking venture capital expertise is essential.

• You want to set up a Santorini-based venture capital fund or SPV to invest in a local startup cluster focused on sustainable tourism, requiring formation documents, investor eligibility rules, and compliance with AIF rules.
• You are negotiating a seed or series A term sheet with a Greek startup that will operate partly in Santorini, raising cross-border capital from EU and non-EU investors, necessitating cross-border securities and disclosure terms.
• You need to structure tax-efficient cross-border fund investments and understand how Greece taxes fund income, capital gains, and carried interest for Greek residents and non-residents.
• You must ensure data protection and privacy compliance for investor information and portfolio company data under GDPR in Greece, especially when processing personal data of EU-based investors and Greek employees.
• You are responding to a regulatory inquiry or audit from a Greek supervisory body about fund operations, prospectus disclosures, or anti-money-laundering controls.
• You plan a multi-party investment with a local Santorini company and require robust governance, conflict-of-interest policies, and clear exit mechanisms.

Local Laws Overview

Greece follows EU directives for venture capital, implemented through national law and regulatory actions. Critical elements include fund structure, manager licensing, investor rights, and market conduct. Compliance requires attention to corporate governance, licensing, and cross-border investment rules, as well as data protection and tax compliance.

EU Directive on Alternative Investment Fund Managers (AIFMD) and Greek implementation - AIFMD provides the framework for managing and marketing alternative funds within the EU. In Greece, implementing measures and licensing requirements regulate fund managers and fund operations. This regime affects Santorini funds and cross-border investments involving local portfolio companies.

Venture capital and private equity framework under Greek law - Greece recognizes venture capital activity through dedicated fund structures and investment vehicles. Historical statutes cover venture capital companies and funds and have been updated to align with EU standards. When establishing a Santorini fund or investing in local startups, counsel will assess the right vehicle, investor qualifications, and disclosure obligations.

General data protection and privacy requirements - The GDPR and Greek data-protection rules apply to investor data, portfolio company data, and HR records. Compliance includes lawful bases for processing, data subject rights, and breach notification obligations. This is especially relevant for cross-border investment teams and remote operations across the Cyclades.

Recent trends include ongoing alignment with AIFMD standards and increasing emphasis on transparency, governance, and cross-border marketing rules for funds. While Santorini-specific deviations are unlikely, local implementation timing and supervisory guidance may affect timelines for licensing and fund marketing.

Sources and further reading:

Source: Gov.gr

Source: European Investment Fund

Frequently Asked Questions

What is venture capital law in Santorini Greece?

Venture capital law in Santorini follows Greek and EU rules governing investment funds, fund managers, and cross-border investments. It covers fund formation, licensing, disclosures, and investor protections. Local counsel helps align fund operations with EU directives and Greek implementing acts.

How do I form a Greek venture capital fund in Santorini?

Typically you form a fund as an Alternative Investment Fund (AIF) or similar vehicle with an AIF manager. You must satisfy licensing, capital, and governance requirements under Greek implementation of AIFMD. A local attorney can guide documentation and approvals.

What is the role of a fund manager in Greece?

The fund manager administers the investment strategy, compliance program, and reporting for AIFs. Greek rules require proper licensing, fiduciary duties, and ongoing supervision. Counsel helps you prepare the management agreement and regulatory filings.

Do I need a local Santorini attorney for investment agreements?

Yes. Local counsel helps tailor term sheets, shareholders agreements, and investor rights to Greek corporate practice and local regulatory expectations. They also coordinate with any cross-border investors and local portfolio companies.

How long does it take to close a venture capital investment in Greece?

Initial term sheet negotiations can take weeks, while due diligence and closing may span 1-3 months depending on complexity. In Santorini, local due diligence extents may be influenced by sector specifics such as tourism projects or local permits.

What is the typical cost of legal services for VC matters in Santorini?

Costs vary by matter complexity and hours billed. A typical seed round can involve 15-30 hours of German- or English-language work for documentation, with additional fees for licensing, tax advice, and regulatory compliance.

Do I need to register a venture fund in Greece?

Most funds that market to Greek or EU investors must comply with regulatory registration or licensing requirements under AIFMD. Your lawyer will determine the exact path based on fund type and marketing strategy.

Is GDPR applicable to venture capital activities in Santorini?

Yes. Investor and employee data processing must comply with GDPR and Greek data protection rules. This includes privacy notices, data processing agreements, and breach notification procedures.

What is the difference between an AIF and a traditional investment fund?

An AIF is designed for professional and sophisticated investors and is regulated under EU directives implemented in Greece. It differs from UCITS funds in scale, liquidity, and marketing rules, with stricter licensing and reporting requirements.

How do I compare different venture capital structures for a Santorini project?

Consider the target investor base, cross-border elements, tax treatment, and governance needs. AIF funds, SPVs, and equity joint ventures each have distinct advantages and compliance burdens in Greece.

Can a Santorini startup receive funding from an international VC?

Yes. International VC participation is common, but cross-border investments require careful regulatory, tax, and securities considerations. Local counsel ensures compliance with Greek and EU rules.

What if I need ongoing compliance after a investment round?

Ongoing compliance includes periodic reporting, AML checks, and regulatory updates. AIFs and fund managers must maintain governance, disclosure, and licensing standards over the life of the fund.

Additional Resources

• Gov.gr - Official Greek government portal for laws, regulations, and public services. Use for texts and updates on national frameworks affecting venture capital. Visit Gov.gr
• Ministry of Development and Investments (Greece) - Central authority for business and investment policy, incentives, and regulatory guidance relevant to venture funding and regional development in Greece. Visit mindev.gov.gr
• European Investment Fund - EU institution supporting venture capital and growth finance for innovative companies, with resources on fund structures and public-private co-investment. Visit EIF

Next Steps

1. Define your objective and timeline for a Santorini venture project, including whether you plan to form a local fund or invest directly as a strategic investor.
2. Consult a local venture capital attorney early to assess the best fund structure, regulatory requirements, and potential incentives in Santorini and wider Greece.
3. Prepare a vendor-neutral term sheet and a preliminary due diligence plan with a focus on local permits, sector-specific licenses, and cross-border considerations.
4. Engage a Greek tax advisor to map tax implications for fund structure, carried interest, and investment income for Greek residents and non-residents.
5. Initiate licensing or registration steps if you choose to operate as an AIF or AIFM, and gather the necessary corporate documentation for Greek authorities.
6. Draft robust governance, conflict-of-interest, and data protection policies aligned with GDPR and Greek data rules before marketing to investors.
7. Set a realistic closing timeline, including regulatory review, investor consent, and closing deliverables, and maintain regular updates with all stakeholders.