AFM (Arithmos Forologikou Mitroou)
The Greek tax registration number (AFM - Αριθμός Φορολογικού Μητρώου) required for all legal entities and individuals engaging in economic activities in Greece.
Definition
The AFM, or Arithmos Forologikou Mitroou (Αριθμός Φορολογικού Μητρώου), is a unique nine-digit tax identification number assigned by the Greek tax authorities to all legal entities, sole proprietors, and self-employed individuals. This number is mandatory for anyone conducting business activities, earning income, or owning property in Greece. The AFM system was introduced to modernize Greek tax administration and ensure comprehensive tracking of economic activity. Every company, freelancer, and professional must register for an AFM before commencing operations. The number becomes part of all official business communications and financial transactions within Greece.
For expatriates establishing a business in Greece, obtaining an AFM is one of the first legal requirements. The process involves registering with the Greek General Commercial Registry (GEMI) and the tax authorities. Once registered, the AFM is used in all invoicing, tax filings, and social security contributions. The number must be displayed on all business documentation and is essential for opening a business bank account. Without an AFM, businesses cannot legally operate, issue invoices, or claim business expenses for tax purposes.
The AFM is closely linked to Greece's tax identification system and is used by the Greek tax authority (Aρχή Εσόδων Δημοσίου - AADE) to monitor compliance and collect taxes. Businesses are required to maintain accurate records and submit regular tax declarations using their AFM. The system has been integrated with GEMI, creating a unified business registration database that facilitates licensing and compliance monitoring across all business types.
For employment purposes, employers must verify their employees' AFM numbers during hiring. These numbers are reported to social security authorities (EFKA) and are essential for calculating tax withholdings and employment contributions. Self-employed professionals use their AFM for all professional activity reporting and must declare their income annually. The AFM is also used in property transactions, as it identifies the parties involved in real estate dealings.
Recent digital initiatives have made AFM registration more efficient, with online platforms allowing applications and amendments. However, expatriates often need assistance navigating the registration process, which may require Greek language documentation and local coordination. Many expat-focused legal firms specialize in AFM acquisition and can guide newcomers through the requirements, documentation, and registration timeline.
Key Facts
- AFM is a nine-digit number issued by Greek tax authorities to all business entities and self-employed individuals
- Registration is mandatory before commencing any economic activity in Greece
- The AFM must be displayed on all invoices, contracts, and official business documentation
- Individual AFM numbers are linked to employment records, property ownership, and tax filings
- Non-compliance or operating without an AFM can result in significant fines and legal consequences
Common Mistake
Many expatriates assume that registering with the chamber of commerce or obtaining a business license is sufficient and delay AFM registration. However, the AFM must be obtained before formal business operations begin. Another common error is providing incomplete or incorrect information during registration, which can delay approval or require tedious corrections later.
Expert Tip
Keep your AFM documentation organized and accessible. You'll need to reference it frequently when dealing with Greek banks, suppliers, government agencies, and customers. Many services—from social media business accounts to professional directories—require AFM verification. Consider registering for the AADE's online tax portal immediately after receiving your AFM to simplify future tax filings.
Frequently Asked Questions
How long does it take to obtain an AFM in Greece?
The AFM registration typically takes 3-7 business days through GEMI and the tax authorities. Online registration can expedite the process. However, if additional documentation is required or corrections are needed, the timeline may extend to 2-3 weeks.
Can I use my foreign tax identification number instead of getting an AFM?
No. Greek authorities require an AFM for all businesses operating in Greece, regardless of whether the owner holds a foreign tax number. The AFM is specific to Greek operations and is mandatory for tax compliance, employment, and business licensing.
What happens if I operate a business without an AFM?
Operating without an AFM is illegal and subject to significant penalties, including fines, business closure orders, and potential criminal prosecution. Invoices issued without an AFM are invalid, and business transactions may be considered tax evasion. It's essential to obtain your AFM before beginning operations.
Related Terms
KAD (Business Activity Classification), GEMI (General Commercial Registry), AADE (Greek Tax Authority)