A Scotsman assuming the name of a place in Greece (8)
I believe the answer is:
athenian
'of a place in greece' is the definition.
(Athenian means relating to or from Athens)
'a scotsman assuming the name' is the wordplay.
'scotsman' becomes 'ian' (common Scottish name).
'assuming' is an insertion indicator (inserted letters are taken in or assumed).
'name' becomes 'n' (common abbreviation e.g. on forms).
'a'+'ian'='aian'
'the'+'n'='then'
'aian' enclosing 'then' is 'ATHENIAN'.
(Other definitions for athenian that I've seen before include "Resident of Greek capital" , "Inhabitant of Greek capital" , "Citizen of capital of Hellas" , "One from the Greek capital" , "European citizen" .)