Development Law

Aid schemes

Fair Development Transition

This concerns investment projects to be carried out in the areas covered by the Fair Transition Territorial Plans (FTRPs).

New Business

Investment projects for activities in primary production, processing of agricultural products, fisheries, research and applied innovation, digital and technological transformation, manufacturing and supply chain, to be implemented by micro and small enterprises in the process of being set up, in whose share capital only natural persons participate who: a) have no previous participation in companies, with the exception of holding shares of companies listed on the Athens Stock Exchange (ASE), b) have no previous business activity and c) meet the income criteria specified in the relevant notices.

360° Entrepreneurship

The purpose of the scheme is to support all investment projects covered by the Development Law (except for certain categories for which special schemes are established), which concern the implementation of initial investments and the realization of additional expenditure for the benefit of business initiatives and the national economy

Large Investments

This concerns aid for large investment projects with a budget exceeding EUR 15 million (EUR 15 000 000), with the exception of those covered by aid schemes for (a) agri-foodstuffs – primary production and processing of agricultural products – fisheries, (b) support for investment in tourism and (c) alternative forms of tourism.

Green Transition – Environmental Upgrading of Enterprises

This concerns investment projects of enterprises that have as their object the protection of the environment, as well as other existing business activities, provided that expenditure on energy efficiency and environmental protection measures are implemented

Manufacturing – Supply chain

Investment projects in the field of processing, other than the processing of agricultural products, and the creation of logistics facilities are covered.

Aid for investment in tourism

The investment projects covered concern alternative forms of tourism and aim to exploit and promote the special characteristics of the country’s regions, such as geographical, social, cultural and religious characteristics.

Entrepreneurial extroversion

This concerns investment projects for the development of business extroversion and export activities.

Agri-food – Primary Production & Processing of Agricultural Products – Fisheries

Provides for aid for investment projects in the sectors of primary agricultural production, processing of agricultural products and fisheries and aquaculture.

Research & Applied Innovation

The objective is that the projects to be supported should contribute to the development of technology or the provision of services through technological development, the production of innovative products or the introduction of process or organisational innovations, the exploitation of research results, an increase in employment and the creation of high value-added jobs.

Alternative forms of tourism

The investment projects covered concern alternative forms of tourism and aim to exploit and promote the specific characteristics of the country’s regions, such as geographical, social, cultural and religious characteristics.

European value chains

Provision is made for aid for the creation, expansion and modernisation of integrated tourist accommodation and camping sites (camping) throughout the territory in order to improve the quality of the tourist product.

Digital & Technological Transformation of Enterprises

The covered investment projects concern the upgrading of existing technological units and wish to introduce new digital operations and processes, combining production methods with modern information and communication technology.

Beneficiaries

• Creation of a new plant
• Expansion of the capacity of an existing plant
• Diversification of a plant’s production into products or services that have never been produced in the plant
• Fundamental change in the entire production process

Categories of investment projects supported

Law 4887/2022 supports investment projects in all sectors of the economy. The following is an indicative presentation of eligible activities. The following investment projects are eligible:

• Investments in the manufacturing sector (establishment, modernisation or expansion of industrial plants)
• Investments in the tourism sector (establishment or extension of hotels of at least 4*, modernisation of main and non-tourist accommodation, provided that they belong to or are upgraded to at least 3* category, establishment and modernisation of non main tourist accommodation under certain conditions (guesthouses, implementation within traditional settlements in specific areas, classification of 5 keys, capacity of at least 20 rooms), 3* camping, glamping, condo hotels, youth hostels, alternative tourism, diving tourism, conference centres, golf courses, tourist ports, ski resorts, theme parks, spa tourism, thalassotherapy centres, spa centres, KEPAT, shelters, motorways, etc. α.)
• Investment in the agri-food sector (primary production and processing of agricultural products)
• Investment in the Sports and Recreational Activities sector (Swimming pool services, football, basketball and tennis courts, etc.)
• Investment in the Storage and Supporting Transport Activities sector (Marina services, Waterway operation services and Logistics services, Parking services)
• Library and museum activities
• In the sector of information and communication the creation of permanent “studios” for the production of films, videos, television programmes and sound recordings is reinforced
• In the field of property management nvestment projects for the development and management of public utilities are exceptionally supported, provided that they are administered and managed by a single public utility
• Investments in Other Sectors (creation of convalescence and rehabilitation centres, provision of Assisted Living Facilities for Disabled Persons, retirement homes, Wholesale Oil & LPG Trade implemented on islands for the creation of storage facilities, Wholesale Pharmaceuticals Trade, Laundry Engineering Services, Clothing Ironing Services, etc.)

Types of aid

The following types of aid are granted to investment projects falling under the aid schemes of the new Development Law:

• Tax exemption
• Subsidy
• Leasing subsidy
• Subsidy for the cost of the employment created
• Financing of the creation of new jobs, including the creation of employment

Minimum budget for investment projects

The minimum eligible amount of investment for investment projects under this aid scheme is determined on the basis of the size of the enterprise, i.e.

• for large enterprises, the amount of one million (EUR 1.000.000),
• for medium-sized enterprises and cooperatives, the amount of EUR 500.000,
• for small enterprises, to the amount of EUR 250.000 (two hundred and fifty thousand),
• for micro-enterprises, to the amount of EUR 100.000,
• for cooperatives, to the amount of EUR 50.000 (50.000)

Specific categories of aid

The aid rate in the form of a capital grant is set at 80 % of the CAGR. In order to receive an aid rate of 100 % of the rate laid down in the Regional Aid Map, depending on the aid scheme concerned, a firm must fall into at least one of the following categories

• implement an investment project eligible for submission under the New Business or the Fair Development Transition* scheme.
• Implement an investment project in its specific regions as defined in a relevant annex to the law (mountainous, island, border regions, regions affected by natural disasters).

Eligible costs

Investment expenditure on tangible fixed assets

• construction, extension, modernisation of buildings, special and ancillary facilities of buildings,
• purchase of all or part of the existing fixed assets, such as buildings, machinery and other equipment of a business establishment
• the purchase and installation of new modern machinery and other equipment, including technical installations and means of transport moving within the premises of the integrated unit.
• rental payments for the leasing of new modern machinery and other equipment, the use of which is acquired, provided that the leasing contract stipulates that the equipment becomes the property of the lessee at the end of the contract. .
• modernisation of special installations (other than buildings) and mechanical installations.

Capital expenditure on intangible assets

• technology transfer, through the purchase of intellectual property rights, licences, patents, know-how and unpatented technical knowledge,
• quality assurance and control systems, certification, supply and installation of software and business organisation systems.

Expenditure not covered by regional aid

• Consultancy fees for SMEs. Eligible only for new small and medium-sized enterprises and up to EUR 50.000 (up to 5% of the total eligible costs).
• Start-up costs for newly established & incipient small and micro enterprises and for up to 20% of the supported costs up to a maximum of EUR 200.000. For innovative small and micro enterprises the thresholds are doubled.
• Expenditure on research and development projects (expenditure on staff, buildings, instruments, equipment, etc.)
• Innovation expenditure for SMEs concerns a budget of up to 20% of the total eligible costs and up to EUR 200.000
• Expenditure on procedural and organisational innovation with a budget of up to 10% of the total supported costs and up to EUR 100.000
• Expenditure on environmental protection.
• Investment expenditure for energy efficiency measures.
• Investment expenditure for high-efficiency cogeneration from renewable energy sources.
• Expenditure on energy production from renewable energy sources
• Expenditure on the installation of efficient district heating and cooling systems
• Expenditure on the remediation of contaminated sites
• Expenditure on recycling and reuse of waste
• Expenditure on vocational training
• Expenditure on SME participation in trade fairs
• Aid for disadvantaged workers

Contribution to the cost of the investment project

The financial contribution of each entity to the cost of the investment project may be covered either by its own funds or by external financing, provided that 25 % of the aided costs do not contain any State aid, public support or benefits.

Submission of investment projects

The application and approval process will be done digitally. The application for inclusion and the required supporting documents must be submitted via the Information System Development Laws System (DC-An).