Investment Incentives Law

Investment Incentives Law


“Statutory framework for the establishment of Private Investments Aid Schemes for the regional and economic development of the country”

The key objectives of the law include:
• the creation of new jobs with emphasis in the employment of skilled human resources
• the increase of extroversion and innovativeness of businesses
• the increase in added value
• the improvement of technological level and competitiveness
• the creation of a new extrovert national image (branding)
• the reindustrialization of the country
• the attraction of foreign direct investments
• achieving a better placement of the country in the International Division οf Labor
• the promotion of a balanced and sustainable development with emphasis on regional convergence

Terms and Conditions for Participation


The aid has the nature of an incentive, only if the beneficiary has submitted a written application for the participation in the aid scheme before the implementation of the investment plan.


• development of a new plant
• capacity expansion of an existing plant
• diversification of a plant’s production
• substantial modification of the entire production procedure of an existing plant
• acquisition of all assets of a closed plant


Large sized companies: 500.000
• Medium sized companies, cooperatives and clusters: 250.000
• Small sized companies: 150.000
• Very small sized companies: 100.000
• Social Cooperative Companies (SoCC): 50.000


The participation of the entity in the cost of the investment project can take place either through own funds or through external financing, provided that 25% of the total investment cost does not contain any state aid, support or subsidy whatsoever.


Beneficiaries of the aid are companies that are established or maintain a branch in Greece at the commencement date of the investment plan and fall under one of the following corporate types:

• Personal company
• Commercial companies
• Social Cooperative Companies (SoCC)
• Agricultural Cooperatives (AC), Producer groups (PG) and Agricultural Corporate Partnerships (ACP)
• Companies in establishment or merger procedures, provided that they have completed their publicity procedures before the commencement date of the investment plan
• Companies that operate as joint ventures, provided that they are registered in the General Electronic Commercial Registry (GEMI)
• Public and municipal companies, and their subsidiaries (in accordance with the limitations of Article 6)


• Establishment, expansion or modernization of complete hotel and camping units that are already or are being upgraded to at least 3* or 2* in listed traditional or preservable buildings
• Tourist accommodation complex development (only under scheme 8)
• Special Tourist Infrastructure Facilities
• Agritourism or wine tourism facilities by cluster
• Establishment of youth hostels by SoCC Energy production, distribution and infrastructure sector:
• Small hydroelectric plants
• High efficiency cogeneration plants from RES
• Hybrid RES plants in Non-Interconnected Islands (NII)
• Heat/ Cooling generation from RES
• Energy efficient district heating and cooling systems
• Production of sustainable biofuel Expenses for regional aid constitute the base of every investment plan.
a. Investment expenses for tangible assets
Buildings (up to 45% of the total, 60% for tourism, 70% for logistics, 80% for listed buildings), purchase of fixed assets, purchase of new contemporary machinery and other equipment, financial leases, expenses for updating specialized facilities.
b. Investment expenses for intangible assets
Transfer of technology through acquisition of intellectual property rights, licensing, patents, knowhow and nonregistered technical knowledge. Quality assurance and control systems, certifications, purchase and installation of
software and business organization systems
c. the wage cost of the new jobs created as a result of the implementation of the investment plan, calculated for a period of two (2) years from the creation of each position. Supplementary to the regional aid:
• Investment expenses for consulting services in Small and Medium Enterprises (SMEs)
• Startup expenses for new small and very small sized companies
• Innovation expenses for SME
• Procedural and organizational innovation expenses for SME
• Innovation cluster expenses
• Investment expenses for energy efficiency measures
• Investment expenses for energy autoproduction
• Expenses for the remediation of contaminated sites Investment plans for the production of energy from renewable energy sources (RES) are supported only for:
• Investment expenses for high efficiency energy cogeneration from RES
• Expenses for production of energy from RES
• Expenses for the installation of efficient district heating and cooling systems

  1. Type of Aid
  2. Tax exemption: exemption from payment of income tax that results from the current tax legislation, on the profits realized before taxes from all the activities of the company
  3. Subsidy: free provision from the State of funds to cover part of the eligible expenses of the investment plan, determined as a percentage of the total investment cost
  4. Leasing Subsidy: the State covers part of the installments paid for the leasing agreement concluded for the purchase of new machinery and other equipment, with a total duration that cannot exceed 7 years.
  5. Wage subsidy (for jobs created): covers the cost of the new jobs created and are associated with the investment plan.
  6. Financing instruments (capital participation, loan)
  7. Fixed corporate income tax rate
  8. Fast licensing procedures
    The investment expenses are supported:
    a) For expenses of regional aid, the maximum aid intensities (approved maximum regional aid limits) are determined by the Regional Aid Map (RAM), depending on the region and the size of the company.

Extrovert: small to medium size, they increased their
extroversion (i.e. the export value to turnover ratio) by

>10% in the previous 3 years before their application , by >5% for an exports to turnover ratio >70%
Innovative: small to medium size, with research and development expenses >10% of their total operating costs, for at least 1 year in the previous 3 years before their application
• Independent small to medium sized that initiate a merger procedure after the publication date of this law
• Companies that present an increase in their employees > 10% in the previous 3 years before their application
Cooperatives, Social Cooperative Companies as well as Producer groups and Agricultural Corporate Partnerships
Information and Communication Technology (ICT) and
Agri-Food Sectors

• Companies that achieve a high added value, compared with their sectoral average

• Companies whose investment plan is implemented in organized sites (Industrial and Commercial Areas, Business Parks, etc.) and is not related to the modernization or the expansion of an existing facility of the aided company.
• Companies whose investment plan is implemented in Special Areas:
• (453 Municipal Units, 43.8% of the total, 19.5% of the resident population of the country)
• a. mountainous regions
• b. border region: distanced 30km from the borders, as well as the islands of the North Aegean Region, the island of Samothraki, the Prefecture of Evros and the Prefecture of the Dodecanese
• c. islands with a population of less than 3.100 residents
• d. areas with a reduction of the resident population > 30% in the period 2001-2011
• e. companies whose investment plan is implemented in areas with particularly increased migration flows and especially: Agathonisi, Kalymnos, Kastelorizo, Kos, Leros, Lesvos, Samos, Simi, Chios.

Submission and Evaluation Procedures
• All the procedures will be handled through the State Aid Information System (SAIS)
• The procedure of the completeness and legal control phase is controlled by the competent Service, based on a standard control system
• The evaluation is assigned to one (1) evaluator selected by draw, through the SAIS
• The results of the evaluation are verified by an Investment Plans Evaluation Committee consisting of two officers of the service and one (1) registered evaluator, selected by random draw
• The evaluation is performed either with the comparative evaluation method or with the direct evaluation method
• An Investment Plan Evaluation Guide will be issued and published
• Staffing of National Registry of Certified Evaluators and a National Registry of Certified Auditors and determination of their remuneration.

State Aid schemes

  1. Machinery and equipment
  2. General Entrepreneurship
  3. New Independent Small and Medium Enterprises (SMEs)
  4. Innovative SMEs State Aid schemes
  5. Synergies and Networking
  6. Financial intermediation and capital funds
  7. Integrated spatial and sectoral plans – Value Chains
  8. Major Investments