INVESTMENT INCENTIVES LAW L.4887/2022
“Statutory framework for the establishment of Private Investments Aid Schemes for the regional and economic development of the country”
The new Development Law 4887/2022 of the Ministry of Development and Investments entitled “Development Law – Greece Strong Development” has been voted by the Greek Parliament and entered into effect in early February 2022, introducing key changes compared to the existing legal framework (in particular Law 4399/2016).
It provides for the introduction of thirteen new aid schemes that will allow the business community to plan, develop and implement their initiatives with significant and modern forms of investment in all sectors of the Greek economy.
The key objectives of the law include:
- economic development of the country
- digital and technological transformation of enterprises
- green transition
- creating economies of scale
- support for innovators investment and those seeking the introduction of new technologies of “Industry 4.0”, robotics and artificial intelligence
- boost employment with specialized staff
- support for new entrepreneurship
State Aid schemes
1. Manufacturing – Supply chain
2. Enhancement of tourism investments
3. Alternative forms of tourism
4. Agrofood- primary production and processing of agricultural products – fisheries and aquaculture
5. Fair Development Transition
6. Digital and technological restructuring of enterprises
7. Green transition- Environmental upgrade of enterprises
8. New Entrepreneurship
9. Research and Applied Innovation
10. Business extroversion
11. Major investments
12. European value chain
13. Entrepreneurship 360°
- Commercial company
- Social Cooperative Enterprises, Agricultural Cooperatives, Producer Groups, Rural Partnerships
- Under establishment or merging companies
- Sole Proprietorship Partnership
- Enterprises operating under consortium form provided they are registered in the General Commercial Registry Books
- Public and municipal companies and their subsidiaries, provided that;
- They have not been assigned to serve the public purpose
- They have not been assigned by the state with their exclusive service supply
- Their operations through public funds is not assisted, for the maintenance period of the long term liabilities of Article 22
The participation of the aid beneficiary in the cost of the investment project can take place either through own equity or through external financing, provided that at least twenty-five percent (25%) of the total investment cost does not contain any State aid, public support or subsidy.
One of the key-changes introduced by the New Development Law is that it provides for a significantly shorter evaluation and approval period. In particular, the period starting from the submission of the investment project, until its evaluation and approval should not exceed 30 or 45 days depending on the applicable evaluation method (i.e. comparative or direct evaluation). Otherwise, the evaluation shall be automatically assigned to a certified auditor, who must complete it within 10 days. A certified auditor may also participate in the certification review, which takes place at the stage of the implementation of the approved investment projects. The active involvement of certified auditors is certainly another important key-change of the new law, which is expected to significantly facilitate the completion of the above procedures in a shorter period of time.
Minimum Investment Amount (IN EURO):
· Large sized companies: 1.000.000
· Medium sized companies: 500.000
· Small sized companies: 250.000
· Very small sized companies: 100.000
· Social Cooperative Companies (SoCC): 50.000
Type of Aid
· 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
· 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
· 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.
· Wage subsidy (for jobs created): covers the cost of the new jobs created and are associated with the investment plan.
· Business risk financing related to the “New Entrepreneurship” scheme.