Development Law

The new Development Law 4887/2022 (Government Gazette A/16/04.02.2022) aims at stimulating economic growth in Greece by providing development incentives for specific activities and sectors:

• Promoting the digital and technological transformation in businesses.
  
• Promoting green transition.
  
• Creating economies of scale.
  
• Supporting innovative investments and the introduction of new technologies related to Industry 4.0, robotics and artificial intelligence.
  
• Supporting the employment of qualified personnel.
  
• Promoting new entrepreneurship.
  
• Supporting the country’s less favoured regions and the regions included in the Just Transition Development Plan (SDAM).
  
• Boosting tourism and improving competitiveness in high added value sectors.

To achieve these goals, provisions are introduced to accelerate the evaluation, approval, review and verification process for the investment plans that are supported through these schemes.

Aid schemes

Combined with the revised Regional Aid Map 2022-2027, which applies as of 01.01.2022 with increased rates for the majority of the areas in Greece, 13 individual state aid schemes are established for investment plans which may fall under the following categories:

• Digital and technological transformation in business.
• Green transition in business – environmental efficiency improvement.
  
• New entrepreneurship.
  
• Just development transition.
• Research and applied innovation.
  
• Agri-food, primary production and processing of agricultural products, fishery and aquaculture.
  
• Processing – logistics chain.
  
• Outward looking entrepreneurship.
  
• Promotion of tourist investments.
  
• Alternative tourism.
  
• Large investments.
  
• European value chains.
  
• Entrepreneurship 360ο.
  

Types of aid

The following types of aid are offered to the supported investments plans:

1. Tax exemption. Involves an exemption from paying income tax on the realised profits before tax, as arising based on applicable laws from all business activities, less the tax for the Legal Person or Legal Entity that corresponds to the profits distributed or allocated to the partners.
2. Subsidy. Involves a grant from the Greek State to cover part of the supported expenses of the investment plan; the amount of the grant is set as a percentage of those expenses.
3. Leasing subsidy. Involves payment of part of the leasing instalments by the Greek State. The subsidy is tied to the acquisition of new mechanical and other equipment, is set as a percentage of the total acquisition value, and is included in the paid instalments. The leasing subsidy may not go over 7 years past the completion of the investment.
4. Subsidy for the cost of jobs created. Involves the Greek State paying part of the salary cost for the new jobs that are created by and associated with the investment plan, for which no other state aid is received.
5. Financing of business risk. Associated with the new entrepreneurship scheme and involves the subsidy of the interest rate for low collateral loans or the security expenses for high-risk loans paid at the financing credit institutions.
   

Aid types (1), (2) and (3) are granted individually or combined, and are included in the calculation of the total aid amount for each investment plan. Aid type (d) is granted independently and only in relation to the payroll cost of new jobs.

The investment vehicles that benefit from the aids must be registered in Greece or have a branch in Greece at the time when the investment plan is launched, and have one of the following forms:

• Trade company (legal persons).
• Cooperative.
• Social cooperative enterprise, farming cooperative, producer group, producer organisation, urban cooperative, farmer partnership.
• Company in the process of formation or merger, provided it has completed the notification requirements before the launch of the investment plan.
• Joint venture with commercial activity.
• Sole proprietorship with a maximum eligible investment plan cost in the amount of €200,000 and only for the “Agri-food, primary production and processing of agricultural products, fishery and aquaculture” scheme.
• Public and municipal businesses and their subsidiaries, provided:
  
  - They are not serving a public purpose.
  
  - They have not been delegated by the State to provide exclusive services.
  
  - They are not subsided by public funds throughout the long-term obligation period.

We invest in the competitive edge of your business

We invest in empowering small and medium-size enterprises and support targeted development through financing in the context of a methodical, meaningful, comprehensive and sustainable plan. We take into account the available resources, targets and emerging trends.

Our mission is to stand by any progressive initiative, offering the experience and expertise of our staff.

We provide a wide range of financing solutions, effectively supporting productivity growth, the ability to innovate, and the integration of digital technologies and green development techniques.

• Banking consulting and technical support throughout all the stages of your investment.
• Letter of financing pre-approval for the investment file of the application.
• Short-term financing with loan (bridge financing).
• Choice of the most appropriate development financing  tool to cover private participation, depending on your investment plan and expectations.

A dedicated Alpha Bank consultant will work with you and guide you through the maturation process to accomplish your business plans.
Book your own myAlpha Rendez-vous at the branch that is most convenient for you, to talk with our staff through video conference, phone call or in person (even at your workplace), without having to wait.