Main development and investment tool in Greece

Development Law 4887/2022 (Government Gazette Α΄ 16/04.02.2022 only in Greek) aims at:

• Improving competitiveness in high added value sectors
• Offering innovative products and services through the use of advanced technologies and systems
• Promoting our outward-looking national identity on an international level

Focused targeting

Development Law 4887/2022 provides incentives to businesses operating in specific sectors, to support:

• Digital and technological transformation
• Green transition
• Economies of scale
• Innovative investments and the introduction of new technologies related to Industry 4.0, robotics and artificial intelligence
• Employment of qualified personnel
• New entrepreneurship and the country’s less favoured regions and the regions included in the Just Transition Development Plan (SDAM)
• Tourism and competitiveness in high added value sectors

5 different types of aid

The total amount of the aid you’ll be receiving may include individually or combined:

• Tax exemption – Involves an exemption from paying income tax on the profit arising from all your business activities, minus the tax for the legal person that corresponds to the profits distributed or allocated to the partners.
• Subsidy – Involves receiving a specific amount for free to cover part of the supported expenses of your investment plan. The amount of the subsidy is set as a percentage of those expenses.
• Leasing subsidy – Involves payment of part of the leasing instalments by the Greek State. The subsidy is tied to the acquisition of new mechanical or other equipment, and is set as a percentage of the total acquisition value of the equipment. The leasing subsidy may not go over 7 years.

You may also get:

• Subsidy for the cost of jobs created – Involves the Greek State paying part of the salary cost if your investment plan creates jobs and no other state aid is received.  The aid is granted independently and only in relation to the payroll cost of new jobs.
• Financing of business risk – Involves the interest rate subsidy for low collateral loans or the insurance expense subsidy for high-risk loans. Associated only with new entrepreneurship.

13 aid schemes

13 aid schemes have been formulated in combination with the Regional Aid Map 2022-2027 (only in Greek). Your business investment plan must fall under one of 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 sector, logistics chain
• Outward looking entrepreneurship
• Boosting tourism investments
• Alternative tourism
• Large investments
• European value chains
• Entrepreneurship 360°

To receive funding under the Development Law you need to meet certain conditions.

Presence in Greece

Investment vehicles must be registered in Greece or have a branch in Greece at the time when the investment plan is launched.

Specific legal 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 andaquaculture” scheme.

Public and municipal businesses under conditions

Public and municipal businesses and their subsidiaries may receive funding, provided they:

• Are not serving a public purpose.
• Have not been delegated by the State to provide exclusive services.
• Are not subsided by public funds throughout the long-term obligation period.