Development Law 4887/22- Greece Strong Growth
The Development Law is the main institutional tool for promoting private investments through national resources, with the aim of strengthening competitiveness, innovation, employment, and regional development. Law 4887/2022, as currently in force and codified with its amendments in 2023, 2024, and 2025, constitutes the most recent version of the institutional framework regulating the incentives for the support of investment projects in Greece.
Funding of digital technologies, automation, and Industry 4.0.
Funding for energy efficiency, renewable energy, and environmental initiatives
Support for enterprises for the establishment of new companies or further development of existing businesses.
Special incentives for border regions
Support for agricultural investments and food processing
Support for industrial production and logistics
upport for international growth and exports
Financing of hotel units and upgrades
Support for agrotourism, spa tourism, and thematic tourism forms
Support for large-scale investments
Participation in European production chains
General scheme for a wide range of investments
The beneficiaries of the support schemes under the Development Law are investment entities that are established or have a branch in the Hellenic Territory at the time of commencement of the investment project and have one of the following legal forms:
a. Commercial company,
b. Cooperative,
c. Social Cooperative Enterprises (Koin.S.Ep.), Agricultural Cooperatives (AS), Producer Groups (Om.P.), Producer Organizations (OP), Civil Cooperatives, Agricultural Corporate Partnerships (AES),
d. Companies under formation or merger, provided that they have completed publicity procedures prior to the commencement of the investment project,
e. Joint ventures engaged in commercial activity,
f. Public and municipal enterprises and their subsidiaries, provided that:
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they have not been assigned the provision of public service,
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they have not been exclusively entrusted by the state with the provision of services,
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their operation is not subsidized by public resources during the period of long-term obligations defined by Law 4887/2022 (Articles 22 & 25),
g. Sole proprietorships, with a maximum eligible investment project cost of €200,000, solely under the scheme “Agri-food – primary production and processing of agricultural products – fisheries and aquaculture” and the scheme “Social entrepreneurship and handicrafts.”
Development Law
The total amount of aid per submitted investment project may not exceed €20,000,000.
The aid granted to each investment project entity, including aid to affiliated or partner enterprises, may not cumulatively exceed €20,000,000 for a single enterprise and €50,000,000 for all affiliated or partner enterprises, subject to the restrictions of Article 4 of the GBER. These limits apply to investment projects falling under this framework and for a period of three (3) years from the date of submission of the application for inclusion of the investment project.
For each submitted investment project, the aid amount taken into account is the one approved by the inclusion decision. The above ceilings are increased by 50% in cases where the aid is granted in the form of tax exemption.
Minimum Investment Thresholds
For inclusion in the Development Law schemes, the eligible investment project cost must meet a minimum threshold, determined by the size of the entity, as follows:
| Enterprise Category | Minimum Eligible Cost (€) |
|---|---|
| Large Enterprises | 1,000,000 |
| Medium Enterprises | 500,000 |
| Small Enterprises | 250,000 |
| Very Small Enterprises | 100,000 |
| Social Cooperative Enterprises (Koin.S.Ep.), Agricultural Cooperatives (AS), Civil Cooperatives, Producer Groups (Om.P.), Producer Organizations (OP), Agricultural Corporate Partnerships (AES), and very small enterprises falling under the “Social Entrepreneurship and Handicrafts” scheme | 50,000 |
The financial participation of each entity in the cost of the investment project may be covered either by own funds or by external financing, provided that twenty-five percent (25%) of the eligible supported cost does not contain any state aid, public support, or provision.
DEVELOPMENT LAW
Investment projects seeking regional aid under the schemes of the Development Law must constitute a complete initial investment and, in particular, meet one of the following conditions:
a) Investment in tangible and intangible assets in one or more of the following:
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The creation of a new establishment,
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The expansion of the production capacity of an existing establishment,
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The diversification of the production of an existing establishment into products or services not previously produced or offered by the establishment. Specifically, for aid granted to large enterprises or SMEs for the diversification of an existing business establishment, eligible costs must exceed at least two hundred percent (200%) of the book value of the reused assets as recorded in the financial year preceding the commencement of operations,
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A fundamental change in the overall production process of the products or the overall provision of services to which the investment in the establishment relates. Specifically, for aid granted to large enterprises for implementing a fundamental change in the production process, eligible costs must exceed the depreciation of the assets related to the activity to be modernized over the three (3) preceding financial years.
b) Acquisition of assets belonging to an establishment that has closed or would have closed if not purchased. The mere acquisition of the shares of a company does not qualify as an initial investment.
For investment projects eligible under the Development Law schemes, the following types of aid are provided:
a. Tax exemption: This consists of exemption from the payment of income tax on pre-tax profits generated according to the applicable tax legislation, from all activities of the enterprise, minus the corporate tax attributable to profits distributed or retained by the shareholders. The amount of the tax exemption is calculated as a percentage of the value of the eligible costs of the investment project or of the value of new machinery and other equipment acquired through financial leasing, which constitutes an equivalent reserve maintained in a separate account in the financial statements.
b. Grant: This consists of a monetary contribution provided free of charge by the State to cover part of the eligible costs of the investment project, calculated as a percentage of such costs.
c. Subsidy for financial leasing (leasing): This consists of covering by the State part of the lease payments for the acquisition of new machinery and other equipment, calculated as a percentage of their acquisition value and included in the lease installments. The subsidy cannot exceed seven (7) years, starting from the date of completion of the investment.
d. Subsidy for employment costs: This consists of covering by the State part of the wage costs for new jobs created and linked to the investment project, for which no other state aid is received.
e. Venture capital financing: This applies to the schemes “Advanced Technologies” and “Social Entrepreneurship and Handicrafts” and consists of subsidizing the interest of loans with reduced collateral or the insurance costs of high-risk loans paid to the credit institutions providing them.
The types of aid under a), b), and c) may be provided individually or in combination and are taken into account for determining the total aid amount for each investment project. The type of aid under d) is provided independently and exclusively for wage costs of the newly created positions.
f. Fast-track licensing incentive: Any required license or approval for project execution, installation, or operation of investments under the “Special Aid Regions” and “Large Investments” schemes, including spatial planning permits, is issued within two months from the submission by the investment entity to the General Directorate of Development Laws and Foreign Investments (G.D.A.N.N.A.X.E.) of the Ministry of Development of a complete application for each required license or approval.
g. Loans guaranteed by the Hellenic Development Bank S.A.: For SME investment projects approved under any Aid Scheme, entities may request short- or long-term loans for project implementation, guaranteed by the Hellenic Development Bank S.A. through the Development Law Financial Instrument Guarantee Fund (DeLFI GF) or alternatively through another supported financial instrument of the Hellenic Development Bank.
Investment projects approved under the Large Investments Aid Scheme, whether they belong to large or medium-sized enterprises, may also apply for loans from the European Investment Bank (EIB), guaranteed by the Hellenic Republic.
Development Law
| Primary Sector | ICT (Information and Communication Technology) |
| Manufacturing Sector | Real estate activities |
| Water supply – sewerage, waste management and remediation activities sector | Architectural and engineering activities |
| Electricity generation, transmission and distribution | Research and Development |
| Wholesale trade of pharmaceutical products sector | Professional, scientific and technical activities sector |
| Wholesale trade of fuels sector (only for islands and for the creation of storage facilities) | Library, archives, museums and other cultural activities |
| Transport sector | Human health and social work activities sector |
| Storage and support activities for transportation sector | Sports activities & amusement and recreation activities sector |
| Postal activities with a universal service obligation | Other personal service activities sector |
| Tourism sector | Information and communication sector |
| Publishing | Shipbuilding sector |
| Film production |
DEVELOPMENT LAW
a. Investment expenses in tangible assets, specifically expenses for:
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Construction, expansion, or modernization of building facilities, special and auxiliary installations, accessibility adaptations for persons with disabilities, and landscaping of the surrounding area. These expenses may not cumulatively exceed 45% of the total regional aid-eligible costs. This coefficient is set at 60% for investment projects in the tourism sector and for plant production projects in greenhouses, 70% for parking services projects, and 80% for projects implemented in buildings classified as listed/heritage buildings.
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Acquisition of all or part of existing fixed assets, such as buildings, machinery, and other equipment of a business establishment, under the following cumulative conditions:
i. The business establishment has closed,
ii. The purchase is made by the investment project entity, which is not related to the seller, except in the case of a small enterprise, where the acquisition is made from a family member of the seller or from an employee of the original owner,
iii. The transaction is carried out under normal market conditions. Costs of assets previously subsidized or granted under Development Laws or other aid schemes before acquisition are excluded. -
Purchase and installation of new modern machinery and other equipment, including technical installations and transport vehicles operating within the premises of the investment unit.
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Lease payments (financial leasing) for new modern machinery and other equipment acquired under a lease, provided that the leasing contract stipulates that ownership of the equipment transfers to the lessee at the end of the contract.
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Modernization of special installations (not including buildings) and mechanical installations.
b. Investment expenses in intangible assets, specifically expenses for:
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Technology transfer, through the acquisition of intellectual property rights, licenses, patents, know-how, and non-patented technical knowledge.
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Quality assurance and control systems, certifications, supply and installation of software, and business organization systems.
For large enterprises, eligible expenses for intangible assets may not exceed 30% of the total regional aid-eligible costs, while for SMEs the maximum percentage is 50%.
c. Wage costs for new jobs created as a result of the investment project are calculated for two (2) years from the creation of each position. These wage costs are eligible only independently and not in combination with other expenses.
In addition and complementary to regional aid, eligible business projects may receive support for the following categories of expenses outside regional aid. Furthermore, under the aid schemes “Advanced Technologies,” “Green Transition – Environmental Upgrade of Enterprises,” “Social Entrepreneurship and Handicrafts Scheme,” “Special Aid Regions Scheme,” and “Business Internationalization and European Value Chains,” eligible expenses are defined in the corresponding articles of the General Block Exemption Regulation (GBER).
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Investment expenses for consulting services for SMEs. The intensity of support is set at 50% of these expenses.
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Start-up expenses for newly established or under-formation small and very small enterprises.
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Expenses for research and development projects.
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Innovation expenses for SMEs (other intangible assets, payroll, consulting services).
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Expenses for process and organizational innovation for SMEs and large enterprises.
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Investment expenses for environmental protection with a support intensity of 40% of eligible costs.
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Investment expenses for energy efficiency measures with a support intensity of 30%.
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Investment expenses for high-efficiency co-generation from renewable energy sources (RES).
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Expenses for energy production from renewable sources.
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Expenses for the installation of efficient district heating and cooling systems.
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Expenses for the remediation of contaminated sites.
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Expenses for recycling and waste reuse.
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Expenses for professional training (skills upgrading or retraining).
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Aid for SME participation in trade fairs.
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Aid for employees in disadvantaged positions.
Development Law
The aid percentages for eligible expenses of initial investments are granted based on the maximum intensity limits of the Regional Aid Map as follows:
a. For very small, small, and medium-sized enterprises (SMEs):
Aid percentages for all types of incentives, except for grants, are provided up to the maximum percentage of the Regional Aid Map. The grant incentive is provided up to 80% of the maximum limit of the Regional Aid Map.
b. For large enterprises:
Aid includes all the above incentives except for grants. For large enterprises, incentives are provided up to 80% of the maximum limit of the Regional Aid Map.
| Entity Size | Tax Exemption | Grant | Financial Leasing | Wage Costs for Created Employment |
|---|---|---|---|---|
| Small | 100% | 80% | 100% | 100% |
| 90% or 100% of RAM in special categories* | ||||
| Medium | 100% | 80% | 100% | 100% |
| 90% or 100% of RAM in special categories* | ||||
| Large | 80% | – | 80% | 80% |
| 90% or 100% of RAM in special categories* | – | 90% or 100% of RAM in special categories* | 90% or 100% of RAM in special categories* |
*Special categories as defined in the Regional Aid Map.
For SMEs, the grant incentive under the Regional Aid Map is provided at 80% of the maximum grant limit, or at 100% if one of the following conditions is met:
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Projects implemented in the following areas:
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aa. Mountainous areas, according to the classification of the Hellenic Statistical Authority (ELSTAT), excluding municipal units that are part of the Athens metropolitan area.
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ab. Areas located within thirty (30) kilometers of the national borders.
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ac. Islands with a population of less than 3,100 inhabitants.
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ad. Industrial and Business Zones (B.E.P.E.), Business Parks (E.P.) excluding Intermediate Business Parks (E.P.E.V.O.), Technology Parks, and Innovation Activity Clusters (Θ.Y.K.T.), and Organized Hosts of Manufacturing and Business Activities (O.Y.M.E.D.), provided they do not concern the modernization or expansion of existing structures of the aided enterprise.
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ae. Areas affected by natural disasters, according to a decision of the Government Committee for State Aid.
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Projects concerning the reactivation of industrial units that have ceased operations, provided that the value of the fixed assets of the industrial unit to be reactivated covers at least fifty percent (50%) of the eligible cost of the investment project.
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Projects implemented in buildings classified as heritage/protected buildings are eligible for 90% of the Regional Aid Map maximum.
| ΧΑΡΤΗΣ ΠΕΡΙΦΕΡΕΙΑΚΩΝ ΕΝΙΣΧΥΣΕΩΝ | |||
| Ελλάδα – Περιφέρειες NUTS | Ποσοστά Επιχορήγησης | ||
| Μεγάλες επιχειρήσεις |
Μεσαίες επιχειρήσεις |
Μικρές & πολύ μικρές επιχειρήσεις |
|
| EL41 Βόρειο Αιγαίο / Voreio Aigaio | 60% | 70% | 75% |
| EL42 Νότιο Αιγαίο / Notio Aigaio | 50% | 60% | 70% |
| EL43 Κρήτη / Kriti | 60% | 70% | 75% |
| EL51Aνατολική Μακεδονία, Θράκη/ Anatoliki Makedonia, Thraki | 50% | 60% | 70% |
| EL52 Κεντρική Μακεδονία / Kentriki Makedonia | 50% | 60% | 70% |
| EL53 Δυτική Μακεδονία / Dytiki Makedonia | 60% | 70% | 75% |
| EL54 Ήπειρος / Ipeiros | 50% | 60% | 70% |
| EL61 Θεσσαλία / Thessalia | 50% | 60% | 70% |
| EL62 Ιόνια Νησιά / Ionia Nisia | 40% | 50% | 60% |
| EL63 Δυτική Ελλάδα / Dytiki Elláda | 50% | 60% | 70% |
| EL64 Στερεά Ελλάδα / Sterea Elláda | 40% | 50% | 60% |
| EL30 Αττικής/Δυτικός Τομέας / Dutikos Tomeas/Δήμος Αγίας Βαρβάρας, Δήμος Αγίων Αναργύρων-Καματερού, Δήμος Αιγάλεω, Δήμος Ιλίου, Δήμος Περιστερίου, Δήμος Πετρούπολης, Δήμος Χαϊδαρίου | 15% | 25% | 35% |
| * EL30 Αττικής/Ανατολική-Δυτική Αττική/Πειραιάς/Νήσοι / Anatoliki-Dutiki Attiki / Peiraias / Islands | 25% | 35% | 45% |
| EL65 Πελοπόννησος / Peloponnisos | 40% | 50% | 60% |
| Δήμοι Μεγαλόπουλης, Τρίπολης,Γορτυνίας, Οιχιαλίας | 50% | 60% | 70% |
C(2023) 6801 final/16-10-2023 Κρατική ενίσχυση SA.109322 (2023/N)
Tax exemption
The right to start using the benefit of the tax exemption incentive is established with the certification of the implementation of 50% or 65% of the investment plan’s cost by the competent control body, with a decision issued within 4 months from the submission of the investment’s control report or the date of submission of supplementary data. The entity can utilize the total eligible tax exemption aid within 15 fiscal years from the year the right to use the benefit is established.
Grant
An amount up to 25% of the approved grant can be paid to the beneficiary upon the completion of a project with a total value of at least 25% of the total investment cost. An amount up to fifty percent (50%) or sixty-five percent (65%) of the approved grant can be paid to the beneficiary after their request and the certification of the implementation of fifty percent (50%) or sixty-five percent (65%) of the total cost of the investment plan by the competent body, through an on-site or administrative audit.
Financial leasing subsidy
The start of the financial leasing subsidy payment can be made after the certification by the competent control body of the installation of all leased equipment in the unit, according to the financial leasing agreement. The subsidy is paid semi-annually and after each payment of the lease installments by the investment entity. The amount paid is calculated on the acquisition value of the equipment, which is included in the paid installments, according to the approved aid percentages and with the restriction of not exceeding the payment of sixty percent (60%) of the approved amount until the issuance of the decision on the completion and commencement of the productive operation of the investment plan.
Subsidy for the cost of created employment
The start of the subsidy for the cost of created employment can be made after the certification by the competent control body of the creation of the job positions linked to the investment plan. The subsidy is paid semi-annually and after each payment of the payroll cost by the investment entity, with the restriction of not exceeding the payment of sixty percent (60%) of the approved amount until the issuance of the decision on the completion and commencement of the productive operation of the investment.
Development Law Greece