Development Law 4887/22- Greece Strong Growth
PK Consulting group
13 new state aid schemes are introduced for investment projects:
1. Digital and technological transformation of enterprises
2. Green transition – Environmental business upgrade
3. New Business
4. Fair Development Transition Regime
5. Research and applied innovation
6. Agrifood – primary production and processing of agricultural products – fisheries
7. Processing – Supply chain
8. Business extroversion
9. Enhancement of tourism investments
10. Alternative forms of tourism
11. Large investments
12. European value chains
13. Entrepreneurship 360o
Beneficiaries of the subsidies granted under the above schemes, are the investment entities that are established or have a branch in the Greek Territory at the time of commencement of works of the investment plan and have one of the following forms:
a. Commercial company,
b. Partnership,
c. Social Cooperative Enterprises (Koin.S.Ep.), Agricultural Cooperatives (DP), Producer Groups (PO), Urban Cooperatives, Agricultural Cooperative Partnerships (AES),
d. Companies under establishment or merger, with the obligation to have completed the publicity procedures before the commencement of works of the investment plan,
e. Consortia engaged in commercial activity,
f. Public and municipal enterprises and their subsidiaries, provided that: they have not been entrusted with the service of public purpose, the state has not been entrusted exclusively with the provision of services, their operation is not subsidized with public resources for the period of fulfillment of long-term obligations.
Development Law - Greece
In order to be included in the schemes of the Law, the existence of a minimum amount of the eligible costs of the investment plan is required, which is determined based on the size of the body, and specifically amounts to:
a. amount of one million (1,000,000) euros for large companies,
b. amount of five hundred thousand (500,000) euros for medium-sized enterprises,
c. amount of two hundred and fifty thousand (250,000) euros for small businesses,
d. amount of one hundred thousand (100,000) euros for very small enterprises,
e. amount of fifty thousand (50,000) euros for the Social Cooperative Enterprises (Koin.S.Ep.), as well as the Agricultural Cooperatives (DP), the Urban Cooperatives, the Producer Groups (PO) and the Agricultural Corporate Partnerships (RCC)
The financial contribution of each entity to the cost of the investment plan can be covered either with own funds or with external financing, provided that twenty-five percent (25%) of this assisted cost does not contain any state aid, public support or provision.
Development Law - Greece
Investment plans for regional aid, which are subject to the aid schemes of this Law, must have a complete initial investment character and in particular must meet one of the following conditions:
a. Creating a new unit,
b. Expansion of the capacity of an existing unit,
c. Differentiation of the production of a unit into products or services that have never been produced on it, provided that the aided costs exceed by at least two hundred percent (200%) the carrying amount of the reused assets as recorded in the tax return. year preceding the application for inclusion in the investment plan,
d. Fundamental change of the entire production process of an existing unit. For large companies, the aided investment costs are also required to exceed the depreciation of the assets, which are related to the activity to be modernized and incurred during the previous three (3) tax years. If the depreciation related to the activity is not clearly reflected, it is considered that the above condition is not met.
The following types of aid are provided in the investment plans that are subject to the aid schemes of the Law:
a. Tax exemption, which consists of the exemption from the payment of income tax on pre-tax profits, which arise under the relevant tax legislation, from all the activities of the company, deducting the tax of the legal entity or the legal entity concerned in profits distributed or assumed by the partners.
b. A subsidy, which consists of the free provision by the State of a sum of money, to cover part of the supported costs of the investment plan and is determined as a percentage of them.
c. Leasing subsidy, which consists of the coverage by the State part of the paid installments of leasing, which is concluded for the acquisition of new mechanical and other equipment, is determined as a percentage of the value of their acquisition and is included . The leasing subsidy may not exceed seven (7) years, and the term starts from the date of completion of the investment.
d. Subsidy of the cost of the created employment, which consists in the coverage by the State part of the salary cost of the new jobs created and related to the investment plan and for which no other state aid is received.
e. Business risk financing, refers to the “New Business” scheme, which consists of subsidizing the interest rate of subordinated loans or the insurance costs of high-risk loans paid to the credit institutions that grant them.
2. The types of aid of items a΄, b΄ and c΄ are provided individually or in combination and are taken into account to determine the total amount of aid of each investment project. The type of aid of item d is provided independently and only for the expenditure costs of the new jobs.
Development Law - Greece
• 01 Plant and animal production, hunting and related activities
• 03 Fisheries
• 07 Extraction of iron ore
• 08 Mining of stones, sand and clay
• 10 Food Industry
• 11 Distillery
• 12 Production of tobacco products
• 13 Production of textiles
• 14 Manufacture of clothing
• 15 Leather and leather goods industry
• 16 Wood industry and manufacture of wood and cork products, except furniture – manufacture of basketware and wickerwork
• 17 Paper mill and manufacture of paper products
• 18 Print and play pre-recorded media
• 19 Production of coke and petroleum refining products
• 20 Production of chemicals and products
• 21 Production of basic pharmaceutical products and pharmaceutical preparations
• 22 Manufacture of rubber products and plastics
• 23 Production of other non-metallic mineral products
• 24 Production of basic metals
• 25 Manufacture of metal products, except machinery and equipment
• 26 Manufacture of computers, electronic and optical products
• 27 Manufacture of electrical equipment
• 28 Manufacture of machinery and equipment nec
• 29 Manufacture of motor vehicles, trailers and semi-trailers
• 30 Manufacture of other transport equipment
• 31 Manufacture of furniture
• 32 Other manufacturing activities
• 33 Repair of metal products, machinery and equipment
• 36 Seawater desalination services exclusively using RES.
• 37 Sewage treatment
• 38 Waste collection, treatment and disposal, material recovery
• 39 Remediation activities and other waste management services
Investment plans are strengthened
a) small hydropower plants with an installed capacity of up to 15 MW;
b) high efficiency cogeneration units from RES.
c) hybrid RES stations in the Interconnected Islands (MDNs),
d) production of heat and cooling from renewable energy sources
e) energy efficient district heating and cooling systems,
f) production of sustainable biofuels, which are not based on edible plants and are not subject to supply or mixing obligations, as well as conversion of existing plant-based biofuel production units into sustainable, non-edible and in an obligation to supply or mix
αδ) παραγωγής θερμότητας και ψύξης από ανανεώσιμες πηγές ενέργειας,
αε) ενεργειακά αποδοτικών συστημάτων τηλεθέρμανσης και τηλεψύξης,
αστ) παραγωγής αειφόρων βιοκαυσίμων, τα οποία δεν είναι βασιζόμενα σε εδώδιμα φυτά και δεν υπόκεινται σε υποχρέωση εφοδιασμού ή ανάμειξης, καθώς και μετατροπής υφιστάμενων μονάδων παραγωγής βιοκαυσίμων βασιζόμενων σε εδώδιμα φυτά σε μονάδες παραγωγής αειφόρων βιοκαυσίμων, τα οποία δεν βασίζονται σε εδώδιμα φυτά και δεν υπόκεινται σε υποχρέωση εφοδιασμού ή ανάμειξης.
only for aid scheme ” Business Extroversion “
• 46.46 Wholesale Trade of Pharmaceutical Products
• 46.71.12.05 Wholesale of diesel for engines (and boats)
• 46.71.13.14 Wholesale trade of heating oil from a reseller
• 46.71.13.16 Wholesale trade of bottled or non-liquefied petroleum gas
• 50 Maritime and coastal passenger transport
• 51 Air passenger transport
• 52.21.24.00 Parking services (Concerns only the establishment or expansion of spaces, at least 40 spaces)
• Recharge Services for Electric Vehicles), for investment projects used in island areas
• 52.22.11.05 Services of tourist ports (marinas)
• 52.22.11.06 Waterway operation services,
• 52.29.19.03 Transportation services with supply chain management (logistics).
• 53 Postal and courier activities
a) Establishment or expansion of hotel units of at least four (4) stars,
b) Modernization of an integrated form of hotel unit belonging to or upgraded to a category of at least three (3) stars. A duration of five years must have elapsed from the commencement of operation of the unit or from the date of completion of the previous investment for modernization of the integrated form of the unit
c) Expansion and modernization of an integrated form of hotel unit that has ceased its operation, provided that during the interruption period the use of the building has not changed and that it will be upgraded to a category of at least four (4) stars, through the expansion or modernization of an integrated form
d) Establishment, expansion and modernization of an integrated form of Tourist Organized Camp, which belong or are upgraded to a category of at least three (3) stars as well as glamping
e) Establishment and modernization of an integrated form of hotel unit within designated traditional or listed buildings, which belong to or are upgraded to a category of at least three (3) stars
f) Complex tourist accommodation, other than those relating to the transfer or long-term lease of buildings and facilities and provided that they are submitted as a single investment project
g) Special Tourism Infrastructure facilities, such as conference centers, golf courses, tourist ports, ski resorts, theme parks, spa tourism facilities (such as spa treatment centers, thermal spa tourism centers, thalassotherapy centers) recreation centers, mountain shelters and motor racing tracks,
h) Agritourism or wine tourism or geotourism facilities.
i) condo hotels, provided that the transfer or long-term lease of such enhanced parts takes place after the end of compliance with the long-term obligations of the investment entity
k) establishment and modernization of non-main tourist accommodation, if (a) they bear the distinctive title of “hostel”
l) diving tourism facilities
• 58 Publishing books, magazines and other publishing activities
• 59 Production of movies, videos and TV shows
• 60 Radio broadcasts
• 61 Wired telecommunications activities
• 62 Computer programming, consulting and related activities
• 63 Data processing, registration and related activities portals
• 68.32.13.00 relate to the establishment or expansion and are implemented in an area of more than three hundred (300) acres, only for the schemes “Fair Development Transition” and “Entrepreneurship 360o”.
- 71.20 for technical testing and analysis companies, only for the “Research and Applied Innovation” scheme.
• 72 Scientific research and development
• 74 Other professional, scientific activities
• 91.01.11 Library Services
• 91.02 Museum activities
• Rehabilitation and recovery centers
• Support housing units for people with disabilities
• Retirement Homes (KAD 87.30.11.01)
(Applies to unit creation only)
• 93.11.10.01 Services of courts (4×4, 5×5 etc.) of football, basketball,
tennis, etc.,
• 93.11.10.03 Swimming pool services.
• 96.01.19.02 Services of Laundry Engineers
• 96.01.13.01 Clothes Ironing Services
• Creation of permanent “studios” facilities for the production of movies, videos, TV programs and recordings.
• An exceptional status in the field of shipbuilding may be announced by a joint decision of the co-responsible Ministers, with the prior approval of the European Commission
Development Law - Greece
a. Investment costs in tangible assets and in particular costs for:
• The construction, expansion, modernization of building facilities, special and auxiliary facilities of buildings, constructions to ensure accessibility to people with disabilities, as well as landscaping.
• The purchase of all or part of existing fixed assets, such as buildings, machinery and other equipment, business site, under the following conditions, which must be cumulative:
i. the business site is closed,
ii. the purchase is made by the investor of the investment plan, who is not related to the seller, unless it is a small business, which is acquired either by a member of the seller’s family or by an employee of the original owner,
iii. the relevant transaction takes place under normal market conditions. These eligible costs are deducted from the cost of assets that have previously been subsidized or subsidized through development laws or other pre-purchase aid schemes.
• The purchase and installation of new modern machinery and other equipment, including technical installations and means of transport that operate within the premises of the unit.
• The leasing of new modern machinery and other equipment, provided that the leasing contract provides that the equipment falls into the ownership of the lessee, at the end of the contract.
• The modernization of special facilities (not related to buildings) and mechanical facilities.
b. Investment costs in intangible assets, in particular costs for:
• The transfer of technology, through the purchase of intellectual property rights, licenses, patents, know-how and non-patented technical knowledge,
• Quality assurance and control systems, certifications, procurement and installation of software and business organization systems.
For large enterprises, the assisted expenditure on intangible assets may not exceed fifty percent (30%) of the total assisted regional aid expenditure, while for SMEs the maximum rate is seventy-five percent (50%).
c. The salary cost of the new jobs, created as a result of the implementation of the investment plan is calculated to two (2) years from the creation of each position. The above salary cost is an eligible expense only independently and not in combination with other expenses
The eligible costs of the investment projects, for which they are provided, except for regional aid, with more specific terms and conditions set out in the General Exemption Regulation, without prejudice to the additional categories provided for in the aid schemes “Digital and technological transformation”, Transition – Environmental Business Upgrade “,” New Business “,” Fair Development Transition (Fair Development “),” Research and Applied Innovation “,” Business Extroversion and European Value Chains “.
Expenditure that can be supplemented by regional aid.
1. Investment costs, for consulting services in new SMEs
2. Start-up costs for the newly established and under establishment small and very small enterprises.
3. Expenditure on research and development projects (industrial-experimental research, feasibility studies) .
4. Innovation costs for SMEs (other intangible assets, payroll, consulting services).
5. Expenditure on procedural and organizational innovation for SMEs and Large Enterprises that “collaborate” with them.
6. Investment costs for the protection of the environment with aid intensity
7. Investment costs for energy efficiency measures with aid intensity
8. Investment costs for the co-production of high efficiency energy from RES
9. Expenditures for energy production from renewable sources
10. Costs for installation of efficient district heating and cooling systems
11. Expenditure for the restoration of contaminated areas
12. Expenditure on recycling and reuse of waste
13. Expenditure on vocational training (qualification upgrading or retraining)
14. Aid for SME participation in trade fairs
15. Aid for disadvantaged workers
Development Law - Greece
| Greece – Regions NUTS | Grant Rates | ||
| Big enterprises | Medium enterprises | Small & very small enterprises | |
| EL41 North Aigaio | 60% | 70% | 75% |
| EL42 South Aigaio | 50% | 60% | 70% |
| EL43 Kriti | 60% | 70% | 75% |
| EL51 Eastern Makedonia, Thraki | 50% | 60% | 70% |
| EL52 Central Makedonia | 50% | 60% | 70% |
| EL53 West Makedonia | 60% | 70% | 75% |
| EL54 Ipeiros | 50% | 60% | 70% |
| EL61 Thessalia | 50% | 60% | 70% |
| EL62 Ionia Nisia | 40% | 50% | 60% |
| EL63 West Elláda | 50% | 60% | 70% |
| EL64 Central Greece | 40% | 50% | 60% |
| EL30 Attica / West sector / | 15% | 25% | 35% |
| EL30 Attica/ Eastern – West Attica /Pireaus | 25% | 35% | 45% |
| EL65 Peloponnisos | 40% | 50% | 60% |
| Municipalities of Megalopoli, Tripolis, Gortinia, Oichalia | 50% | 60% | 70% |
SA.109322 The amended map will be in force from 1 January 2024 until 31 December 2027