Strategic Ιnvestments
PK Consulting group
Strategic investments and improvement of the investment environment through the acceleration of processes in private and strategic investments
The term “Strategic Investments” defines investments which, due to their strategic importance to the national or local economy, can enhance employment, productive reconstruction and the promotion of the natural and cultural environment of the country, according to and with the principles of socially equitable, inclusive, balanced and sustainable development. Its the main features are:
- Attracting investment funds
- Extroversion and export activity
- Innovation, competitiveness, integrated design
- Saving natural resources in the perspective of the circular economy and high added value, particularly in areas of economic activity of internationally marketable products or services.
- Individual Enterprises
- Commercial Companies
- General Partnership
- Start – ups and under M&A process companies
- Social Cooperative Enterprises, Rural Corporate Partnerships
- Enterprises operating in the form of a consortium
- Public and municipal enterprises and their subsidiaries, as long as: A) they have not been assigned to serve a public purpose, B) they have not been assigned by the state exclusively to offer services C) their operation is not subsidized with public funds
strategic investments
Investments which meet at least one (1) of the following conditions, regardless of the investment sector: a) The total investment budget is greater than seventy-five million (75,000,000) euros. These investments may receive one (1) or more of the incentives: Location Incentive, Tax Incentive and Rapid Licensing Incentive. b) The total budget of the investment is greater than forty million (40,000,000) euros and at the same time the investment will create at least seventy-five (75) new Annual Work Units (EMUs). These investments may receive one (1) or more of the incentives: Location Incentive, Tax Incentive and Rapid Licensing Incentive, Strategic Investment Expenditure Support Incentive.
Investments which meet at least one (1) of the following conditions, regardless of the investment sector: a) The total investment budget is more than twenty million (20,000,000) euros and concerns one (1) or more of the sectors of agri-food, research and innovation, biotechnology, cultural and creative industries, biotechnology, artificial intelligence, medical tourism, waste management, space industry or the investment is more than twenty million (20,000,000) euros and it is aimed at the digital transformation of the business or the provision of cloud computing services (“cloud computing”). These investments may receive one (1) or more of the incentives: Tax Incentives, Rapid Licensing Incentive, Incentives to Strengthen Strategic Investment Expenditures b) The investments create at least fifty (50) new Annual Work Units and their total budget is more than thirty million (30,000,000) euros. These investments may receive one (1) or more of the incentives: Tax Incentives, Rapid Licensing Incentive, Incentives to Strengthen Strategic Investment Expenditures c) They constitute investments within Organized Recipients of Manufacturing and Busi- ness Activities, which create at least forty (40) Annual Work Units and their total budget is more than twenty million (20,000,000) euros. These investments may receive one (1) or more of the incentives: Tax Incentives and Rapid Licensing Incentive, Incentives to Strengthen Strategic Investment Expenditures
They are implemented by distinguished legal entities and promote green economy, innovation, technology, as well as economies of low energy and environmental footprint. In this field especially these investments will promote infrastructure investments and will include specific energy criteria for the construction of new buildings, of systems that combine Renewable Energy Power Plants (RES) and “green” hydrogen production systems (provided that the produced electric energy is used exclusively for the production of hydrogen), RES electricity storage systems, and facilities of marine wind or floating photovoltaic parks, as well as investments that significantly strengthen the Greek economy and its competitiveness at the international level. These investments can receive one (1) or more of the incentives: Location incentive, Tax incentives, Rapid licensing incentive, Incentives to enhance strategic investment expenditures. Regarding the aid for Incentives to increase strategic investment costs, investments that are implemented within the Depoliticization Zones (ZAP) of law 4759/2020 (A ‘245) can receive the specific aid at a rate of one hundred percent (100%), as provided in Regulation (EU) 651/2014. The investments that are implemented outside Z.AP. of Law 4759/2020 can receive the reinforcement of the previous paragraph at a rate of eighty percent (80%) of the provision of Regulation (EU) 651/2014. A prerequisite for the provision of tax incentives and incentives to increase strategic investment costs, divisive or cumulative, in investment plans, which fall into this category, is the completion of their implementation by December 31, 2025.
These investments meet the criteria mentioned in one (1) of the following sub-cases: a. They create at least thirty (30) new Annual Work Units and their total budget is more than twenty million (20,000,000) euros. Investments in this case may receive one (1) or more of the rapid licensing incentives and incentives to increase strategic investment costs. b. They create at least thirty (30) new Annual Work Units, provided that their total budget is more than ten million (10,000,000) euros and they are part of an investment which has already been characterised as strategic and its implementation has been completed. Investments in this case may receive one or more of the rapid licensing incentives and incentives to increase strategic investment costs. c. They are existing investments, strategic or not, which are undergoing restructuring or modernization or expansion of their facilities and their total budget is more than fifteen million (15,000,000) euros, provided that one hundred (100) of the Annual Work Units are maintained. Investments in this sub-case can be motivated by rapid licensing.
These investments meet the mentioned criteria in one (1) of the following sub-cases: a) They constitute investments of law 3389/2005 (A ‘232), which have been approved as well as investments for the European Projects of Common Interest (PCI) of article 8 of law 4271/2014 (A’ 144). In this case investments that are classified as Important Projects of Common European Interest (IPCEI) of legal entities, which participate as direct members in projects of Important Projects of Common European Interest, will be included provided that the total budget is more than twenty million (20,000,000) euros. The investments in this sub-case may receive one (1) or more of the incen- tives: Tax Incentives and Rapid Licensing Incentive. b) They constitute “Strategic investments of spatial organization of enterprises”, which concern the development of business parks of law 3982/2011 (A ‘143), in an area of at least five hundred (500) acres and with a total budget of over ten million (10,000).euros. Investments in this category may receive one (1) or more of the incentives: Site Incentive, Tax Incentive and Rapid Licensing Incentive
Investments in the production of electricity energy are characterized as "Strategic Investments", if, cumulatively with the individual conditions of each category, they also meet the following conditions:
a) They fall into one of the following categories:
aa) Systems that combine a power plant from A.P.E. and "green" hydrogen production system, produced electricity is used exclusively for hydrogen production.
αb) Offshore wind and/or floating photovoltaic park installations.
αg) A.P.E. projects. that interconnect areas of the Territory that have been interconnected and are not planned to be interconnected National Electricity Transmission System through a submarine cable, in accordance with the approved Ten-Year Development Program (D.D.A.) of the National Electricity Transmission System (E, S.M.H.E.).
ad) Projects A.P.E. fully controlled power generation according to par. 14 of article 2 of Law 4414/2016 (A' 149). The projects of this sub-case only receive an accelerated licensing incentive. The projects in question have a common point of connection with the E.S.M.H.E.
b) 'They have a budget of at least seventy million (75,000,000) euros, except for Flagship Investments of Strategic Importance for which no budget limit isrequired. (Official Gazette A 27/14.2.2023 Law 5019/2023)
Investments which meet at least one (1) of the following conditions, regardless of the investment sector:
a) The total investment budget is greater than seventy-five million (75,000,000) euros.
-
These investments may receive one (1) or more of the incentives: Location Incentive, Tax Incentive and Rapid Licensing Incentive.
b) The total budget of the investment is greater than forty million (40,000,000) euros and at the same time the investment will create at least seventy-five (75) new Annual Work Units (EMUs).
-
These investments may receive one (1) or more of the incentives: Location Incentive, Tax Incentive and Rapid Licensing Incentive, Strategic Investment Expenditure Support Incentive.
I
nvestments which meet at least one (1) of the following conditions, regardless of the investment sector:
a) The total investment budget is more than twenty million (20,000,000) euros and concerns one (1) or more of the sectors of agri-food, research and innovation, biotechnology, cultural and creative industries, biotechnology, artificial intelligence, medical tourism, waste management, space industry or the investment is more than twenty million (20,000,000) euros and it is aimed at the digital transformation of the business or the provision of cloud computing services (“cloud computing”).
-
These investments may receive one (1) or more of the incentives: Tax Incentives, Rapid Licensing Incentive, Incentives to Strengthen Strategic Investment Expenditures
b) The investments create at least fifty (50) new Annual Work Units and their total budget is more than thirty million (30,000,000) euros.
-
These investments may receive one (1) or more of the incentives: Tax Incentives, Rapid Licensing Incentive, Incentives to Strengthen Strategic Investment Expenditures
c) They constitute investments within Organized Recipients of Manufacturing and Busi- ness Activities, which create at least forty (40) Annual Work Units and their total budget is more than twenty million (20,000,000) euros.
-
These investments may receive one (1) or more of the incentives: Tax Incentives and Rapid Licensing Incentive, Incentives to Strengthen Strategic Investment Expenditures
They are implemented by distinguished legal entities and promote green economy, innovation, technology, as well as economies of low energy and environmental footprint. In this field especially these investments will promote infrastructure investments and will include specific energy criteria for the construction of new buildings, of systems that combine Renewable Energy Power Plants (RES) and “green” hydrogen production systems (provided that the produced electric energy is used exclusively for the production of hydrogen), RES electricity storage systems, and facilities of marine wind or floating photovoltaic parks, as well as investments that significantly strengthen the Greek economy and its competitiveness at the international level.
-
These investments can receive one (1) or more of the incentives: Location incentive, Tax incentives, Rapid licensing incentive, Incentives to enhance strategic investment expenditures.
Regarding the aid for Incentives to increase strategic investment costs, investments that are implemented within the Depoliticization Zones (ZAP) of law 4759/2020 (A ‘245) can receive the specific aid at a rate of one hundred percent (100%), as provided in Regulation (EU) 651/2014.
The investments that are implemented outside Z.AP. of Law 4759/2020 can receive the reinforcement of the previous paragraph at a rate of eighty percent (80%) of the provision of Regulation (EU) 651/2014.
A prerequisite for the provision of tax incentives and incentives to increase strategic investment costs, divisive or cumulative, in investment plans, which fall into this category, is the completion of their implementation by December 31, 2025.
These investments meet the criteria mentioned in one (1) of the following sub-cases:
a. They create at least thirty (30) new Annual Work Units and their total budget is more than twenty million (20,000,000) euros. Investments in this case may receive one (1) or more of the rapid licensing incentives and incentives to increase strategic investment costs.
b. They create at least thirty (30) new Annual Work Units, provided that their total budget is more than ten million (10,000,000) euros and they are part of an investment which has already been characterised as strategic and its implementation has been completed. Investments in this case may receive one or more of the rapid licensing incentives and incentives to increase strategic investment costs.
c. They are existing investments, strategic or not, which are undergoing restructuring or modernization or expansion of their facilities and their total budget is more than fifteen million (15,000,000) euros, provided that one hundred (100) of the Annual Work Units are maintained. Investments in this sub-case can be motivated by rapid licensing.
These investments meet the mentioned criteria in one (1) of the following sub-cases:
a) They constitute investments of law 3389/2005 (A ‘232), which have been approved as well as investments for the European Projects of Common Interest (PCI) of article 8 of law 4271/2014 (A’ 144). In this case investments that are classified as Important Projects of Common European Interest (IPCEI) of legal entities, which participate as direct members in projects of Important Projects of Common European Interest, will be included provided that the total budget is more than twenty million (20,000,000) euros.
-
The investments in this sub-case may receive one (1) or more of the incen- tives: Tax Incentives and Rapid Licensing Incentive.
b) They constitute “Strategic investments of spatial organization of enterprises”, which concern the development of business parks of law 3982/2011 (A ‘143), in an area of at least five hundred (500) acres and with a total budget of over ten million (10,000).euros.
-
Investments in this category may receive one (1) or more of the incentives: Site Incentive, Tax Incentive and Rapid Licensing Incentive
Electricity production investments are characterized as “Strategic Investments”, if, cumulatively with the individual conditions of each category, they also meet the following conditions:
a) They fall into one of the following categories:
aa) Systems that combine a power plant from A.P.E. and “green” hydrogen production system, generated electricity is used exclusively for hydrogen production.
ab) Installations of offshore wind and/or floating photovoltaic parks.
ag) ‘Projects of A.P.E. that interconnect areas of the Territory that have been interconnected and are not planned to be interconnected National Electricity Transmission System through a submarine cable, in accordance with the approved Ten-Year Development Program (D.D.A.) of the National Electricity Transmission System (E, S.M.H.E.).
ad) ‘Projects of A.P.E. fully controlled power generation according to par. 14 of article 2 of Law 4414/2016 (A’ 149).
ae) Electricity storage systems from A.P.E. Projects under this sub-case receive an expedited licensing incentive only. These projects have a common point of connection with E.S.M.H.E.
b) They have a budget of at least seventy million (75,000,000) euros, except for Flagship Investments of Strategic Importance for which no budget limit is required. (Official Gazette A 27/14.2.2023 Law 5019/2023)
Special arrangements for Renewable Energy Sources (RE) investments
Electricity production investments are characterized as “Strategic Investments”, if, cumulatively with the individual conditions of each category, they also meet the following conditions:
a) They fall into one of the following categories:
aa) Systems that combine a power plant from A.P.E. and “green” hydrogen production system, generated electricity is used exclusively for hydrogen production.
ab) Installations of offshore wind and/or floating photovoltaic parks.
ag) ‘Projects of A.P.E. that interconnect areas of the Territory that have been interconnected and are not planned to be interconnected National Electricity Transmission System via submarine cable, according to the approved, upon application for affiliation, Ten-Year Development Program (D.D.A.) of the National Electricity Transmission System (E, S.M.H.E.).
ad) Projects of A.P.E. fully controlled power generation according to par. 14 of article 2 of Law 4414/2016 (A’ 149).
ae) Electricity storage systems from A.P.E. Projects under this sub-case receive an expedited licensing incentive only. These projects have a common point of connection with E.S.M.H.E.
b) They have a budget of at least seventy million (75,000,000) euros, except for Flagship Investments of Strategic Importance for which no budget limit is required. (Official Gazette A 27/14.2.2023 Law 5019/2023)
For the inclusion in the categories of Strategic Investments, which are implemented Entirely in areas included in the Territorial Just Transition Plans (ESDIM), which accompany the NSRF Just Transition Program 2021-2027 and which present compatibility with the goals of Just Development Transition, as reflected in the E.S.D.I.M. and characterized as Just Development Transition projects, in accordance with the relevant legislative framework for the just development transition, a reduction factor of twenty-five percent (25%) is applied to the amounts required in each category of strategic investments of the total investment budget
Send feedback
Side panels
History
Saved
For the inclusion in the categories of Strategic Investments, which are implemented Entirely in areas included in the Territorial Just Transition Plans (ESDIM), which accompany the NSRF Just Transition Program 2021-2027 and which present compatibility with the goals of Just Development Transition, as reflected in the E.S.D.I.M. and characterized as Just Development Transition projects, in accordance with the relevant legislative framework for the just development transition, a reduction factor of twenty-five percent (25%) is applied to the amounts required in each category of strategic investments of the total investment budget
strategic investments from
Β.1 Location Motivations
The Ministry of Development and Investments, following a positive decision by the Interministerial Committee for Strategic Investments (DESE), may draft a specific spatial plan for the development of strategic investments, based primarily on a single area for a specific strategic investment.
Β.2 Placement Incentive – ESCHASE
It is possible to draw up Special Spatial Development Plans for Strategic Investments (SSPs), which are approved by issuing a Presidential Decree
Β.3 Tax Incentives
Stabilization of the income tax rate applicable at the date of their designation, which is set at twelve (12) years from the completion of the investment plan.
Investments, which are characterized as strategies, may receive separators:
a. Tax exemption consisting of the exemption from the payment of income tax on the pre-tax profits The entity may utilize the entire eligible tax exemption within fifteen (15) tax years and not less than three (3) tax years from the year in which the right to use the incentive is established, or
b. Acceleration of tax depreciation of fixed assets that have been included in the approved investment plan by increasing the rates by one hundred percent (100%). If the initial rate of depreciation is higher than twenty percent (20%), the final rate of in- crease may not exceed forty percent (40%).
For manufacturing companies, depreciation of machinery and non-technological equipment is deducted from gross income at the time of their realization, increased by thirty percent (30%).
Β.4. “Fast track” licensing Incentive
All required licenses and approvals for the implementation, installation, or operation of a strategic investment are issued within 45 calendar days, after the full documentation file for each required license is submitted to the General Directorate of Strategic Investments.
Β.5 Aid for operating expenditure
The supported expenditure categories are:
i. Aid for the employment of disadvantaged workers and persons with disabilities. (up to five million (5,000,000) euros per investment project.
ii. Aid for research and development projects,
- industrial research, twenty million (20,000,000) euros, per investment project,
- experimental development, fifteen million (15,000,000) euros, per investment project,
- feasibility studies and preparation of research activities, the seven million five hundred thousand (7,500,000) euros, per investment plan
Aid for “flagship investments of exceptional importance” in the form of a cash grant, leasing subsidy, or wage subsidy for new employment positions created as a result of the investment.
Interested investors should apply to Enterprise Greece SA for the characterization of their investment plan as a “strategic investment” under one of the categories, indicating the incentives that they wish to receive.
Investors must pay a management fee equal to 0.1% of the total investment cost, ranging from EUR 50,000 to 250,000. 25% of the management fee must be paid when submitting the application and the remaining 75% must be paid before the Interministerial Committee for Strategic Investments meeting
The application should be supported with a complete file including at least the following information:
- The proposed investment’s business plan
- Documentation about the ownership status of the investment location
- A financial analysis of the total investment budget and the financing structure
- The environmental and urban characteristics of the real estate according to the master plan
- An investment impact assessment
- An irrevocable order and proxy to Enterprise Greece to take the necessary actions
- Proof of payment to Enterprise Greece for the 25% of the total management fee
- A solemn declaration that the material provided is true and accurate and
- Supporting documentation including a detailed description of the aid requested and the costs incurred
Within 45 calendar days from the submission of the application, Enterprise Greece will conduct an assessment and provide an opinion on the completeness of the file and the reason for approving the investment under the framework
The opinion is forwarded to the General Secretariat of Private Investments and Public-Private Partnerships of the Ministry of Development and Investments, which further forwards the investment proposal proposal file to the Strategic Investments Coordinating Committee (S.E.S.E.), and the General Secretariat of Private Investments and Public-Private Partnerships is preparing the relevant meeting of the D.E.S.E.
The Interministerial Committee for Strategic Investments will then decide, within 30 calendar days, whether to classify the investment proposal as strategic.