Publication of the tax incentives for “Angel Investors” No39937 VOL Β 1415.9.4.2021

November 23, 2021

The terms and conditions for the characterization of a tax entity – person as “Angel Investor” in a startup business or businesses have been published by the Government.

The publication defines the following:

-Startup Business

Any S.A or Ltd that is based in Greece and is registered in the National Startup Registry “Elevate Greece” during the time of cash inflow.

-Angel Investor

Any tax paying individual, Greek tax resident, Greek Tax ID holder, that will contribute capital to startup businesses for their development, in accordance to the terms an provisions of this Regulation.

-Capital contribution

The injection of capital from the investment angel, that is done solely through a bank transfer.

-Right for income tax reduction:

An amount equal to 50% of the capital contribution to the startup business/es will be deducted from the declared taxable income for the year within the contribution was made.

Limits on investment funds and ways of contribution

The Investment Angel is eligible to a tax deduction on his/her taxable income for capital contributions made to up to three different startups with a total contribution of up to 300000€.  The maximum contribution per startup is limited to 100.000€

The capital contribution to the startup is done either through a share increase or through share capital by issuing new or corporate shares.

All payments of the capital contribution must be done by bank transfer from the Investment Angels account in Greece or abroad to the corporate account of the startup. The bank account of the startup must be in a Greek banking institution proven by the relevant bank documentation

Proof of the capital contribution must be declared by the startup in the electronic platform of “Elevate Greece”

Tax deduction procedure

The deduction from the taxable income of the Investment Angel is done with the indication of the capital contributed in the relevant section of the income tax form for the year the contribution was made

Imposed fines

If it is proven, following an audit, that the capital contribution was done with the sole purpose of the tax deduction and not the development of the startup then a fine will be imposed to the Investment Angel.  The amount of the fine will be equal to the benefit the Investment Angel sought to obtain from the capital contribution.Read the article here



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