The Greek Investment Law for the year 2022 provides for 70% aid for investments in certain sectors. The objective of the law is to attract investments in these sectors and support their development. The sectors which are granted are:

– Food and drink

– Tourism

– Manufacturing

– Environmental protection

– Renewable energy

– Information and communication technology

Contact AC Business today to learn more about how we can help you take advantage of this valuable program.

The law covers a wide range of investments, including those in new businesses, research and development, and export-oriented businesses. The 70% aid will be available for up to five years, and businesses must meet certain criteria in order to qualify.

The Greek Investment Law is an exciting opportunity for business owners who are looking to expand their operations. The 70% aid offered can be a great way to reduce the costs of expansion, and the wide range of investments covered by the law makes it a versatile option.

Businesses that are interested in expanding into Greece should carefully examine the Greek Investment Law to see if it is a good fit for their needs. With the 70% aid available for up to five years, this law can be a good companion to any business looking to grow.

Newly industrialized countries such as Greece were among the first to benefit from the Industrial Revolution. With modern ICT technology and a well-educated population, the country is well-poised to take advantage of the Fourth Industrial Revolution (Industry 4.0) which will traverse the world  — bringing challenges for business, governments and people.

Greece has a population of around 11 million, of which around 8 million are active members of the workforce. The country has a GDP of $162 billion, and with the new value-added tax system just come into force, firms could see their taxes reduced by $80 billion over  five years. 

The public consultation for the new investment law, that is anticipated to come back into force at the start of 2022, has been completed. The new law aims at promoting the economic development of Greece with fast and executive procedures and by providing incentives for targeted activities for the green and digital transition, for supporting innovative investments introducing the new technologies of “Industry 4.0”, AI and artificial intelligence, moreover as strengthening employment and entrepreneurship and of the areas enclosed within the simply Transition Development Plan.

Main Changes

Within the new investment law, 13 aid schemes with thematic targeting (instead of the approach of 1 horizontal dimension) are enclosed.

Priority is given to state aid in necessary development areas like green transition, digital transformation, analysis and development, extroversion, and so forth.

For the primary time, the potentials provided by the overall Exemption Regulation 651/2014 are utilized, concerning the inclusion of investment plans autonomously, consistent with the remainder of the Regulation’s articles, except Regional Aids. With this initiative, aid in areas such as research and innovation, environmental protection and socially helpful aid, such as education and training for underprivileged or disabled employees, will currently be considered integrated investment projects.

Effective and economical procedures for evaluating and watching the implementation of investment plans are introduced. The law provisions analysis at intervals 45 from the theme due date, or within thirty days for the cases of immediate evaluation.

Specifics

The draft law establishes thirteen thematic schemes for granting state aid:

• Digital and Technological Transformation of companies
• Green Transition – Environmental Business Upgrade
• New Business
• Simply Development Transition
• Analysis and Applied Innovation
• Agri-food – Primary Production and process of Agricultural Products – Fisheries
• Supply Chain – Production – Manufacturing
• Business extraversion
• Improvement of Tourism Investments
• Other types of Tourism
• Huge Investments
• European Value Chains
• Entrepreneurship 360o

Benefits:

1. Tax exemption: Exemption from payment of financial gain tax. The capitalist will use the complete eligible aid of the tax exemption at intervals fifteen tax years
2. Grant: Free provision from the State of funds to hide a part of the eligible expenses of the investment arrange
3. Leasing subsidy: The State covers part of the installments purchased the leasing agreement all over for the acquisition of new machinery and alternative instrumentality
4. Wage subsidy: The State covers a part of the earnings value of the new jobs that are created and related to the investment plan. it’s calculated for 2 (2) years from the creation of every position
5. Risk funding (concerns solely the “New Business” scheme), through a participation fund, within the following forms:
   1. Equity or quasi-equity or investment support to supply business risk financing investments directly or indirectly to eligible corporations,
   2. Loans to provide business risk financing investments directly or indirectly to eligible companies

Find out more information about the investment incentives law here.