Compared to the previous Investment Promotion Act 3299/2004, the new Investment Act provides for new procedures and new financing and funding options. The hallmarks of this law are above all transparency, efficiency and acceleration.
In particular, the law is characterised by the following features:
- Setting a specific annual budget and thus upper limits for investments
- Extension of scope to all sectors of the economy, except for the sectors listed in Article 2 of the law
- Creation of new forms of support, in particular tax exemptions, non‑repayable grants, leasing subsidies and low‑interest loans
- Applications can be submitted electronically on a dedicated website and in writing to the competent authorities
- Fixed submission windows (April and October)
- New procedure for evaluating submitted applications and establishment of a National Register of reviewers and examiners
- Promotion of innovation
- Strengthening regional cohesion
- Job creation
- Support for young entrepreneurs
- The equity (own‑funds) ratio is 25% of the investment
Investment Categories
1. General companies
- Applies to every entrepreneur
- Tax exemptions for up to 10 years on a staggered basis and up to 100% of the maximum legally provided subsidy amount
2. Cooperation with the periphery
- Concerns every entrepreneur: investment plans related to local needs or exploiting local competitive advantages
- Covers all forms of investment
- Grants and leasing subsidies up to 70% of the maximum legally provided subsidy amount
- For newly founded companies, this percentage can be increased by a further 10%
- The remaining percentage up to the maximum legally provided subsidy amount is covered by tax exemptions
3. Technological growth
- Investments in renewal and the technological advancement of the enterprise
- Grants and leasing subsidies up to 80% of the maximum legally provided subsidy amount
- For newly founded companies, this percentage can be increased by a further 10%
- The remaining percentage up to the maximum legally provided subsidy amount is supplemented by tax exemptions
4. Young entrepreneurship
- Refers to young entrepreneurs aged 20 to 40
- Funding of all expenses for a period of 5 years from the commencement of operations
- Total support capped at €1,000,000
5. Large investment plans
- Investments of at least €50,000,000
- Any form of aid, individually or cumulatively
- The amount of aid is reduced where the aid itself increases the investment amount
- The grant element is capped at 60% of the total aid
6. Completed multi‑year investment plans
- Investment plans to implement completed multi‑year (2–5 years) corporate programmes exceeding €2,000,000
- The companies must have existed for at least five years
- Objective: technological, administrative, organisational and entrepreneurial advancement
- Tax exemptions up to 100% of the maximum legally provided subsidy amount
7. Synergy and networking plans (so‑called clustering)
- Corporate structures of synergy and networking of at least 10 companies in Athens and Thessaloniki, and 5 companies in the rest of Greece, in the form of a joint venture
- Any form of aid
Forms of Aid
- Tax exemptions for 8 to 10 years
- Non‑repayable grants
- Subsidies for leasing instalments
- Low‑interest loans from E.T.E.AN. (Entrepreneurship Fund)
The new Greek Investment Law 3908/2011 in practice
The second submission phase for investment plans under the new law began on 01/10/2011 and ended on 31/10/2011.
Applications may seek grants, tax exemptions, subsidies of leasing instalments, as well as financing through the Entrepreneurship Fund (E.T.E.AN.). For certain large investments in the so‑called General Category, an application may be submitted at any time throughout the year.
Applications submitted during the first phase of the law’s application in May of the same year are already at the final stage. All applications filed with the competent offices of the Ministry in Athens and Thessaloniki have been evaluated, and in 63 cases—with a total budget of €402,015.74 and the creation of 497 jobs—approval has already been granted.
All investors who have already filed an application can follow their application’s progress up to the final evaluation on the Ministry’s website at www.ependyseis.gr.
The new legislation ensures transparency, efficiency, objectivity and the acceleration of the procedures introduced. For the first time, investors will also be able to learn, within six months of submitting their application, the results of their application’s evaluation, the amount of state support for inclusion and the decision on their application, and the schedule for payment of subsidies.
It should be noted that the evaluation of the first‑phase investment plans was completed on time, i.e. in accordance with the statutory requirements, and in compliance with transparency and expedited procedures. The next submission period begins in April.
(Status: 2011. All information provided without guarantee.)