Contribution on the Amended Legal Situation of the Greek Subsidy Law (under Law 3299/2004)
Note: the following remarks relate only to subsidies that were applied for and decided under Law 3299/04. For new applications, the rules of Law 3908/2011 apply.
Companies whose investment plans were made subject to the provisions of Greek Development Law 3299/04 were previously prohibited from changing, in any way, the ownership structure in terms of shareholders or shares, from the time of approval until five years had elapsed from the publication of the decision confirming completion and commencement of production under the investment. This followed unambiguously from Art. 10(1) of Law 3299/2004.
This previous rule in Art. 10(1) was, however, expressly repealed by Art. 37(9) of Law 3522/2006, and further modified by a subsequent 2008 amendment, specifically Art. 7(5) of Law 3631/2008. Under the currently applicable provisions of Law 3299/2004 (as amended), the company’s ownership structure may accordingly be changed. Any change to the ownership structure of the investment vehicle need only be notified to the competent authorities. No approval from the authorities is required.
It should be noted, however, that changing the ownership structure must not also change the size of the company. If, upon completion of the investment, it turns out that the investment vehicle is, as a result of the change in ownership structure, no longer a small or medium-sized enterprise within the meaning of Law 3299/04, the funding amount is reduced by the corresponding proportion.
As a result, these legislative amendments give companies the ability to transfer their shares, or even the entire company, at any time – including after the applications for funding have already been submitted to the competent authorities.
(As of August 2008. All information is provided without guarantee and subject to change.)
FAQ
Note: this section relates to the currently applicable Greek investment law (Development Law 4887/2022). Some older funding applications remain partly subject to the historical provisions of Laws 3299/2004 or 3908/2011.
For investors and entrepreneurs making use of state funding in Greece, an important strategic question often arises: may I bring in new partners, sell shares, or change the legal form of the company after applying for or being granted a subsidy?
The short answer is: yes, that is possible – but strict rules apply.
While very early versions of the law (before 2006) strictly prohibited such changes, the current Development Law 4887/2022 provides the necessary entrepreneurial flexibility. Nevertheless, the Greek state examines changes of ownership closely. Today, you must bear the following in mind:
Any material change in the ownership structure of the funded company must be reported to the competent authority (the Ministry of Development or the competent regional directorate) promptly and without fail. Undisclosed transfers of shares can lead to the funding being fully revoked and to repayment claims.
This is the most important point in practice: the amount of state funding in Greece depends significantly on the size of the company. Small and medium-sized enterprises (SMEs) often receive substantial percentage bonuses on the base funding.
• The risk: if the ownership structure changes – for example, because a large corporation buys a stake in your small company – your company may lose its SME status.
• The consequence: if an inspection reveals that the company is legally classed as a “large enterprise” as a result of the change of ownership, the funding amount is retroactively reduced to the (lower) rate for large enterprises.
The state grants funding on the condition that the investor can raise their own share of the costs (the equity). If the original shareholders leave the company, the authorities examine whether the new shareholders are financially able to complete the investment project as contractually agreed. The creditworthiness and proof of own funds must therefore also be clearly established for the new ownership structure.
Depending on which phase your investment plan is in (still under review, already being implemented, or already in ongoing operation after completion), a mere notification of the change is often not sufficient. Particularly during the implementation phase, material changes to the ownership structure generally require the formal approval of the authorities, to ensure that the original funding criteria continue to be met.
Current Greek funding law does not block business decisions such as mergers, share sales, or bringing in new investors. However, you should never take such steps without prior legal review. Before shares are transferred, it should be precisely calculated whether this affects SME status and thus the amount of the approved subsidies.
As of June 2026. All information on these pages is provided without guarantee or liability.