Investments in Tourism in Greece – 40% Subsidy under the Alternative Tourism Programme
As part of the “Competitiveness and Entrepreneurship 2007–2013” operational programme, the Ministry of Economy and the Ministry of Culture and Tourism provided funding for alternative tourism on particularly attractive business terms. The “Alternative Tourism” measure is implemented on the basis of Regulation 1998/2006 of 15 December 2006 on the application of Articles 87 and 88 (de minimis aid). These programmes specifically aim to promote relevant entrepreneurial activities in order to differentiate and enrich the Greek tourism product by exploiting alternative and/or special forms of tourism.
Alternative tourism covers the full range of tourism services tailored to the specific needs, preferences and motivations of tourists, targeting a qualified audience, adhering to the principles of sustainable development and helping to mitigate seasonal fluctuations in demand. According to the ministerial decision, the “Alternative Tourism” measure aims to support investment projects in the following general categories:
- Recreational sports tourism: tourism that encourages visitors to participate in recreational sports‑related experiences.
- Maritime tourism: tourism that encourages participation in experiences related to the marine and coastal environment.
- Open‑air tourism: visitor experiences in connection with the natural environment, excluding urban, marine and coastal areas.
- Gastronomic tourism: tourism that includes the visitor’s experience in connection with local cuisine and highlights the special gastronomic identity of a particular region.
- Health and wellness tourism: tourism that aims to combine holidays with health services.
The law specifically lists the activity tax codes (KAD) that a company must carry out—based on its filings with the tax authorities—in order to be considered “eligible” under this programme.
Conditions for Promoting Tourism Investments in Greece
There are no restrictions as to legal form, so applications under this funding programme may be submitted by both natural persons (sole proprietors/entrepreneurs) and legal entities—commercial companies of any legal form. The prerequisite is lawful operation under applicable regulations and belonging to at least one of the above tax categories (KAD). Furthermore, the relevant activity must have commenced before 1 January 2010, based on the corresponding tax category (KAD).
The budget of each submitted proposal—that is, the investment expenditure—must be between €10,000 and €400,000. The share of public funding is set at 40%, with a 5% premium for investment projects implemented on islands with fewer than 3,100 inhabitants.
According to the ministerial decision, the investment budget can be allocated as follows:
| Expenditure category | Max. eligible share of the investment budget | |
|---|---|---|
| 1. | Procurement of equipment | up to 100% |
| 2. | Buildings – design of rooms and special and auxiliary facilities | up to 60% |
| 3. | Presentation – promotion | up to 25% |
| 4. | Advisory fees (preparation of an investment plan, supervision and advisory support, etc.) | up to 5% |
| 5. | Other expenses (transfer of know‑how, acquisition of rights, integration of patterns/models, etc.) | 6% |
Interested companies may submit their investment proposals for inclusion in the above funding programme electronically at www.ependyseis.gr/mis by 15 February 2012.
(Status: February 2012. All information provided without guarantee.)