The New Development Law Greece 2.0 will replace the Act 4399/16 (Α’ 117) on private investments and will be, over the next years, the basic institutional framework for the provision of state aids, aiming at becoming a rather important and appealing funding tool for strengthening private investments and contributing substantially to the development of the Greek economy.
The new development law will complete a mix of motives, through which the investment will be able to use funds and capabilities along with the ones provided by the new NSRF and the Recovery Fund.
Basic points of the new development law:
- Financing is expected to reach as much as 70% of the overall investment budget.
- Maximum subsidy sum 10 million per investment.
- Twelve new aid schemes that will allow the business community to design, develop and realise its initiatives with important and modern types of investments in all sectors of the Greek economy. The new development law is expected to have the following schemes:
- Green transition and energy transformation
- Circular economy
- Strategy for the industry (Industry0)
- Digital transformation
- Employment increase
- Skills strengthening and social cohesion
- Technological modernisation
- Promotion of research and innovation
- Strengthening extroversion
- Strengthening tourism and alternative forms of tourism
- Strengthening youth entrepreneurship
It is possible to transfer funds from one subject to another or/and further enhance the schemes that attract great interest from investors.
- Tax deductions and a constant tax rate for more years.
- Enhancing subsectors of schemes (for example in the tourism industry emphasis will be given to alternative forms of tourism, like spas and sports tourism).
- Less time between the submission of the investment plan and its evaluation and incorporation to the corresponding scheme, which is estimated to be no more than 60 days.
According to certain information, the government plan includes three fixed cycles for the submission of investment plans.
This means that interested investors will know exactly when they will be able to submit their plan to a certain law scheme, claiming the planned aid. This will apply for three consecutive months (e.g. January, February, March) and the next (e.g. April) will be off.
In addition, the regional aid map, taken into account in the Development Law, is expected to be amended and its rates to move higher than the current ones.
The New Development Law is expected to pass by the end of September and then be implemented in January 2022.
Contact today a BSS Consultant specialised in the Development Law to ensure the timely preparation of your file, by clicking here.