Subsidies up to 75% and financing with rates as low as 0,35%
The new DL “Greece Strong Development” provides for faster investment approval, inclusion, and autopsies, and for higher subsidy rates.
Setting the specifics for business development and opting for the digital and technological transformation of businesses, it answers the calling of the 4th Industrial Revolution (Industry 4.0), the Green Transition, economies of scale, and innovative investments.
In addition, it financially strengthens Tourism, Processing, and Agrifood, and it also provides especially for investments in the areas undergoing decarbonization.
The DL calls for the active participation of the private sector, as Investment Plans exceeding €700.000 will be rated, approved, and supervised by private certified accountants.
This means flexibility speed.
For IPs not exceeding €700.000, the investor may either choose the certified accountant option or address the Region’s office responsible. In case he selects the regional services, the Region must evaluate the investment proposal within 45 days. If this deadline expires, the proposal will automatically divert to a certified accountant, who must evaluate it within 8 days.
In relation to the subsidies, they are increased by 5-25% when compared to the current status, as new subsidies reach 60% for large businesses, 70% for medium ones, and 80% for small ventures. However, large and medium businesses are not subsidized directly, and they may receive the subsidy only through tax-exemption, leasing subsidization, or subsidization of the hired personnel cost.
The main difference of the new DL lies in structure: the 13 activities provided for include agrifood, processing, tourism, new businesses, and large investments. Beneficiaries are increased, and new investments are introduced in the areas of digital transformation, green transition, outward-looking companies, and companies in European value chains. Also, increased attention is paid to IPs that involve areas with special characteristics, such as those included in Territorial Just Transition Plans, or the Regions of Evros, Rodopi, and Xanthi.
The subsided regimes are:
- Digital and Technological transformation.
- Green Transition and Environmental Upgrading.
- New Businesses.
- Just Transition Development.
- Research and Applied Innovation.
- Agrifood, Primary Production and Processing of Agricultural Products, Fishing and Aquiculture.
- Supply Chain Processing,
- Outward-looking businesses.
- Tourism businesses enhancement.
- Alternative Tourism.
- Large Investments.
- European Value Chains.
- 360ο Businesses.
Beneficiaries of the above subsidy regimes are investors with home offices or subsidiaries in Greece subject to the status of:
- Commercial Company.
- Social Cooperative Enterprise, Agricultural Cooperative, Producers Collectives, Producers Associations, Urban Cooperatives, Agricultural Companies Joint Ventures.
- Companies in registration or merger status, with the obligation to have concluded all relevant public announcements before proceeding with the IP implementation.
- Commercial Joint Ventures.
- Public and Municipal Companies and their subsidiaries, provided that: i/ they are not designated to serve a specific public purpose, ii/ they are not assigned by the State to provide an exclusive service, and iii/ their operations are not subsidized with public funds during the obligatory period.
- Personal business, for a maximum qualified IP cost of €200.000 and subject to the regime “Agrifood, Primary Production and Processing of Agricultural Products, Fishing and Aquiculture”.
Expenses that Qualify
The DL subsidies apply to the following expenses:
a. Expenses for tangible assets and in particular for:
aa. Construction, expansion, and modernization of main buildings, auxiliary facilities, and surroundings.
ab. The purchase of all or part of the existing tangible assets, i.e., buildings, machinery, and equipment, subject to the following conditions cumulatively:
- the facility is not in operation, and
- the purchase is made by the investor submitting the BP, who is not in any way related or connected to the seller of the facility.
ac. The purchase and installation of new and improved machinery and equipment, including technical installations and vehicles used only inside the facility.
ad. Installments for leasing made to procure new and improved machinery and equipment, provided that in the end of the lease the assets’ ownership is transferred to the lessee.
ae. Modernization of special facilities which do not involve buildings or machinery.
b. Expenses for Intangible assets and in particular for:
ba. Technology transfers through the purchase of intellectual rights, permissions to use, patents, know-how, and non-registered technical knowledge.
bb. Quality control systems, certifications, procurement and installment of software and other operating systems.
For large businesses, qualified expenses for intangible assets cannot exceed 30% of total expenses subsidized. The highest percentage for SMEs is 50%.
c. Personnel expenses for the new jobs created as a result of the new investment and for the first 2 years of the job. Personnel expenses qualify on their own, and not in combination with cases a. and/or b. above.
Most importantly, the DL permits combinations with other financing tools, such as:
The Recovery and Resilience Facility, which provides funding at an interest rate of 0,35%, fixed for 12-15 years.
Combinations of the above tools create excellent investment opportunities, with combined subsidies reaching up to 75% and interest rates below 1%!
B.S.S., your permanent business partner, remains on your side throughout your transition efforts to the new future.