New Greece Incentives Law Aims to Draw in Investment

Deductions and Exemptions, leasing and interest subsidies, and a 12-year fixed tax framework are part of a new incentives law tabled this week and set for vote by the end of the month, Economy, Development and Tourism Minister George Stathakis and Secretary General for Strategic and Private Investments Lois Labrianidis announced.

The said development law foresees aid to small investments of at least 100,000 euros, helps restructure viable businesses that are at risk and offers a 12-year unchanging tax framework to large companies wishing to invest over 20 million euros and create at least two new jobs.

The sectors of primary focus are agri-food network and technology and information and communication technology. The eight schemes of support cover mechanical equipment, general entrepreneurship, new independent SMEs, innovative investments, synergies and networking, financial intermediation-holding funds, integrated spatial and sectoral plans and major investments.

The forms of backing under discussion include tax exemption of up to 20 percent annually, public subsidies ranging from 10 percent to 45 percent depending on location and size of business, leasing allocation, interest subsidy, employment costs relief, 12-year fixed tax framework for investments over 20 million euros and at least two new jobs per 1 million euros eligible expenditure as well as risk financing through holding funds, loan guarantees and equity holdings.

The new law is up for public consultation until Monday, May 16, 5pm. For further information (in Greek), press here.