Draft Law on Incentives for Strategic Investments Open for Debate

A bill that foresees a series of incentives aimed at stimulating strategic investment activity in Greece, has been opened to public consultation through to December 17.

According to the economy ministry, the draft law outlines four categories of incentives: tax exemptions, wage cost subsidies, fast-track licensing procedures and immediate expropriations.

Provisions also re-define the terms of strategic investment classification and introduce the requirement of an independent engineer who would be responsible for monitoring the implementation of strategic investment projects.

More specifically, strategic investments have been classified as following:

• investments which create at least 150 jobs or have a budget of over 100 million euros,
• investments that create at least 100 new jobs or have a budget of over 40 million euros,
• Brand name investments – set up by international brands/companies,
• strategic fast-track investments creating at least 20 jobs with a budget of over 20 million euros,
• public-private partnerships, as well as investments identified as European Energy Centers of Public Interest.

Tax breaks for the aforementioned investment models include:

• income tax exemption,
• fixed taxation rate for 12 years from the implementation of the investment plan,
• site specific and spatial development incentives including immediate expropriation of property,
• fast-track licensing and approvals within 45 days,
• staff subsidies for the recruitment of disadvantaged or people with disabilities, expenditure for vocational training programs, wage costs.

On a final note, the bill also provides for the establishment of a Strategic Investment Coordination Committee consisting of the secretaries-general of the Economy, Finance, Environment and State ministries, which will appraise investment files and oversee licensing procedures. Meanwhile, the Interministerial Committee for Strategic Investments will be required to approve or reject investment plans within 30 days of receiving the relevant files.