Greek Parliament Passes Ambitious Development Law

Greek Development Minister Adonis Georgiadis speaking in parliament on the voting of the new development law. Photo source: @AdonisGeorgiadi

Greek lawmakers approved recently a new development law, which among others provides financial support of up to 75 percent and tools to eligible businesses interested in upgrading, modernizing, and transitioning to digital or sustainable activities.

“Development Law: Greece – Powerful Growth” legislation also focuses on investment plans aimed at business extroversion and export activities. In this direction it foresees support for tourism investments aimed at:

– creating, expanding, and modernizing integrated tourist accommodation and camping facilities;
– providing funding for alternative forms of tourism aimed at utilizing and promoting the special characteristics of the country’s regions (geographical, social, cultural, religious);
– supporting large investments projects with a budget exceeding 15 fifteen million euros.

Business entities that submit plans for the creation of a new unit; the expansion of an existing facility; product diversification – offering products or services that have never been produced before; production process conversion; and other investment plans for certain activity categories are eligible for funding.

Other key areas covered by the law include digital and technological transformation of companies, green transition and environmental business upgrades, new business and startup activity, research and innovation, agri-food, primary production, and fisheries.

Under the law, approved investment projects will be eligible to receive the following forms of aid: tax exemptions, subsidies, leasing subsidies, job creation subsidies, and business risk financing for startups.

The minimum eligible amount of investment for eligibility is determined on the basis of entity size:

– large companies: 1 million  euros

– medium-sized enterprises and cooperatives: 500,000 euros

– small enterprises: 250,000 euros

– very small enterprises: 100,000 euros

– cooperatives: 50,000 euros.