The new Development Law 2022 – Greece Strong Growth provides significant and modern forms of investments for 13 new aid schemes allowing the business community to plan, develop and implement their initiatives, covering a wide range of sectors of the Greek economy.
Περιεχόμενα Άρθρου
New Development Law 2022
The purpose of the new Development law 2022 is to promote the economic development of Greece by providing incentives to certain business activities and sectors.
To that end, the new Development Law introduces provisions that aim at speeding up all procedures regarding the evaluation, approval, control, and certification of the investment plans falling under the aid schemes it provides.
New Development Law 2022 PDF
13 New Aid Schemes of new Development Law
The new development law 2022 defines 13 new aid schemes and introduces for the first time a thematic orientation instead of a horizontal dimension. Each scheme focuses on specific sectors of the Greek economy.
The 13 aid schemes are:
- Digital and Technological Transformation
- Green Transition – Environmental Upgrade
- New Business
- Fair Development Transition
- Research and Applied Innovation
- Agri-food – Primary Production and Processing of Agricultural Products – Fisheries and Aquaculture
- Manufacturing – Supply Chain
- Business Extroversion
- Support for Tourism Investments
- Alternative Forms of Tourism
- Large-scale Investments
- European Value Chains
- Entrepreneurship 360o
Eligible Costs for Regional Aid
- Investment costs on tangible assets
- Investment costs on intangible assets
- Employment costs of new jobs created
Maximum Thresholds of Incentives
The maximum amount of aid may not exceed:
- The amount of 10,000,000€ per submitted investment plan
- The amount of 20,000,000€ per individual company
- The amount of 30,000,000€ per cooperating or affiliated companies
Regional Aid Map
The new Map of Regional Aid 2022-2027 defines the aid percentages that will be received by the respective investment plans depending on the regional area of implementation, as well as the size of the enterprise.
Types of Aid
According to the new development law 2022, the type of aid the eligible investment plans will be benefited from depends upon:
- The regional area of implementation
- The size of the enterprise
- The scheme in which the investment plan is submitted to
- The eligible costs
Furthermore, the eligible investment plans will benefit from the following types of aid:
Subsidy
The new development law 2022 provides partial financial coverage of the eligible costs of the submitted investment plan.
Tax Exemption
The new development law 2022 includes an exemption from the payment of income tax on the pre-tax profits realized from the total activities of the company.
Leasing Subsidy
The new development law 2022 provides partial financial coverage of the leasing installments for the acquisition of new machinery and other equipment.
Employment Cost Subsidy
The new development law 2022 provides partial financial coverage of the employment costs of new jobs created which are not already funded by any other state aid.
Funding of Corporate Risk (only for the ‘’New Business’’ scheme)
The new development law 2022 includes an interest rate subsidy for subordinated loans or insurance costs for high-yield loans.
Minimum Investment Plan Threshold
The minimum eligible amount of investment for eligibility on the new development law 2022, is determined on the basis of entity size. Particularly,
- For the large enterprises, the minimum eligible amount is 1,000,000€
- For the medium enterprises, the minimum eligible amount is 500,000€
- For the small enterprises, the minimum eligible amount is 250,000€
- For the very small enterprises, the minimum eligible amount is 100,000€
- For the Social Cooperative Enterprises, Agricultural Cooperatives, Producer Groups, Producer Organizations, Civil Law Cooperative, Agricultural Corporate Partnerships the minimum eligible amount is 50,000€
Initial Investment Character
The submitted investment plans to be eligible for the incentives of the regional aid map should meet one of the following conditions:
- Creation of a new unit
- Expansion of the capacity of an existing unit
- Diversification of the output of a unit into products or services that have not been produced in the unit before
- Fundamental change in the overall production process of an existing unit
If a submitted investment plan does not meet one of the following conditions of the Initial Investment Character, then it is not eligible for the incentives of the regional aid map. On the other hand, it might still be eligible for other incentives worth of one million euros.
Procedure – Submission, Assessment, and Review
The new Development Law introduces provisions that aim at speeding up all procedures regarding the evaluation, approval, control, and certification of the investment plans falling under the aid schemes it provides.
Submission
The application for inclusion, as well as the required documentation, are submitted mandatory through Development Law Information System.
Assessment
For inclusion in the aid schemes of the New Development Law, an assessment of the investment plans is required to be carried out. The process includes a review of legality, as well as an evaluation of the reasonableness of cost elements and of certain rating indicators.
The assessment method may be either direct or comparative.
In the case of direct assessment, the evaluation and approval should not exceed 30 days from the moment the investment plan is submitted.
In the case of comparative assessment, the evaluation and approval should not exceed 45 days from the moment the respective aid scheme has expired.
In case the evaluation and approval exceed these time frames, the assessment is passed to a certified auditor, who must complete the procedure within 10 working days after the assignment.
Review
Investment plans subject to aid schemes are audited during their implementation, at the stage of completion and commencement of the productive operation of the respective investment, and for their complaince with their long-term obligations.
