HAREVA, with many years of experience and success in the exploitation of investment programmes, can contribute to the successful submission of development and investment proposals that can give new impetus and dynamism to the development of businesses.
The study and the preparation of proposals is carried out with the help of experienced and qualified partners that our company has at its disposal, who evaluate, propose and support Greek companies, contributing to the rise and maintenance of an important position in the global business arena.
Development Law
- SUBMISSION OF PROJECTS FOR SUBSIDY UNDER THE DEVELOPMENT LAW
- Ν. 4399/2016: institutional framework for the establishment of private investment aid schemes for the regional and economic development of the country.
Entrepreneurship of micro and small enterprises
Investment Law 4399/2016- BUSINESS OPPORTUNITY OF VERY SMALL AND SMALL BUSINESSES
This scheme supports investment projects that fall into one of the following categories:
α. Creation of a new unit
β. Expansion of the capacity of an existing plant. The additional capacity of the plant will only be accepted if the existing capacity can be verified by official documentation.
γ. diversification of the production of an establishment into new products or services that have never been produced in the establishment, provided that the eligible costs exceed by at least 200% the book value of the assets as recorded in the year preceding the application for the investment project.
δ. Fundamental change of the whole production process.
Deadline for submissions: Wednesday 31 /07/2021
Types of aid
-
Grant:
This refers to the coverage by the State of part of the subsidised expenditure of the investment project.
(
up to a maximum of 100% of the Regional Aid Map, provided that one of the conditions set out in par. 2 ΄΄
Clarifications on the types of aid
).
-
Leasing subsidy (leasing): It concerns the coverage by the State of part of the instalments paid leasing, for the acquisition of machinery and equipment, where the maximum duration may not exceed 7 years.
-
Subsidy of the cost of employment created:
This concerns the subsidy of the wage costs of the new jobs created and linked to the investment project
-
Tax exemption:
consisting of exemption from the payment of income tax on the pre-tax profits realised on all the activities of the enterprise
Clarifications on the types of aid
1.The aid of tax exemption and leasing subsidies are granted, individually or in combination, for all the investment projects concerned.
2.Η strengthening the grant is provided individually or in combination with tax exemption aid and/or leasing subsidies, only if they concern to undertakings which :
-
They are outward-looking SMEs that have increased their exports as a proportion of their turnover by at least 10% on average over the last three years. This category also includes enterprises which have increased their exports as a proportion of their turnover by at least 5% on average over the last three years, provided that their exports account for more than 70% of their turnover in the last three years.
ο
the year preceding the year of submission of the application.
-
They are innovative SMEs whose research and development expenditure exceeds 10% of total operating costs for at least one year out of the three years preceding the application.
-
They are small and medium-sized enterprises that have increased their employment by at least 10% in the three years preceding the submission of the application.
-
They are Cooperatives, Social Cooperative Enterprises, Agricultural Cooperatives, Producer Groups, Agricultural Partnerships
-
They are enterprises whose investment projects are implemented in one of the sectors of Technology, Information Technology, Communication and Agri-food as their main activity.
-
Enterprises that achieve increased added value
-
Enterprises whose investment project is implemented in Industrial and Business Areas (IBAs), Business Parks, Technology Parks and Innovative Activity Hosts, provided that they concern investment projects for the establishment of new units or existing units for new economic activity.
-
Enterprises whose investment project is implemented in areas with particularly increased refugee and migration flows. Specifically: Agathonisi, Kalymnos, Kastelorizo, Kos, Leros, Lesvos, Samos, Samos, Symi, Chios
-
They are enterprises whose investment project is implemented in mountainous, border or island regions (special aid areas)
3. The grant aid and the leasing subsidy are granted to undertakings which have shown profits before tax in at least one financial year out of the last 7. The above condition shall not apply to undertakings in the process of being set up as well as those established in the last 7 years before the year of the application for affiliation.
Eligible Entities
The following are considered eligible
existing or in the process of being established
Micro and Small
enterprises
that:
-
are established in the Greek Territory and have the form of a sole proprietorship, commercial company (S.A., I.K.E., I.K.E., E.P.E., O.E., E.E.), Cooperative, Social Cooperative Enterprise
Eligible expenditure
(General)
Tangible fixed assets
-
Expenditure on the construction, extension, modernisation of specific buildings and ancillary facilities, up to 45% of the total investment project. The above maximum percentage is 60% for investment projects in the tourism sector, 70% for investment projects in the tourism sector and 70% for investment projects in the
logistics
and 80% for investment projects implemented in buildings classified as listed buildings.
-
Purchase and installation of new modern machinery and other equipment. Lease payments for the leasing of new modern machinery and other equipment, the use of which is acquired.
-
Expenditure on modernisation of special installations (other than buildings) and mechanical installations
Intangible Expenditure
-
They include the purchase of intellectual property rights, quality assurance and quality control systems, certifications, supply and installation of software and business organisation systems, etc. (up to 75% of the total budget)
Wage costs of new jobs
-
It includes the wage costs of the new jobs that will be created as a result of the implementation of the investment project and covers a period of 2 years from the creation of each job. This category constitutes eligible expenditure on its own and not in combination with tangible assets and/or intangible expenditure.
The purchase of land, plots of land and parcels of land is not supported.
Ownership status
Aid is granted for the construction or extension of buildings on land not owned by the investing party, if it has been granted by the State or a public sector body, or has been leased for this purpose at least for fifteen years from the date of the decision of inclusion and has been legally transferred.
Eligible expenditure
(Specific)
-
Expenditure on consultancy services (studies and consultancy fees) for investment projects
new, small and micro enterprises
(up to 5% of the total budget and up to EUR 50 000)
-
Start-up costs
, for start-up small and micro enterprises up to 10% of the total budget and up to EUR 100,000 (costs of drawing up and publishing the articles of association, administrative support and legal/advisory costs incurred up to the start of operation, etc.)
Budget of investment projects
The minimum eligible budget for investment projects
is determined
by category of enterprise as follows:
-Small businesses:
150.000 EURO
-Very small businesses:
EUR 100.000
-Social Cooperative Enterprises:
50.000 EUR
.
Noted
that for Investment Projects with a budget of more than
EUR 300.000
, the Institution is obliged to keep Category C Books
Maximum aid intensity
The total amount of aid per investment project submitted may not exceed
up to a maximum of € 3.000.000.
The aid granted to each body may not exceed a cumulative total of €20 000 000 for an individual undertaking and €30 000 000 for all associated and cooperating undertakings.
Own Participation
The contribution to the cost of the investment project may be made either through equity or through external financing, provided that the
25%
of the total cost of the investment project does not contain any State aid, public support or benefit. The same contribution can be covered in the following ways:
-
Increase in share capital, from new cash contributions by shareholders
-
Increase of share capital by capitalisation of reserves, provided that the undertaking has sufficient liquidity after deduction of the amount of its reserves to be used to cover the participation of the entity with its own funds
-
Use of existing reserves, provided that the undertaking has sufficient liquidity after deduction of the amount of its reserves to be used to cover the operator’s equity participation
-
Bank lending
Aid percentages
Maximum aid rates are calculated according to the region in which the investment is carried out and the size of the enterprise. (Regional Aid Map), as follows:
|
REGION |
SIZE OF BUSINESS |
|
|
MEDIUM-SIZED ENTERPRISES |
SMALL BUSINESSES |
|
|
EASTERN MACEDONIA AND THRACE |
45% |
55% |
|
CENTRAL MACEDONIA |
45% |
55% |
|
THESSALYA |
45% |
55% |
|
HEPIRE |
45% |
55% |
|
WESTERN GREECE |
45% |
55% |
|
PELOPONNESE |
45% |
55% |
|
NORTH AEGEAN |
45% |
55% |
|
WESTERN MACEDONIA |
35% |
45% |
|
SOLID GREECE |
35% |
45% |
|
IONIAN ISLANDS |
35% |
45% |
|
CRETE |
35% |
45% |
|
ATTICA* |
20% |
30% |
|
SOUTH AEGEAN |
30% |
40% |
* West Attica, Piraeus & Islands 20%, 30%, 40% respectively
Eligible Sectors and Sectors of Economic Activity
|
CDR 2008 |
DESCRIPTION OF THE ACTIVITY |
|
01 |
|
|
03 |
Fisheries and aquaculture (A relevant ministerial decision is expected to specify the types of investment projects in this sector) |
|
10 to 33 |
MANUFACTURING (Excluding the steel, synthetic fibres, coal and shipbuilding sectors. In the shipbuilding sector, investment projects may exceptionally be included by joint ministerial decision of the ministers concerned) |
|
36 |
|
|
37 to 39 |
WASTE WATER TREATMENT, WASTE MANAGEMENT AND REMEDIATION ACTIVITIES |
|
52 |
STORAGE AND ACTIVITIES ANCILLARY TO TRANSPORT. Only investment projects involving: -Tourist port services -Waterway operation services
|
|
55* |
Accommodation |
|
58 |
Publishing activities |
|
59 |
Production of films, videos and television programmes, recordings and music publishing |
|
61 |
Telecommunications |
|
62 |
Computer programming, consultancy and related activities |
|
63 |
Information services activities |
|
74 |
Other professional, scientific and technical activities |
|
86-87 |
Human health and shelter assistance activities. Join only investment projects health and medical tourism. The terms and conditions of the investment projects covered will be set out in an EIA. |
|
91 |
Activities of libraries, archives, museums and other cultural activities. Join only investment projects concerning: -Library services -Museum activities |
|
93 |
In the field of sporting activities and amusement and recreational activities by way of exception the sectors are strengthened:
|
*
The following investment projects fall under the tourism sector:
-
Establishment or expansion of hotel units
at least 3 stars
-
Modernisation of integrated hotel units belonging to or upgraded to a category of at least 3 stars, provided that five years have elapsed since the start of operation of the unit or the completion of a previous investment
-
Modernisation and expansion of hotel facilities
units that have ceased operations
, provided that they are upgraded to a category of at least 3 stars and there has been no change of use of the building during the period of closure
-
Establishment, expansion, modernisation
Organised Tourist Camps
(camping), which belong to or are upgraded to a category of at least 3 stars
-
Establishment and modernisation of hotel units within designated areas
traditional or listed buildings
, which belong to or are upgraded to a category of at least
2 stars
-
Special Tourist Infrastructure Facilities
: congress centres, golf courses, tourist ports, ski resorts, theme parks, thermal therapy centres, spas, thermal tourism centres, thalassotherapy centres, spa centres, sports tourism training centres, mountain refuges, motorways
-
Facilities
agrotourism or wine tourism
, where an investment project is submitted by clusters
-
Establishment
youth hostels
, provided that the investment project is submitted by
cooperatives
or Social Cooperative Enterprises.
General Entrepreneurship
Investment Law 4399/2016-GENERAL BUSINESS
This scheme supports investment projects that fall into one of the following categories:
α. Creation of a new unit
β. Expansion of the capacity of an existing plant. The additional capacity of the plant will only be accepted if the existing capacity can be verified by official documentation.
γ. diversification of the production of an establishment into new products or services that have never been produced in the establishment, provided that the eligible costs exceed by at least 200% the book value of the assets as recorded in the year preceding the application for the investment project.
δ. A fundamental change in the entire production process, provided that for large firms the eligible costs exceed the depreciation of the assets of the previous three financial years linked to the activity to be modernised.
Deadline for submissions: Wednesday 31 /07/2021
Types of aid
-
Grant:
This refers to the coverage by the State of part of the subsidised expenditure of the investment project.
(
Maximum 70% of the Regional Aid Map.
).
-
Leasing subsidy (leasing): It concerns the coverage by the State of part of the instalments paid leasing, for the acquisition of machinery and equipment, where the maximum duration may not exceed 7 years.
-
Subsidy of the cost of employment created:
This concerns the subsidy of the wage costs of the new jobs created and linked to the investment project
-
Tax exemption:
consisting of exemption from the payment of income tax on the pre-tax profits realised on all the activities of the enterprise
Clarifications on the types of aid
1.The aid of tax exemption and leasing subsidies are granted, individually or in combination, for all the investment projects concerned.
2.Η strengthening the grant is provided individually or in combination with tax exemption aid and/or leasing subsidies, only if they concern to undertakings which :
-
They are outward-looking SMEs that have increased their exports as a proportion of their turnover by at least 10% on average over the last three years. This category also includes enterprises which have increased their exports as a proportion of their turnover by at least 5% on average over the last three years, if their exports account for more than 70% of their turnover in the last three years.
ο
the year preceding the year of submission of the application.
-
They are innovative SMEs whose research and development expenditure exceeds 10% of total operating costs for at least one year out of the three years preceding the application.
-
They are small and medium-sized enterprises that have increased their employment by at least 10% in the three years preceding the submission of the application.
-
They are Cooperatives, Social Cooperative Enterprises, Agricultural Cooperatives, Producer Groups, Agricultural Partnerships
-
They are enterprises whose investment projects are implemented in one of the sectors of Technology, Information Technology, Communication and Agri-food as their main activity.
-
Enterprises that achieve increased added value
-
Enterprises whose investment project is implemented in Industrial and Business Areas (IBAs), Business Parks, Technology Parks and Innovative Activity Hosts, provided that they concern investment projects for the establishment of new units or existing units for new economic activity.
-
Companies whose investment project is implemented in areas with particularly increased refugee and migrant flows. Specifically: Agathonisi, Kalymnos, Kastelorizo, Kos, Leros, Lesvos, Samos, Samos, Symi, Chios
-
They are enterprises whose investment project is implemented in mountainous, border or island regions (special aid areas)
3. The grant aid and the leasing subsidy are granted to undertakings which have shown profits before tax in at least one financial year out of the last 7. The above condition shall not apply to undertakings in the process of being set up as well as those established in the last 7 years before the year of the application for affiliation.
Eligible Entities
The following are considered eligible
existing or start-up enterprises
which:
-
are established in the Greek Territory and have the form of a sole proprietorship, commercial company (S.A., I.K.E., I.K.E., E.P.E., O.E., E.E.), Cooperative, Social Cooperative Enterprise
Eligible expenditure
(General)
Tangible fixed assets
-
Expenditure on the construction, extension, modernisation of specific buildings and ancillary facilities, up to 45% of the total investment project. The above maximum percentage is 60% for investment projects in the tourism sector, 70% for investment projects in the tourism sector and 70% for investment projects in the
logistics
and 80% for investment projects implemented in buildings classified as listed buildings.
-
Purchase and installation of new modern machinery and other equipment. Lease payments for the leasing of new modern machinery and other equipment, the use of which is acquired.
-
Expenditure on modernisation of special installations (other than buildings) and mechanical installations
Intangible Expenditure
-
They include the purchase of intellectual property rights, quality assurance and quality control systems, certifications, supply and installation of software and business organisation systems, etc. (up to 50% of the total budget for large enterprises and up to 75% for SMEs)
Wage costs of new jobs
-
It includes the wage costs of the new jobs that will be created as a result of the implementation of the investment project and covers a period of 2 years from the creation of each job. This category constitutes eligible expenditure on its own and not in combination with tangible assets and/or intangible expenditure.
The purchase of land, plots of land and parcels of land is not supported.
Ownership status
Aid is granted for the construction or extension of buildings on land not owned by the investing party, if it has been granted by the State or a public sector body, or has been leased for this purpose at least for fifteen years from the date of the decision of inclusion and has been legally transferred.
Eligible expenditure
(Specific)
-
Expenditure on consultancy services (studies and consultancy fees) for investment projects
new, small and medium-sized enterprises
(up to 5% of the total budget and up to EUR 50 000)
-
Start-up costs
, for start-up small and micro enterprises up to 10% of the total budget and up to EUR 100,000 (costs of drawing up and publishing the articles of association, administrative support and legal/advisory costs incurred up to the start of operation, etc.)
The above specific eligible costs are subsidised at a rate of 50% and 100% respectively
Budget of investment projects
The minimum eligible budget for investment projects
is determined
by category of enterprise as follows:
-Large companies:
500.000 EURO
-Medium-sized enterprises and cooperatives:
250.000 EUR
-Small businesses:
150.000 EURO
-Very small businesses:
EUR 100.000
-Social Cooperative Enterprises:
50.000 EUR
.
Noted
that for Investment Projects with a budget of more than
EUR 300.000
, the Institution is obliged to keep Category C Books
Maximum aid intensity
The total amount of aid per investment project submitted may not exceed
up to 10.000.000€.
The aid granted to each body may not exceed a cumulative total of €20 000 000 for an individual undertaking and €30 000 000 for all associated and cooperating undertakings.
Own Participation
The contribution to the cost of the investment project may be made either through equity or through external financing, provided that the
25%
of the total cost of the investment project does not contain any State aid, public support or benefit. The same contribution can be covered in the following ways:
-
Increase in share capital, from new cash contributions by shareholders
-
Increase of share capital by capitalisation of reserves, provided that the undertaking has sufficient liquidity after deduction of the amount of its reserves to be used to cover the participation of the entity with its own funds
-
Use of existing reserves, provided that the undertaking has sufficient liquidity after deduction of the amount of its reserves to be used to cover the operator’s equity participation
-
Bank lending
Aid percentages
Maximum aid rates are calculated according to the region in which the investment is carried out and the size of the enterprise. (Regional Aid Map), as follows:
|
REGION |
SIZE OF BUSINESS |
||
|
LARGE ENTERPRISES |
MEDIUM-SIZED ENTERPRISES |
SMALL BUSINESSES |
|
|
EASTERN MACEDONIA AND THRACE |
35% |
45% |
55% |
|
CENTRAL MACEDONIA |
35% |
45% |
55% |
|
THESSALYA |
35% |
45% |
55% |
|
HEPIRE |
35% |
45% |
55% |
|
WESTERN GREECE |
35% |
45% |
55% |
|
PELOPONNESE |
35% |
45% |
55% |
|
NORTH AEGEAN |
35% |
45% |
55% |
|
WESTERN MACEDONIA |
25% |
35% |
45% |
|
SOLID GREECE |
25% |
35% |
45% |
|
IONIAN ISLANDS |
25% |
35% |
45% |
|
CRETE |
25% |
35% |
45% |
|
ATTICA* |
10% |
20% |
30% |
|
SOUTH AEGEAN |
20% |
30% |
40% |
* West Attica, Piraeus & Islands 20%, 30%, 40% respectively
Eligible Sectors and Sectors of Economic Activity
|
CDR 2008 |
DESCRIPTION OF THE ACTIVITY |
|
01 |
|
|
03 |
Fisheries and aquaculture (A relevant ministerial decision is expected to specify the types of investment projects in this sector) |
|
10 to 33 |
MANUFACTURING (Excluding the steel, synthetic fibres, coal and shipbuilding sectors. In the shipbuilding sector, investment projects may exceptionally be included by joint ministerial decision of the ministers concerned) |
|
36 |
|
|
37 to 39 |
WASTE WATER TREATMENT, WASTE MANAGEMENT AND REMEDIATION ACTIVITIES |
|
52 |
STORAGE AND ACTIVITIES ANCILLARY TO TRANSPORT. Only investment projects involving: -Tourist port services -Waterway operation services
|
|
55* |
Accommodation |
|
58 |
Publishing activities |
|
59 |
Production of films, videos and television programmes, recordings and music publishing |
|
61 |
Telecommunications |
|
62 |
Computer programming, consultancy and related activities |
|
63 |
Information services activities |
|
74 |
Other professional, scientific and technical activities |
|
86-87 |
Human health and shelter assistance activities. Join only investment projects health and medical tourism. The terms and conditions of the investment projects covered will be set out in an EIA. |
|
91 |
Activities of libraries, archives, museums and other cultural activities. Join only investment projects concerning: -Library services -Museum activities |
|
93 |
In the field of sporting activities and amusement and recreational activities by way of exception the sectors are strengthened:
|
*
The following investment projects fall under the tourism sector:
-
Establishment or expansion of hotel units
at least 3 stars
-
Modernisation of integrated hotel units belonging to or upgraded to a category of at least 3 stars, provided that five years have elapsed since the start of operation of the unit or the completion of a previous investment
-
Modernisation and expansion of hotel facilities
units that have ceased operations
, provided that they are upgraded to a category of at least 3 stars and there has been no change of use of the building during the period of closure
-
Establishment, expansion, modernisation
Organised Tourist Camps
(camping), which belong to or are upgraded to a category of at least 3 stars
-
Establishment and modernisation of hotel units within designated areas
traditional or listed buildings
, which belong to or are upgraded to a category of at least
2 stars
-
Special Tourist Infrastructure Facilities
: congress centres, golf courses, tourist ports, ski resorts, theme parks, thermal therapy centres, spas, thermal tourism centres, thalassotherapy centres, spa centres, sports tourism training centres, mountain refuges, motorways
-
Facilities
agrotourism or wine tourism
, where an investment project is submitted by clusters
-
Establishment
youth hostels
, provided that the investment project is submitted by
cooperatives
or Social Cooperative Enterprises.