This scheme supports investment projects that fall into one of the following categories:
a. Creation of a new plant.
b. Expansion of the capacity of an existing plant.
c. Diversification of an establishment’s production into products or services that have never been produced by it, provided that for large enterprises, 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.
d. A fundamental change in the entire production process, provided that the eligible costs for large firms exceed the depreciation of the assets of the previous three financial years linked to the activity to be modernised.
Types of aid
- Subsidy: is the coverage of part of the subsidised expenditure of the investment project by the State.
- Leasingsubsidy: this concerns the coverage of part of the leasing instalments paid for the acquisition of new machinery and other equipment by the State, where the maximum duration cannot exceed 7 years.
- Subsidy of the cost of employment created: this refers to the subsidy by the State of part of the wage costs of the new jobs created and linked to the investment project
- Tax exemption: consists of exemption from paying income tax on the pre-tax profits realised on all the activities of the company
Clarifications on the aid
- The aid in the form of grants, tax exemptions and leasing subsidies will be granted, individually or in combination, for all the investment projects concerned.
- The total amount of aid per submitted project may not exceed three million (€3,000,000) and in the case of Investment Plans in primary agricultural production, five hundred thousand euros (€500,000).
Eligible Entities
Eligible are existing or start-up businesses that:
- are established in the Greek Territory and have the form of a sole proprietorship, commercial company, Limited or General Partnership (A.E., I.K.E., E.Π.E., O.E., E.E.), Cooperative, Social Cooperative Enterprise
Eligible expenditure (general)
Tangible fixed assets
- Expenditure on the construction, extension, modernisation of buildings and specialised/auxiliary facilities, up to 45% of the total investment project. The above maximum percentage is 60% for investment projects of plant production in greenhouses and 80% for investment projects implemented in buildings classified as listed buildings.
- Purchase and installation of new modern machinery and other equipment, including technical installations and means of transport moving within the premises of the unit.
- Lease payments for the leasing of new modern machinery and other equipment, the use of which is acquired under the condition that under the contract the lessee acquires ownership of the equipment.
- Expenditure on the modernisation of specific installations (other than buildings) and mechanical installations.
Intangible Expenditure
- They include the purchase of intellectual property rights (copyright), licences, patents, know-how and non-proprietary technical knowledge, quality assurance and quality control systems, certifications, supply and installation of software and business organisation systems, etc. (up to 30% of the total budget for large enterprises and up to 50% for SMEs)
Salary Cost 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 costs (specific)
- Expenditure on consultancy services for small and medium-sized enterprises
- Expenditure for the remediation of contaminated sites
- Expenditure on recycling and reuse of waste
- Expenditure on vocational training
- Expenditure for the participation of small and medium-sized enterprises in trade exhibitions
- Expenditure on investment aid for small and medium-sized enterprises
Budget of investment projects
The minimum eligible budget for investment projects is determined by category of enterprise as follows:
-Large companies: 1.000.000 €
-Medium-sized enterprises: 500.000 €
-Small businesses: 250.000 €
-Very small businesses: 100.000€
-Social Cooperative Enterprises: 50.000 €.
It should be noted that for Investment Projects with a Budget of more than 300.000 €, the Entity is obliged to keep Category C Books.
Own Participation
The contribution to the cost of the investment project can be made either through equity or external financing, provided that 25% of the total cost of the investment project does not contain any State aid, public support or benefit. The own 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
REGION |
SIZE OF BUSINESS |
||
LARGE ENTERPRISES |
MEDIUM-SIZED ENTERPRISES |
SMALL BUSINESSES |
|
EASTERN MACEDONIA AND THRACE |
50% |
60% |
70% |
CENTRAL MACEDONIA |
50% |
60% |
70% |
WESTERN MACEDONIA |
50% |
60% |
70% |
THESSALY |
50% |
60% |
70% |
EPIRUS |
50% |
60% |
70% |
WESTERN GREECE |
50% |
60% |
70% |
PELOPONNESE* |
40% |
50% |
60% |
NORTH AEGEAN |
55% |
65% |
75% |
CENTRAL GREECE |
40% |
50% |
60% |
IONIAN ISLANDS |
40% |
50% |
60% |
CRETE |
50% |
60% |
70% |
ATTICA** |
15% |
25% |
35% |
SOUTH AEGEAN |
40% |
50% |
60% |
* Municipalities of Megalopolis, Tripoli, Gortynia and Oichalia 50%, 60% and 70% respectively
** East Attica, West Attica, Piraeus & Islands 25%, 35%, 45% respectively
Eligible sectors and investment projects
This scheme applies to investment projects:
- Primary agricultural production
- Processing of agricultural products (any operation on an agricultural product which also results in an agricultural product)
For more information on the eligibility of your activity, contact us!