This scheme supports investment projects that fall into one of the following categories:
a. Creation of a new unit/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 linked to the activity to be modernised over the previous three financial years.
TYPES OF AID
- Subsidy: is the coverage of part of the subsidised expenditure of the investment project by the State.
- Leasing subsidy: this concerns the coverageof 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 new employment: 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: consisting of exemption from the payment of income tax on the pre-tax profits realised on all the activities of the company.
CLARIFICATIONS CONCERNING THE AID
- The aid in the form of grants, tax exemptions and leasing subsidies
are provided, individually or in combination, for all the investment projects covered. - The total amount of aid per project submitted may not exceed ten
million (€10.000.000).
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
✓ Costs of construction, expansion, modernization of buildings and special/auxiliary facilities,
up to 45% of the total investment project. The above maximum percentage is 70% for
for investment projects in the logistics sector 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 establishment.
✓ Lease payments for the leasing of new modern machinery and other equipment,
the use of which is acquired under the condition based on the contract that the ownership thereof
comes into the possession of the lessee.
✓ Expenditure on modernisation of special installations (not relating to buildings) and mechanical
facilities.
Intangible Expenditure
✓ Include the purchase of intellectual property rights (copyright), licenses, patents,
know-how and unregistered 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
✓ Includes the wage costs of the new jobs that will be created as a result of the
implementation of the investment project, and shall relate to a period of 2 years from the creation of each post. This
this category is eligible expenditure on its own and not in combination with tangible fixed assets
assets and/or intangible costs.
The purchase of land, plots of land and parcels of land is not supported.
Ownership status
The construction or extension of buildings on land which is not owned by the
investee is eligible for aid if it has been granted by the State or a public sector body or has been
leased for this purpose for at least fifteen years from the date the decision’s issue
and has been legally transferred.
ELIGIBLE EXPENDITURE (specific)
✓ Expenditure on consultancy services for SMEs
✓ Costs for remediation of contaminated sites
✓ Expenditure on recycling and reuse of waste
✓ Expenditure on vocational training
✓ Expenditure on participation of SMEs in trade fairs
✓ Expenditure on investment aid for small and medium-sized enterprises
BUDGET FOR INVESTMENT PROJECTS
The minimum eligible budget for investment projects is determined by category of enterprise as follows:
- Large enterprises: 1.000.000 €
- Medium-sized enterprises: 500.000€
- Small businesses: 250.000 €
- Very small businesses: 100.000€
- Social Cooperative Enterprises: 50.000€.
It is 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 participation in the cost of the investment project may be made either through equity or
through 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 with capitalization of reserves, under the condition of sufficient
liquidity of the undertaking after deduction of the amount of its cash to be
used to cover the participation of the entity with own funds
✓ Use of existing reserves, under the condition of sufficient liquidity of the company after the
deduction of the amount of its own resources to be used to cover the participation of the
entity with own funds
✓ Bank lending
| REGION | BIG 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% |
| WESTERN MACEDONIA | 25% | 35% | 45% |
| 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% vice versa
** East Attica, West Attica, Piraeus & Islands 25%, 35%, 45% respectively
ELIGIBLE SECTORS AND BRANCHES OF ECONOMIC ACTIVITY
| ID OF BUSINESS ACTIVITY 2008 | DESCRIPTION OF THE ACTIVITY |
| 10 to 33 | MANUFACTURING (Excluding the steel, synthetic fibres, coal and shipbuilding sectors. In the shipbuilding sector, investment projects may exceptionally be covered by a joint ministerial decision of the competent ministers). |
* Investment projects relating to logistics services (CN code 52.29.19.03) are covered by this scheme if they meet the following conditions:
- Their place of establishment should be distinct from the premises of other business activities of the company or group of companies
- The provision of services to companies within the same Group must not exceed 30% of the total services provided
- For the establishment, expansion or modernisation of supply chain service units, a prerequisite, if they do not exist, is the implementation of investment projects for the installation and commissioning of integrated information and communication systems-telematics, to support warehousing, loading and unloading and the general management of materials and goods.
For more information on the eligibility of your activity, contact us!