The New Development Law is intended to subsidise the costs of investment projects relating to the establishment and creation of a new plant, the expansion of the production capacity of an existing plant, the diversification of a firm’s production into products or services that have never been produced by it, and the fundamental change of the entire production process.
TYPES OF AID
- Grant: This refers to the coverage by the State of part of the subsidised expenditure of the investment project.
- Leasing subsidy: This concerns the coverage by the State of part of the leasing instalments paid for the acquisition of machinery and other equipment, where the maximum duration cannot exceed 7 years.
- Subsidy of the cost of new employment: 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 of all the activities of the company.
Eligible are existing or start-up businesses that:
- Commercial company (S.A., Private Company, Ltd Company, General Partnership, Limited Partnership).
- Cooperative Partnership
- Social cooperative enterprises
- Companies in the process of being established or merged.
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 and cooperatives: 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.
RATES OF AID
The table below shows the aid rates, which vary according to the size of the firm and the region in which it is located.
|MEDIUM-SIZED BUSINESSES||SMALL BUSINESSES|
|EASTERN MACEDONIA AND THRACE||50%||60%||70%|
* Municipalities of Megalopolis, Tripoli, Gortynia and Oichalia 50%, 60% and 70% respectively
** East Attica, West Attica, Piraeus & Islands 25%, 35%, 45% respectively
Tangible fixed assets
- Expenditure on the construction, extension, modernisation of specific buildings and auxiliary facilities, up to 45% of the total investment project. The above maximum percentage is 60% for investment projects in the tourism sector 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 the modernisation of specific installations (other than buildings) and mechanical installations.
The purchase of land, plots of land and parcels of land is not supported.
- They include the purchase of intellectual property rights (copyright), 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, over 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.
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.
Special Expenditure (regarding Specific Regimes)
- Expenditure on consultancy services for SMEs enterprises
- Investment expenditure for energy efficiency measures
- Investment expenditure for high-efficiency cogeneration from renewable energy sources
- Expenditure on the production of energy from renewable energy sources for own use.
ELIGIBLE SECTORS OF ECONOMIC ACTIVITY
For more information on the eligible IDs of business activity, see the attached file at the end of the article.
For more information on the eligibility of your activity, contact us!