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New Investment – Development Law


The new investment – development law is a law of the Greek state, which aims to strengthen individuals and private companies to make new investments, with all the multiplier benefits this has for the National Economy (employment etc.). The investment law no. 3908/11 has undergone several changes through presidential decrees and laws, as descriptively mentioned at the end of the service.

Some key elements of the investment law, as applied until today are:

Investment Categories (General and Special Investment Projects)

A) General Entrepreneurship

  • Beneficiaries are each company of eligible sector (Manufacturing, Tourism, Logistics, RES except photovoltaic & thermal, Service, Production and Processing of Agricultural Products) that can not be subsumed under the category of Technological Development projects, Regional Cohesion and Special Investment Schemes.
  • Provides grants, tax credits and / or leasing for projects of more than 100.000 €

B) Regional Cohesion

  • Beneficiaries are enterprises with projects addressing local needs or utilize local competitive advantages and belong to an eligible activity sector (Manufacturing, Tourism, Logistics, except RES Photovoltaics, Service, Production and Processing of Agricultural Products).
  • Provides grants, tax credits and / or leasing for projects of more than 200.000 €

C) Technological Development

  • Beneficiaries are enterprises that plan to invest in innovation and technology to modernize their business and belong to certain eligible sectors.
  • Provides grants, tax credits and / or leasing for projects of more than 200.000 €.

D) Youth Entrepreneurship

  • Beneficiaries are young entrepreneurs, 20-40 years old, active in an eligible activity sector (Manufacturing, Tourism, Logistics, except RES Photovoltaics, Service, Production and Processing of Agricultural Products).
  • Provides support for almost all of the costs (and functional) for 5 years from startup. The total aid can reach up to 1,000,000 euros.

E) Large Investment Projects

  • Beneficiaries are enterprises with projects totaling at least 50 million euros to an eligible activity sector.
  • Provides all kinds of aid, singly or in combination, for the amount up to 50 mil. Euro.

F) Integrated Perennial Investment Projects

  • Beneficiaries are entrepreneurs with projects implementing integrated multi-annual (2-5 years) business plans, always in eligible sector, which has elapsed at least five years after their formation, more than 2,000,000 euros. The objective is technological, administrative, organizational and operational modernization.
  • It provides tax breaks of up to 100% of the maximum allowable amount of aid.

Z) Drawings Synergy and Networking (Clustering)

  • Beneficiaries are synergies and networking schemes of at least 5 enterprises in Attica and Thessaloniki Prefecture and 3 in the rest of Greece, in the form of consortium. It foresees the possibility of providing any kind of aid.

Types of aid

a. Tax exemption. Exemption from 2-15 years from the payment of part of the income tax effected earnings before taxes, which are calculated by all its activities, based on tax legislation. The amount of tax exemption constitutes an equivalent tax-free reserve.

b. Grant. Free provision of funds by the State to cover part of the aided expenditure of the investment plan.

c. Subsidy leasing. Coverage by the State a part of the leasing paid installments for the acquisition of new machinery and other equipment.

d. Favourable loans through ETEAN. Financing of the amount foreseen to be covered by bank loans with low-cost loans, from banks cooperating with the ETEAN.

*All aid included in determining the overall rate of aid granted to the investment plan. The benefit of the above funding included in the total amount of aid, which can not exceed the limits of the Regional Aid Map.

Aid rates

Aid up to 60% of the budget provided by the Investment Law through a grant, tax exemption and leasing subsidy (Leasing), as defined by the new approved regional aid map.

Eligible Expenditure

  • Construction costs, extension, building modernization of specific and ancillary facilities and landscaping costs (up to 70% of budget if applicable).
  • The purchase of fixed assets directly linked to a productive unit, provided that cumulatively exist the following conditions: a) this unit has ceased its operations, b) acquired by independent investor c) the relevant transaction is carried out under normal market conditions and d) removed aid already granted prior the purchase.
  • Purchase and installation of new modern machinery and other equipment.
  • Payments of lease of new modern machinery and other equipment, whose use is acquired.
  • Intangible costs (such as costs and systems of quality control, certification, supply and installation of software and enterprise organization system e.t.c.) at a rate that will not exceed 50% of the cost of project.
  • Expenditure for Research, Development and Innovation(R&D) projects and programs related to the company’s activity and products, such as applied research costs (staff costs, contract research, etc.) and expenses for acquisition validating patents and industrial property rights (only for small and medium enterprises).

Eligible Activities

In aid scheme of this law falling investment projects of all sectors of the economy, except:

  1. (as regards on regional aid), of the following sectors that are excluded from the scope of the General block exemption Regulation, namely: a. The steel sector as defined in Article 2 paragraph 29 of the General Block Exemption Regulations, b . The synthetic fibers sector as defined in Article 2 paragraph 30 of the General Block Exemption Regulations, c. coal sector, as coal is defined in Regulation (EC) no. 1407/2002 of 23 July 2002 on State aid to the coal industry and d. The field of shipbuilding, as defined in the Framework on State aid to shipbuilding (2003 / C137 / 06), excluding craft designed for stable, long-term floating industrial or energy installations”.
  2. – – Electricity generation from photovoltaic systems and power plants utilized in solar thermal power plants, as outlined in cases e` and st` of the table of paragraph 1 (b) of article 13 of l. 3468/2006.
  3. – 41 – Construction of buildings.
  4. – 42 – Civil engineering. Excluding construction coastal and marine works and construction works for coastal and port constructions.
  5. – 43 – Specialised construction activities.
  6. – 45 – Wholesale and retail trade, repair of motor vehicles and motorcycles
  7. – 46 – Wholesale trade, except of motor vehicles and motorcycles.
  8. – 47 – Retail trade, except of motor vehicles and Motorcycles.
  9. – 56 – Food service activities.
  10. – 60 – Programming and broadcasting activities.
  11. – 64 – Financial service activities.
  12. – 65 – Insurance, reinsurance and pension funding, except compulsory social security.
  13. – 66 – Activities auxiliary to financial services and insurance activities.
  14. – 68 – Real estate activities.
  15. – 69 – Legal and accounting activities.
  16. – 70 – Activities of head offices – management consultancy.
  17. – 71 – Architectural and engineering activities – technical testing and analysis.
  18. – 73 – Advertising and market research.
  19. – 75 – Veterinary activities.
  20. – 77 – Rental and leasing activities.
  21. – 78 – Employment activities.
  22. – 79 – Activities of travel agencies, tour operator and other reservation service and related activities.
  23. – 80 – Security and investigation
  24. – 81 – Services to buildings and outdoors.
  25. – 84 – Public administration and defense – compulsory social insurance.
  26. – 85 – Education.
  27. – 86 – Human health activities, excluding recovery centers and integrated health tourism complex investment projects. A joint decision of the Ministers of Development, Competitiveness, Infrastructure, Transport and Networks, Health and any other competent Ministers, the concept of integrated health tourism complex investment projects determined and the individual terms and criteria for their eligibility.
  28. – 88 – Social work activities without accommodation.
  29. – 90 – Creative, arts and entertainment.
  30. – 92 – Gambling and betting.
  31. – 93 – Sports activities and amusement and recreation activities.
  32. – 94 – Activities of membership organizations.
  33. – 96 – Other personal service activities.
  34. – 97 – Activities of households as employers of domestic staff.
  35. – 98 – Activities of private households, on the production of non-discrete goods – and services – for own use.
  36. – 99 – Offshore organizations and agencies
  37. For business units related to the tourism industry, please contact your professional consultant.

Amendments to new development / investment law 3908/2011:

  • 4146/18.4.13
  • D. 157/7.11.13
  • D. 35/12.3.14
  • 4242/ 28.2.14
  • D. 33/14.4.11
  • D. 35/19.4.11
  • 4072/11.4.12
  • 4083/5.10.12
  • 4111/25.1.13
  • 4155/29.5.13
  • 4177/8.8.13
  • 4242/14.4.14
  • 4258/14.4.14
  • 4301/7.10.14
  • D. 158/7.11.13

These laws and presidential decrees and number of decisions and statements of the responsible ministry, related to development law, can be found on the ministry website.

Ask your professional consultant for further information.