The public consultation for the new investment law, which is expected to come into force at the beginning of 2022, has been completed. The new law aims at promoting the economic development of Greece by accelerating the administrative procedures and by providing incentives for targeted activities for the green and digital transition, for supporting innovative investments and investments introducing the new technologies of "Industry 4.0", robotics and artificial intelligence, as well as strengthening employment and entrepreneurship and of the areas included in the Just Transition Development Plan.
Main Changes
- In the new investment law, 13 aid schemes with thematic targeting (instead of the approach of one horizontal dimension) are included
- Priority is given to state aid in important development areas such as green transition, digital transformation, research and development, extroversion, etc.
- For the first time, the potentials provided by the General Exemption Regulation 651/2014 are utilized, regarding the inclusion of investment plans autonomously, according to the rest of the Regulation’s articles, other than Regional Aids. With this initiative, aid in areas such as research and innovation, environmental protection and socially assistive aid, such as vocational training and training for disadvantaged or disabled employees, can now be regarded as integrated investment projects
- Effective and efficient procedures for evaluating and monitoring the implementation of investment plans are introduced. The law provisions evaluation within 45 days from the scheme due date, or within 30 days for the cases of immediate evaluation
Specifics
The draft law establishes 13 thematic schemes for granting state aid:
- Digital and Technological Transformation of Businesses
- Green Transition - Environmental Business Upgrade
- New Business
- Just Development Transition
- Research and Applied Innovation
- Agri-food - Primary Production and Processing of Agricultural Products - Fisheries
- Manufacturing - Supply Chain
- Business Extroversion
- Enhancement of Tourism Investments
- Alternative Forms of Tourism
- Large Investments
- European Value Chains
- Entrepreneurship 360o
Incentives
- Tax exemption: Exemption from payment of income tax. The investor can use the entire eligible aid of the tax exemption within 15 tax years
- Grant: Free provision from the State of funds to cover part of the eligible expenses of the investment plan
- Leasing subsidy: The State covers part of the installments paid for the leasing agreement concluded for the purchase of new machinery and other equipment
- Wage subsidy: The State covers part of the salary cost of the new jobs that are created and associated with the investment plan. It is calculated for two (2) years from the creation of each position
- Risk financing (concerns exclusively the "New Business" scheme), through a participation fund, in the following forms:
a. Equity or quasi-equity or investment sponsorship to provide business risk financing investments directly or indirectly to eligible companies,
b. Loans to provide business risk financing investments directly or indirectly to eligible companies
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