Greece: New super-deduction tax incentives for defense sectors and manufacturing of vehicles, aircraft
Eligible projects include initial investments in defined manufacturing sectors
Law 5246/2025 introduced new tax incentives for investments in strategic sectors, including defense, vehicle and aircraft manufacturing, and related machinery, components, and equipment.
Eligible projects include initial investments in defined manufacturing sectors, such as manufacturing of weapons and ammunition, construction of motor vehicles and military combat vehicles and of their components and equipment, and construction of aircrafts and associated machinery.
The incentives are provided in the form of:
- Tax benefit (super-deduction of investment expenditure / super-depreciation of fixed assets)
- Fast-track licensing
Key considerations of the new regime include:
- Eligibility
- Tax incentive (super-deduction / super-depreciation)
- Loss carry-forward
The procedure and conditions for inclusion under the new incentives, submission of the relevant application, evaluation, audit, as well as other details and any restrictions of the new regime will be determined by a Joint Ministerial Decision of the Minister of National Economy and Finance and the Minister of Development. The new incentives regime will become effective upon issuance of the joint decision and will apply to expenses incurred as of January 1, 2026.
Read a December 2025 report prepared by the KPMG member firm in Greece