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Investment Incentives Law

Investment Law: Liquidity – Speed – Transparency

The Investment Law of Greece aims to increase liquidity, accelerate investment procedures and ensure transparency.

The Investment Law provides for an efficient institutional framework for all investors and speeds the approval process for pending, approved investment projects.

This Law, 4146/2013 “Creation of a Development Friendly Environment for Strategic and Private Investments,” of the Ministry for Development, Competitiveness, Infrastructure, Transport and Networks, aims at modernising and improving the institutional framework for private investments, subject to investment laws. New Provisions are introduced regarding:

A) Provision of Liquidity and Acceleration of the grant disbursement procedures:
•Option for 100% (increased from 50%) advance payment of the grant with a letter of guarantee
•The investor may chose the preferred mix of the Investment Law benefits (tax-relief or grant) for investments up to € 50 million, to enhance the flexibility of financing for “Small” and “Medium” * investors.
•Tax-relief may be up-front, to enhance both the liquidity of companies and their viability.
•Investors who apply for the benefits of the Law may cover the requirement for a minimum 25% own capital by using company liquefiable assets.
•Sectors of entrepreneurship to be supported through the Law are expanding.
•The previous time limitation for the submission of investment plans, only in April and October, is abolished. Submissions may be made throughout the year.

* Investor’s size as per EU definition

B) Enhancing Transparency and Auditing Procedures of the Investment Law:
•To enable the immediate closure of pending audits and the disbursement of outstanding installments, the Law provides to have interim and final audits performed by certified private sector institutions, such as banks and accounting firms.
•For Photovoltaic Parks approved for grants, in which the rated power is not to be the same as the original proposal, but does not vary more than 10% than the amount approved, a special request for changing supplier or equipment is no longer required.
•Due to the economic crisis, a one-year extension is provided for the completion of the investment plans that have been applied for under the Investment Law from 2007 onwards and have been approved.
•To enhance transparency for large investment projects, the budget of projects that need to be ratified by Parliament is reduced to € 50 million, from € 150 million.
•Establishment of an independent Auditing Department of Private Investments to continuously monitor compliance with the procedures governing the grants of business plans, and to combat both delinquent and unlawful behaviours. The Department, which will report directly to the Minister for Development, Competitiveness, Infrastructure, Transport and Networks, will also have a consulting role, since through its findings any malfunction of procedures will be identified.

Investment categories

1.General Entrepreneurship

Target Group
All enterprises irrespective of sector

2.Regional Cohesion

Target Group
Investors with projects that address local needs or capitalise on local competitive advantages

3. Technological Development

Target Group
Enterprises that invest in innovation and want to upgrade their technology infrastructure

4.Youth Entrepreneurship

Target Group
Investors from 20-years to 40-years old

5.Large Investment Plans

Target Group
Investments with a budget of at least 50 000 000 Euro (Fifty million Euro)

6.Integrated, Multi-Annual Business Plans

Target Group
Companies legally formed at least five years previous to application, to implement integrated multi-annual (2-5 year) business plans with a budget of at least EUR 2 000 000 in total (Two million Euro)

7.Partnerships and Networking

Target Group
Partnerships and networking configurations or clusters. These clusters shall be comprised of at least five enterprises in the Region of Attica and the Thessaloniki Prefecture and of at least three enterprises in other prefectures, operating in the form of a consortium.

Types of Aid
a. Tax relief—Tax relief comprising exemption from payment of income tax on pre-tax profits which result, according to tax law, from any and all of the enterprise’s activities.
b. Subsidy—Gratis payment by the State of a sum of money to cover part of the subsidised expenditure of the investment
c. Leasing subsidy—Includes payment by the State of a portion of the installments paid under a leasing agreement executed to acquire new machinery and/or other equipment
d. Soft loans by ETEAN (National Fund for Entrepreneurship and Development). The amount to be covered by a bank loan may be funded by soft loans from credit institutions that cooperate with ETEAN enterprises.

The aid referred to above shall be aggregated for the purpose of determining the total amount of aid allocated to the investment project. In this case the benefit of the funding above is included in total aid, which may not exceed the limits delineated on the Regional State Aid Map.

Regional State Aid Map and Aid Rates for Each Prefecture 

Region Prefecture

zone

Percentage of aid

Large enterprises

Percentage of aid

Medium-size enterprises

Percentage of aid

Small and micro enterprises

South Aegean

Cyclades

C

15%

25%

35%

Dodecanese

C

15%

25%

35%

Sterea Ellada

Fthiotida

Â

15%

25%

35%

Fokida

Â

20%

30%

40%

Evia

Â

15%

25%

35%

Viotia

Á

15%

20%

25%

Euritania

C

20%

30%

40%

Central Macedonia

Thessaloniki

Â

30%

35%

40%

Halkidiki

Â

30%

35%

40%

Kilkis

C

30%

40%

50%

Pella

C

30%

40%

50%

Imathia

C

30%

40%

50%

Pieria

C

30%

40%

50%

Serres

C

30%

40%

50%

Western Macedonia

Grevena

C

30%

40%

50%

Kozani

Â

30%

35%

40%

Florina

C

30%

40%

50%

Kastoria

C

30%

40%

50%

Attica

Attica

Á

15%

20%

25%

Thessalia

Larissa

Â

30%

35%

40%

Magnissia

Â

30%

35%

40%

Karditsa

C

30%

40%

50%

Trikala

C

30%

40%

50%

Ionia

Corfu

C

30%

40%

50%

Lefkada

C

30%

40%

50%

Kefallinia

C

30%

40%

50%

Zakynthos

C

30%

40%

50%

Crete

Heraklion

Â

30%

35%

40%

Hania

Â

30%

35%

40%

Lassithi

Â

30%

35%

40%

Rethymnon

Â

30%

35%

40%

Peloponnese

Lakonia

C

30%

40%

50%

Messinia

C

30%

40%

50%

Korinthia

Â

30%

35%

40%

Arkadia

Â

30%

35%

40%

Argolida

Â

30%

35%

40%

North Aegean

Mytilene

C

30%

40%

50%

Chios

C

30%

40%

50%

Samos

C

30%

40%

50%

Eastern Macedonia/Thrace

Kavala

C

40%

45%

50%

Xanthi

C

40%

45%

50%

Rodopi

C

40%

45%

50%

Drama

C

40%

45%

50%

Evros

C

40%

45%

50%

Ipiros

Ioannina

C

40%

45%

50%

Arta

C

40%

45%

50%

Preveza

C

40%

45%

50%

Threspotia

C

40%

45%

50%

Western Greece

Achaia

C

40%

45%

50%

Etolo-Akarnania

C

40%

45%

50%

Ileia

C

40%

45%

50%


The entire application and evaluation process shall not exceed 6 months.

ETEAN

National Fund for Entrepreneurship and Development (ETEAN)

What is ETEAN?
ETEAN is Greece’s new national fund to support enterprises, particularly small, medium, and innovative enterprises. ETEAN operates as a Société Anonyme in order to provide leverage financing, through revolving debt, bank guarantees and counter guarantees, joint ventures and equity participation.

ETEAN does not deal directly with businesses. Businesses contact partner banks, which are selected by ETEAN through an open international tender.

ETEAN is designed to improve the access of finance to enterprises for their development, to help create new enterprises, to enable and enhance productivity, and to facilitate the entry of new products and services to market.

ETEAN is co-funded by the Operational Programme “Competitiveness and Entrepreneurship” and other NSRF programmes, supported by the European Regional Development Fund and the European Fisheries Fund.

How does ETEAN work?
Under the ETEAN umbrella, funds are created for green development, entrepreneurship, outward-oriented business activities, fisheries, agricultural development, and social entrepreneurship.

For every Euro the state guarantees, the banks shall guarantee two. The capital is available to firms in the form of friendly and soft loans, through the banks.

With guarantees from ETEAN, enterprises may borrow total secured business loans with significantly less collateral than normally required by banks without the ETEAN guarantee.

Attica Coastline

Athens Riviera Set for Historic Development

Participate in one of the most transformative projects in the Mediterranean—revitalising the Attica Coastline, known as the Athens Riviera.

With the creation of Attica Coastline S.A., investors will have multiple opportunities to participate in multiple projects designed to transform the seafront south of Athens.

Attica Coastline S.A., a state-owned company, has been created, with a 99-year operating charter. Attica Coastline S.A. is to manage, administer and develop public and private facilities located in the area between the Peace and Friendship Stadium in Faliron and Cape Sounion.

This project provides for:
• access to the coastline for citizens and visitors
• overall development of the region
• full compliance with environmental regulations
• determination of optimal land use and building regulations
• implementation of additional needed infrastructure
• creation of added value for the entire Attica region

The property of the ''under development area'' will be:
a) granted to Attica Coastline S.A. through joint ministerial decisions of the competent Ministers or
b) transferred to Attica Coastline S.A. by sale of land, donation, bequest or other type of contract.

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