Development Law: Large Investments (2nd Cycle)
End date: 30/06/2026
The new regime of the Greek Development Law (Αναπτυξιακός Νόμος) supports large-scale investments exceeding €15,000,000 in strategic sectors of the Greek economy, with a maximum grant ceiling of €20 million.
Purpose
The purpose of this regime is to support large investment projects in key sectors of the economy, so that their implementation delivers substantial impact on local economies.
Eligible investment projects
This regime covers investment projects whose total eligible expenditure budget exceeds fifteen million euros (€15,000,000), excluding those falling under other aid regimes, and which concern the following sectors:
The investment projects submitted must qualify as an integrated initial investment and must mandatorily meet the following conditions — investment in tangible and intangible assets in one or more of the following:
- The creation of a new establishment
- The expansion of the productive capacity of an existing establishment
- The diversification of the output of an existing establishment into products or services that have never been produced or provided by it, provided that the supported expenditure exceeds by at least two hundred percent (200%) the book value of the assets being reused, as recorded in the tax year preceding the application for inclusion of the investment project
- The fundamental change of the overall production process of an existing establishment. For large enterprises, the supported investment expenditure must also exceed the depreciation of the past three (3) tax years of the assets linked to the activity to be modernised
Beneficiaries and excluded entities
Beneficiaries of the aid granted under this regime are investment entities operating or about to operate in Greek territory at the start of the investment project's works, having one of the following legal forms:
- Commercial company
- Cooperative
- Social Cooperative Enterprises (Κοιν.Σ.Επ.), Agricultural Cooperatives (ΑΣ), Producer Groups (Ο.Π.), Urban Cooperatives, Agricultural Corporate Partnerships (Α.Ε.Σ.)
- Companies under merger, provided they have completed publication procedures before the start of works on the investment project
- Joint ventures engaged in commercial activity
- Public and municipal enterprises and their subsidiaries
The following are excluded from aid and inclusion in the regimes:
- Enterprises subject to a pending recovery procedure of aid at the time of application (Deggendorf principle)
- Undertakings in difficulty
- Enterprises which, in the two (2) years prior to the application for aid, have relocated the business establishment where the initial investment is to take place, or refuse to commit not to relocate it for a period of two (2) years after the completion of the investment
- Enterprises implementing investment projects undertaken on behalf of and at the initiative of the State, under a relevant contract for the execution of works, concession or provision of services
Types, intensity and amounts of aid
The following types of aid are granted to investment projects falling under the aid regimes hereunder:
- Tax exemption
- Grant
- Leasing subsidy
- Subsidy of the cost of the employment created
- Regional aid map
Eligible expenditure
The eligible expenditure of investment projects for which regional aid is granted, subject to the specific terms and conditions set out herein, falls into two categories:
- Construction, expansion and modernisation of building facilities, special and auxiliary installations, landscaping of surrounding areas
- Acquisition of existing fixed assets (buildings, machinery, equipment)
- Purchase and installation of new modern machinery and equipment, technical installations, transport vehicles operating within the facility
- Leasing instalments for new machinery, with an obligation to transfer ownership
- Modernisation of special non-building and mechanical installations
- Transfer of technology through the acquisition of intellectual property rights, licences, patents, know-how and non-patented technical knowledge
- Quality assurance and control systems, certifications, supply and installation of software and business organisation systems
In addition, under this regime investment projects may also receive support, pursuant to Article 6, for the following categories of eligible expenditure outside regional aid:
- Consultancy services for SMEs
- Energy efficiency measures
- High-efficiency cogeneration of energy from Renewable Energy Sources (RES)
- Installation of efficient district heating and/or cooling systems
- Remediation of environmental damage, restoration of natural habitats and ecosystems
- Resource efficiency and support for the transition to a circular economy
- Vocational training
- Participation of SMEs in trade fairs
- Recruitment of disadvantaged workers
Ineligible expenditure
The following expenditures are excluded from aid:
- Operating expenses of the investment
- The purchase of office furniture and equipment, unless it is an integral part of the production equipment
- The purchase of passenger vehicles with up to six (6) seats
- The purchase of plots of land, building sites and agricultural land
- Contribution to share capital of real estate, machinery and other fixed assets
Financing structure of investment projects
Each entity contributes to the cost of the investment project either through own funds or external financing.
The twenty-five percent (25%) of the supported cost of the investment project must not contain any state aid, public support or contribution.
Minimum size of investment projects
This regime covers investment projects whose total eligible expenditure budget exceeds fifteen million euros (€15,000,000).
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