Innovating in Crete: Support for new innovative enterprises in the Region of Crete

The Managing Authority of the "Crete" Programme has launched Action 1.1.2.1 "Support for new innovative enterprises in the Region of Crete: Innovating in Crete", under the "Crete" Programme 2021-2027 (Priority 1 "Promoting Innovation and supporting entrepreneurship", Specific Objective RSO1.1), co-financed by the European Regional Development Fund (ERDF).

The objective of the Action is the establishment and support of new innovative enterprises, including startups and spin-off companies, that operate or will operate in Crete and invest in innovation, in order to develop competitive products or services which they plan to bring to market.

Funding is available for business ideas that:

• fall demonstrably within at least one priority of the Regional Specialisation of the National Smart Specialisation Strategy for the Region of Crete, and
• substantiate innovative characteristics in the product manufactured or the service provided.

The regional smart specialisation sectors on which the Action focuses are:

• Tourism, Culture, Creative Industries
• Agri-food Chain
• Environment, Circular Economy
• Life Sciences, Health and Pharmaceuticals
• Sustainable Energy
• Digital Technologies

Who it addresses

Micro and small enterprises, as defined in Recommendation 2003/361/EC and Annex I of Regulation (EU) 651/2014. Medium-sized enterprises are not eligible.

The call covers two distinct categories of beneficiaries and the applicant must select one of the two:

Category 1: Enterprises under establishment

Enterprises that hold a draft articles of association signed by all members or partners and will commence operations with the competent tax office after the electronic submission of the funding application. The shareholding structure of the enterprise under establishment is also evaluated.

Category 2: Existing and new enterprises

Enterprises with a commencement date registered with the tax authority from 1/1/2021 onwards and in any case before the submission of the application, which hold an active establishment within the Region of Crete before submission.

Eligible legal forms

General Partnership, Limited Partnership (including by shares), Ltd and single-member Ltd, S.A. and single-member S.A., Private Company and single-member Private Company, Social Cooperative Enterprises under Law 4430/2016, Non-Profit Civil Company.

Grant rate

Public funding amounts to 75% of the subsidised budget. The remaining 25% is covered by private participation, from own funds, bank borrowing or a combination of the two. Borrowing is not mandatory.

At the time of submission, evidence of capital availability is required, demonstrating coverage of at least 25% of the total costs of the investment plan.

Following the approval decision, an advance payment of up to 40% of the public funding may be granted, upon submission of a letter of guarantee of equal amount.

Type of aid

Grant, under Regulation (EU) 2023/2831 on de minimis aid (De minimis). The total amount of de minimis aid per single undertaking may not exceed EUR 300,000 over any period of three years, calculated on a rolling calendar basis. The cumulation check is carried out through the national state aid information system.

Area of application

Region of Crete. The investment plan is implemented in a single establishment within the Region. Establishing a branch during implementation is permitted, but the place of implementation remains one.

Terms and conditions

Beneficiaries must, among other things:

• Submit one single application per Tax Identification Number (Category 2). In Category 1, the same investment entity (enterprise, shareholder, partner or owner) may not participate in more than one investment plan of an enterprise under establishment.
• Be active in at least one eligible activity code, at the latest by the submission of the first payment request (including the advance payment).
• Keep single-entry or double-entry books under Law 4308/2014.
• Operate lawfully, holding the appropriate licensing document for the assisted activity, or a declaration and exemption document where no licence is required.
• Be registered in the Register of Beneficial Owners (Article 20 of Law 4557/2018), where that obligation applies.
• The place of implementation must not be the residence of the beneficiary (primary or secondary).
• Must not share premises with another enterprise in the same, non-distinct space. Establishment in organised hosting spaces (business and technology parks, co-working spaces) does not count as shared premises.
• The costs must not have been funded and must not constitute approved costs of another action financed by national or EU resources.

After completion, the beneficiary undertakes for three (3) years from the final payment (long-term obligations): maintaining the productive activity within the Region of Crete, genuine operation, non-transfer of assisted fixed assets and acceptance of the prescribed audits.

Evaluation

The evaluation is comparative. The score is formed by three groups of criteria:

The minimum acceptable total score is 30. If Group C receives a score of zero, the application is rejected. Substantiating the innovative character is not a matter of wording, it is in practice a condition of eligibility.

What is funded

Not eligible, among others

• Transport vehicles, road vehicles and vessels of any type.
• Used or refurbished equipment.
• Tablets and mobile phones, consumables, maintenance and repair costs of existing equipment.
• Equipment whose operation requires the combustion of fossil fuels (with a limited exemption, subject to justification, for production and mechanical equipment).
• Purchase of plots, land and agricultural land, taxes, duties and fees.
• Costs of preparing and submitting the funding application.
• In-house software development by the beneficiary's own means.
• No payroll cost category is provided: the Action does not subsidise recruitment.

Budget

Subsidised budget per investment plan: from EUR 30,000 to EUR 150,000. Plans with a subsidised budget below EUR 30,000 are deemed ineligible from the outset and cannot be submitted. Any amount exceeding the subsidised budget is considered 100% private participation, but remains subject to evaluation and audit.

The total Public Expenditure of the call amounts to EUR 2,500,000 and is allocated as follows:

• EUR 1,000,000 (40%) for Category 1: enterprises under establishment
• EUR 1,500,000 (60%) for Category 2: existing and new enterprises

with the possibility of transferring resources from one category to the other, if the individual budgets are not absorbed by the applications submitted.

Implementation timeline and cost eligibility

• Start of cost eligibility: 24/07/2026, the publication date of the call. Costs incurred or contracted before that date are not eligible, even if they have not been invoiced.
• Implementation period: up to 24 months from the electronic notification of the final approval, with the possibility of a justified extension of up to 6 additional months.

Submission period

From 29/09/2026 (13:00) to 30/11/2026 (15:00). The funding application is submitted exclusively and solely online, through the Integrated State Aid Information System (OPSKE), accompanied by all required supporting documents. The evaluation is comparative. The Managing Authority of the "Crete" Programme reserves the right to amend the dates based on the flow of submissions.

Competent Intermediate Body: EFEPAE and Development Agency of Crete.