Development Law: 1st cycle for the "Scheme of Special Assistance Areas" program
Start Date: 01/07/2025
End Date: 10/09/2025
Purpose
The purpose of this scheme is to support investment projects implemented in regions of the country that face significant economic and demographic challenges.
The aim is to provide these regions with the opportunity to achieve balanced and sustainable development and to converge with the national average.
Specifically, the following regional units and islands of the South Aegean are included in the scheme:
- Lesvos - Lemnos
- Ikaria - Samos
- Chios
- Evros
- Xanthi
- Rodopi
- Drama
- Kilkis
- Pieria
- Serres
- Florina
- Grevena
- Kastoria
- Ioannina
- Thesprotia
- Arta
- Preveza
- Karditsa
- Trikala
- Magnesia
- Larissa
- Ilia
- Evrytania
- Fokida
- The following South Aegean islands: Kasos, Megisti, Chalki, Symi, Nisyros, Pserimos, Tilos, Leipsoi, and Agathonisi.
Eligible Investment Projects
This scheme includes investment projects in the manufacturing sector, excluding the processing of agricultural products.
Investment projects must have the character of an initial investment as follows:
- Creation of a new unit
- Expansion of the capacity of an existing unit
- Diversification of production into products or services never previously produced or offered, provided the eligible expenses exceed at least 200% of the book value of the reused assets as recorded in the fiscal year preceding the application.
- Fundamental change in the entire production process of an existing unit. For large enterprises, the eligible investment expenses must also exceed the depreciation of the assets related to the activity being modernized over the past three (3) fiscal years.
Eligible and Excluded Beneficiaries
Eligible beneficiaries of aid under the scheme are entities established or having a branch in Greek territory at the time the investment project commences and having one of the following legal forms:
- Commercial company
- Cooperative
- Social Cooperative Enterprises (SCE), Agricultural Cooperatives (AC), Producer Groups (PG), Producer Organizations (PO), Civil Cooperatives, Agricultural Corporate Partnerships (ACP)
- Merging companies (publicity requirements must be completed before project commencement)
- Joint ventures engaged in commercial activity
- Public and municipal enterprises and their subsidiaries
The following are excluded from aid and participation:
- Companies subject to pending state aid recovery (Deggendorf rule)
- Problematic enterprises
- Enterprises that, within two (2) years prior to application:
- Relocated the business facility for which support is sought
- Refuse to commit that they will not relocate the facility for a period of two (2) years after the initial investment is completed
- Enterprises implementing projects initiated and executed on behalf of the State, under a project execution, concession, or service provision contract
Types, Intensity, and Amounts of Aid
Investment projects under this scheme are eligible for the following types of aid:
- Tax exemption
- Grant
- Leasing subsidy
- Wage cost subsidy for created jobs
Maximum grant amount: €20 million.
Minimum investment project amount: €2 million.
The law also provides that grants will be given to SMEs, while for large enterprises only tax exemption is foreseen.
Eligible Expenses
Investment projects under this scheme are supported for the following eligible expenses of regional aid:
- Investments in tangible fixed assets, including expenses for:
- Construction, expansion, and modernization of buildings and auxiliary infrastructure, including accessibility for persons with disabilities and environmental landscaping
- Purchase of all or part of existing fixed assets, such as buildings, machinery, and other equipment
- Purchase and installation of new modern machinery and equipment, including internal transport equipment within the unit
- Leasing payments for new modern equipment with a lease agreement stating ownership transfer at lease end
- Modernization of special installations not related to buildings and mechanical installations
- Investments in intangible assets, including expenses for:
- Technology transfer through acquisition of intellectual property, licenses, patents, know-how, and unpatented technical knowledge
- Quality assurance and control systems, certifications, software procurement and installation, business organization systems
Additionally, investment projects under this scheme may also receive support under Article 7 for the following non-regional eligible expense categories from Annex B:
- Consulting services for SMEs
- Energy efficiency measures
- Environmental remediation and ecosystem restoration
- Efficient use of resources and support for the transition to a circular economy
- Vocational training
- Innovation in SMEs
- Process and organizational innovation for SMEs and large enterprises
- High-efficiency cogeneration from RES
Ineligible Expenses
The following expenses are considered ineligible and are excluded from aid:
- Operating expenses of the investment
- Office furniture and utensils unless core production equipment
- Purchase of passenger vehicles with up to six (6) seats
- Purchase of plots, land, and fields
- Contribution of assets (land, equipment) to company capital
Funding Structure of Investment Projects
Each entity must participate in the project cost either through own funds or external financing.
At least twenty-five percent (25%) of the eligible project cost must not include any state aid or public support.
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