Development Law: Manufacturing - Supply Chain (4th Cycle)
Closing Date: 30/06/2026
Objective
The purpose of this scheme is to support investment projects in the manufacturing sector, excluding the processing of agricultural products for which a separate scheme has been established, as well as investment projects in the logistics sector. The scheme aims at technological, production, administrative, and organizational upgrading, along with innovative and export-oriented growth and expansion, strengthening the competitive position of businesses in both domestic and international markets.
Eligible Investment Projects
The scheme covers investment projects falling within the manufacturing sector, excluding the processing of agricultural products.
The investment projects may qualify as initial investments under the following categories:
- Establishment of a new unit.
- Expansion of the capacity of an existing unit.
- Diversification of production into products never previously produced or services never previously provided by the unit, provided that the eligible costs exceed by at least two hundred percent (200%) the book value of the reused assets, as recorded in the fiscal year preceding the submission of the investment application.
- Fundamental change in the overall production process of an existing unit. For large enterprises, the eligible investment costs must also exceed the depreciation of the assets linked to the activity being modernized, incurred during the previous three (3) fiscal years.
Beneficiaries
Beneficiaries of the aid granted under the schemes are investment entities established or having a branch in the Greek Territory at the time of commencement of the investment project and operating under one of the following legal forms:
- Commercial companies
- Cooperatives
- Social Cooperative Enterprises (Koin.S.Ep.), Agricultural Cooperatives (A.S.), Producer Groups (O.P.), Producer Organizations (P.O.), Civil Cooperatives, Agricultural Corporate Partnerships (A.E.S.)
- Companies under merger, provided that all publication procedures have been completed before the commencement of the investment project
- Joint ventures engaged in commercial activity
- Public and municipal enterprises and their subsidiaries
The following are excluded from aid and eligibility under the schemes:
- Enterprises subject to pending recovery procedures for unlawful aid at the time of application submission (Deggendorf principle).
- Undertakings in difficulty.
- Enterprises that, within the two (2) years prior to submitting the aid application, have relocated the 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 completion of the initial investment.
- Enterprises implementing investment projects on behalf of the State under public procurement, concession, or service agreements.
Types of Aid
The following types of aid are granted to investment projects included in the scheme:
- Tax exemption
- Grant funding
- Leasing subsidy
- Subsidy for the cost of newly created employment
The aid intensities by Region are defined in the Regional Aid Map.
Eligible Expenses
Investment projects included in this scheme are supported for the following eligible regional aid expenses:
- Construction, expansion, and modernization of building facilities — including special and auxiliary installations, accessibility infrastructure for persons with disabilities, and landscaping works.
- Purchase of all or part of existing fixed assets (buildings, machinery, and other business equipment).
- Purchase and installation of new modern machinery and other equipment — including technical installations and vehicles operating within the production unit.
- Financial leasing costs for new machinery and equipment, provided ownership is transferred to the lessee upon expiration of the lease agreement.
- Modernization of special non-building installations and mechanical installations.
- Technology transfer through the acquisition of intellectual property rights, licenses, patents, know-how, and non-patented technical knowledge.
- Quality assurance and control systems, certifications, procurement and installation of software, and business organization systems.
Additionally and complementarily to regional aid, investment projects under this scheme may also receive support, in accordance with Article 7, for the following categories of non-regional aid expenses (Annex B):
- Consulting services for SMEs
- Energy efficiency measures
- Installation of efficient district heating and/or cooling systems
- Environmental remediation and ecosystem restoration expenses
- Resource efficiency and circular economy transition expenses
- Vocational training expenses
- SME participation in trade fairs
- Employment of disadvantaged workers and workers with disabilities
Non-eligible expenses:
- Operating expenses of the investment.
- Purchase of office furniture and utensils, unless they constitute an essential part of the investment’s production equipment.
- Purchase of passenger vehicles with up to six (6) seats.
- Purchase of land plots and agricultural land.
- Contribution of real estate, machinery, and other fixed assets to the company’s share capital.
Financing Structure
Each beneficiary participates in the investment project cost either through own funds or external financing. At least twenty-five percent (25%) of the eligible investment cost must not contain any state aid, public support, or public contribution.
Minimum Investment Threshold
To qualify under the schemes of Part B, a minimum eligible investment cost is required depending on the size of the enterprise:
- €1,000,000 for large enterprises
- €500,000 for medium-sized enterprises
- €250,000 for small enterprises
- €100,000 for very small enterprises
- €50,000 for Social Cooperative Enterprises (Koin.S.Ep.), Agricultural Cooperatives (A.S.), Civil Cooperatives, Producer Groups (O.P.), Producer Organizations (P.O.), and Agricultural Corporate Partnerships (A.E.S.)
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