Development Law: Regime of Special Reinforcement Areas (2nd Cycle)
End date: 30/06/2026
Purpose
The 2nd call of the aid scheme "Special Aid Areas Scheme" covers investment projects implemented in regions of Greece facing significant economic and demographic challenges, namely:
- Border regional units located along the country's northern borders
- Areas where the per capita Gross Domestic Product (GDP) stands at 70% of the national annual average, or where population decline is observed due to adverse economic and social conditions
The objective is to enable these regions to achieve balanced and sustainable development and to converge with the national average.
Eligible Areas
The scheme applies to the following regional units:
- Lesvos-Lemnos
- Ikaria-Samos
- Chios
- Evros
- Xanthi
- Rhodope
- Drama
- Kilkis
- Pieria
- Serres
- Florina
- Grevena
- Kastoria
- Ioannina
- Thesprotia
- Arta
- Preveza
- Karditsa
- Trikala
- Magnesia
- Larissa
- Ilia
- Evrytania
- Phocis
as well as the following South Aegean islands: Kasos, Megisti, Halki, Symi, Nisyros, Pserimos, Tilos, Lipsi and Agathonisi.
Beneficiaries
Eligible beneficiaries are investment entities established or maintaining a branch within Greek territory at the time of commencement of the investment project, taking one of the following forms:
- Commercial company
- Cooperative
- Social Cooperative Enterprises, Agricultural Cooperatives, Producer Groups, Producer Organizations, Urban Cooperatives, Agricultural Partnerships
- Companies under merger, provided that publicity procedures are completed before 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 scheme eligibility:
- Enterprises subject to an ongoing aid recovery procedure at the time of application submission (Deggendorf principle).
- Undertakings in difficulty.
- Enterprises which, within the two (2) years prior to submission of the aid application, have relocated the business establishment in which the initial investment is to be implemented, or refuse to commit that they will not relocate said establishment for a period of two (2) years following completion of the initial investment.
- Enterprises implementing investment projects undertaken on behalf of and at the initiative of the State, under a relevant contract for execution of works, concession, or provision of services.
Types, Intensity and Amount of Aid
Investment projects falling under the scheme receive the following types of aid:
- Tax exemption
- Grant
- Leasing subsidy
- Subsidy of employment costs for newly created jobs
Aid intensities by Region are set out in the Regional Aid Map.
Eligible Costs
Investment projects falling under the scheme are eligible for support across the following categories of regional aid expenditure:
- Construction, extension and modernization of building facilities — including special and auxiliary installations, accessibility infrastructure for persons with disabilities, and landscaping of the surrounding area.
- Acquisition of all or part of existing fixed assets (buildings, machinery, and other business establishment equipment).
- Purchase and installation of new modern machinery and other equipment — including technical installations and means of transport operating within the premises of the unit.
- Leasing payments for new modern machinery and equipment, provided that the leasing contract stipulates transfer of ownership to the lessee upon expiry.
- Modernization of special non-building installations and mechanical installations.
- Technology transfer through the acquisition of intellectual property rights, licences, patents, know-how and non-patented technical knowledge.
- Quality assurance and control systems, certifications, and the purchase and installation of software and business organization systems.
In addition to and complementing regional aid, investment projects under this scheme may also be supported, pursuant to Article 7, for the following categories of non-regional aid expenditure (Annex B'):
- Consultancy services for SMEs
- Energy efficiency measures
- Environmental damage remediation, restoration of natural habitats and ecosystems
- Resource efficiency 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 of energy from Renewable Energy Sources (RES)
Non-eligible costs:
- Operating expenses of the investment.
- Purchase of office furniture and equipment, unless it forms an essential part of the productive equipment of the investment.
- Purchase of passenger vehicles of up to six (6) seats.
- Purchase of plots, land and agricultural parcels.
- Contribution to share capital of real estate, machinery and other fixed assets.
Financing Structure
Each investor contributes to the cost of the investment project either through own funds or through external financing. Twenty-five percent (25%) of the eligible cost of the investment project must be free of any State aid, public support or subsidy.
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