Development Law: Support for tourism investments

Development Law: Support for tourism investments

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The purpose of the program is to grant aid to a wide range of tourism investments mainly related to the creation, expansion, and modernization of an integrated form of tourism accommodation throughout the Greece, with the aim of upgrading the quality of the touristic product.

Eligible investment projects

  1. Establishment or expansion of hotels of at least four (4) stars
  2. Modernisation of existing hotel units belonging to or upgraded to a category of at least three (3) stars, after five years from the start of operation of the unit or from the date of completion of the previous modernization investment, as well as modernization of non-main tourism accommodation, if upgraded to a category of at least three (3) stars,
  3. Extension and modernisation of existing hotel units that have ceased their operation, provided that no change of use of the building has taken place and that, through the extension or modernization, they are upgraded to a category of at least four (4) stars,
  4. Establishment, expansion and modernization of existing campsites, which belong to or are upgraded to a category of at least three (3) stars,
  5. Establishment and modernisation of existing hotel units within designated traditional or listed buildings, owned or upgraded to a category of at least three (3) stars,
  6. Establishment, expansion and modernization of complex tourist accommodations, as defined in Law 4276/2014 (A' 155), which are submitted as single plans, not including buildings and installations to be transferred or leased over the long term,
  7. Establishment and modernisation of non-main tourism accommodation establishments, if
    1. they have the distinctive title "hospitality hostel",
    2. they are implemented within traditional settlements in one of the following areas:
      1. mountainous areas, according to the classification of Hellenic Statistical Authority, except for the municipal units that are part of the Athens agglomeration,
      2. areas situated up to thirty (30) kilometres from the border
      3. islands with a population of less than three thousand one hundred (3,100) inhabitants
    3. they are classified in a category of five (5) keys, in accordance with the decision no. 12868/2018 (Β '3119) of the Minister of Tourism
      1. they maintain a minimum number of twenty (20) rooms to let,
  8. Establishment, expansion and modernisation of condo hotels, as defined in Law 4276/2014, provided that the transfer or long-term lease of aided parts thereof takes place after the end of the long-term obligations of the investment vehicle.

Eligible costs

The investment projects covered by the program shall be assisted for the total eligible regional aid costs set out below.

  1. Investment expenditure on tangible assets and in particular expenditure on
    1. The construction, expansion and modernisation of buildings, as well as special and auxiliary installations of buildings, and for constructions to ensure accessibility for persons with disabilities and persons with disabilities, as well as landscaping
    2. The purchase of all or part of existing fixed assets, such as buildings, machinery and other business installation equipment.
    3. The purchase and installation of new modern machinery and other equipment, including technical installations and means of transport moving within the site of the integrated unit.
    4. Leasing rentals of new modern machinery and other equipment, the use of which is acquired, provided that in the leasing contract provides that the equipment shall become the property of the lessee at the end of the contract.
    5. Modernisation of special non-building and mechanical installations
  2. Investment expenditure in intangible assets, namely expenditure on
    1. Technology transfer, through the purchase of intellectual property rights, licences, patents, know-how and unpatented technical knowledge
    2. Quality assurance and quality control systems, certifications, procurement and installation of software and business organisation systems

In addition to and in addition to the regional aid referred to in paragraph 1, the business plans covered by this scheme may be supported, in accordance with Article 7, and for the following categories of eligible expenditure other than regional aid listed in Annex B':

  1. expenses for consultancy services to SMEs
  2. expenditure on energy efficiency measures
  3. expenditures for high-efficiency RES cogeneration
  4. expenditures from renewable energy sources
  5. costs of installing efficient district heating and cooling systems
  6. costs of remediation of contaminated sites
  7. costs for recycling and re-use of waste
  8. expenditure on vocational training
  9. expenses for participation in exhibitions
  10. expenditure on the recruitment of disabled workers

Non eligible costs

The following costs shall be considered ineligible and shall be excluded from aid:

  1. Operating costs, unless they are part of the start-up costs of the New Business scheme
  2. The purchase of office furniture and utensils, unless they are part of the hotel equipment, or they are a key part of the investment's production equipment, or they are included in the start-up costs of the New Business scheme
  3. The purchase of passenger cars up to six (6) seats
  4. The purchase of land.
  5. Increase of the comany's share capital using land, machinery and other fixed assets.

Eligible and non eligible beneficiaries

The beneficiaries of the grant are investment vehicles established or having a branch in the Greek territory at the time of the start of the investment project and having one of the following forms:

  1. Commercial company,
  2.  Cooperative,
  3. Social Cooperative Enterprises, Agricultural Cooperatives, Producer Groups, Producer Organizations, Urban Cooperatives, Agricultural Partnerships,
  4. Companies under formation or merger, with the obligation to have completed the publicity procedures before the start of the investment project,
  5. Joint ventures engaged in commercial activity,
  6. Public and municipal enterprises and their subsidiaries

Aid and admission to the schemes shall be exempt from:

  1. Companies of which a grant recovery procedure (Deggendorf principle) is pending at the time of submission of the investment project application,
  2. Troubled companies
  3. Companies which, during the two (2) years prior to the submission of the grant application:
    1. They have relocated the business establishment, in which the initial investment for which the aid is requested is to be made or,
    2. refuse to commit not to relocate the above business establishment, for a period of two (2) years, after the completion of the initial investment,
  4. Undertakings which implement investment projects carried out on the initiative and on behalf of the State, on the basis of a relevant project, concession or service contract.

Types, intensity and amounts of aid

The following types of aid are granted to the investment projects covered by the present aid schemes:

  1. Tax exemption
  2. Grant
  3. Leasing subsidy
  4. Subsidising the costs of the employment created

Sunsidy rates:

Regional aid map

The amount of aid granted to each investment project under this scheme shall not exceed the threshold of EUR 3 million (3.000.000).

Minimum total budget of investment projects

  1. 1.000.000€  for large enterprises,
  2. 500.000€ for medium enterprises,
  3. 250.000€ for small businesses,
  4. 100.000€ for very small enterprises,
  5. 50.000€ for Social Cooperative Enterprises, as well as the Agricultural Cooperatives, urban Cooperatives, Producer Groups, producers organisations and Rural Partnerships.

Important dates

The starting date for the submission of applications for investment projects under the 'Tourist Investment Aid' scheme is 5 September 2022 and the closing date for the submission cycle is 5 December 2022.

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