Development Law 4887/2022 – Greece Strong Development

The programme

It was published S. 4887/2022, the New Development Law of Ministry of Development and Investment entitled, Development Law - Greece Strong Development, which sets out the conditions for eligibility and the framework for the establishment of schemes for the granting of state aid.
Σκοπός του παρόντος είναι η προώθηση της οικονομικής ανάπτυξης της Χώρας με τη χορήγηση κινήτρων σε συγκεκριμένες δραστηριότητες και κλάδους, προκειμένου να επιτευχθούν ο ψηφιακός και τεχνολογικός μετασχηματισμός των επιχειρήσεων, η πράσινη μετάβαση, η δημιουργία οικονομιών κλίμακας, η στήριξη καινοτόμων επενδύσεων και όσων επιδιώκουν την εισαγωγή νέων τεχνολογιών της «Βιομηχανίας 4.0», της ρομποτικής και της τεχνητής νοημοσύνης, η ενίσχυση της απασχόλησης με εξειδικευμένο προσωπικό, η στήριξη της νέας επιχειρηματικότητας, η ενίσχυση λιγότερο ευνοημένων περιοχών της χώρας και περιοχών που εντάσσονται στο Σχέδιο Δίκαιης Αναπτυξιακής Μετάβασης (ΣΔΑΜ), η περαιτέρω ενίσχυση του τουρισμού και η βελτίωση της ανταγωνιστικότητας σε τομείς υψηλής προστιθέμενης αξίας.
In order to achieve these goals, regulations are introduced to speed up all the evaluation, approval, control and certification procedures of the investment projects that fall under the regimes of this law.
Προβλέπεται η εισαγωγή δεκατριών νέων καθεστώτων ενισχύσεων που θα επιτρέψουν στην επιχειρηματική κοινότητα να σχεδιάσει, να αναπτύξει και να υλοποιήσει τις πρωτοβουλίες της με σημαντικές και σύγχρονες μορφές επενδύσεων σε όλους τους τομείς της ελληνικής οικονομίας.
The aim of the law is to provide a complete framework of incentives with the main objective of creating business initiatives to companies that intend to make an initial investment in one of the eligible sectors of the law.
Αντικείμενο είναι η θέσπιση καθεστώτων για τη χορήγηση κρατικών ενισχύσεων σε επενδυτικά σχέδια, τα οποία μπορούν να εμπίπτουν στις ακόλουθες κατηγορίες:

• Digital and technological business transformation,
• Green transition - Environmental upgrading of enterprises,
• New Business,
• Fair Development Transition Regime,
• Research and applied innovation,
• Agri-food - primary production and processing of agricultural products - fisheries and aquaculture,
• Manufacturing - Supply chain,
• Business extroversion,
• Strengthening tourism investment,
• Alternative forms of tourism,
• Large investments,
• European value chains,
• Επιχειρηματικότητα 360ο.

Περιεχόμενο επενδυτικού σχεδίου – Χαρακτήρας αρχικής επένδυσης

• Create a new unit
• Capacity expansion of an existing unit
• Διαφοροποίηση της παραγωγής μιας μονάδας σε προϊόντα που δεν έχουν παραχθεί ποτέ ή υπηρεσίες που δεν έχουν παρασχεθεί από αυτήν με τον όρο ότι οι ενισχυόμενες δαπάνες υπερβαίνουν κατά διακόσια τοις εκατό (200%) τουλάχιστον τη λογιστική αξία των στοιχείων ενεργητικού που χρησιμοποιούνται εκ νέου, όπως η αξία αυτή έχει καταγραφεί στο φορολογικό έτος που προηγείται της αίτησης υπαγωγής του επενδυτικού σχεδίου.
• Θεμελιώδης αλλαγή του συνόλου της παραγωγικής διαδικασίας υφιστάμενης μονάδας. Επί μεγάλων επιχειρήσεων, απαιτείται επίσης οι ενισχυόμενες επενδυτικές δαπάνες να υπερβαίνουν τις αποσβέσεις των στοιχείων του ενεργητικού, οι οποίες συνδέονται με τη δραστηριότητα που πρόκειται να εκσυγχρονιστεί και έγιναν κατά τα τρία (3) προηγούμενα φορολογικά έτη. Αν δεν αποτυπώνονται σαφώς οι συνδεόμενες με τη δραστηριότητα αποσβέσεις, θεωρείται ότι δεν πληρούται η ως άνω προϋπόθεση

Who it concerns

Eligible are companies that are established or have a branch in Greek territory at the time of commencement of the investment project and have one of the following forms:

• sole proprietorship, with a maximum eligible investment project cost of two hundred thousand (200,000) euros for the scheme only  Agri-food - primary production and processing of agricultural products - fisheries and aquaculture
• trading company,
• cooperative,
• Social Cooperative Enterprises (SPs) of 4430/2016 (A 2015)), Agricultural Cooperatives (AC), Producer Groups (POs), Agricultural Corporate Partnerships (ACPs) of Law 4384/2016 (A 78),
• companies being formed or merged, with the obligation to have completed the disclosure procedures before the start of work on the investment project,
• joint ventures engaged in commercial activities
• public and municipal enterprises and their subsidiaries, provided that:
  • they are not entrusted with the service of a public purpose,
  • they are not exclusively entrusted by the State with the provision of services,
  • δεν επιχορηγείται η λειτουργία τους με δημόσιους πόρους για το διάστημα τήρησης των
  • μακροχρόνιων υποχρεώσεων του άρθρου 22.

The following are not eligible and are excluded from aid under this scheme:

• undertakings which are subject to pending aid recovery proceedings at the time of the submission of the investment project application (Deggendorf principle),
• firms in difficulty, as defined in paragraph 18 of Article 2 of the General Tax Code (Article 1(4)(c) of the General Tax Code),
• enterprises which, during the two (2) years preceding the submission of the application for aid, have relocated to the business premises where the initial investment in respect of which aid is requested will take place or have not undertaken not to do so within a period of two (2) years after the completion of the initial investment for which aid is requested,
• enterprises implementing investment projects carried out on the initiative and on behalf of the State, on the basis of a relevant contract for the execution of a project, concession or provision of services.

Beneficiaries - Eligible activities

• Hotels
• camping category of at least 3 stars
• Health tourism and medical tourism
• Manufacturing / Industry
• Agri-Nutrition
• Energy
• Supply Chain/Logistics
• Τουριστικά λιμάνια/Υδατοδρόμια
• Special Tourist Infrastructure Facilities : conference centres, golf courses, tourist ports, ski resorts, theme parks, spa tourism facilities (thermal therapy units, thermal tourism centres, thermalism centres, thalassotherapy centres, spa centres), sports tourism training centres, mountain refuges, motorways
• Recovery and rehabilitation centres
• Fields (4×4, 5×5, etc.) and swimming pools
• Information and Communication Technologies (ICT)
   

Program budget

The grants, leasing subsidies and subsidies for salary costs provided for herein shall be covered by the Public Investment Budget, in which the relevant expenditure is entered for each financial year and which come from national resources or from the European Structural and Investment Funds (ESIF) or from other financial institutions, in accordance with national and Union legislation.
The body's participation in the total eligible costs of the investment project can be done either through own funds or through external financing, provided that twenty-five percent (25%) of it does not contain any state aid, public support or provision (Article 14 par. 14 G.A.K.).
The same participation can also consist of external funding. The alternative ways of covering equity are:

• Increase in share or company capital from new cash contributions
• Capitalization of existing taxable reserves and retained earnings
• Use of existing taxable reserves and retained earnings
• Asset disposal
• Bank loan

Amount of subsidy

The minimum eligible investment project size for the inclusion of investment projects in the present aid scheme is defined on the basis of the size of the entity, i.e:

• on large enterprises  in the amount of one million (1.000.000) euro,
• on medium-sized enterprises  in the amount of five hundred thousand (EUR 500,000),
• on small businesses  in the amount of two hundred and fifty thousand (EUR 250 000),
• on micro-businesses  in the amount of one hundred thousand (100,000) euros
• for the Social Cooperative Enterprises (JVs) of Law 4430/2016 (A'205), as well as the Agricultural Cooperatives (AC), the Producer Groups (POs) and the Agricultural Corporate Partnerships (ACPs) of Law. 4384/2016 (A' 78) in the amount of fifty thousand (50,000) euros.

Under the Development Law - Greece Strong Development, aid up to 70% is foreseen, based on the Regional Aid Map, depending on the area of establishment.
Types of aid

• Tax exemption
• Subsidy
• Leasing subsidy
• Subsidization of the cost of employment created
• Risk financing for the "New Business" scheme

Restrictions
The total amount of aid per submitted investment project can reach up to EUR 10.000.000.
The aid granted to each body, including aid to cooperating or associated enterprises may not exceed a cumulative total of 20 million euro. euros for an individual enterprise, and 30 million. euros for all related and cooperating undertakings, subject to the restrictions laid down in Article 4 of the General Tax Code.
These restrictions shall apply to investment projects subject to the provisions of this Regulation for a period of three (3) years from the date of the entity's application for the inclusion of its investment project.

Expenses subsidized

The investment projects covered herein may receive aid for eligible costs:

• Regional character for initial investment, either alone or in combination with non-regional aid from other parts of the GAC and other European Union Regulations
• or exclusively non-regional from the other sections of the GAC and other European Union Regulations, to schemes provided for in Part B.

Regional investment aid
Regional aid is granted in accordance with the Regional Aid Charter for:

• Initial investment:
  • The investment in tangible and intangible assets in connection with the creation of a new business establishment, the expansion of the capacity of an existing business establishment, the diversification of the production of a business establishment into products that have never been produced in it, or the fundamental change of the entire production process of an existing business establishment.
  • The acquisition of assets belonging to a business establishment that has closed or would have closed had it not been purchased and which is purchased by an investor unrelated to the seller and excludes a simple acquisition of the shares of a business.
• Initial investment for new economic activity:
  • The investment in tangible and intangible assets related to the creation of a new business establishment, or the diversification of the business establishment's activity, provided that the new activity is not the same or similar to that previously carried out in the establishment.
  • The acquisition of the assets belonging to a closed business establishment which is purchased by an investor unrelated to the seller, provided that the new activity to be carried on using the acquired assets is not the same or similar to that practiced in the business establishment prior to the purchase.

Eligible expenditure for regional aid
Tangible assets

• Construction, expansion, modernization of building facilities and special and auxiliary building facilities and the shaping of the surrounding area. The total may not exceed 45% of the total eligible costs.
• For investment projects in the tourism sector, the rate is set at 60% for building costs, for investments in the logistics sector 70 %, also for building costs of these investment projects, while for investment projects for plant production in greenhouses the rate is 60%. Finally, for buildings which are classified as preserved, the factor in question amounts to 80%.
• Purchase of all or part of the existing fixed assets, such as buildings, machinery and other business establishment equipment, under the following conditions, which must be cumulative:
  • the business establishment is closed,
  • the purchase is made by the entity of the investment plan, which is not related to the seller of the business establishment of approx. i unless it is a small business, which is acquired by an employee of the original owner,
  • the relevant transaction is carried out under normal market conditions. The cost of assets which have previously been granted or subsidized through development laws or other aid schemes prior to their purchase shall be deducted from such eligible expenditure.
• Purchase and installation of new modern machinery and other equipment, technical installations and means of transport that move within the area of ​​the integrated unit
• Leases for financial leasing of new modern machinery and other equipment
• Modernization of special non-building facilities and mechanical facilities

Intangible assets

• Transfer of technology, purchase of intellectual property rights, licenses, patents, know-how and unproprietary know-how
• Quality assurance systems, certifications, software supply and installation and business organization systems

For large enterprises, the subsidized costs for intangible assets cannot exceed thirty percent (30%) of the total subsidized regional aid costs. For SMEs, the maximum percentage is set at fifty percent (50%).
Wage cost
The wage costs of new jobs created as a result of the implementation of the investment plan are subsidized, calculated for a period of two (2) years from the creation of each position.
Conditions for wage cost support
1. Mandatorynet increase in the number of Annual Work Units (AWUs) compared to the AWUs of the previous 12 months from the date of submission of the application for membership
2. The jobs must be filled within 3 years from the date of completion and start of production operation
3. Each job created through the investment shall be maintained in the assisted establishment for a minimum period of at least five (5) years for large enterprises, at least four (4) years for medium-sized enterprises and at least three (3) years for small enterprises, from the date on which it is first created.
Eligible expenditure other than regional aid:

• Consultancy fees for SMEs
  • Only for new small and medium-sized enterprises and up to €50,000 (up to 5% of total eligible costs)
• Start-up costs for newly created & incipient small and micro enterprises
  • They concern start-up costs, such as legal and accounting services, organisational studies, etc.
  • They are eligible for up to 20% of the supported costs up to a maximum of 200.000 euro
  • For innovative small and micro enterprises the thresholds are doubled
• Expenses for research and development projects (expenses for personnel, buildings, instruments, equipment, etc.)
• Innovation expenditure for SMEs
  • They concern a budget of up to 20% of the total supported costs and up to 200.000 EUR
• Expenditure on procedural and organisational innovation
• They concern a budget of up to 10% of the total supported costs and up to 100,000 euros
• Expenditures for the protection of the environment
• Investment costs for energy efficiency measures
• Investment costs for co-production of high efficiency energy from RES
• Expenditures for energy production from RES
• Costs for installing efficient district heating and district cooling systems
• Costs for remediation of contaminated sites
• Costs for waste recycling and reuse
• Vocational training expenses
• Expenses for media participation in trade fairs
• Aid for disadvantaged workers
   

Aid schemes

•    Digital and technological transformation of businesses
The investment projects concerned concern the technological upgrading of existing plants and wish to introduce new digital functions and processes, combining production methods with modern information and communication technology.
•    Green Transition - Environmental upgrading of enterprises
It concerns investment projects of enterprises that aim to protect the environment, as well as other existing business activities, provided that expenditure on energy efficiency and environmental protection measures is incurred.
•    New Business
Investment projects for activities in primary production, processing of agricultural products, fisheries, research and applied innovation, digital and technological transformation, manufacturing and the supply chain, to be carried out by Micro and Small Enterprises in the process of being set up, in whose corporate capital only natural persons participate who a) have no previous participation in companies, with the exception of holding shares in companies listed on the Stock Exchange
•    Just Development Transition
It concerns investment projects to be implemented in the areas of the Territorial Fair Transition Plans (TTPs).
•    Research and applied innovation
The objective is that the projects to be supported should contribute to the development of technology or the provision of services through technological development, the production of innovative products or the introduction of process or organisational innovations, the exploitation of research results, the increase in employment and the creation of high value-added jobs.
•    Agri-food - primary production and processing of agricultural products - fisheries - aquaculture
It provides for aid for investment projects in the sectors of primary agricultural production, processing of agricultural products and fisheries and aquaculture.
•    Manufacturing - Supply chain
Investment projects in the field of processing, other than the processing of agricultural products, and the creation of logistics facilities are eligible.
•    Business extroversion
It concerns investment projects for the development of business extroversion and export activities.
•    Strengthening tourism investments
Provision is made for aid for the creation, expansion and modernisation of integrated forms of tourist accommodation and camping sites (camping) in the whole of the Territory in order to upgrade the quality of the tourist product.
•    Alternative forms of tourism
The covered investment projects concern alternative forms of tourism and aim to exploit and promote the particular characteristics of the country's regions, such as geographical, social, cultural and religious.
•    Big investments
It concerns aid for large investment projects with a budget exceeding fifteen million (15.000.000) euros, with the exception of those falling under the aid schemes a) agri-food - primary production and processing of agricultural products - fisheries b) aid for tourism investments and c) alternative forms of tourism.
•    European value chains
It concerns support for investment projects in the fields of European strategic value chains (microelectronics, high-performance computing, batteries, interconnected and autonomous vehicles, cybersecurity, personalised medicine and health, low-carbon industry, hydrogen, internet of things).
•    Entrepreneurship 360
The purpose of the scheme is to support all investment projects covered by the Development Law (except for certain categories for which special schemes are established), which concern the implementation of initial investments and the possibility of incurring additional costs, for the benefit of business initiatives and the national economy.
 

Important dates

Expected

Necessary supporting documents for submission

Expected

Χρήσιμα αρχεία

18/01/2022
Draft Law "Development Law - Greece Strong Development"
02/02/2022
Map of Regional Aid
04/02/2022
Development Law 4887/2022