Mechanical Equipment Subsidies – Development Law 4399/2016 – 4th Proclamation

The programme

The objective of the Mechanical Equipment Grants scheme is to provide a complete incentive framework with the main objective of creating business initiatives in existing , start-ups or in under establishment enterprises intending to make an initial investment in one of the eligible sectors of the Act.

Περιεχόμενο επενδυτικού σχεδίου – Χαρακτήρας αρχικής επένδυσης

• Create a new unit
• Capacity expansion of an existing unit
• Diversification of a unit's output into products or services that it has not produced
• Fundamental change of the entire production process
• Acquisition of assets of a unit that has ceased operations

Who it concerns

Beneficiaries of aid of the present aid scheme are enterprises which are established or have a branch in the Greek territory at the time the investment project starts, within the meaning of Article 2 of Annex I to the General Tax Code.

Not eligible for this scheme are companies controlled by shareholders of companies that have ceased trading in the previous 12 months, if they operate in the same or adjacent markets,

The following are also not considered beneficiaries and are excluded from the aid under this scheme:

• 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.

Eligible business forms

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,
• 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,
• enterprises operating under theform of a  joint venture   subject to their registration in the General Register of Companies,
• 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 21.

Υπάγονται επενδυτικά σχέδια όλων των τομέων της οικονομίας με την επιφύλαξη των παραγράφων του άρθρου 7 της προκήρυξης.

Program budget

The total budget of the present scheme of the  Development Law 4399/2016  amounts to one hundred and fifty million (150,000,000) euros and concerns the type of aid of tax exemption.

The entity's participation in the total eligible costs of the investment project may be made either through own funds or external financing, provided that twenty-five percent (25%) of it does not contain any state aid, public support or benefit (Article 14(14) G.A.K.).

The same contribution may also consist ofexternal 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

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:

• for large enterprises, in the amount of five hundred thousand (500,000) euros,
• for medium-sized enterprises and cooperatives in the amount of two hundred and fifty thousand (250,000) euros,
• for small enterprises, in the amount of one hundred and fifty thousand (150,000) euros,
• for micro enterprises, 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.

Amount of subsidy

Under this notice, aid of up to 55% is foreseen, based on the Regional Aid Map, depending on the region of establishment.

Types of aid

• Tax exemption

Restrictions

-The total amount of aid per investment project submitted may reach up to EUR 5.000.000
-The aid granted to each body may not exceed a cumulative total of 10 million euros for an individual enterprise and 20 million for all related and cooperating undertakings

Expenses subsidized

Tangible assets

• Purchase and installation of new machinery including special installations
• Purchase and installation of machinery not older than seven (7) years from the date of first acquisition, coming from a production unit
  for which the following conditions are cumulatively met:
  • this unit has ceased to operate,
  • the purchase is made by the operator of the investment project who is not related to the seller. When a family member or an employee of the
    original owner takes over a small business, the condition that the assets must be purchased from a third party not related to the original owner does not apply.
    buyer,
  • the transaction concerned is carried out on normal market terms,
  • assets previously subsidised under other aid schemes are excluded from eligible costs, and
    the purchase is carried out by SMEs
• The lease payments for the leasing of new modern machinery of which the use is acquired, and on condition that the leasing contract provides that the equipment will become the property of the lessee at the end of the contract
• The purchase of means of transport moving within the area of the integrated unit. The purchase of passenger cars with up to six (6) seats is not supported
• Expenditure on the modernisation of specific installations (other than buildings) and mechanical installations

Important dates

Start of Submissions: Tuesday 8 December 2020

Closing date: Thursday 30 September 2021, unless the budget of this scheme is exhausted earlier

Χρήσιμα αρχεία

08/12/2020
Notice of scheme