Agri-food – Primary production and processing of agricultural products – Fisheries – Aquaculture – Development Law 4887/2022

Agri-food - Primary production and processing of agricultural products - Fisheries - Aquaculture - Development Law 4887/2022 - The programme

The purpose of this scheme is to support business activities in the primary agricultural production and processing of agricultural products .

This notice does not provide the possibility of supporting business activities in the fisheries and aquaculture sector.

Who it concerns

The scheme covers investment projects in the following sectors:
a. of of primary agricultural production, submitted by micro, small and medium-sized enterprises and are included in the list no. 92195/27-09-2022 joint decision of the Minister and the Deputy Minister Rural Development and Food and the Deputy Minister Development and Investment "Determination of the types of investment projects in the primary agricultural production sector of micro, small and medium-sized enterprises (SMEs), with a maximum aid amount of up to EUR 500.000 per investment project and per undertaking, which may be subject to aid schemes of n. 4887/2022 και των προδιαγραφών, πρόσθετων όρων, περιορισμών και προϋποθέσεων, καθώς και κάθε σχετικού θέματος για την παροχή των ενισχύσεων σε επενδυτικά σχέδια του τομέα αυτού»,
b. of processing of agricultural products, i.e. any operation on an agricultural product which also results in an agricultural product, with the exception of operations on the agricultural holding necessary for the preparation of a product of vital or vegetable origin for the first sale, which are included in the list of operations referred to in point (a) of Annex I to Regulation (EC) No 1493/1999. 92172/27-09-2022 joint decision of the Minister and the Deputy Minister for Rural Development and Food and the Deputy Minister for Development and Investment "Determination of specific terms, conditions, requirements and restrictions for inclusion in aid schemes under Law No. 4887/2022, investment projects in the sector of processing of agricultural products, as defined in point 10 of Article 2 of Law No. (EU) No 651/2014 of the Commission',
c. of of primary agricultural production of ca. a and the processing of agricultural products of para. b, which may be subjected to an investment project with two distinct modules, implemented in the same Regional Unit and forming parts of a vertically integrated unit,
d. of πρωτογενούς γεωργικής παραγωγής της περ. α και της μεταποίησης αυτών χωρίς να προκύπτει, κατ’ ανάγκη, από την επέμβαση γεωργικό προϊόν, which may be in an investment project with two distinct modules, implemented in the same Regional Unit and forming parts of a vertically integrated unit.

Investment projects submitted must have an integrated character of an initial investment and be implemented in a Regional Unit, and in particular meet one of the following conditions:

• Create a new unit.
• Expansion of the capacity of an existing plant.
• Διαφοροποίηση της παραγωγής μιας μονάδας σε προϊόντα που δεν έχουν παραχθεί ποτέ ή υπηρεσίες που δεν έχουν παρασχεθεί from it, provided that, for large enterprises, the aided expenditure exceeds by at least two hundred percent (200%) the book value of the assets being re-used, as recorded in the fiscal year preceding the application for aid for the investment project.
• Θεμελιώδης αλλαγή του συνόλου της παραγωγικής διαδικασίας υφιστάμενης μονάδας. Επί μεγάλων επιχειρήσεων, απαιτείται επίσης, οι ενισχυόμενες επενδυτικές δαπάνες να υπερβαίνουν τις αποσβέσεις των 3 τελευταίων φορολογικών ετών των στοιχείων του ενεργητικού, τα οποία συνδέονται με τη δραστηριότητα που πρόκειται να εκσυγχρονισθεί. Αν δεν αποτυπώνονται σαφώς οι συνδεόμενες με τη δραστηριότητα αποσβέσεις των στοιχείων του ενεργητικού, θεωρείται ότι δεν πληρούται η ως άνω προϋπόθεση.

Επιλέξιμες επιχειρήσεις

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
• 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),
• joint ventures engaged in commercial activity
• 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,
  • their operation shall not be subsidised from public funds for the period during which the long-term commitments referred to in Article 22 are fulfilled.

Μη επιλέξιμες επιχειρήσεις

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),
• επιχειρήσεις που κατά τα δύο (2) έτη πριν από την υποβολή της αίτησης για ενίσχυση έχουν προβεί σε μετεγκατάσταση στην επιχειρηματική εγκατάσταση στην οποία θα πραγματοποιηθεί η αρχική επένδυση και για την οποία ζητείται η ενίσχυση ή δεν δεσμεύονται ότι δεν θα το πράξουν μέσα σε περίοδο δύο (2) ετών μετά την ολοκλήρωση της αρχικής επένδυσης για την οποία ζητείται η ενίσχυση,
• 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.

Program budget

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 participation can also consist of external funding. The alternative ways to cover 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
• 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:

• for large enterprises, in the amount of one million (1.000.000) euros,
• for medium-sized enterprises, in the amount of five hundred thousand (500,000) euros,
• for small enterprises, in the amount of two hundred and fifty thousand (250,000) 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.

Types of aid

• Tax exemption
• Subsidy
• Leasing subsidy
• Subsidization of the cost of employment created

 
For medium and large enterprises the aid includes all the above incentives except the grant.

The aid rates for the eligible costs of the initial investment will be granted on the basis of the intensity ceilings of the Regional Aid Map as follows:

a. For micro and small enterprises, the aid rates for all types of incentives other than grants are granted at the maximum rate laid down in the Regional Aid Map.

The grant incentive is awarded at eighty percent (80%) of the Regional Aid Charter ceiling.

An increased grant rate (up to the maximum rate of the Regional Aid Map) is granted for investment projects that are implemented in the following areas:
a. in the following areas:

• Mountainous areas, according to the classification of EL.STAT., except the municipal units that form part of the urban complex of Athens,
• areas located up to thirty (30) kilometres from the border,
• islands with a population of less than three thousand one hundred (3,100) inhabitants.
• Industrial and Business Areas (B.E.P.E.), Business Parks (B.E.P.E.) excluding Intermediate Enterprise Parks (IEPs), Technology Parks and Innovative Activity Host Centres (IHCs).C.I.T., Organised Hosts of Manufacturing and Business Activities (O.I.M.E.D.), provided that they do not concern the modernisation or extension of existing structures of the assisted firm.
• affected by natural disasters, in accordance with a decision of the Governmental State Relief Committee

b. They concern the reopening of industrial units which have ceased to operate, and the value of the fixed equipment of the industrial unit to be reopened covers at least fifty percent (50%) of the eligible costs of the investment project.
c. Implemented in buildings classified as listed
 
b. For medium and large enterprisesThe aid rates for all types of incentives other than grants shall be granted at eighty percent (80%) of the regional aid map ceiling.
 
Increased aid rates (at the maximum rate of the Regional Aid Map, except for the maximum rate of the regional aid map). c΄ granted at ninety percent (90%)) shall be granted for investment projects which are implemented:
a. in the following areas:

• Mountainous areas, according to the classification of EL.STAT., except the municipal units that form part of the urban complex of Athens,
• areas located up to thirty (30) kilometres from the border,
• islands with a population of less than three thousand one hundred (3,100) inhabitants.
• Industrial and Business Areas (B.E.P.E.), Business Parks (B.E.P.E.) excluding Intermediate Enterprise Parks (IEPs), Technology Parks and Innovative Activity Host Centres (IHCs).C.I.T., Organised Hosts of Manufacturing and Business Activities (O.I.M.E.D.), provided that they do not concern the modernisation or extension of existing structures of the assisted firm.
• affected by natural disasters, in accordance with a decision of the Governmental State Relief Committee

b. They concern the reopening of industrial units which have ceased to operate, and the value of the fixed equipment of the industrial unit to be reopened covers at least fifty percent (50%) of the eligible costs of the investment project.
c. Implemented in buildings classified as listed

For North Aegean Region the maximum aid rate is set for large enterprises at 55%, for medium-sized enterprises at 65% and for small and micro enterprises at 75%.

For investment projects implemented in the Delignification zones, which according to Law no. 4759/2020 are the Regional Units of Florina and Kozani and the Municipality of Megalopolis, the aid rates are the maximum rates laid down in the Regional Aid Map, depending on the size of the firm and in accordance with the types of aid defined in paragraph 1. 3 of Article 9.

For investment projects implemented in the Regional Units of Kastoria and Grevena and the Municipalities of Tripoli, Oichalia and Gortynia, the grant rate for small and micro enterprises is set at 90% and for medium and large enterprises the tax exemption rate is set at 90% of the maximum limit of the Regional Aid Charter.
 

Restrictions

• The total amount of aid per investment project submitted by micro and small enterprises may not exceed the five hundred thousand euros (500.000€) in the case of investment projects of Primary Agricultural Production and the three million euros (€3,000,000) in the case of investment projects provided Regional aid, for all types of aid.In the case of an investment project submitted with two sections of primary agricultural production and processing of agricultural products (paragraphs c and d of paragraph 1 of Article 5, ) the threshold is three million and five hundred thousand euros (€3,500,000).
• The total amount of aid per investment project in the Primary Agricultural Production submitted by medium-sized enterprises may not exceed five hundred thousand euros (€500,000).The total amount of aid per investment project submitted by medium-sized and large enterprises and provided Regional aid (manufacturing) may not exceed:
  • The three million euros (3.000.000€) for the aid of the leasing subsidy or the subsidy of the cost of the employment created, as well as the subsidy in the case of par. 5 of Article 9 (aid for medium-sized enterprises in the Regional Units of Thrace) and
  • The five million euros (5.000.000€) to support the tax exemption. In the case of the submission of an investment project, for medium-sized enterprises, with two sections of primary agricultural production and processing of agricultural products (points c and d of paragraph 1 of Article 5) the threshold is three million and five hundred thousand euros (€3 500 000) for the types of aid of the grant, the leasing subsidy and the subsidy for the cost of the employment created and in five million and five hundred thousand euros (€5,500,000) for the tax exemption incentive
• 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.
• The total amount of aid per investment project concerning eligible costs other than regional aid may not exceed:
  • the one hundred thousand euros (100.000€) in the case of the independent investment project of primary agricultural production, added to the limit of five hundred thousand (500.000,00) euros, and
  • the three hundred thousand (300.000,00) euros, in other cases, calculated within the limits of cases a and b.

 
These restrictions shall apply to investment projects subject to the provisions of this and for a period of three (3) years from the date of the entity's application for inclusion of its investment project.

Expenses subsidized

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

• Regional in nature for initial investment, either independently or in combination with non-regional aid from the other sections of the G.A.K. and other European Union Regulations or
• exclusively non-regional from the other sections of the GAC and other European Union Regulations, to the 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. Aggregate 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 in 70% also for the building costs of these investment projects, while for investment projects for plant production in greenhouses the rate is 60%. Finally, for buildings that are classified as listed buildings, this coefficient 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 aided expenditure on intangible assets may not exceed thirty percent (30%) of the total aided regional aid expenditure. For SMEs the maximum percentage is 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. Mandatory a net 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 filling of jobs should be within 3 years from the date of completion and start of production operation
3. Each job created through the investment is maintained in the assisted establishment concerned for a 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 of first occupation.

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)
• Costs for remediation of contaminated sites
• Costs for waste recycling and reuse
• Vocational training expenses
• Expenditure for SME participation in trade fairs
• Expenditure on investment aid for SMEs

Important dates

Start date for online submission of business plans : 03/10/2022
Deadline for online submission of business plans: 30/12/2022

Necessary documents 

01/10/2022

Required Documents

Useful files

01/10/2022

Notice of aid scheme

01/10/2022

Evaluation criteria

01/10/2022

Supporting documents in the file supporting the application for the aid scheme

06/10/2022

Eligible groups and categories of expenditure of investment projects (within regional aid)

06/10/2022

Eligible groups and categories of expenditure for investment projects (other than regional aid)

06/10/2022

Eligible nace code

06/10/2022

Special areas with increased aid rates

18/01/2022

Draft Law "Development Law - Greece Strong Development"

02/02/2022

Map of Regional Aid

04/02/2022

Development Law 4887/2022