General Entrepreneurship – Development Law 4399/2016 – 3rd Proclamation - The program
The objective of the scheme is to provide a complete framework of incentives with the primary objective of generating business initiatives to existing, newly established or start-up Businesses intending to make an initial investment in one of the eligible branches of law.
Content of investment plan – Nature of initial investment
- Create a new unit
- Capacity expansion of an existing unit
- Diversification of a unit's output into products or services that have never been produced in it
- Fundamental change of the entire production process
- Acquisition of assets of a unit that has ceased operations
Who does it concern?
Beneficiaries of the aid of the present aid scheme are the companies that are established or have a subsidiary in the Greek territory at the time of commencement of the investment project, in the sense of article 2 of Annex I of the G.A.K.
Not eligible for this regime Businesses, which are controlled by customer shareholders that have ceased operation during the previous twelve months, as long as they operate in the same or neighboring markets,
The following are also not considered beneficiaries and excluded from the aid of this scheme:
- problematic companies, as defined in paragraph 18 of article 2 G.A.K. (article 1 par. 4 case c' G.A.K.),
- Businesses that, during the two (2) years prior to the submission of the application for aid, have planned to relocate to the economic establishment in which the initial investment will be made and for which the aid is requested, or do not commit that they will not do so within the period of two (2) years after the completion of the initial investment for which the aid is requested,
- Businesses that carry out investment projects carried out on the initiative and on behalf of the State, based on a relevant contract for the execution of a project, concession or provision of services.
Selectable product formats
Eligible are companies that are established or have a subsidiary in Greek territory at the time of the start of the investment project and have one of the most convenient forms:
- sole proprietorship,
- commercial company,
- Social Cooperative Enterprises (Coun.S.Ep.) of 4430/2016 (A 2015)), Agricultural Cooperatives (AS), Producer Groups (OP), Agricultural Partnerships (AES) of Law 4384/2016 (A' 78) ,
- under establishment or merger of a company, with the obligation to have completed the publicity procedures before the start of work on the investment plan,
- Businesses that operate in the form of a joint venture, provided they are registered with GEMI,
- public and municipal enterprises and their subsidiaries, provided that:
- they have not been assigned the service of public purpose,
- has not been assigned by the state exclusively to these services,
- their operation is not subsidized with public funds for the period of compliance long-term obligations of article 21.
Investment projects of all sectors of the economy are covered, subject to the paragraphs of article 7 of the announcement
The total budget of the present regime "General Entrepreneurship" of the Development Law 4399/2016 for 2018 amounts to 350,000,000 euros, of which 140,000,000 euros relate to the types of support of the grant, the leasing subsidy and the cost subsidy of the created employment come from the Public Investment Budget and the 210,000,000 euros refer to the type of tax exemption support.
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 may 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
The minimum eligible amount of an investment project for the inclusion of investment projects in this aid scheme is defined based on the size of the organization, namely:
- for large businesses, 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 businesses, in the amount of one hundred and fifty thousand (150,000) euros,
- for very small businesses, in the amount of one hundred thousand (100,000) euros,
- for the Social Cooperative Enterprises (Coun.S.Ep.) of N. 4430/2016(A'205), as well as Agricultural Cooperatives (AS), Producer Groups (PO) and Agricultural Corporate Partnerships (AES) of N 4384/2016 (A' 78) in the amount of fifty thousand (50,000) euros.
Amount of subsidy
Amount of subsidy
In the context of this announcement, subsidies of up to 55% are provided, based on the Regional Subsidies Map, depending on the installation area.
Types of aid
- Tax exemption
- Lease subsidy
- Subsidy of costs of employment created
-The total amount of aid per submitted investment project can reach up to 5,000,000 euros
- The aid provided to each organization cannot cumulatively exceed 10 million euros for an individual company and 20 million euros for all affiliated and collaborating companies
Special categories of aid (Article 12)
In order for a business to receive a higher percentage of aid through a grant, it should be categorized in at least one of the following cases:
1. Outgoing SMEs: Refers to businesses that show at least a 10% increase in extroversion on average over the last three years, either 5% if their exports account for more than 70% of their turnover in the third year, or no increase if exports account for more than 85% of turnover in the 3rd year prior to the submission of their plan
2. Innovative SMEs: with a minimum of 10% of the total operating costs taken up by research and development costs, for at least one (1) year out of the last three (3) before submitting the application for inclusion in the provisions herein.
3. Independent SMEs that after the entry into force of the law (22-6-2016) proceeded with a merger process, either by absorption or by creating a new company – excluding acquisition
4. Employment growth of at least 10% over the last three years
5. Cooperatives, Social Cooperative Enterprises (Coun.S.Ep) of Law 4019/2011, Agricultural Cooperatives (AS), Producer Groups (OP), Agricultural Partnerships (AES) of Law 4384/2016.
6. Investment projects implemented in ICT (Technology, Information Technology, Communication) and Agri-Food sectors
7. Businesses that achieve increased added value compared to the average of their sector as determined by ELSTAT
8. Businesses implementing their investment plan in B.E.P.E., E.P., E.P.E.V.O., T.Y.K.T. and they do not concern the modernization or expansion of existing structures of the aided enterprise.
9. Businesses that implement an investment plan in special areas as defined in the relevant annex of the law (mountainous, disadvantaged, with particularly high refugee and immigrant flows, with population decline, island, border areas).
10. Businesses whose investment plan is implemented in areas with particularly high refugee and immigrant flows and in particular: Agathonisi, Kalymnos, Kastelorizo, Kos, Leros, Lesvos, Samos, Symi, Chios.
– Construction, expansion, modernization of building facilities and special and auxiliary building facilities and the shaping of the surrounding area.
Cumulatively they cannot exceed 45% of the total eligible costs.
For investment projects in the tourism sector, the coefficient is set at 60% for building costs, while for investments in the Logistics sector at 70% also for the building costs of said investment projects. Finally, for buildings that are classified as preserved, the factor in question amounts to 80%.
– Purchase of all existing fixed assets, for SMEs, subject to conditions.
– Purchase and installation of new modern machinery and other equipment, technical facilities and means of internal transport
– Leases for financial leasing of new modern machinery and other equipment
– Special & mechanical facilities
– 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
Eligible expenditure on intangible assets cannot exceed 50% of the total eligible expenditure and for SMEs 75%.
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 net increase in the number of Annual Work Units (ATUs) compared to the ATUs of the previous twelve months from the date of submission of the application for affiliation
2. Jobs should be filled within 3 years from the date of completion and start of production
3. Mandatory retention of jobs for 3 years from their filling
Other categories of expenses
- Expenditure on Consultancy Services and related to new SMEs only (seven years have not passed since the date of establishment).Expenditures for monitoring the implementation of the investment plan, for support in licensing, financing of the investment plan, organization and management studies, market research, etc. are increased
- Start-up costs only for start-up small and micro-enterprises. They refer to expenses for starting the business activity, such as legal and accounting services, organizational studies, etc.
Submissions open: 12/27/2018
Deadline for submissions: 02/28/2020
Proclamation of status
Extension of application submissions until 15/6/2019
Extension of application submissions until 1/7/2019