DEVELOPMENTAL LAW
Program details
Title : Develpmental law
Subsities / Tax excemptions
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Develpmental law
The new Development Law, Law 4887/2022, serves as the primary institutional framework for establishing Private Investment Support Schemes aimed at the regional and economic development of the country. The main objective of the Development Law is to promote the economic, business, and social development of the country. This is expected to be achieved, among other ways, through the provision of incentives for specific activities and sectors and by accelerating the integration processes of investment plans into support schemes.
The eligible expenses covered by the new Development Law are:
- Construction, expansion, and modernization of building facilities
- Special and auxiliary building facilities - Landscaping of the surrounding area
- Purchase of all or part of the existing fixed assets, under specific conditions
- Purchase and installation of new modern machinery and other equipment, technical installations, and transport vehicles operating within the premises of the eligible unit
- Purchase of new modern machinery and other equipment through financial leasing
- Modernization of special and mechanical installations
- Intangible assets, specifically technology transfer, quality assurance and control systems, certifications, procurement and installation of software, and business organization systems.
The strategic significance of the new Development Law and its advantages are as follows:
- Support of up to 75% of the budget
- Special framework for decarbonization areas with increased incentives
- External financing of at least 25% of the investment plan through equity or borrowing
- Provision for either immediate (standalone) or comparative evaluation of investment plans within a maximum timeframe
Within the framework of achieving the goals of the Law, a key focus is the establishment of schemes for granting state aid to investment plans in specific categories. Specifically, through the application of the Law, incentives are provided for the development of specific sectors of business activity. Each investment plan may be included exclusively in one support scheme, depending on the nature and purpose of the investment.
The support schemes are as follows:
- Manufacturing – Supply Chain (Active - 2nd Cycle)
- Support for Tourism Investments (Active - 2nd Cycle)
- European Value Chains
- Large Investments
- Alternative Forms of Tourism
- Research and Applied Innovation
- Business Extroversion
- Just Developmental Transition
- New Entrepreneurship
- Green transition - environmental upgrading of businesses
- Digital and technological transformation of businesses
- Agri-food - Primary Production and Processing of Agricultural Products - Fisheries – Aquaculture – Entrepreneurship 360