Development law

New Development Law 4399/2016

The New Development Law 4399/2016 was passed by the parliament, published in the Government Gazette 117 / Α / 22-6-2016 entitled “Institutional framework for the establishment of Investment Aid schemes for the regional and economic development of the country – Establishment of the Development Council and other provisions »And aims to create many new investments. Based on the planning that has been done and the schedule that has been set, the ministerial decisions for its official start are expected in September.

What is it

The Development Law is an institutional framework for investment plan support schemes, which are submitted by individual companies or groups of companies for evaluation and approval of inclusion in its provisions.


Promoting balanced development with respect for environmental resources, technological upgrading, forming a new extroverted national identity (branding), improving competitiveness in areas of high added value and knowledge intensity, moving to the production chain for more value offering better services and ultimately securing the country a better position in the International Division of Labor.

The Development Law supports eight (8) individual aid schemes

  • Mechanical Equipment Aid
  • General Entrepreneurship
  • New independent media
  • Innovative Aid for SMEs
  • Synergies and networking
  • Financial intermediaries – Participation funds
  • Integrated spatial and sectoral value chain plans
  • Large Size Investments

Who cares

Existing, new and under construction companies of almost all legal forms and sizes of the Greek Territory. Eligible sectors of economic activity are those of manufacturing and most of the sectors of supply of internationally traded services and products subject to their compatibility with the General Exemption Regulation (GAC: Regulation No. 651/2014 of the European Commission of 17 < June 2014 declaring certain categories of aid compatible with the internal market pursuant to Articles 107 and 108 of the Treaty).

Minimum investment amount

The minimum investment amount is set at:
– € 50,000 for COINSEP
– € 100,000 for very small businesses
– € 150,000 for small businesses,
– 250.000 € for medium enterprises and for cluster,
– € 500,000 for large companies

Types of aid

a) tax exemption
b) grant
c) leasing subsidy
d) wage cost subsidy
e) financial instruments
f) stabilization of income tax rate up to the permitted limits
g) rapid licensing
h) loans (status 6)
i) Equity or quasi-equity loans and investments (Scheme 6)

Increased costs

Regional aid expenditure
Include the majority of potential costs (eg tangible and intangible assets) or alternatively payroll costs. Regional aid is the basis of any investment plan.
Expenditure on non-regional aid
Includes studies and consulting fees for SMEs, start-up costs for start-ups small and micro-enterprises, costs for self-generation of energy, costs for energy efficiency measures, costs for rehabilitation of polluted areas as well as costs in a number of special cases such as in SME innovation or innovation investments. These costs are in addition to regional aid costs.
Exceptions are investment plans for the production or cogeneration of energy in which only specific categories of expenditure are eligible.

Own participation

The financial participation of the institution can be covered either with own funds or with external financing or a combination of both.
Grant rates
Eastern Macedonia-Thrace 45%
Central Macedonia 45%
Thessaly 45%
Ήπειρος 45%
Western Greece 45%
Peloponnese 45%
North Aegean 45%
Western Macedonia 35% (2018-2020 the percentage for Grevena and Kozani will be 30%)
Ionian Islands 35% (2018-2020 the percentage will be 30%)
Crete 35% (2018-2020 the percentage will be 30%)
Central Greece 30% (35% for N. Evritania)
Αττικής 30%
South Aegean 30%

Aid height

The above percentages apply to small enterprises (less than 50 employees with an annual turnover or balance sheet of less than 10 million euros), for medium enterprises the percentage decreases by 10% and for large enterprises decreases by 20%.

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Investing Activities & amp; Motivation

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The investment projects provided by the Law, can receive the following incentives:

– Tax exemption (exemption from income tax on pre-tax profits). The amount of the tax exemption is calculated as a percentage of the value of the supported costs of the investment plan or the value of the new mechanical and other equipment acquired by leasing and constitutes an equal tax-free reserve.

– Grant to cover part of the supported costs of the investment plan and is determined as a percentage of them.

– Leasing subsidy to cover by the State part of the paid installments of leasing (duration up to 7 years) for the purpose of acquiring new mechanical and other equipment and is determined as a percentage of the acquisition value of those included in the paid installments.

  • The investment law provides incentives for the establishment, expansion or modernization of companies operating in:

– Primary sector (agriculture, ores)

– Secondary sector – Manufacturing

– Tertiary sector (Tourism / Services)

  • NOT subject to the Law:

– The sectors of steel, synthetic fibers, carbon, shipbuilding,

– Plans of public companies, organizations & amp; business in the form of a society,

– Photovoltaic & amp; Construction and trade sector (wholesale, retail)

Services (eg catering, advertising). ΚΑΔ 60, 64-66, 68-71, 73, 75, 77- 81, 84-86, 88, 90, 92-94, 96-99.

– Tourism: Establishment – expansion of units of category less than 3 *, modernization before 6 years from the start of operation or issuance of an investment completion decision, units classified with the key system (eg rooms for rent)

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General investment plans – Aid scheme

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A. General Entrepreneurship: Concerns projects that do not fall into another category of the Law.
– Aid Scheme: Tax exemption based on the limits set on the basis of a Zone and Regional Aid Charter

B. Technological Development: Includes investment plans for technological modernization of enterprises using technological and organizational innovations, such as quality assurance and control systems, certification, energy saving technology, research and development projects and programs, and utilization of specialized scientific and research potential.
– Aid Scheme: Grant or leasing subsidy for existing companies at a rate of 80% and for new companies at a rate of 90% of the limits set on the basis of a Zone and Regional Aid Charter.

C. Regional Cohesion: Includes investment projects in productive activities that take advantage of local competitive advantages, address local needs and regional problems with environmentally sustainable technology applications, introduce energy saving and water resources technologies and contribute to environment reconstruction, regeneration and development of areas of economic activity.
– Aid scheme: Grant or leasing subsidy for existing companies at a rate of 70% and for new businesses at a rate of 80% of the limits set on the basis of a Zone and Regional Aid Charter.

Note: Each year the types of business activities that fall into the B & amp; C, as well as the distribution of aid.

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Project Budget – Expenditure & amp; Eligibility of expenses

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  • The construction, expansion, modernization of buildings, special and auxiliary facilities, as well as the costs of landscaping. 60% and up to 70% of the SME budget.
  • The purchase of fixed assets directly linked to a production unit, provided that: that unit has ceased operations, is acquired by an independent investor, the transaction is carried out under normal market conditions, aid already granted before is deducted the market.
  • Purchase and installation of new modern machinery and other equipment.
  • Leases of financing the leasing of new modern machinery and other equipment whose use is acquired.
  • Intangible assets: Costs of quality assurance and control systems, certifications, supply and installation of software and business organization system, costs of technology transfer through the purchase of intellectual property rights, licenses, studies – consultants’ fees.

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For investment projects over 300,000 euros, the company must operate in the form of a commercial company (not an individual) or a cooperative.

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Supporting Documents

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• Economic and technical study

• General Supporting Documents (Legal data, financial data, documentation of the possibility of covering the same participation, etc.). An amendment has suspended the requirement to submit a loan approval from a Bank.

• Special Supporting Documents depending on the investment (the case permits / approvals for starting an activity / environmental conditions, etc.). Evaluation conditions

• Possibility of own participation

• Solvency: Existence of tax-insurance awareness & amp; Certificates (non-bankruptcy, compulsory administration)

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Evaluation criteria

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• Evaluation Criteria of the Investment Body

Characteristics of the institution (Legal form – number of employees).

Experience of shareholders and management (Participation of shareholders and executives in a business).

– Company experience (Active time in the market).

– Professional specialization of human resources.

Own participation (%) in the total or enhanced cost of the investment plan.

• Criteria of Sustainability and Efficiency of the investment plan / body

– Financial analysis of the investment (inflows – outflows, IRR).

– Financial analysis of the institution (eg loan repayment capacity index).

– Industry prospects (rising, stagnant, declining).

• Criteria for Technological Development, Innovation and New Products and Services.

– Application of advanced technology and innovation.

– Development of new products and new activities.

– Application of clean technologies and waste management.

Amount of added value.

• Criteria for investment contribution to the economy and regional development

– Increase employment and in particular the creation of new permanent dependent jobs after the implementation of the investment.

– Location of installation of the investment.

– Contribution of the investment to the protection of the environment, to the saving of energy and natural resources.

– Competitiveness of products and services at international level and in particular the export performance of the company.

Amount of the investment plan and origin of equity.

– Creating collaborations – networking (clusters).