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New Greek Investment Incentives Law


The Greek Investment Incentives Law provides that most sectors of economic activity could qualify for the incentives under consideration. Exemptions involve specific categories of activities that fall out of the scope of the new Law. There are 3 general categories of investments and 4 special categories of investment regimes. Different types of incentives and combinations may be granted per each category. Taxand Greece highlights the different types of incentives available for companies and how these are applied.

In principle, all sectors of economic activity could qualify for application of incentives. Still, there are specific exceptions from the scope of the Law, involving activities and/or projects that depend upon the preferential use of domestic goods, projects of public sector companies, electricity generation from photovoltaic systems, food service activities, wholesale and retail, financial services, real estate property management, legal and accounting services, activities of offshore entities.

The new Law covers the following general categories of investments:

  • General Entrepreneurship projects, applicable for all businesses not being exempt from the scope of the Law
  • Technological Development schemes for introducing of modernized technology in businesses
  • Regional Cohesion projects for the application of projects of local interest and the implementation of 'green' solutions and technologies

Moreover, the following special categories of investment regimes are covered:

  • Youth Entrepreneurship projects, for the establishment and operation of small and very small enterprises provided that individuals up to 40 years old hold over the 50% of the enterprise's capital
  • Major Investment schemes where projects of at least EUR50 million are to be included
  • Integrated Multiannual Business Plans for 2-5 year projects of at least EUR2 million
  • Synergy and Networking for projects submitted by a minimum number of entities forming a joint venture

The Incentives offered to qualifying enterprises are:

  • Income Tax exemption, in the form of tax-free reserves
  • Subsidy, which is state funds granted for the partial coverage of the investment project cost
  • Leasing financing, constituting in the partial payment by the State of the relevant rentals

As to regional division of the Country, Regional Zone A' refers to the departments of Attika and Voiotia, Zone B' refers to the departments where the GDP per capita is higher than 75% of the country's average and Zone C' refers to departments where the GDP per capita is lower than 75% of the country's average as well as the regions of Eastern Macedonia and Thrace, the Aegean islands, the Ionian Islands and border areas.

A further classification of companies provided for in the Law depends on their size and refers to the EU classification (large, medium, small and very small).

Taxand's Take

The new Incentive Law is expected to attract private investments in almost all economic sectors. Multinationals wishing to benefit from the said Law have a more precise timeframe to submit their applications and a specific annual budget of amounts attributed per categories of investments. The intention of the government reflected in the new Law is to make public all relevant information as well as corresponding evaluation criteria, so that incentives are awarded in a more transparent manner.

Your Taxand contact for further queries is:
Maria Zoupa
T. +30 21 0697 6000

Taxand's Take Author