In Greece, there are many tools that promote investment incentives in several sectors. The investment law 3906/2011 and the amendments provided by the laws 4072/2012 and 4146/2013, is the framework that regulates the promotion and funding programmes of investments in Greece. Additionally to this law, there are many other ways in national and/or regional level that promote entrepreneurship in sectors like: technology, agriculture and tourism. Additionally, there are ways to support the small and medium enterprises and they include: the payment of a special contribution for unemployed people by the Greek state, the financial support to companies in order to provide to their employees life-long learning programmes, the provision of assistance for companies’ modernization, the establishments of new companies in the innovation zone in Thessaloniki.
The promotion instruments for entrepreneurship have various forms. They can either be a direct release of grant assistance, or tax funding, or tax reduction, or even payment of the special contribution for unemployed people by the Greek Sate instead of the employer.
Entrepreneurs, who are planning to invest in Greece in the near future, should be aware of the necessary procedures for establishing a company and for the available funding tools. Should you have any questions about these issues, do not hesitate to contact us for further information.
The new investment law (together with the amendments described in laws 4072/2012 and 4146/2013) is a tool that supports the establishment, creation, development and modernization of a company. It emphasizes on promoting the economic development through the enhancement of entrepreneurship, the technological evolution, the reinforcement of competiveness and the regional growth. The law also aims at supporting the “green entrepreneurship”, and the efficient exploitation of human resources and of infrastructure. The law ensures that private incentives will be financed up to 60% depending on the region where the investment will take place. The law provides subsidies for business activities belonging in the most important economic sectors such as tourism, industrial plant, renewable energy sources, logistics units, agriculture, processing of agricultural products, services. More applications can be submitted from winter 2014.
The investment law is applicable throughout the whole Greek region and it concerns investments with minimum capital of 200.000 Euros, while the maximum funding aid may reach up to 60%. Applications can be filed during the whole year. For large investment projects with a budget of a least 50 million Euros, the maximum aid reaches up to 40%.
The National Strategic Reference Framework (NSRF) includes all the funding tolls granted by the European Union for the period 2014-202. The entire NSRF programme is divided into several sub-programmes that promote: i) entrepreneurship and competiveness, ii) digital convergence, iii) environmental protection, iv) upgrading of infrastructures, v) public sector reformation. The details of the NSRF are not yet finalized and it will be voted within the current year (2014). There will be running some extra funding programmes for: fisheries and maritime affairs, the improvement of competitiveness of the agricultural and forestry sector (Measure 123A), the promotion of agricultural products abroad. Finally, there will be many Regional Programmes that promote processing units, tourism, and services.
Apart from the subsidies programmes, the European Union (EU) developed some financial instruments in order to support the development of businesses. The EU also developed three initiatives that support economic activities within the several regions of the European Union. These initiatives are JASPERS, JEREMIE and JESSICA that operate as technical assistance and provide extra funding possibilities in addition to the funding programmes –see above. They can finance investments in the less developed regions and they work with conjunction with other European funding tools. The JEREMIE (Joint European Resources for Micro to Medium Enterprises) initiative was developed to serve the needs of Small and Medium Enterprises (SMEs). It offers alternative ways of business funding such as loans or participation in the capital share of the company. The initiative was developed by the European Commission and the European Investment Bank. JESSICA (Joint European Support for Sustainable Investment in City Areas) aims to pursue the sustainable investment in urban areas. This initiative was developed by the European Investment Bank and the European Development Bank. These banks offers loans in combination with other European funds.