The Minister of Development Takis Theodoricakos, presenting the new Development Law to the Committee on Production and Trade of the Parliament, spoke of a tool of strategic importance, which responds to the need for the productive transformation of the Greek economy.

“Greece needs a new, more productive and more resilient model of development – and the new Development Law is a pillar of this strategy,” he said, stressing that the Law provides for investment schemes totallingover €1 billion for the period 2025-2026, with priority given to manufacturing, large investments, social entrepreneurship, extroversion and the country’s border and economically weaker regions.

In total, 12 aid schemes are established, responding to the needs of modern and regionally targeted investment projects – from cutting-edge technologies to agri-food, tourism, supply chains, and value chains. As described by the Minister of Development, investment project approvals will be completed within 90 days of application through a fully digitized evaluation system, and the Law includes an implementation clause.

This targeting, Theodoricakos said, reflects the real needs of the Greek economy: increasing productivity, boosting employment and competitiveness and expanding export orientation. “There is no greater social policy than ensuring stable employment. But this requires a strong productive base,” he stressed, noting that – despite the strengthening of exports and industry – the balance of payments deficit remains high and is “a national problem that cannot be ignored.”

He particularly emphasized the role of Greek industry as a key and stable pillar for the new development path, while stressing that technology, innovation and the utilization of applied research are a basic prerequisite for the creation of new, competitive products and the strengthening of the extroversion of Greek production.

“Changing the production model is a condition of survival and a prerequisite for security and progress”, concluded Mr Theodorikakos, referring to a national effort for sustainable development focusing on the country’s productive forces, social cohesion and support for the Greek region.

The main changes and incentives of the new development law

According to the Ministry of Development, some interesting facts about the investment law are as follows:

1. €900 million for 2025 and 2026 in subsidies and tax exemptions

2. 3 new schemes are created: “Modern Technologies”, “Social Entrepreneurship and Crafts” and “Special Support Areas Scheme”.

“Special Technologies for Special Technologies”.
3. A Guarantee Fund is created with the participation of the Greek State up to 300 million euros for the provision of loans of 1 billion euros from the European Investment Bank (EIB).

4. The maximum aid amount is doubled from EUR 10 million to EUR 20 million for individual enterprises

5. The maximum aid ceiling for cooperating or associated enterprises is increased to EUR 50 million.

6. Results in 90 days.

7. Filing of final supporting documents in 30 days from the announcement of the final ranking list.

8. Certification upon regular audit, upon request of the investment project operator, of the implementation and 25% of the physical and economic scope of the investment.

9. Requests for amendments will also be accepted at the stage of certification of 25% of the investment.

10. Disqualification in 2 years if 10% of the investment has not been implemented.

11. Penalty of an additional 10% for the reimbursement of aid in case of withdrawal of the affiliation decision.

12. 5 types of aid are provided for: tax exemption, grant, leasing subsidy leasing subsidy) subsidy of the cost of employment created, risk financing, for the schemes: “Modern Technologies” and “Social Entrepreneurship & Handicrafts Scheme”.

“Modern Entrepreneurship and Entrepreneurship” and “Social Entrepreneurship”.
13. Additional 2 categories of incentives are established: “fast-track licensing” for the “Special Aid Areas” and “Large Investments” scheme and the incentive of providing loans guaranteed or supported by the Greek State (depending on the investment project) from the “Development Law Financial Instrument Guarantee Fund” (DeLFI GF) or from another supported financial instrument of the Hellenic Development Bank (HDB) or, for investment projects that have received a decision to be included in the Large Investment Scheme, from the European Investment Bank (EIB).

The main changes

1. 3 new schemes are created (a. “Modern technologies” scheme, b. “Social Entrepreneurship and Handicrafts Scheme”, and c. “Special Support Areas Scheme”).

2. New fast-track licensing incentives are established in specific schemes, namely “fast-track licensing”, for the “Special Support Areas Regime” and “Large Investment” schemes.

3. Provision of loans guaranteed and supported by the Greek State from the “Development Law Financial Instrument Guarantee Fund” (DeLFIGF) or from another supported financial instrument of the Hellenic Development Bank (HDB) for SMEs and for the investment projects that have received a decision to be included in the “Large Investments” scheme; Provision of a guarantee by the Greek State for long-term loans from the European Investment Bank (EIB) (creation of a Guarantee Fund for the participation of the Greek State up to EUR 300 million). EUR 300 billion for loans of EUR 1 billion from the EIB.

4. Provision is made for setting a maximum total amount of aid per submitted investment project up to the amount of twenty million euros for individual enterprises and up to the amount of fifty million euros for all cooperating or associated enterprises, subject to the limitations of Article 4 of the General Tax Code.

5. Possibility for any entity to apply for the same investment project to be included in more than one aid scheme, provided that the relevant conditions are met, with the note that the inclusion of the investment project in question in one scheme automatically rejects all other applications for inclusion for the investment project in question.

6. The assessment of investment projects for all schemes will be implemented on a comparative basis.

7. Approval of projects in 90 days – Submission of updated evidence (certificates of judicial solvency, tax, and insurance compliance) by investment entities within thirty days of the issuance of the final ranking list.

8. Certification upon regular audit, at the request of the investment project promoter, of the implementation and 25% of the physical and financial scope of the investment.

9. Provision for submission of changes concerning the person of the investment entity until the issuance of the completion decision – Possibility to consider requests for amendments also at the stage of certification of 25% of the investment.

10. Provision for the possibility of using the benefit of tax exemption, per year, at one second (1/2) of the total approved amount of tax exemption, in case of certification of implementation of 50% or 65% of the investment project cost.

11. Addition to eligible costs outside regional aid (in all individual Aid Schemes, except for the “Modern Technologies” Scheme) of costs for ensuring accessibility to persons with disabilities.

Aid

1. Tax exemption, which consists in the exemption from payment of income tax on the pre-tax profits realised, arising under the relevant tax legislation, from all the activities of the enterprise, less the tax of the legal person or legal entity attributable to the profits distributed or assumed by the partners. The amount of the tax exemption is calculated as a percentage of the value of the subsidised costs of the investment project or of the value of the new machinery and other equipment acquired through leasing and constitutes a reserve of equal value, which is kept in a separate account in their financial statements.

2. Subsidy, which consists of the free provision by the State of a sum of money to cover part of the supported costs of the investment project and is determined as a percentage of such costs.

3. Lease subsidy, which consists of the coverage by the State of part of the instalments paid under a leasing contract concluded for the acquisition of new machinery and other equipment, expressed as a percentage of the acquisition value and included in the instalments paid;

The subsidy for leasing may not exceed seven years, starting from the date on which the investment is completed.

The subsidy is calculated based on the percentage of the investment in the leasing contract.

The term of the lease may not exceed five years from the date of the lease.
4. Subsidy of the cost of the employment created, which consists of the State covering part of the wage costs of the new jobs created and linked to the investment project, and for which no other State aid is received.

5. Risk financing, for schemes: “Modern Technologies” and “Social Entrepreneurship & Handicrafts Scheme”, shall consist in subsidising the interest rate of subordinated loans or the insurance costs of subprime loans paid to the credit institutions granting them.

5.

It should also be pointed out that the aids referred to in recitals (a) and (b) are not eligible for aid. 1-3, i.e., tax exemption, subsidies, and leasing subsidies, are granted individually or in combination and are taken into account in determining the total amount of aid for each investment project. 4 (subsidy of the cost of employment created) is provided independently and only for the costs of the wage costs of the new jobs created as a result of the realization of the investment project, and which is calculated for two (2) years from the creation of each job.

Incentives

Α. The “fast track permitting” incentive for the “Special Assistance Areas” and “Large Investment” scheme

a. For the issuance of any required permit or approval for the execution of works, establishment or operation of investments under the aid schemes “Special Aid Areas” and “Large Investment Projects” including land-use permits, a time limit of two months is set from the dispatch of the permit application and the relevant file to the competent licensing authority. The Environmental Conditions Approval Decision (ERO) for the above investment projects is issued within three months. These deadlines start from the submission by the investment entity to the General Directorate of Development Laws & Foreign Direct Investment (DGDENFDI) of the Ministry of Development of a complete file for each required permit or approval, with all the supporting documents required by the relevant legislation. The above deadline does not include the time of submission of additional data requested by the Administration.

It should be noted that if the deadline of the first subparagraph of paragraph a’ expires without action, the authority to issue the unissued permits of paragraph a’ is transferred to the Minister of Development, as is the case for Strategic Investments.

In this case, a declaratory act shall be issued by the competent department on the expiry of the time limit. The Minister of Development, upon the recommendation of the General Directorate of Development Laws & Foreign Direct Investment (G.D.AN.N.A.F.I.E.) of the same Ministry, confirms the expiry of the above deadline, and, with reasons, either issues the relevant permit taking into account the application and the information in the file, or rejects it within one month from the issuance of the declaratory act on the expiry of the deadline.

For permits or approvals for the establishment or operation of the above investments, the competent licensing authorities include the General Secretariat for Private Investments of the Ministry of Development.

Β. The incentive of providing loans guaranteed or supported by the Greek State (depending on the investment project) from the Development Law Financial Instrument Guarantee Fund (DeLFI GF) or another supported financial instrument of the Hellenic Development Bank (HDB) or, for investment projects that have received a decision to be included in the “Large Investments” aid scheme, from the European Investment Bank (EIB).

a. Investment projects of SMEs, which receive a decision to be included in any Aid Scheme, may receive short or long term loans for the implementation of the investment, with the guarantee of the Greek State from the Development Law Financial Instrument Guarantee Fund (DeLFIGF) or another supported financial instrument of the Hellenic Development Bank (HDB).

β. Investment projects that have received a decision to be included in the Large Investment Scheme, whether they belong to large or small, or medium-sized enterprises, may apply for a loan from the European Investment Bank (EIB) to receive a loan with the guarantee of the Greek State.

Establishment of a EUR 300 million Guarantee Fund with the European Investment Bank for the provision of long-term investment loans guaranteed by the Greek State to large investments that will receive a decision to be included in the development law. Creation of a loan portfolio of EUR 1 billion.