Investment Incentives Law 3908/2011

The New Investment Incentives Law—A New Investment Era

Greece’s new Investment Incentives Law (3908/2011) responds to the diverse needs of today’s investor and, in parallel, creates a forward-looking investment environment.   

As Greece orients itself to the global economy, establishes outward-directed policies, and institutes a green development model, both domestic and foreign investors will find a new, open investment framework that is welcoming, attractive, and rewarding.

The new Law establishes priorities and policies that mandate an investment process characterized by speed, transparency, and results.

Investors will discover productive incentives, financing tools, and streamlined procedures so their business plans proceed with the least amount of bureaucracy and the greatest amount of clarity.

Greece is committed to Results, Speed, and Transparency.

Greece is committed to you, the investor.

Entrepreneurship - Innovation - Green Development

The Law

  • Contains a defined annual budget, making clear the allocation of financial resources so investors may plan accordingly
  • Addresses all sectors of the economy, except those expressly provided for in Article 2 of the Law
  • Is mindful of scarce public funds by providing incentives primarily through tax exemptions. For every one Euro of subsidy provided, three Euros of tax exemptions are provided.
  • Provides for binding schedules, electronic submission, investment monitoring, and new Investor Service Offices that assist investors
  • Contains specified and fixed application deadlines (April and October)
  • Introduces a new evaluation process by establishing the National Register of Evaluators and Auditors
  • Focuses on sustainable investment projects that are environmentally friendly, promote innovation, regional cohesion, youth entrepreneurship, and create jobs.

Investment categories

1. General Entrepreneurship

Provides tax breaks of up to 100% of the maximum allowable amount of aid.

Target Group
All enterprises irrespective of sector

2. Regional Cohesion

Provides all forms of aid.
The subsidy rate and leasing subsidy may reach up to 70% of the maximum allowable amount of aid. For news enterprises this percentage is increased by 10 percentage points.

Target Group
Investors with projects that address local needs or capitalise on local competitive advantages

3.  Technological Development

Provides all forms of aid.
The rate of subsidy and leasing subsidy may reach up to 80% of the maximum allowable amount of aid.

Target Group
Enterprises that invest in innovation and want to upgrade their technology infrastructure

4. Youth Entrepreneurship

Provides aid for virtually all costs (including operational) for five years from the start of the business. Total aid may reach up to 1.000.000 Euro (One million Euro).

Target Group
Investors from 20-years to 40-years old

5. Large Investment Plans

Provides all forms of aid, either in one form or a combination of forms. The level of aid decreases as the amount of investment increases. The percentage of the subsidy may not exceed 60% of total aid.

Target Group
Investments with a budget of at least 50 000 000 Euro (Fifty million Euro)

6. Integrated, Multi-Annual Business Plans

Promotes technological, administrative, organisational and business modernisation. 100% of the maximum regional aid applicable shall be granted.

Target Group
Companies legally formed at least five years previous to application, to implement integrated multi-annual (2-5 year) business plans with a budget of at least EUR 2 000 000 in total (Two million Euro)

7. Partnerships and Networking 

Provides for any form of aid.

Target Group
Partnerships and networking configurations or clusters. These clusters shall  be comprised of at least ten enterprises in the Region of Attica and the Thessaloniki Prefecture and of at least five enterprises in other prefectures, operating in the form of a consortium.


Types of aid

  • Tax relief—Tax relief comprising exemption from payment of income tax on pre-tax profits which result, according to tax law, from any and all of the enterprise’s activities.
  • Subsidy—Gratis payment by the State of a sum of money to cover part of the subsidised expenditure of the investment
  • Leasing subsidy—Includes payment by the State of a portion of the installments paid under a leasing agreement executed to acquire new machinery and/or other equipment
  • Soft loans by ETEAN (National Fund for Entrepreneurship and Development) The amount to be covered by a bank loan may be funded by soft loans from credit institutions that cooperate with ETEAN enterprises.

The aid referred to above shall be aggregated for the purpose of determining the total amount of aid allocated to the investment project. In this case the benefit of the funding above is included in total aid, which may not exceed the limits delineated on the Regional State Aid Map.

Regional State Aid Map and aid rates for each prefecture
            
          Region                       Prefecture    Zone                     Percentage of aid

 

 

 

Large enterprises 

   Medium-size enterprises

  Small and micro enterprises

South Aegean

 Cyclades 

  C 

 15% 

 25% 

 35%

 

 Dodecanese 

 C

 15% 

 25% 

 35%

Sterea Ellada 

Fthiotida

 Β 

 15% 

 25% 

 35%

 

 Fokida 

 Β 

 20% 

 30% 

 40%

 

Evia 

 Β 

 15% 

 25% 

 35%

 

Viotia

 Α 

 15% 

 20% 

 25%

 

  Euritania

 20% 

 30% 

 40%

Central Macedonia 

 Thessaloniki 

 Β 

 30% 

 35% 

 40%

 

 Halkidiki 

 Β 

 30% 

 35% 

 40%

 

  Kilkis

 C 

 30% 

 40% 

 50%

 

  Pella 

 C  

 30% 

 40% 

 50%

 

 Imathia 

 C 

 30% 

 40% 

 50%

 

  Pieria 

 C  

 30% 

 40% 

 50%

 

 Serres 

 C  

 30% 

 40% 

 50%

 Western Macedonia 

 Grevena  

  C  

 30% 

 40% 

 50%

 

 Kozani 

 Β 

 30% 

 35% 

 40%

 

 Florina  

 C 

 30% 

 40% 

 50%

 

 Kastoria  

 C 

 30% 

 40% 

 50%

 Attica   

 Attica 

 Α 

 15% 

 20% 

 25%

Thessalia 

 Larissa

 Β 

 30% 

 35% 

 40%

 

 Magnissia 

 Β 

 30% 

 35% 

 40%

 

Karditsa 

 C 

 30% 

 40% 

 50%

 

 Trikala  

 C 

 30% 

 40% 

 50%

 Ionia 

 Corfu  

 30% 

 40% 

 50%

 

 Lefkada

 C 

 30% 

 40% 

 50%

 

 Kefallinia 

C

 30% 

 40% 

 50%

 

Zakynthos 

 C 

 30% 

 40% 

 50%

 Crete  

 Heraklion  

 Β 

 30% 

 35% 

 40%

 

 Hania 

 Β 

 30% 

 35% 

 40%

 

 Lassithi  

 Β 

 30% 

 35% 

 40%

 

 Rethymnon 

 Β 

 30% 

 35% 

 40%

 Peloponnese 

 Lakonia   

 C 

 30% 

 40% 

 50%

 

 Messinia  

 C 

 30% 

 40% 

 50%

 

 Korinthia  

 Β 

 30% 

 35% 

 40%

 

 Arkadia  

 Β 

 30% 

 35% 

 40%

 

 Argolida 

 Β 

 30% 

 35% 

 40%

  North Aegean  

 Mytilene 

 C 

 30% 

 40% 

 50%

 

 Chios  

 C 

 30% 

 40% 

 50%

 

 Samos  

 C 

 30% 

 40% 

 50%

 Eastern Macedonia/Thrace  

 Kavala 

 C 

 40% 

 45% 

 50%

 

 Xanthi  

 C 

 40% 

 45% 

 50%

 

 Rodopi  

 C 

 40% 

 45% 

 50%

 

  Drama  

 C 

 40% 

 45% 

 50%

 

 Evros 

 C 

 40% 

 45% 

 50%

Ipiros 

 Ioannina  

 C 

 40% 

 45% 

 50%

 

  Arta  

 C 

 40% 

 45% 

 50%

 

Preveza

 C 

 40% 

 45% 

 50%

 

 Threspotia

 C 

 40% 

 45% 

 50%

 Western Greece 

 Achaia 

 C 

 40% 

 45% 

 50%

 

  Etolo-Akarnania 

 C 

 40% 

 45% 

 50%

 

   Ileia 

 C 

 40% 

 45% 

 50%

       
The entire application and evaluation process shall not exceed 6 months.

Application Procedure

  • Online registration at the Information System for Regional State Aid through the web pages www.mindev.gov.gr, www.ependyseis.gr, www.investingreece.gov.gr. Upon registration, applicants are provided with a personal code.
  • Electronic submission of required supporting documents, technical, and financial data. Applicants shall print and keep documents in their possession.
  • Submission of application form and all investment documents (including original documents) to the competent Investor Service Office (open: 09.00 am - 15.00 pm Monday to Friday). All supporting documentation submitted in paper form (hard copy) must also be submitted in electronic form.

Pre-Evaluation
Officials of the Investor Service Office review the application and, if complete, issue a receipt. In the event any documents are missing, the investor must submit them within 10 days of notification.

Evaluation Process
The judicial review and assessment process shall be completed within 40 days from the date the complete file has been submitted. The Investor may monitor the progress of his/her file electronically.

Results
Posting of provisional results in which investors may view the evaluation of their application and, if deemed necessary, lodge a complaint. The evaluation of the complaint is to be completed within 15 days from the date the complaint is formally lodged.

Relevant Files: 
Binary Data
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