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NEW DEVELOPMENT LAW 4887/2022

In February 2022, the new Development Law 4887/2022 was passed and published, replacing the previously valid Law 4399/2016. The main objective of the new development plan is the economic development of the country, through on the one hand providing incentives to companies in specific sectors to implement private investments, and on the other hand, accelerating the processes of integration and evaluation of investment plans

REINFORCEMENT SYSTEMS

In contrast to the previous 4399/2016, the new development law establishes for the first time 13 thematic aid schemes, each of which concerns specific sectors of the economy. Particularly:

  1. Digital and technological transformation of businesses
  2. Green transition – Environmental upgrading of businesses 
  3. New Business
  4. Regime of Just Developmental Transition
  5. Research and applied innovation
  6. Agri-food – primary production and processing of agricultural products – fisheries and aquaculture 
  7. Manufacturing – Supply chain 
  8. Business extroversion
  9. Strengthening tourism investments
  10. Alternative forms of tourism
  11.  Big investments
  12.  European value chains
  13.  Entrepreneurship 360º
 

TYPES OF AID

The types of aid provided, although they differ according to the area of implementation, the size of the business, the eligible costs, are as follows:

  • Tax exemption
  • Subsidy
  • Leasing subsidy
  • Subsidy of costs of employment created
  • Venture funding for the scheme New Business.
 

CHARACTER OF INITIAL INVESTMENT

The investment plans should have the character of an initial investment and meet one of the following conditions:

  • Create a new unit
  • Capacity expansion of an existing unit
  • Diversification of a unit's output into products or services that have never been produced in it
  • Fundamental change of the entire production process

     

MINIMUM HEIGHT OF INVESTMENT PLANS

The minimum amount of the eligible cost of the investment project to be included in the aid regimes of the new Development Law is defined based on the size of the organization, namely: 

  • large companies → 1,000,000 euros 
  • medium enterprises → 500,000 euros 
  • small businesses → 250,000 euros
  • very small businesses → 100,000 euros
  • Social Cooperative Enterprises, Agricultural Cooperatives, Producer Groups, Producer Organizations, Urban Cooperatives, Agricultural Corporate Partnerships → 50,000 euros
 

MAXIMUM HEIGHT OF REINFORCEMENTS

The maximum aid limits for regional investments are determined by Map of Regional Aids. These rates concern large companies, while they can be increased by 10% for medium-sized companies and by 20% for small companies for initial investments with eligible costs up to €50 million.

FINANCIAL PARTICIPATION

Each institution participates in the cost of the investment project either with own funds or with external financing (e.g. borrowing).

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NEW DEVELOPMENT LAW 4887/2022

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