The new Development Law 4887/2022 aims to achieve a comprehensive and systematic intervention across all sectors and areas of the economy, delivering tangible benefits in economic growth, regional convergence, and social cohesion.
It provides incentives to increase private investment, support new entrepreneurship, strengthen less-favored areas of the country and regions included in the Just Development Transition Plan, as well as enhance competitiveness in high value-added sectors.
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The new Development Law offers:
- Increased aid rates of up to 75%.
- Support for new categories of eligible expenses.
- Support for special tax incentives.
- Support for investments across the Greek territory, with a strong focus on decarbonization zones, mountainous, island, and border regions, as well as areas affected by natural disasters.
- Efforts to strengthen an organized structure of Greek business activity by providing additional grant incentives for locating units in organized industrial areas (e.g., Industrial Zones or Business Parks).
- Inclusion of certified public auditors in the evaluation and monitoring process of investment projects.
- Support for start-up businesses.
- Focus on increasing employment, with an emphasis on retaining young scientists in the country (addressing brain drain), while also enhancing the training of the existing workforce.
- Establishment of a fixed and regular activation cycle for each aid scheme.
- Simplified and faster procedures for the submission, evaluation, and approval of investment projects. The goal is for the process from submission to inclusion in the respective scheme not to exceed 60 days.
- Reduction of bureaucracy and optimization of monitoring procedures for the implementation progress of approved investment projects and the disbursement of aid.
New aid schemes
Up to 10 million per project
Up to 75% subsidy
Investment projects falling under the following new categories are eligible for support:
Modern Technologies
Green Transition – Environmental Upgrade of Businesses
Social Entrepreneurship & Handicrafts
Agri-Food – Primary Production and Processing of Agricultural Products
Agri-Food – Primary Production and Processing of Agricultural Products
Support for Tourism Investments
Alternative Forms of Tourism
360° Entrepreneurship
The investor may choose the aid scheme that aligns with their needs and business plan, provided they meet its specific requirements. Some categories correspond to particular economic sectors, such as “Support for Tourism Investments”, while others, like “Digital and Technological Transformation of Businesses,” are compatible with most eligible sectors under the new Development Law.
The new Development Law provides support for part of the expenses of an investment project related to the establishment and creation of a new facility, the expansion of the production capacity of an existing unit, the diversification of a company’s production into products or services never before produced, as well as the fundamental transformation of the entire production process of an existing unit.
The most significant innovation of the new Development Law lies in the inclusion of investment projects that do not constitute a fully integrated investment, but are supported exclusively for specific categories of expenses.
Beneficiaries may now submit an application forthe same investment project under more than one thematic aid scheme.. If the project is approved under one of the schemes, the applications submitted to the remaining schemes are automatically cancelled.
Businesses eligible for support under the New Development Law 4887/2022 must be established or have a branch in Greece at the time the investment project begins. Eligible legal forms include:
- Commercial companies (e.g., S.A., Ltd., IKE, general or limited partnerships)
- Cooperatives
- Social Cooperative Enterprises (SCEs)
- Agricultural and urban cooperatives
- Producer Groups and Producer Organizations
- Agricultural corporate partnerships under Law 4384/2016
- Public and municipal enterprises and their subsidiaries (under specific conditions)
- Individual enterprises are eligible only under the following aid schemes: Agri-Food – Primary Production and Processing of Agricultural Products, Fisheries, and Aquaculture and Social Entrepreneurship & Handicrafts. In both cases, the maximum eligible cost is €200,000.
- Under-establishment or under-merger companies are also eligible, provided that they have completed all required publicity procedures before submitting their proposal.
The minimum eligible investment amount is determined based on the size and type of the entity as follows:
- Large enterprises: €1.000.000.
- Medium-sized enterprises: €500.000.
- Small enterprises: €250.000.
- Very small enterprises: €100.000.
- Social Cooperative Enterprises (SCEs), Agricultural and Urban Cooperatives, Producer Groups and Organizations, Agricultural Corporate Partnerships, and very small enterprises falling under the Social Entrepreneurship & Handicrafts scheme are eligible with a minimum investment amount of €50,000.
- Capital Subsidy, a direct grant covering part of the eligible expenses of the investment project.
- Leasing Subsidy,covers part of the leasing installments for the acquisition of new machinery and equipment through a financial lease agreement (leasing).
- Tax Exemption,income tax relief on pre-tax profits, up to the amount corresponding to the approved aid.
- Wage Cost Subsidy,covers the wage cost of new jobs created as a direct result of the investment project.
These aids are granted based on the maximum permissible aid intensities outlined in the New Regional Aid Map, which vary depending on the selected aid scheme and the size of the enterprise. The first three types of aid (capital subsidy, leasing subsidy, and tax exemption) can be granted individually or in combination. The fourth type (wage cost subsidy) is granted exclusively on its own, not in combination with the others.
The investor’s required financial participation may be covered either through private equity or bank financing.
According to the New Development Law 4887/2022, the following expenses are eligible for support:
- Construction and expansion of new building facilities, and layout/modification of existing buildings.
- Site configuration and landscaping.
- Procurement of new production and auxiliary equipment, such as: Racks, HVAC systems, refrigeration, heating, fire protection and detection systems, substations, pumps, piping, overhead cranes, etc.
- Procurement of additional equipment, including: Hotel furniture, catering equipment for hotels, computers, telecommunications equipment, etc.
- Acquisition of internal transport vehicles, e.g., forklifts.
- Purchase of intangible assets, such as: Software, quality assurance systems, organizational systems, technology transfer costs.
- Acquisition of fixed assets (buildings and equipment) from units that have ceased operations.
- Wage costs for new personnel.
- Consulting services for small and medium-sized enterprises (SMEs).
- Start-up costs for newly established or under-formation small and very small enterprises.
- Research and development (R&D) expenses.
- Innovation-related expenses for SMEs.
- Process and organizational innovation costs for SMEs and large enterprises.
- Environmental protection measures.
- Energy efficiency measures.
- High-efficiency cogeneration of energy from renewable sources (RES).
- Energy production from renewable sources.
- Installation of efficient district heating and cooling systems.
- Remediation of contaminated sites.
- Recycling and waste reuse initiatives.
- Vocational training expenses.
- Participation in trade fairs (for SMEs).
- Investment expenses for disadvantaged workers.
The evaluation process for investment projects begins after the submission deadline of applications under the relevant aid scheme and must be completed within 90 days. If this timeframe is exceeded, the evaluation is assigned—by decision of the competent authority of the Ministry of Development—to an independent certified auditor selected from the official registry of certified auditors. The assigned auditor is required to complete the evaluation within 30 days from the date of assignment.
Ποσοστά Ενίσχυσης
Regions | Areas | Maximum Regional Funding Rates | ||
(NUTS2) | (NUTS 3) | Large Business | Medium Enterprises | Small & Micro Businesses |
North Aegean | North Aegean | 60% | 70% | 80% |
South Aegean | South Aegean | 40% | 50% | 60% |
Crete | Crete | 60% | 70% | 80% |
Eastern Macedonia – Thrace | Eastern Macedonia – Thrace | 50% | 60% | 70% |
Central Macedonia | Central Macedonia | 50% | 60% | 70% |
Western Macedonia | Western Macedonia | 40% | 50% | 60% |
Ipiros | Ipiros | 50% | 60% | 70% |
Thessaly | Thessaly | 50% | 60% | 70% |
Ionian Islands | Ionian Islands | 40% | 50% | 60% |
Western Greece | Western Greece | 50% | 60% | 70% |
Central Greece | Evrytania | 50% | 60% | 70% |
Central Greece | 40% | 50% | 60% | |
Peloponnese | Peloponnese (does not include from Argolis – Arcadia the Municipalities of Megalopolis, Gortynia and Tripoli and from Laconia - Messinia the Municipality Oichalias ) | 40% | 50% | 60% |
Peloponnese in part (includes from Argolis – Arcadia the Municipalities of Megalopolis, Gortynia and Tripoli and from Laconia - Messinia the Municipality of Oichalia ) | 50% | 60% | 70% | |
Attica | Western Sector of Athens | 15% | 25% | 35% |
East Attica, West Attica, Piraeus/ Islands | 25% | 35% | 45% | |
Rest of Attica *(only investments other than regional funding) | 25% | 35% | 5% | |
- For investment projects implemented in Decarbonization Zones, as defined by Law 4759/2020 (i.e., the Regional Units of Florina and Kozani, and the Municipality of Megalopolis), the aid rates granted are the maximum allowed under the Regional Funding Map.
- For projects located in the Regional Units of Kastoria and Grevena, and in the Municipalities of Tripoli, Oichalia, and Gortynia, the following apply: Small and very small enterprises: Grant funding covers 90% of the maximum funding intensity. Medium and large enterprises: Tax exemption covers 90% of the maximum funding intensity defined in the Regional Funding Map.
- Each funding scheme comes with its own specific rules, aid percentages, and eligibility criteria. For detailed information, applicants should consult the guidelines of the specific schemes of interest.
- In Attica Region, large enterprises are only eligible for funding if the investment constitutes an initial investment for a new economic activity in that area.
Comprehensive Overview
Stay Informed About the New Development Law and How You Can Benefit
I am interestedFor the purposes of this document, the definitions set out in Article 2 of the General Block Exemption Regulation (GBER) shall apply, along with the following definitions:
For the purposes of the New Development Law, “initial investment” includes the following:
a. Investment in tangible and intangible assets related to:
the creation of a new business establishment,
the expansion of the capacity of an existing business establishment,
the diversification of the production of an existing establishment into products that have never been produced there before, or
the fundamental change of the entire production process of an existing business establishment.
b. The acquisition of assets belonging to a business establishment that has closed or would have closed if it had not been purchased, provided that:
the acquisition is made by an unrelated investor (i.e., not connected to the seller),
and it excludes simple acquisition of company shares.
This ensures that aid is directed toward genuine productive investments and not toward mere financial transactions.
An “initial investment for a new economic activity” includes:
a. Investment in tangible and intangible assets related to the establishment of a new business facility or the diversification of the activity of an existing facility, provided that the new activity is neither the same nor similar to the one previously carried out at the establishment.
b. The acquisition of assets belonging to a business facility that has closed, purchased by an investor unrelated to the seller, provided that the activity to be carried out using the acquired assets is neither the same nor similar to the one previously conducted at the facility.
This definition ensures that aid supports genuinely new economic activities and prevents the mere continuation of existing or similar operations under new ownership.
“Same or similar activity” means:
Any activity that falls under the same class (4-digit numerical code) of the NACE Rev. 2 statistical classification of economic activities, as established by Regulation (EC) No 1893/2006 of the European Parliament and of the Council of 20 December 2006. This regulation introduced the NACE Rev. 2 classification and amended Council Regulation (EEC) No 3037/90 and certain EU regulations related to specific statistical domains (OJ L 393).
In practical terms, if a new or acquired business activity shares the same 4-digit NACE code as the previous activity, it is considered the same or similar, and therefore does not qualify as a new economic activity for the purposes of regional aid or diversification-based incentives.
The earliest point in time between either the start of construction works related to the investment, or the first legally binding obligation to order equipment or any other obligation that renders the investment irreversible. The purchase of land and preparatory actions, such as obtaining permits and conducting feasibility studies, do not constitute commencement of works. In the case of acquisitions, commencement of works is defined as the moment the assets directly related to the acquired facility are obtained.
For the purposes of applying the aid schemes under this Law, a single investment project is defined as: Any additional initial investment by the same beneficiary (at group level), including linked or partner enterprises, which starts within three (3) years from the commencement date of another aided investment in the same NUTS 3 region, as defined by Regulation (EC) No 1059/2003 of the European Parliament and of the Council of 26 May 2003 on the establishment of a common classification of territorial units for statistics (NUTS). This rule prevents artificial splitting of projects in order to bypass aid limits and ensures that aid intensity and thresholds apply to the total investment activity within a region and time window.
The total amount that constitutes the portion of eligible expenses which is ultimately supported, based on the limits and restrictions set forth in this Law.
The expenses that are permitted to be supported under EU and national law, and which form the basis for calculating the aid amount in accordance with the applicable limits and conditions.
The total amount resulting from the sum of all eligible expenses of an investment project, as defined by the applicable EU and national legislation.
This is the maximum cost base on which the aidable amount may be calculated, provided the expenses fall within the approved categories of the relevant aid scheme.
The gross grant equivalent, expressed as a percentage of the aidable costs, before the deduction of taxes or other charges (Article 2, paragraph 26 of the GBER).
Any measure that meets all the criteria set out in Article 107(1) of the Treaty on the Functioning of the European Union (hereinafter “the Treaty”) (Article 2, paragraph 1 of the GBER).
The transfer of the same or similar activity, or part of it, from a business establishment located in the territory of a contracting party to the Agreement on the European Economic Area (initial establishment) to a business establishment where the aided investment takes place, located in the territory of another contracting party to the Agreement on the European Economic Area (aided establishment). Relocation exists when the product or service at both the initial and the aided establishment serves, at least in part, the same purpose and meets the requirements or needs of the same type of customers, and jobs are lost in the same or similar activity at one of the beneficiary’s initial establishments within the European Economic Area (Article 2, paragraph 61 of the GBER).
Aid granted for an initial investment in tangible and intangible assets in a specific region, with the aim of contributing to regional development (Article 2, paragraph 78 of the GBER).
Aid granted for investment projects or investment expenses that are not of a regional nature.
Enterprises that meet the criteria set out in Annex I of the GBER (Article 2, paragraph 2 of the GBER).
Enterprises that do not fall within the definition of SMEs are considered large enterprises.
An undertaking for which at least one of the conditions laid down in Article 2, paragraph 18 of the GBER applies.
Any person who worked full-time in the enterprise for one (1) year — that is, for three hundred (300) days, working eight (8) hours per working day — is counted as one (1) AWU.
A list of areas designated by a Member State in accordance with the conditions set out in the Regional State Aid Guidelines and approved by the European Commission. The Regional Funding Map defines the maximum aid intensities that may be granted for initial investments in the regions of the country.
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