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Development Law 4887/2022

Processing – Supply Chain

The new Development Law (L.4887/2022) was published, which replaces the current development law (L.4399/2016). The aim of the Ministry of Development and Investments with the approval of the new Development Law is to strengthen the economic development of our country by providing incentives to specific activities and sectors. 

To achieve this goal, the new Development Law 2022 provides for the acceleration and simplification of the evaluation, approval and control procedures of the submitted investment plans, as well as the provision of higher aid rates. 

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Funding Key Points

Date of opening/closing of applications

1st CYCLE: 27 July 2022 – 31 October 2022
2nd CYCLE: 1st June 2023- 29 September 2023

Content of the Investment Plan

  • Creating a new unit.
  • Expansion of the capacity of an existing plant.
  • Diversification of the production of a unit.
  • Fundamental change of the entire production process of an existing plant.

Beneficiaries

  • Commercial Companies
  • Cooperatives
  • Social Cooperative Enterprise, Agricultural Cooperative, Producer Groups, Agricultural Corporate Partnerships
  • Joint ventures engaged in commercial activity,
  • Public and municipal enterprises and their subsidiaries under certain conditions.

Budget

  • 1,000,000 euro for large companies,
  • 500,000 euro for medium-sized enterprises,
  • 250,000 euro for small businesses,
  • 100,000 euro for very small businesses,
  • 50,000 euro for Social Cooperative Enterprises, as well as Agricultural Cooperatives, Urban Cooperatives, Producer Groups, and Agricultural Corporate Partnerships.

Underlying investment projects

Eligible sectors of economic activity are:

  • The manufacturing sector.
  • The logistics sector

Eligible expenditure

Eligible expenditure within regional aid:

Tangible assets

  • Construction, extension, modernisation of buildings and special and ancillary facilities of buildings and landscaping. The total may not exceed 45% of the total eligible regional expenditure. The above rate is set at seventy per cent (70%) for investment projects of transport services with supply chain management to third parties (Logistics – activity code number : 52.29.19.03) and eighty percent (80%) for investment projects implemented in buildings designated as listed. – Purchase of all existing fixed assets, for SMEs, subject to conditions.
  • Support for the purchase of all or part of existing fixed assets, such as buildings, machinery and other equipment of a business establishment (subject to conditions).
  • Purchase and installation of new modern machinery and other equipment, technical installations and means of internal transport.
  • Lease payments for new modern machinery and other equipment.
  • Special & mechanical installations

Intangible assets

  • Technology transfer, purchase of intellectual property rights, licences, patents, know-how and unpatented technical knowledge.
  • Quality assurance systems, certifications, supply and installation of software and business organisation systems.
  • For Large enterprises, eligible expenditure on intangible assets cannot exceed 30% of total eligible expenditure and for SMEs 50%.

Salary costs (independent expenditure)

  • The wage costs of the new jobs created as a result of the realization of the investment project are calculated for two (2) years from the creation of each job. The above salary costs are eligible expenditure only on their own and not in combination with points (a) and/or (b) and only if an initial investment is carried out.

 

Eligible expenditure outside the scope of Regional Aid

  • Expenditure on consultancy services relating to investment projects for new small and medium-sized enterprises, which may not be the subject of a continuous or periodic activity nor relate to the enterprise’s usual operating expenditure. A new enterprise is considered to be a newly established enterprise which has not completed a financial year at the time of applying for the scheme.
  • Costs for the remediation of contaminated sites.
  • Expenditure on recycling and reuse of waste. 
  • Expenditure on vocational training. Eligible costs are those relating to the upgrading of qualifications or retraining of workers.
  • Expenditure on SME participation in trade fairs. 
  • Expenditure on investment aid for SMEs. 

Other information

Financing scheme for investment projects

Each entity contributes to the cost of the investment project either with its own funds or with external financing (or a combination of both).

Loan pre-approval must be submitted electronically through the Information System  for Development Law no later than 45 days after the application deadline.

 

Types of aid

  • Grant.
  • Subsidy for financial leases.
  • Subsidy of the cost of the employment created.
  • Tax exemption.

 

Regional aid rates and levels

For micro and small enterprises, the aid rates for all types of incentives other than grants are granted at the maximum rate of the Regional Aid Map. The grant incentive is granted at eighty per cent (80%) of the ceiling of the Regional Aid Map, unless the investment site is included in the List of Special Areas published by the Ministry (100%) or the investment property is listed (90%).

For medium-sized and large enterprises, the aid rates for all types of incentives, except the grant, are granted at eighty percent (80% ) of the regional aid map ceiling. The grant incentive is granted only to medium-sized enterprises and only in the Regional Units of Eastern Macedonia and Thrace.

 

Maximum amounts of aid to be granted

The total amount of aid per investment project submitted may not exceed €3,000,000 for all types of aid.

For medium and large enterprises, the amount of aid cannot exceed €5,000,000 for tax exemption aid. 

The possibility of combining the aids is provided for.

The aid granted to each body, including aid to cooperating or associated enterprises, may not exceed a cumulative total of €20,000,000 for an individual enterprise and €30,000,000 for all the cooperating enterprises in proportion to their participation or associated enterprises.

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