The establishment, expansion, or integrated modernisation of a hotel in Greece may, under specific conditions, be supported through the Development Law (Law 4887/2022, as amended — notably by Law 5203/2025 — and in force).

The available forms of aid may include a cash grant, a tax exemption, a leasing subsidy, and a subsidy on the cost of new employment.

That does not mean every hotel, every renovation, or every tourist accommodation qualifies. Eligibility depends on the accommodation category, the size of the enterprise, the location, the composition of the budget, the financing structure, and the terms of the active call.

The short answer: a hotel investment can be supported when it constitutes an integrated initial investment, meets the category and minimum-size requirements, comprises genuinely eligible costs, and has adequate financing in place.

The existence of the regime in law does not mean applications are permanently open. Submission requires an active call and compliance with its specific terms.

Which hotel investments can be supported

The principal categories of investment project include:

  • the establishment or expansion of hotel units of at least four stars;
  • the integrated modernisation of units classified — or being upgraded — to at least three stars;
  • the expansion and integrated modernisation of hotels that have ceased operation, under specific conditions;
  • hotel units in traditional or listed buildings;
  • organised tourist campsites, composite tourist accommodation, and certain special forms of tourism development.

Integrated modernisation is not the same as a simple renovation. Replacing furniture, refreshing rooms, or routine maintenance is not enough on its own. The project must have the character of an integrated initial investment and must materially change the capacity, the category, or the level of services provided.

What is the minimum investment size?

The minimum eligible cost is set by the size of the enterprise:

  • Micro: €100,000
  • Small: €250,000
  • Medium: €500,000
  • Large: €1,000,000

Note: the costs above is the general statutory baseline. The active call may set a higher minimum — particularly for tourism investments — so the final threshold is always confirmed against the call in force.
Classification is not based on the applicant company alone. Shareholders, partner enterprises, and linked enterprises are also examined. A newly formed Greek company is not automatically a micro-enterprise when it is controlled by a larger group.

What forms of aid are available?

  • Cash grant: direct financial support on the approved and certified eligible costs.
  • Tax exemption: an approved aid amount realised through the non-payment of income tax, up to exhaustion of the approved ceiling and within the prescribed period.
  • Leasing subsidy: coverage of part of the leasing instalments for new equipment, under the conditions of the law.
  • New-employment subsidy: support for the payroll cost of positions created directly by the investment.

Within the special regime for tourism investments, large enterprises may use the available incentives except the direct cash grant.

How the actual rate of aid is computed

There is no single rate for all hotel investments. The actual level of aid is affected by:

  • the precise location of the project and the corresponding ceiling of the Regional Aid Map;
  • the real size of the enterprise and its linked entities;
  • the type of incentive;
  • the composition of the eligible costs;
  • the presence of special area characteristics and the terms of the specific call.

Critical: the maximum rate on the Regional Aid Map is not always the final grant rate.

For micro, small, and medium enterprises, the cash grant is, as a rule, provided at up to 80% of the Map ceiling, with specific exceptions for certain areas and categories of investment. So when the Map shows a maximum intensity of 70%, that does not automatically mean a 70% grant.

The precise figure can only be established after reviewing the location, the corporate structure, and the genuinely eligible budget.

Which costs may be eligible?

Depending on the nature of the project, these may include:

  • construction, expansion, and integrated modernisation of buildings;
  • electromechanical and special installations;
  • new hotel equipment — kitchen, food and beverage, spa, and common-area equipment;
  • digital systems, software, and eligible intangible assets;
  • accessibility works and environmental and energy interventions under specific conditions.

Eligibility is not determined by the label of a cost alone. Its necessity, its connection to the investment plan, its reasonableness, the timing of the commitment, and the limits of the relevant category are all examined.

The following should not be assumed eligible: the purchase of land, the value of land, working capital, operating expenses, routine maintenance, the simple replacement of equipment, and the pre-existing value of the hotel.

The most dangerous mistake: starting before the application

The application must be submitted before works begin, or before any other legally binding action that renders the investment irreversible.

The following may be treated as a start of works:

  • the commencement of construction works;
  • a binding equipment order;
  • a construction contract or other irreversible obligation.

Signing contracts prematurely can void the eligibility of the entire project. The purchase of land, the issuance of permits, and preliminary studies are not, in themselves, a start of works — but every agreement must be reviewed before it is signed.

Why the subsidy should not be viewed in isolation

A hotel project can be eligible in theory yet unviable in practice. Before the application, critical questions must be answered:

  • Is it feasible in planning and licensing terms?
  • What share of the total budget is genuinely eligible?
  • Is there sufficient equity and bank financing?
  • Can the investor cover the costs through to certification and disbursement?
  • Does the hotel remain viable if the aid is lower than expected, or delayed?

The law also requires that at least 25% of the aided cost be financed without State aid, public support, or any other public contribution.

Can a foreign investor’s project be supported?

Yes. The investor’s foreign nationality or foreign tax residence is not, on its own, a ground for exclusion. The investing entity must have an eligible legal form and be established — or maintain a branch — in Greece at the required time.

A foreign investor may hold 100% of the Greek company submitting the investment plan, provided the corporate, financing, tax, and regulatory conditions are met.

The 360° Protocol — before the application

The real work does not begin with drafting the application. It begins with an independent decision: before any capital is committed, is this specific hotel investment genuinely eligible, financeable, and viable?

That is the question the 360° Protocol answers. It is a structured investment-readiness audit tool — not a subsidy-selling service — that precedes the application and assesses the investment as a single system:

  • legal and programme eligibility;
  • technical and licensing readiness;
  • the genuinely eligible budget;
  • the realistic level of State aid;
  • the financing architecture and the liquidity gap;
  • viability, execution risks, and the exit strategy.

The output is a documented Investment Readiness Index™ (0–100) and a clear grade — from S (execute) to D (no-go) — before capital is exposed.

We do not only assess whether a project can receive aid. We assess whether it should proceed — with this location, structure, budget, and financing.

Frequently Asked Questions

  • Can a simple hotel renovation be supported?: Not automatically. Integrated modernisation and fulfilment of the specific conditions are required. Maintenance or cosmetic refurbishment is not enough.
  • Is the Map rate the final grant rate?: No. The Map sets the maximum permitted ceiling. The actual rate depends on the size of the enterprise, the type of incentive, the area, and the terms of the call.
  • Can an investor begin works before applying?: As a rule, no. An irreversible commitment before the application can render the investment plan ineligible.
  • Can a foreign investor apply?: Yes — through an eligible investing entity established, or with a branch, in Greece, and provided all requirements of the law are met.
  • Is the regime permanently open?: No. Applications are submitted only when there is an active call. The deadlines, budgets, and specific terms are set each time by the relevant decision.

 

Considering a hotel investment in Greece?

Before you buy property, sign binding contracts, or finalise the budget, you need a clear answer to three questions:

  • Is the project genuinely eligible?
  • What is the realistic level of aid?
  • Does the investment remain viable even without it?

 

Legal & informational disclaimer
This article is for information only and does not constitute individualised legal, tax, financing, or investment advice. The eligibility of each project is assessed against the institutional framework in force, the General Block Exemption Regulation, the Regional Aid Map, the active call, and the actual technical, corporate, and financing data of the investment. The 360° Protocol is a structured audit tool; it does not constitute a legal, tax, or auditing opinion — those are issued, where required, by independent certified professionals — and it does not guarantee approval, disbursement, financing terms, or the decisions of public authorities.

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