Greece Development Law 2025: Grants, Tax Exemptions and Incentives for Foreign Investors (Law 4887/2022, as amended, Explained)

In June 2025, Law 5203/2025 doubled the ceiling on Greece’s flagship investment incentive programme. Under Article 12 of Law 4887/2022, as amended, total aid per investment plan may now reach €20 million (previously €10 million), unless a specific scheme sets a different amount. That is not a minor amendment. It is a structural shift that opens the programme to a class of mid-market foreign investment that was previously locked out.

The Development Law governs how Greece directs public money toward private investment. It sets the grant rates, the eligible sectors, the application process, and the enforcement rules. Law 4887/2022 was substantially amended by Law 5203/2025 in June 2025 and, as amended, is the primary legal framework any serious investor must understand before committing capital to Greece.

In this guide you will learn exactly what Law 4887/2022, as in force provides: which of its twelve aid schemes applies to your investment type, what you can actually receive, how the amounts are calculated, who qualifies, and how the application process works from submission to approved disbursement. If you are evaluating Greece as an investment destination, this is the starting point for any serious capital allocation decision into Greece.

Development Law 4887/2022 (Government Gazette A’ 16/04.02.2022), as amended by Law 5203/2025 (A’ 87/02.06.2025) and in force, is Greece’s primary tool for directing private investment into productive activity — manufacturing, tourism, technology, renewable energy, logistics, and agri-food, among others. The state co-finances part of your investment cost. In return, you create jobs and operate in Greece for a defined period.

The timing is deliberate. Greece emerged from its bailout period with a credible fiscal position and an upgraded credit rating. Foreign direct investment has grown consistently since 2020. The government raised the programme ceiling specifically to attract larger transactions — the kind that come from institutional investors, family offices, and established multinationals considering Southern Europe as a manufacturing or operations base.

Two numbers explain why the new Development Law matters more than its predecessors. First, the doubled aid ceiling: total aid per investment plan may now reach €20 million, where previously €10 million was the limit. Second, the simultaneous multi-scheme application: investors can now pursue more than one aid scheme in a single submission, which was not permitted under prior law. Both changes reduce friction and increase the potential return on the administrative cost of applying.
For the first time, Development Law investors can structure layered aid packages within a single submission — effectively optimising capital structure rather than selecting a single incentive pathway.

The legislative basis sits in Articles 9 (types of aid), 10 (regional aid intensities), 12 (aid ceilings), 13 (beneficiaries and exclusions) and 15 (minimum investment) of the law. The evaluation procedure is governed by Article 19. Every figure in this guide can be traced to those specific articles or to the Regional Aid Map drawn up under EU Regulation (GBER) 651/2014.

The Development Law operates through twelve distinct schemes. Each targets a different investment profile. Choosing the wrong scheme at the outset is the most common reason applications stall.

General Productive Investment is the widest scheme. It covers manufacturing, processing, and most commercial activities. Most mid-market foreign investors start here.

Tourism Investment applies to hotel construction or upgrade, conference facilities, and wellness installations above defined quality thresholds. Greece’s strong tourism pipeline makes this scheme heavily subscribed.

Technological Innovation and Research covers R&D facilities, software development, and tech-enabled production. It carries some of the highest grant rates because these investments generate the type of jobs and IP Greece is actively trying to attract.

Renewable Energy targets solar, wind, and energy storage projects. This scheme is particularly relevant to the German and Scandinavian investors who already operate in Greek renewables.

The remaining schemes cover agri-food and primary production, social entrepreneurship and handicraft (formerly “New Entrepreneurship”), special incentive areas, alternative forms of tourism, European value chains, and Entrepreneurship 360°. The Research and Applied Innovation scheme (Articles 58-64) has been repealed. Your investment type, company size, and the region where you intend to operate determine which schemes you are eligible for — and whether you can apply to more than one simultaneously.

This is where precise pre-application structuring matters. The scheme selection decision affects not just your grant rate but your exit flexibility, the required employment commitments, and the disbursement schedule.

Article 9 of the Development Law specifies four instruments. Understanding the difference between them is not academic — each has a different effect on your cash flow, your tax position, and your reporting obligations for the next fifteen years.

Cash grant. The state pays a percentage of your eligible project cost directly. This is the most visible form of aid. It requires the investment to be verified and certified before disbursement. A large grant does not arrive as a single transfer — it is paid in tranches against progress milestones.

Tax exemption. You are exempted from corporate income tax on future profits, up to a ceiling that is set as a percentage of your eligible investment cost. This is the most flexible instrument for investors with a long-time horizon and a high-margin business model. The approved amount is used over up to 15 tax years; it is not a tax holiday.

Leasing subsidy. The state subsidises part of the lease instalments on equipment or assets acquired through financial leasing. This is useful when you prefer to conserve equity and finance assets off-balance-sheet.

Employment cost subsidy. The state covers part of the wage costs for new positions created by the investment. This instrument is typically combined with one of the above rather than used in isolation.

Most structured applications combine a cash grant with either a tax exemption or employment subsidy. The optimal combination depends on your projected profitability timeline and the sector you are entering. A real estate-linked investment, for example, carries different considerations than a manufacturing plant.

The headline figure needs its qualifiers: the maximum Development Law aid intensity is 70% of eligible cost, and it applies only to small and micro enterprises in the highest-intensity regions. Large enterprises receive 30–50% depending on the region; medium enterprises receive 10 points more than large, small and micro enterprises 20 points more. On a €1 million investment, the gap between the lowest and highest applicable rate can reach €400,000 in aided value — which is why location and company size must be settled before the application, not after.

Rates are determined by two variables: company size and the region where the investment is located. Greece’s regional aid map — drawn up under EU Regulation (GBER) 651/2014 — assigns each region a maximum aid intensity. The exact rate for a given site must be confirmed against the map and the specific call before any structuring decision is taken.

The structure across company sizes looks like this. In the regions with the highest intensity: small and micro companies up to 70%, medium companies up to 60%, and large companies up to 50%. In lower-intensity regions every band is correspondingly lower. In the Attica region — Athens and its broader area — the rates are lower, reflecting the relative development level of the capital. For very large investments, additional regional bonuses can apply, but these require a separate notification to the European Commission.

Two important clarifications on what “eligible cost” means. Not every line item in your project budget qualifies. Land acquisition typically does not count. Working capital does not count. What counts is fixed asset investment: buildings, machinery, equipment, and intangible assets such as patents or software. The eligible cost calculation is something your advisor needs to establish before you submit — an overstatement of eligible costs is a common reason for partial rather than full approvals.

Articles 13 (beneficiaries and exclusions) and 15 (minimum investment) of the Development Law define the eligibility boundaries. There are minimum investment thresholds, and they vary by company size.

Under Article 15 of Law 4887/2022, as in force, the minimum eligible cost is €1,000,000 for large companies, €500,000 for medium-sized companies, €250,000 for small enterprises and €100,000 for very small (micro) enterprises. Social cooperative enterprises and agricultural/civil cooperatives qualify from €50,000. Individual calls may set higher thresholds.

On the investor side, the law is explicitly open to foreign companies. A non-Greek company can apply directly, provided the investment takes place in Greece and the entity has — or establishes — a Greek tax registration number. There is no requirement to incorporate a Greek subsidiary, though many investors choose to do so for operational reasons.

Excluded sectors include retail banking, insurance, tobacco, arms, gambling, and primary agricultural production in certain categories: For the current list of eligible sectors and per-region aid ceilings, the Enterprise Greece investment portal publishes the updated Regional Aid Map. Most productive investment — manufacturing, processing, services, tech, tourism, energy — is in scope.

The programme is also open to expansion investments, not only greenfield projects. If you already operate in Greece and want to expand capacity, modernise a facility, or diversify into a new product line, you can apply for an expansion investment under the same framework. This is a significant point for investors who entered the Greek market under earlier incentive schemes and are now considering further commitment.

For a broader overview of the investment landscape beyond the Development Law — including the golden visa programme, treaty protections, and the tax regime for foreign income — see our main invest in Greece guide.

Greek bureaucracy has historically been a key constraint in Greek investment execution. The Development Law does not remove that constraint, and no statutory mechanism turns the timeline into a guarantee — and understanding them is essential for anyone managing a board or an investment committee that needs to see a credible schedule.

Applications are evaluated within each call’s cycle under Article 19 of Law 4887/2022, as in force, by certified evaluators and evaluation committees, and inclusion decisions follow under Article 20. Evaluation and decision timelines vary by scheme and cycle and are outside the applicant’s control. What the applicant does control is file completeness: an incomplete file is the most reliable way to add months.

Environmental and building permits run on the timelines of the competent licensing authorities, not of the Development Law. They vary by sector and location and should be coordinated in parallel with the evaluation, not after it.

The multi-scheme simultaneous application provision also reduces timeline. Under previous law, investors had to pursue schemes sequentially if they wanted to combine instruments. Now a single submission can cover multiple schemes, which consolidates the evaluation process into one procedure.

The realistic timeline from a complete application to first disbursement — assuming the evaluation completes on schedule, permits are obtained, and the first investment milestone is certified — is typically 12 to 18 months. That is a long lead time by some international standards. It is worth building into your financial model from day one.

Execution risk remains tied to documentation quality and permit coordination. While the law reduces administrative uncertainty, it does not eliminate the need for precise project structuring.

The approval rate for Development Law applications varies enormously — not because evaluators are arbitrary, but because the quality of the submission file determines the outcome before the evaluation even begins.

Three elements determine whether an application succeeds. First, scheme selection. The application must be matched to the correct scheme from the outset. Applying under the wrong scheme is not a correctable error mid-process — it requires a new submission. Second, eligible cost calculation. Every line item in the project budget must be classified correctly against the law’s eligible cost categories. Errors here lead to partial approvals and cash flow shortfalls. Third, the business plan. The evaluation body scores the investment on job creation, viability, and economic impact. A business plan that reads like a financing request rather than an economic case will score below the approval threshold.

The simultaneous multi-scheme application option in the Development Law adds a layer of structural complexity that did not exist before. Running parallel scheme applications requires careful coordination of the documentation sets — inconsistencies between them are a common point of failure.

Aggelakakis & Associates has operated in Greek Development Law applications since the programme’s earlier iterations. The firm maintains a presence in Thessaloniki, Athens, Munich, New Jersey, and India, alongside a strategic partnership network in Australia. Membership of the American-Hellenic Chamber of Commerce and the Greek Exporters Association reflects the firm’s position at the intersection of international capital and Greek regulatory expertise. The team works in English, Greek, and German — which matters when the application file needs to reflect international investment standards while meeting Greek legal requirements to the letter.

If you are evaluating this programme for a specific project, the first question is whether the investment structure qualifies and which scheme produces the optimal outcome. That is a 30-minute conversation that determines whether months of application work are worth pursuing.

The ceiling has doubled. Law 5203/2025 raised the maximum total aid per investment plan to €20 million (Article 12 of Law 4887/2022, as amended), unless a specific scheme sets a different amount. Investments that did not qualify under previous law may qualify now.

The timeline is not in your control. Evaluation runs within each call cycle under Article 19, and permitting depends on authorities outside the programme. Build that uncertainty into the financial model from day one.

The structure of your application determines the outcome. Grant rate, scheme selection, and business plan quality are the three variables that determine approval. All three are within your control before you submit.