Development Law

Development Law 4887/2022 (Official Gazette 16/A/4-2-2022)

Purpose

The purpose of the new Development Law 4887/2022 (article 1), is to promote the economic development of the Country by granting incentives to specific activities and sectors, in order to achieve the digital and technological transformation of businesses, the green transition, the creation of economies of scale , the support of innovative investments and those seeking the introduction of new technologies of "Industry 4.0", robotics and artificial intelligence, the strengthening of employment with specialized personnel, the support of new entrepreneurship, the strengthening of less favored areas of the country and areas that are included in the Just Development Transition Plan (Just Development Transition Plan), the further strengthening of tourism and the improvement of competitiveness in sectors of high added value.

It will work in conjunction with the Recovery Fund
The development law is harmonized with the Development Plan for the Greek economy, the Report of the Pissarides Committee, the National Recovery and Resilience Plan Greece 2.0, the goals of the NSRF 2021-2027, industry 4.0 and of course the new Regional Aid Charter, the which gives special support to the regions.

The new Development Law establishes 13 regimes for granting state aid to investment projects. It foresees specific amounts for each thematic regime, enhanced percentages for the investments to be implemented in the regions of the Just Development Transition.

13 thematic aid schemes: (Direct evaluation 1,2,4,5,11,12, Comparative evaluation 3,6,7,8,9,10,13 )

1. Digital and technological transformation of businesses,
2. Green transition – Environmental upgrading of businesses,
3. New Business,
4. Just Development Transition Regime,
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. large investments,
12. European value chains,
13. Entrepreneurship 360^ο.

The state aid schemes which are planned to be implemented by Region of Central Greece, concern investment projects of an eligible amount of up to one million (1.000.000) euros, which are implemented within the boundaries of the Region and are submitted to Department of Development Planning of the Region, is:

(Comparative assessment)

• NEW BUSINESS
• AGRICULTURE – PRIMARY PRODUCTION AND PROCESSING OF AGRICULTURAL PRODUCTS-FISHERIES
• PROCESSING – SUPPLY CHAIN
• business extroversion
• REINFORCEMENT OF TOURIST INVESTMENTS
• ALTERNATIVE FORMS OF TOURISM
• ENTREPRENEURSHIP 360º.

Types of Reinforcements

a. Tax Exemption

b. Subsidy

c. Leasing subsidy

d. Subsidizing the cost of the employment created

e. Venture financing (only for New Business status).

Intensity of Reinforcements

According to the approved Regional Aid Chart, the maximum aid intensities for the Region of Central Greece  can rise:

• 60% for micro and small businesses (40% +20%)
• 50% for medium enterprises (40% +10%)
• 40% for large companies

Depending on the scheme, +20% may be granted for areas affected by natural disasters, mountainous areas.

Hosts

Applications for inclusion in the development law 4887/2022 for the granting of aid are submitted as follows:

• In the Directorate of Development Planning (DIAP) of the Region, the eligible investment projects of up to one million euros (€1.000.000), which are implemented within the boundaries of the Region of Central Greece
• In the General Directorate of Private Investments of the General Secretariat of Private Investments and Public-Private Sector Partnerships (S.D.I.T.) of the Ministry of Development and Investments the remaining investment plans.

Eligible bodies of the New Development Law

In order to be able to submit an application to the development law, companies must be established or have a branch in Greece at the start of the investment project and have one of the following forms:

1. Commercial company
2. Partnership
3. Social cooperative enterprises
4. Agricultural and Urban cooperatives
5. Producer Groups and Organizations
6. Agricultural partnerships of Law 4384/2016
7. Public, Municipal Enterprises and their subsidiaries under conditions
8. Sole proprietorships only in the "Agrifood-primary production and processing of agricultural products-fishing and aquaculture" regime with a maximum eligible cost of €200.000.
9. Companies under incorporation or merger, provided they have completed publicity procedures prior to submission of the proposal.

Minimum amount of investment projects:

• In order to be included in the regimes, the existence of a minimum amount of the eligible cost of the investment project is required, which is determined based on the size of the organization, and specifically amounts to:
• an amount of one million (1.000.000) euros for large companies,
• an amount of five hundred thousand (500.000) euros for medium-sized enterprises,
• an amount of two hundred and fifty thousand (250.000) euros for small businesses,
• an amount of one hundred thousand (100.000) euros for very small businesses,
• an amount of fifty thousand (50.000) euros for Social Cooperative Enterprises (SOEs), Agricultural Cooperatives (AS), Urban Cooperatives, Producer Groups (O.P) and Agricultural Corporate Partnerships (A.E. .S.).

 Investment plan content

Investment projects for regional aid, which are subject to the aid schemes herein, must have an integrated nature of initial investment and in particular meet one of the following conditions:

• Create a new unit
• Capacity expansion of an existing unit
• Diversification of a unit's output into products that have never been produced or services that have not been provided by it. provided that the aided expenses exceed by two hundred percent (200%) at least the accounting value of the assets that are reused, as this value has been recorded in the tax year preceding the application for inclusion of the investment project.
• Fundamental change of the entire production process of an existing unit. On large enterprises, it is also required that the aided investment expenses exceed the depreciation of the assets, which are related to the activity to be modernized and occurred during the three (3) previous tax years. If the depreciation associated with the activity is not clearly recorded, it is considered that the above condition is not met.

Arrangements for Assessment and Control procedures

The new development law results in an acceleration of procedures, without delay in the inclusion and completion of business plans.

The audit of investment plans in the amount of more than seven hundred thousand (700.000) euros is carried out by a sworn auditor - accountant or audit firm) and under the amount of seven hundred thousand (700.000) euros, it is carried out either by an authorized audit body, which is constituted by members of the National Register of Certified Auditors (E.M.P.E.), either by a sworn auditor-accountant or an auditing firm.

Map of Regional Aids