Mani Developments - Stephan Kaske - Houses for Sale in the Mani, Peloponnese, Greece

FRANGIA

Below is a synopsis of new laws introduce into Greece
to provide easier access to funding of investments.

THE NEW INVESTMENT INCENTIVES LAW

A New Instrument to Promote Investment in Greece

The new Investment Incentives Law is a powerful tool designed to encourage entrepreneurship. It is distinguished by its simplicity and the innovations it introduces, which emphasize on investments that take advantage of Greece’s comparative advantages. Combined with Tax Reform, it constitutes a framework that will spur growth. The basic innovations it introduces are the following:

1. The distinction among ‘old’ and ‘new’ businesses is abolished as far as their access to the incentives of the law is concerned. In this way, existing enterprises have full access to the whole spectrum of the incentives of the new law.

2. Uniform incentives for all types of enterprises are created.

3. The categories of eligible investments and activities are broadened and include such sectors of the economy as the primary one, the secondary one, tourism and the service industry.

4. The maximum limits of grants are exhausted, in accordance with the EU rules and regulations. The maximum grant can reach 40%. In case the business makes use of the tax incentives, the deduction from the income can reach the total amount of the investment.

5. Additional grants and/or subsidies for leasing up to 5% of the total investment can be provided if one of the following requirements is fulfilled:

a. Establishment of enterprises within Industrial Business Zones.
b. Establishment of a 4 or 5 star hotel unit (A or AA class).
c. Conversion of a traditional or landmark building into a hotel unit.
d. Modernization of a hotel listed as traditional or landmark.
e. Establishment of hotels in Areas of Integrated Tourism Development.
f. Newly-founded enterprises.

6. Additional incentives up to 15% of the total investment for small or medium size businesses can be provided.

7. The amount of the grant is not linked anymore to the creation of new jobs and the incentive of subsidizing the employment costs is introduced. The incentives can reach up to 48% of the cost for the creation of new jobs, whereas for small or medium enterprises it can reach 55% of the investment.

8. Special incentives are provided for investment plans that exceed 50 million euros.

9. A uniform percentage of grant is set at 35% for the whole country for integrated, long-term business plans falling under the jurisdiction of the Ministry of Development.

10. Investment plans can be submitted all tear round.

11. The minimum equity requirements are reduced from 40% to 25%.

12. Up to 30% of the grant can be paid upfront when a letter of credit is submitted.

13. Grants can be paid in two installments. The first installment is paid when 50% of the investment has been completed and the second one with the initiation of operation.

14. The payment of the grants for new jobs created will take place every six months through simplified procedures.

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