The driving force that will speed up the recovery of the Greek economy, turning it into a new model of sustainable development, suggests the activation, as per a time schedule, of the four main schemes of the new Development Law (4399/2016) that was recently passed out by the Parliament.

The decision plans of notice regarding the schemes – the “General Entrepreneurship”, “Improvement of Mechanical Equipment”, “New Independent SMEs” and “Investments of Greater Size” were put forward during the open consultation that took place during a couple of days, with the aim to submit applications of investment proposals for these, starting on October 12th, 2016.

For the “General Entrepreneurship” and “New Independent SMEs” the deadline is set to 30th November 2016, and for the other two, “Improvement of Mechanical Equipment” and the “Investments of Greater Size”, it is set to 28th April 2017.

By the end of the round, mentioned above, the first two schemes will be reviewed in March 2017 and the following two in May 2017.

Furthermore, the procedures for expanding the national registers of external evaluators and auditors are in place, which will increase to 300 people. The external evaluators and auditors will undertake to carry out quick assessments, within a three-month period, for the new cycle of investments as per the New Development Law.

Essentially, this new arrangement utilizes a very important financial tool, which in the overall framework of the development planning, emphasizes the potential of small- and medium-sized entrepreneurship (SME), in terms of innovation and exports, encouraging synergies and networking, while addressing all the pathogens of the past.

Contact us immediately, to see whether your company can benefit from the valuable provisions of the New Development Law.

General

Entrepreneurship

Improvement of

Mechanical

Equipment

New Independent

SMEs

Investments of

Greater Size

General Entrepreneurship

The category General Entrepreneurship is aimed at the enterprises of all types throughout the country (except for those that are expressly excluded by law).

1. Purpose

The General Entrepreneurship scheme of the New Development Law, applies to investment plans concerning businesses that are New, are in the process of being set up and existing businesses.

2. Means of enhancement

The General Entrepreneurship scheme includes almost all the incentives as foreseen by the New Development Law. Specifically:

      • Provision of a subsidy under conditions (applies only to specific investment plans with a max subsidy rate of 31.50%, depending on the region where the investment will take place and the size of the business)

      • Leasing subsidy with a max subsidy rate of 45% depending on the region where the investment will take place and the size of the business.

      • Tax exemption with a max subsidy rate of 45% depending on the region where the investment will take place and the size of the business.

      • Subsidy on the cost of employment creation a max subsidy rate of 45% depending on the region where the investment will take place and the size of the business.

3. Specific investment plans

If a company can be categorized as per one of the following circumstances, it can request higher subsidy rates (on the basis of the Map of Regional Subsidies – i.e. a subsidy of up to 45%, depending on the region where the investment will take place and the size of the business) or even special benefits not enjoyed by the rest of the businesses. The following investment plans fall under this category:

      • Exporters: SMEs that have exhibited a specified percentage of exports in the past three years.

      • Innovation: SME, where at least 10% of the operating costs are allocated for research and development.

      • Independent SME, that after the law came into power, proceeded with the procedure of a merger either by absorption or with a creation of a new company – not including a takeover.

      • Employment growth in an SME of at least 10% in the past three years.

      • Cooperatives, Social Cooperative Enterprises (Κοιν.Σ.Επ) as per Law 4019/2011, Agricultural Cooperatives (ΑΣ), Teams of Manufacturers (ΟΠ), Agricultural Corporate Partnerships (ΑΕΣ) as per Law 4384/2016.

      • Investment projects that are related to TIC (Technology, Information, Communication) and Agrifoods.

      • Businesses that achieve increased added value related to the average of the industry they are operating in, as determined by the Hellenic Statistical Authority (ΕΛΣΤΑΤ).

      • Businesses that implement their investment plan through Industrial and Business Areas Nationwide (ΒΕΠΕ), Business Parks (Ε.Π), Business Parks of Intermediate Degree of Organization (ΕΠΕΒΟ), Technological Parks and other Innovative Activities Places (ΘΥ.Κ.Τ.) and are not related to modernization or the expansion of the existing structures of the subsidized enterprise.

      • Enterprises requesting to participate in the investment plan in certain areas, as defined by the relevant Annex to the Law (mountain areas, areas at a disadvantage with especially increased refugee and immigrant flows, areas with a declining population, islands and areas bordering with other countries).

Minimum investment amount

The minimum investment amount required for the General Entrepreneurship scheme of the New Development Law is:

              • For Large Enterprises the minimum investment amount is 500.000€.

              • For Medium-sized Enterprises the minimum investment amount is 250.000€.

              • For Small Enterprises the minimum investment amount is 150.000€.

              • For VS Enterprises the minimum investment amount is 100.000€.

For the Cooperatives, Social Cooperative Enterprises (Κοιν.Σ.Επ) as per Law 4019/2011, as well as the Agricultural Cooperatives (ΑΣ), Teams of Manufacturers (ΟΠ), Agricultural Corporate Partnerships (ΑΕΣ) as per Law 4384/2016 the minimum investment amount is 50.000€.

4. Project duration

The duration of the implementation of the approved investment plans, will not exceed thirty six (36) months from the date of the investment plan approval decision. A two (2) year extension is available, under the condition that at least 50% of the investment has been implemented within three years.

5. Subsidy disbursement

The disbursement of the subsidy is processed in two installments50% of the investment (Administrative review) and 100% of the investment (Immediate review) depending on the category of the subsidy.

6. Submitting an application

Applications to be considered for the Investment Plans and the beneficial provisions of the New Investment Law (General Entrepreneurship Category) are submitted electronically and in hard copy from 19/10/2016 until 20/12/2016 (1st Round of Application Submission).

Improvement of Mechanical Equipment

The category Improvement of Mechanical Equipment includes the investment projects of almost all of the eligible enterprises throughout the country (except for those that are expressly excluded by law).

1. Purpose

The Improvement of Mechanical Equipment scheme of the New Development Law, applies to investment plans concerning businesses that are New, are in the process of being set up and existing businesses.

2. Means of enhancement

The Improvement of Mechanical Equipment scheme offers the only incentive of tax exemption of the New Development Law. Specifically:

      • Tax exemption with a maximum subsidy rate of 45%, depending on the region where the investment will take place and the size of the business.

3. Minimum investment amount

The minimum investment amount required for the Improvement of Mechanical Equipment scheme of the New Development Law is:

For Large Enterprises the minimum investment amount is 500.000€.

For Medium-sized Enterprises the minimum investment amount is 250.000€.

For Small Enterprises the minimum investment amount is 150.000€.

For VS Enterprises the minimum investment amount is 100.000€.

For the Cooperatives, Social Cooperative Enterprises (Κοιν.Σ.Επ) as per Law 4019/2011, as well as the Agricultural Cooperatives (ΑΣ), Teams of Manufacturers (ΟΠ), Agricultural Corporate Partnerships (ΑΕΣ) as per Law 4384/2016 the minimum investment amount is 50.000€.

4. Project duration

The duration of the implementation of the approved investment plans, will not exceed thirty six (36) months from the date of the investment plan approval decision. A two (2) year extension is available, under the condition that at least 50% of the investment has been implemented within three years.

5. Subsidy disbursement

The disbursement of the subsidy is processed in two installments, 50% of the investment (Administrative review) and 100% of the investment (Immediate review) depending on the category of the subsidy.

6. Submitting an application

Applications to be considered for the Investment Plans and the beneficial provisions of the New Investment Law (Improvement of Mechanical Equipment Category) are submitted electronically and in hard copy from 19/10/2016 until 28/04/2017 (1st Round of Application Submission).

New Independent SMEs

The category New Independent SMEs is aimed to the new (under establishment enterprises and start-ups up to 7 years of operation) and independent (no connection with another business) enterprises throughout the country (except for those that are expressly excluded by law).

1. Purpose

The New Independent SMEs scheme of the New Development Law, applies to investment plans concerning businesses that are New, are in the process of being set up and existing businesses (operating up to 7 years).

*It should be noted that the following companies are not considered as New Independent SMEsthe companies that are controlled by shareholders of companies that ceased operations in the last twelve months, if they are operating in the same or a similar industry).

2. Means of enhancement

The Improvement of New Independent SMEs scheme includes almost all the incentives as foreseen by the New Development Law. Specifically:

      • Provision of a subsidy under conditions (with a max subsidy rate of 31.50%, depending on the region where the investment will take place and the size of the business and up to a max subsidy rate of 45% only applicable to specific investment plans depending on the region where the investment will take place and the size of the business)

      • Leasing subsidy with a max subsidy rate of 45% depending on the region where the investment will take place and the size of the business.

      • Tax exemption with a max subsidy rate of 45% depending on the region where the investment will take place and the size of the business.

      • Subsidy on the cost of employment creation a max subsidy rate of 45% depending on the region where the investment will take place and the size of the business.

3. Specific investment plans

If a company can be categorized as per one of the following circumstances, it can request higher subsidy rates (on the basis of the Map of Regional Subsidies – i.e. a subsidy of up to 45%, depending on the region where the investment will take place and the size of the business) or even special benefits not enjoyed by the rest of the businesses. The following investment plans fall under this category:

      • Exporters: SMEs that have exhibited a specified percentage of exports in the past three years.

      • Innovation: SME, where at least 10% of the operating costs are allocated for research and development.

      • Independent SME, that after the law came into power, proceeded with the procedure of a merger either by absorption or with a creation of a new company – not including a takeover.

      • Employment growth in an SME of at least 10% in the past three years.

      • Cooperatives, Social Cooperative Enterprises (Κοιν.Σ.Επ) as per Law 4019/2011, Agricultural Cooperatives (ΑΣ), Teams of Manufacturers (ΟΠ), Agricultural Corporate Partnerships (ΑΕΣ) as per Law 4384/2016.

      • Investment projects that are related to TIC (Technology, Information, Communication) and Agrifoods.

      • Businesses that achieve increased added value related to the average of the industry they are operating in, as determined by the Hellenic Statistical Authority (ΕΛΣΤΑΤ).

      • Businesses that implement their investment plan through Industrial and Business Areas Nationwide (ΒΕΠΕ), Business Parks (Ε.Π), Business Parks of Intermediate Degree of Organization (ΕΠΕΒΟ), Technological Parks and other Innovative Activities Places (ΘΥ.Κ.Τ.) and are not related to modernization or the expansion of the existing structures of the subsidized enterprise.

      • Enterprises requesting to participate in the investment plan in certain areas, as defined by the relevant Annex to the Law (mountain areas, areas at a disadvantage with especially increased refugee and immigrant flows, areas with a declining population, islands and areas bordering with other countries).

3. Minimum investment amount

The minimum investment amount required for the New Independent SMEs scheme of the New Development Law is:

              • For Large Enterprises the minimum investment amount is 500.000€.

              • For Medium-sized Enterprises the minimum investment amount is 250.000€.

              • For Small Enterprises the minimum investment amount is 150.000€.

              • For VS Enterprises the minimum investment amount is 100.000€.

For the Cooperatives, Social Cooperative Enterprises (Κοιν.Σ.Επ) as per Law 4019/2011, as well as the Agricultural Cooperatives (ΑΣ), Teams of Manufacturers (ΟΠ), Agricultural Corporate Partnerships (ΑΕΣ) as per Law 4384/2016 the minimum investment amount is 50.000€.

4. Project duration

The duration of the implementation of the approved investment plans, will not exceed thirty six (36) months from the date of the investment plan approval decision. A two (2) year extension is available, under the condition that at least 50% of the investment has been implemented within three years.

5. Subsidy disbursement

The disbursement of the subsidy is processed in two installments50% of the investment (Administrative review) and 100% of the investment (Immediate review) depending on the category of the subsidy.

6. Submitting an application

Applications to be considered for the Investment Plans and the beneficial provisions of the New Investment Law (New Independent SMEs Category) are submitted electronically and in hard copy from 19/10/2016 until 20/12/2016 (1st Round of Application Submission).

Investments of Greater Size

The category Investments of Greater Size is aimed to the enterprises of any type, the business plans of which exceed 20 million euro and at the same time create two (2) working places for each one (1) million euro of investment (except for those that are expressly excluded by law).

1. Purpose

The Investments of Greater Size scheme of the New Development Law, applies to investment plans concerning businesses that are New, are in the process of being set up and existing, the investment plans of which exceed €20 million while at the same time creating two (2) jobs per one million euros (€1 mil.)

2. Means of enhancement

The Investments of Greater Size scheme includes the following incentives as foreseen by the New Development Law:

Stabilization of the existing entry income tax rate on the date of the application of legal persons and entities for a period, which is set to be twelve (12) years from the completion of the investment plan. If the rate will be reduced, a relevant reduced rate will apply.

Alternatively, the investment beneficiary may use the tax exemption option at the subsidy rate of 10% of the subsidized investment cost, regardless of the size of the enterprise and up to an amount of €5 million.

Finally, the beneficiaries falling under the current investment plans, may take advantage of the accelerated procedure for receiving the required permits, through the General Directorate of Strategic Investments of the Ministry of Economics, Development and Tourism.

3. Minimum investment amount

The minimum investment amount required for the Investments of Greater Size scheme of the New Development Law is €20 million

4. Project duration

The duration of the implementation of the approved investment plans, will not exceed thirty six (36) months from the date of the investment plan approval decision. A two (2) year extension is available, under the condition that at least 50% of the investment has been implemented within three years.

5. Subsidy disbursement

The disbursement of the subsidy is processed in two installments50% of the investment (Administrative review) and 100% of the investment (Immediate review) depending on the category of the subsidy.

6. Submitting an application

Applications to be considered for the Investment Plans and the beneficial provisions of the New Investment Law (Investments of Greater Size Category) are submitted electronically and in hard copy from 19/10/2016 until 28/04/2017 (1st Round of Application Submission).

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