On 7/11/2017, the program “Support for the Establishment and Operation of New Small and Medium Tourist Enterprises” of the New National Strategic Development Framework 2014-2020 was launched with a budget of € 120 million
The “Support for the Establishment and Operation of New Small and Medium Tourist Enterprises” program of the New National Strategic Development Framework 2014-2020 concerns the financing of up to 50% of subsidies (and up to € 400,000) of very small, small and medium-sized enterprises active in the tourism sector in specific activities.

1  Purpose

The aim of the “Support for the Establishment and Operation of New Small and Medium Tourist Enterprises” program of the New National Strategic Development Framework 2014-2020 is to strengthen the implementation of investment plans for the creation of new tourist businesses in specific sectors of tourism and alternative forms of tourism (Athletic, Coastal and Maritime Tourism and Rural Tourism).

2 Categories of financing

The “Support for the Establishment and Operation of New Small and Medium Tourist Enterprises” program of the New National Strategic Development Framework 2014-2020 applies to all regions of the country.
The aid incentive to be provided by the “Support for the Establishment and Operation of New Small and Medium Tourist Enterprises” program of the New National Strategic Development Framework 2014-2020 will concern a grant up to 50% of the total budget of the company’s investment for up to 30 months from the issuance of the approval decision 

3  Enhanced businesses

Within the framework of the “Support for the Establishment and Operation of New Small and Medium Tourist Enterprises” program of the New National Strategic Development Framework 2014-2020, very small, small and medium enterprises (up to 250 employees) will be supported in the tourism sector and will have a qualifying Investment Activity ID code including the first disbursement of the grant.
The following business categories are specifically eligible for this Action:
      • Category ΑEnterprises that will be established from 7/11/2017 and will offer the eligible activity (Investment Activity ID code) prior to the first disbursement of the grant.
      • Category ΒTourism Enterprises (Hotels, Rented Rooms/Apartments, Furnished Tourist Accommodation, etc.) that have been established prior to 7/11/2017 and for which the following applies cumulatively:
        • They have received at least one of the eligible Activity ID Code 55 and/or Activity ID Codes: 41.20.20.01 or 41.20.20.02.
        • The TIN of the company has not developed any economic activity since its establishment (zero turnover).
        • No tourist license has been issued.
        • They have the construction permit for the specific tourist facility.

4  Conditions for participation

The basic conditions of the participation for the companies are as follows:
        • 11 During the submission of the application for funding, provide evidence of securing Private Participation at a rate of at least 60% of the proposed (subsidized) budget of the Investment Plan (Certificates of Bank Account Balance, Positive Intent to Borrow from a Banking Institution, etc.)
        • 22 To be established or have the intent to be established in the Greek territory.
        • 33 To be investing exclusively in one Municipality.
        • 44 To have or to be committed to having the status of a small and medium-sized enterprise, taking into account the conditions for maintaining that status.
        • 55 To undertake to operate or to operate legally by acquiring the appropriate operating license according to the applicable legislation until the completion of the investment.
        • 66 To operate or intend to operate exclusively with one of the following types of enterprises of a commercial / corporate nature [Societe Anonyme, General Partnership or a Private Company, Individual Enterprises and Social Cooperative Enterprises of Law 4019 / 2011, Cooperatives, Recreation Shipping Company], and adhere to or be bound to abide by, if approved, to single book keeping or duplicate books of the Code of Tax Transaction.
        • 77 To not be a business in trouble.
        • 88 To have or to be committed by a solemn declaration of the Legal Representative that they will ensure the appropriate infrastructure and services to minimize obstacles and facilitate access, where this is necessary and required, to persons with disabilities.
        • 99 To not be in bankruptcy, liquidation or forced management.
        • 1010 To not have the encumbrance of the recovery of state financing.
        • 1111 To provide unplanned and non-funded projects to other projects funded by national or EU funds.
        • 1212 To commit to the fact that the investment projects have not been submitted for accession and will not be submitted to another program financed by national or EU funds.
        • 1313 To submit a single investment proposal per TIN.
        • 1414 To not exceed the de minimis  regulation [the total amount of de minimis aid previously received by the enterprise (single business), including aid from this Action, does not exceed EUR 200 000 (or EUR 100 000 for the road haulage sector for third parties ) within three years].
*Basic notes:
          • 11 For primary and non-main tourist accommodation, the special operating identification marks issuance / notification is required after completion of the investment. This also applies to investment projects to be implemented in accommodation facilities for which a) the existing operating license has ceased due to the closure of the business; or b) the existing operating license has ceased, its operation was abandoned and its building infrastructure has been sold or leased to a new business (TIN) that will be set up under the terms of this action. The operating mark must have ceased for both of these sub-cases should have taken place at least before 7/8/2017.  
          • 22 It is not possible to set up a new business (TIN) with a partner of a previous business or its partners / shareholders to operate the same accommodation (operating mark).
          • 33 Businesses are required to have the investment Activity ID Code before the first disbursement. Exceptionally, in cases where this is not feasible, a certificate of commencement of work with an Activity ID Code 41.20.20.01 “Construction or erection of a building or another type of construction” (as investment property under Article 33, par. 4 of the VAT Code) for the same exercise of a professional activity with the right to deduct the VAT input or 41.20.20.02 “Construction or erection works of a building or other type of construction (as investment property under Article 33, par. 4 of the VAT Code) for the same occupation activities without the right to deduct the VAT, to be presented. In this case, companies will have to have the Activity ID Code  of the investment up to the final qualification.

5 Eligible areas of activity

MAIN HOTEL ACCOMMODATION:
            • Hotels:
              • Classified as 3*** (three starsand above.
              • Capacity of ten (10) and up to fifty (50) beds.
            • Hotel accommodation in traditional buildings, as foreseen by presidential decree 33/1979.
            • Organized tourist camping 3*** (three starsand above.
            • Youth hostels.
NOT MAIN HOTEL ACCOMMODATION:
              • Self-catering accommodation – furnished tourist accommodation with at least three (3) residences.
              • Furnished rooms – apartments for rent:
                • Classification of 3 keys and above.
                • Minimum capacity of ten (10) beds.
* The minimum restrictions indicated above must be complied with when completing and receiving the project and for at least five (5) years after the final payment of public funding to the beneficiary. Failure to comply with this requirement will result in a refund of the financing that has been provided.
TRAVEL AGENCIES:
                • Offices are defined as travel agencies, as per the meaning provided by Article of Law 393/1976 (Α΄199)
                • Car rental agencies for private use of rented cars.
                • Motorcycle, three-wheeler and four-wheel vehicles of more than 50 cubic meters, rental.
                • Tourist Road Transportation Companies (TRTC) who own, possess or dispose of one or more special tourist busses, as per Law 711/1977.
                • Chartering agencies that undertake the chartering of professional recreation boats.
ALTERNATIVE TOURISM:
This category indicatively includes:
                  • Athletic tourism: abeachside (e.g. recreational diving, golf, mini-golf, water-skiparagliding, windsurfing, windsurfing, swimming and other water sports), bon lakes- rivers (e.g. canoe, kayak, rafting, etc.), cin mountainous, semi-mountainous, lowland and / or urban and semi-urban areas (e.g. mountain walking, mountain climbing, mountain bikinghang gliding – paragliding, canyon-forest crossing, wildlife tourism, city cycling, horseback riding, etc.).
                  • Coastal and maritime tourism: Apart from many activities of athletic tourism at sea mentioned above, such as water skiing, this type of tourism includes recreational activities that are related to sea tours (cruises on cruise ships or other professional recreational boats).
                  • Rural tourism: a) natural tourism developed in the “natural” areas in order for the tourists to acquire knowledge about the naturebobservation and nature interpretation (e.g. observatories, visitor information centers and mountain shelters)cwalking touring on the countryside and walking trails; and d) walking touring when the tour or excursion is in the open airThis type is also associated with athletic tourism that is developed near lakes – rivers, mountainous, semi-mountainous, lowland and semi-urban regions mentioned above.
                  • Other special – alternative types of tourism: Recreational and theme parks, such as adventure parks, miniature parks, etc.
*Investments that are related to Activity ID Codes 93.11.10.01 and 93.11.10.03 can be chosen only when accompanied with the creation/support of Sports Tourism Training Centers (STTC).

6 Eligible activities

See the eligible activities (Activity ID Codes) of  the “Support for the Establishment and Operation of New Small and Medium Tourist Enterprises” program of theNew National Strategic Development Framework 2014-2020 by clicking here.

7 Eligible costs

The eligible costs of the “Support for the Establishment and Operation of New Small and Medium Tourist Enterprises” program of the New National Strategic Development Framework 2014-2020 concern:
  • Building Construction, Building Design / Layout Work & Landscaping (up to 80% of the investment).
  • Supply, transportation, installation and operation, new machinery and other equipment, as well as installations and equipment for the protection of the environment and energy and water saving, necessary for the operation of the company and the provision of services (maximum up to 100% of the investment).
  • Certification of quality assurance and environmental management systems (maximum up to € 3,000 per certificate and up to € 12,000 cumulative).
    • Promotion – Participation in Exhibitions (maximum up to €15,000):
    • In case of participation in trade fairs taking place in Greece, the total eligible cost (cost of participation, accommodation, transportation, transportation of materials etc.) will not exceed €3,000/exhibition.
    • In the case of participation in trade fairs held abroad the total eligible cost (cost of participation, accommodation, transportation, transportation of materials, etc.) will not exceed €6,000/exhibition.
    • TV advertising, radio and newspapers are not eligible costs.
    • The cost of creating a website will not exceed € 2,500. The site should serve the accessibility of people with disabilities in accordance with applicable international standards.
  • Costs of technical studies by civil engineers (Fees for engineering studies such as architectural design, static design, study of electromechanical installations, supervision fees) and tax and legal consultancy services (start-up costs for the establishment of tourism enterprises) (max up to  € 40,000).
  • Software Parameterization and other Software Services (maximum up to € 10,000 – The cost of Software / Application customization and training of its use is eligible as an expense of up to 20% of the cost of software / application purchase).
  • Supply of new transportation vehicles for professional or mixed / multiple use of up to nine (9) seats (maximum up to €25,000).
  • rawing up and monitoring the implementation of the Investment Plan (max up to € 4,000).
* he date of eligibility of expenditure is the date of the call for proposals, namely 7/11/2017.

8 Investment amount

The investment amount of the “Support for the Establishment and Operation of New Small and Medium Tourist Enterprises” program of the New National Strategic Development Framework 2014-2020 varies from €25,000 and up to €400,000.

9 Subsidy rate

The subsidy rate in the “Support for the Establishment and Operation of New Small and Medium Tourist Enterprises” program of the New National Strategic Development Framework 2014-2020  amounts to 45% of the subsidized investment budget and 50% of the subsidized investment budget if the company pledges to employ at least 0.2 of annual wage-earning units (i.e. 60 days of full-time employment) for one year after the investment is made.

 10 Disbursement

The disbursement of the subsidy is processed in 3 installments, as follows:
 
    • 1st installation of the subsidy disbursementOnce at least 25% of the investment has been realized (and paid).
    • 2nd installation of the subsidy disbursementOnce at least 80% of the investment has been realized (and paid).
    • 3rd installation of the subsidy disbursementOnce 100% of the investment has been realized (and paid).
*Key tracking points:
      • The Interim Verification – Certification Application may include advance payments to suppliers, which will not exceed 50% of the total approved subsidized budget.
      • After the signing the accession decision, an advance payment of up to 40% of the government funding may be granted, if the beneficiary provides an equivalent advance letter of guarantee from a recognized Banking Institution. The deposit guarantee letter may, at the request of the beneficiary, be gradually depreciated on the basis of an equivalent offsetting of the government financing corresponding to the realized and certified expenditure of the project and returned to the beneficiary after its full set-off as indicated above
      • After the signing the accession decision, the beneficiary may use the special bank account in the form of an “escrow account”, in order to pay the corresponding grant to already implemented, invoiced and certified in Interim Verification – Certification from the Journal of the Editors costs directly to its suppliers / providers.

11 Duration of implementation

The deadline for completion of the funded investment may not exceed thirty (30) months from the date of the adoption of the Accession Decision.
It is noted that:
        • Expenditure equal to at least 25% of the approved subsidized investment budget should have been processed and completed within the first sixteen (16) months of the investment.
        • The required permits for the implementation of the Investment Plan (e.g. building permit) are required to be issued within the first twelve (12) months from the date of accession

12 Program budget

The budget of the “Support for the Establishment and Operation of New Small and Medium Tourist Enterprises” program of the New National Strategic Development Framework 2014-2020  amounts to €120 mln

13 Submission of applications

The investment proposals of the “Support for the Establishment and Operation of New Small and Medium Tourist Enterprises” program of the New National Strategic Development Framework 2014-2020  will be submitted electronically from 18/12/2017 until 28/3/2018 at 17:00 through a special Information System.
Take the Eligibility Test for the New Small and Medium Sized Enterprises of the “Support for the Establishment and Operation of New Small and Medium Tourist Enterprises” program of the New National Strategic Development Framework 2014-2020 now to see if you can fit into its lenient provisions.