Type of Aid Intensities and Special Categories in Investment Incentives Law 4399/2016

Type of Aid

1. Tax exemption: exemption from payment of income tax that results from the current tax legislation, on the profits realized before taxes from all the activities of the company
2. Subsidy: free provision from the State of funds to cover part of the eligible expenses of the investment plan, determined as a percentage of the total investment cost
3. Leasing Subsidy: the State covers part of the installments paid for the leasing agreement concluded for the purchase of new machinery and other equipment, with a total duration that cannot exceed 7 years.
4. Wage subsidy (for jobs created): covers the cost of the new jobs created and are associated with the investment plan.
5. Financing instruments (capital participation, loan)
6. Fixed corporate income tax rate
7. Fast licensing procedures

Participating companies eligible to receive state aid and leasing subsidies must show profits in at least one fiscal year during the previous seven (7) fiscal years, before the fiscal year of their application for participation in the Law.

Aid Intensities And Amounts

The investment expenses are supported:

1. For expenses of regional aid, the maximum aid intensities (approved maximum regional aid limits) are determined by the Regional Aid Map (RAM), depending on the region and the size of the company. * A revised RAM will enter into force from 01/01/2017 with aid intensities 10%-55%
2. For non-regional aid expenses, up to the amount determined for each expense

The maximum amount of aid for each investment plan amounts to €5.000.000, for each company to €10.000.000 and for each company group to €20.000.000

Special Categories of Aid (Article 12)

COMPANY TYPE / PERFORMANCE CRITERIA

• Extrovert: small to medium size, they increased their extroversion (i.e. the export value to turnover ratio) by >10% in the previous 3 years before their application , by >5% for an exports to turnover ratio >70%
• Innovative: small to medium size, with research and development expenses >10% of their total operating costs, for at least 1 year in the previous 3 years before their application
• Independent small to medium sized that initiate a merger procedure after the publication date of this law
• Companies that present an increase in their employees >10% in the previous 3 years before their application
• Cooperatives, Social Cooperative Companies as well as Producer groups and Agricultural Corporate Partnerships
• Information and Communication Technology (ICT) and Agri-Food Sectors
• Companies that achieve a high added value, compared with their sectoral average.

GEOGRAPHICAL CRITERIA

• Companies whose investment plan is implemented in organized sites (Industrial and Commercial Areas, Business Parks, etc.) and is not related to the modernization or the expansion of an existing facility of the aided company.
• Companies whose investment plan is implemented in Special Areas:
• (453 Municipal Units, 43.8% of the total, 19.5% of the resident population of the country)
• a.mountainous regions
• b.border region: distanced 30km from the borders, as well as the islands of the North Aegean Region, the island of Samothraki, the Prefecture of Evros and the Prefecture of the Dodecanese
• islands with a population of less than 3.100 residents
• areas with a reduction of the resident population >30% in the period 2001-2011
• companies whose investment plan is implemented in areas with particularly increased migration flows and especially: Agathonisi, Kalymnos, Kastelorizo, Kos, Leros, Lesvos, Samos, Simi, Chios.