Within the next period of time, the new announcement is expected for the cycle of applications for investment projects under the “Major Investments” scheme of the new Development Law 4887/2022.
In combination with the Regional Aid Charter 2022-2027, which is in force from 01.01.2022 with increased rates for the majority of the country’s regions, the new Development Law aims to increase private investment, support new entrepreneurship, strengthen less favored regions of the country and regions included in the Just Development Transition Plan, as well as improve competitiveness in sectors of high added value.
Applications are submitted through the Development Law Information System ( https://opsan.mindev.gov.gr )
Aim
The purpose of this scheme is to support large investment projects involving sectors of the economy, in order to bring significant results to local economies through their implementation.
Fund Budget
The budget of the “Major Investments” scheme amounts to 150,000,000 euros.
Eligible Beneficiaries
Beneficiaries of this scheme are the following types of enterprises:
- Commercial company
- Cooperative
- Social Cooperative Enterprises, Agricultural Cooperatives, Producer Groups, Urban Cooperatives, Agricultural Partnerships
- Consortiums that carry out commercial activity
- Public and municipal enterprises and their subsidiaries
Excluded from the aid and from being included in this scheme are:
- enterprises against which, at the time of submitting the investment plan application, a procedure for recovering aid is pending (Deggendorf principle)
- Problematic enterprises, provided that at least one of the conditions set out in par. 18 of article 2 of the General Agricultural Law is met
enterprises which, during the two (2) years prior to the submission of the aid application:
– Have relocated the business establishment in which the initial investment for which the aid is requested is to be made or
– refuse to commit that they will not relocate the aforementioned business establishment for a period of two (2) years - enterprises which implement investment projects carried out on the initiative and on behalf of the State.
Eligible Regional Aid Expenditures
The eligible costs of investment projects for which regional aid is granted are as follows:
Investment costs in tangible assets
- Construction, expansion and modernization of building facilities, as well as special and auxiliary facilities of buildings, and for
constructions to ensure accessibility for disabled and handicapped people, as well as the development of the surrounding area. These costs in total cannot exceed forty-five percent (45%) of the total supported regional costs. The above coefficient is set at eighty percent (80%) for investment projects implemented in buildings that are classified as protected. - Purchase of all or part of the existing fixed assets, such as buildings, machinery and other equipment of a business establishment (under certain conditions).
- Purchase and installation of new modern machinery and other equipment, including technical installations and means of transport that move within the premises of the integrated unit.
- Leases of new modern machinery and other equipment.
- Modernization of special and mechanical installations.
Investment costs in intangible assets
- Technology transfer, through the purchase of intellectual property rights, exploitation licenses, patents, know-how and unpatented technical knowledge.
- Quality assurance and control systems, certifications, supply and installation of software and business organization systems.
For large enterprises, the supported costs for intangible assets cannot exceed thirty percent (30%) of the total supported regional aid costs. For SMEs, the maximum percentage is set at fifty percent (50%).
Wage costs
The wage costs of new jobs created as a result of the implementation of the investment plan are calculated for two (2) years from the creation of each position. The above wage costs constitute an eligible expense only independently and not in combination with the a’ and/or b’ and provided that an initial investment is implemented.
Support Conditions:
- The investment project entails a net increase in the number of employees reflected in Annual Work Units (AWU) in the business establishment and, respectively, in the enterprise, compared to the AWU of the previous twelve months from the date of submission of the application for inclusion,
- the filling of all jobs takes place within three (3) years from the date of completion and commencement of production operation of the
investment, - each job created through the investment is maintained in the specific supported establishment for a period of at least five (5) years
for large, at least four (4) years for medium-sized enterprises and at least three (3) years for small enterprises, from the date of its first filling.
Aid Rates
The aid rates for eligible initial investment costs are granted based on the maximum intensity limits of the Regional Aid Charter as follows:
- For very small and small enterprises, the aid rates for all types of incentives, except for grants, are granted at the maximum rate of the Regional Aid Charter. The grant incentive is granted at eighty percent (80%) of the maximum limit of the Regional Aid Map.
- For medium-sized and large enterprises, all types of incentives are granted at eighty percent (80%) of the maximum limit of the Regional Aid Map.
Special Categories of Aid
Increased aid rates are granted to investment projects implemented in:
- mountainous areas, according to the classification of EL.STAT., except for the municipal units that constitute part of the urban complex of Athens,
- areas up to thirty (30) kilometers from the borders,
- islands with a population of less than three thousand one hundred (3,100) inhabitants,
- buildings classified as preserved,
- areas that have been affected by natural disasters, according to a decision of the Government Committee for State Relief.
Eligible costs outside of regional aids
Expenditures other than regional aid will be determined by the announcement of the scheme.
Minimum Budget of Investment Plans
To qualify for the “Major Investments” scheme, a minimum amount of eligible cost of the investment project is required, which amounts to ten million (€10,000,000) euros.
Maximum Amounts of Granted Aid
- The amount of aid that may be granted to each investment project under this scheme may not exceed the limit of ten million (10,000,000) euros, except in the case of granting tax exemption aid which may not exceed the limit of twenty million (20,000,000) euros.
- The aid provided to each investment project entity, including aid to cooperating or affiliated enterprises, may not cumulatively exceed twenty million (20,000,000) euros for an individual enterprise and thirty million (30,000,000) euros for all cooperating or affiliated enterprises.
Investment Project of Financing Plans
- Each entity participates in the cost of the investment plan either with its own funds or with external financing (or a combination thereof).
- Twenty-five percent (25%) of the eligible cost of the investment plan must not include state aid, public support or grant.
- The entity’s participation in the eligible cost of a contractual investment is calculated on the total eligible costs of this investment, after deducting the amount of the requested subsidy, if provided for in the financing scheme.
In the case where the investment plan provides a wage subsidy on the costs of the employment created, the coverage of the non-eligible part of these may be done with its own funds or with external financing.
Investment Plan Evaluation
- The evaluation of investment projects starts from the date of submission of the application and is completed with the result of the evaluation check by the Evaluation Committee within a period of forty-five (45) days from the end of the regime.
- The above deadlines are suspended during the month of August.
- The evaluation of the reasonable cost and the control of the scoring indicators are carried out using the comparative evaluation method.
- The minimum required score that each investment project must obtain in order to be included in the ranking tables is 70 points.
