Within the next period of time, the new announcement is expected for the 3rd round of applications for investment projects under the “Processing – Supply Chain” scheme of the new Development Law 4887/2022.
The announcement is expected to improve the conditions for participation as well as the evaluation criteria
In combination with the Regional Aid Map 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, 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 aim of this scheme is to support investment projects in the processing sector, with the exception of the processing of agricultural products for which a special scheme is established, and investment projects in the supply chain sector, aimed at technological, productive, administrative and organizational upgrading, as well as innovative and extroverted development and growth, with the aim of strengthening the competitive position of enterprises in the domestic and international market.
Fund Budget
The budget of the “Processing – Supply Chain” scheme amounts to 150,000,000 euros, which will be distributed by region and by type of incentive (capital incentives and tax exemption).
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 Public Sector.
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 may not exceed forty-five percent (45%) of the total supported regional costs. The above coefficient is set at seventy percent (70%) for investment projects of Transport Services with supply chain management to third parties (logistics – activity code number: 52.29.19.03) as well as eighty percent (80%) for investment projects implemented in buildings, which are classified as preserved.
- 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 transport vehicles that move within the premises of the integrated unit.
- Leases of financial leasing (leasing) 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 eligible costs for intangible assets cannot exceed thirty percent (30%) of the total eligible regional aid costs. For SMEs, the maximum percentage is 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 eligible costs only independently and not in combination with the approx. 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 payment.
Eligible costs outside of regional aids
- Expenses for consulting services to SMEs. These expenses are defined in paragraph 1 of Annex B of Law 4887/2022 and in article 18 of the General Tax Code and concern studies and fees of consultants for investment plans of new small and medium-sized enterprises and cannot be the subject of continuous or periodic activity, nor be linked to the usual operating expenses of the enterprise. A new enterprise is considered a newly established enterprise that has not closed at the time of submission of the application for inclusion in the management use regime.
- Expenses for vocational training.
- Expenses for consulting services in relation to the vocational training project.
- Personnel costs of trainees and general indirect costs, such as administrative costs, rent and overheads, for the hours during which trainees participate in vocational training.
- Expenses for investment aid to SMEs.
Minimum Budget of Investment Plans
In order to be eligible for this scheme, a minimum amount of eligible investment project costs is required, which is determined based on the size of the entity, and specifically amounts to:
- one million (1,000,000) euros for large enterprises,
- five hundred thousand (500,000) euros for medium-sized enterprises,
- two hundred and fifty thousand (250,000) euros for small enterprises,
- one hundred thousand (100,000) euros for very small enterprises,
- fifty thousand (50,000) euros for Social Cooperative Enterprises, as well as Agricultural Cooperatives, Urban Cooperatives, Producer Groups and Agricultural Partnerships.
Maximum Amounts of Granted Aid
- The total amount of aid per investment project submitted by micro and small enterprises may not exceed three million euros (€3,000,000) for all types of aid, namely the grant or tax exemption or the subsidy for financial leasing or the subsidy for the cost of employment created.
- The total amount of aid per investment project submitted by medium and large enterprises may not exceed three million euros (€3,000,000) for the aid for financial leasing or the subsidy for the cost of employment created, as well as the subsidy in the case of paragraph 4 of article 9 (aid for medium-sized enterprises in the Regional Units of Thrace) and five million euros (€5,000,000) for the aid for tax exemption.
- 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.
