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Special Aid Areas Scheme

On 27/06/2025, the first Aid Scheme Announcement for applications for inclusion of investment plans under the “Special Aid Areas Scheme” of the new Development Law 4887/2022 was announced.

Contents

Purpose

The purpose of this regime is to support investment plans implemented in areas of the country experiencing serious economic and demographic difficulties, such as:

a) Border regional units located along the country’s northern frontiers,

b) Regions where the per capita Gross Domestic Product (GDP) amounts to seventy percent (70%) of the national annual average or where population decline occurs due to adverse economic and social conditions.

The aim is to enable these areas to achieve balanced and sustainable development and converge with the national average. The aforementioned seventy percent (70%) threshold of annual GDP may be adjusted by decision of the Minister of Development.

Specifically, the following regional units and islands of the South Aegean listed in point 25 are included in the regime:

  1. Lesvos-Limnos
  2. Ikaria-Samos
  3. Chios
  4. Evros
  5. Xanthi
  6. Rodopi
  7. Drama
  8. Kilkis
  9. Pieria
  10. Serres
  11. Florina
  12. Grevena
  13. Kastoria
  14. Ioannina
  15. Thesprotia
  16. Arta
  17. Preveza
  18. Karditsa
  19. Trikala
  20. Magnesia
  21. Larisa
  22. Ilia
  23. Evrytania
  24. Fokida
  25. The following islands of the South Aegean: Kasos, Megisti, Chalki, Symi, Nisyros, Pserimos, Tilos, Leipsoi, and Agathonisi.

Submission Timeline

  • Start date for submission: 1 July 2025

  • End date for submission: 10 October 2025 (following an extension)

Budget

The total budget of the current regime for 2025 amounts to €150,000,000, of which €75,000,000 concerns tax exemption incentives.

The remaining €75,000,000 concerns grant aid, leasing subsidies, and subsidies for the cost of newly created employment, financed by the Public Investment Budget of the Ministry of Development.

Eligible Investment Plans

Investments in tangible and intangible assets in one or more of the following categories:

  • Establishment of a new facility (new unit)

  • Expansion of production capacity of an existing facility

  • Diversification of production of an existing facility into products or services not previously produced/provided, provided that eligible costs exceed by at least two hundred percent (200%) the book value of the reused assets, as recorded in the fiscal year preceding the submission of the investment plan.

  • Fundamental change in the entire production process of an existing unit. For large enterprises, eligible investment costs must also exceed the depreciation charges of the last three fiscal years for assets linked to the activity being modernized. If the relevant depreciation cannot be clearly identified, this condition is considered unmet.

Replacement investments are not considered initial investments, nor is the acquisition of shares in another company.

For logistics investment plans (NACE 52.29.19.03) providing supply chain services to third parties, service provision to group companies may reach up to 30% of the total services provided. Such investment sites must be distinct from other company or group activities. Establishment, expansion, or modernization of logistics service units must also include investment projects implementing and commissioning integrated IT and telematics systems to support warehousing, loading/unloading, and overall materials/goods management.

In the tourism sector, eligible investment plans may be developed exclusively in the North Aegean region, Samothraki island, and the South Aegean islands mentioned in Article 1, point 25.

Tourism investment plans include:

  • Establishment or expansion of hotel units of at least four (4) stars.

  • Comprehensive modernization of hotel units belonging to or upgraded to a category of at least three (3) stars, after five years from the start of operations or the completion of the last comprehensive modernization.

  • Expansion and/or comprehensive modernization of hotel units that have ceased operations for at least two (2) years before the application, provided there was no change of building use, and the unit is upgraded to at least four (4) stars.

  • Establishment, expansion, or comprehensive modernization of organized camping facilities (camping) of at least three (3) stars.

  • Establishment and/or comprehensive modernization of hotel units located in listed traditional or preserved buildings, upgraded to at least three (3) stars.

  • Establishment of glamping-type rural tourist accommodation.

The support granted in the tourism sector may not exceed 15% of the total support under the regime.

Eligible Beneficiaries

Eligible beneficiaries under the “Special Aid Areas Scheme” include:

  • Commercial companies

  • Cooperatives

  • Social Cooperative Enterprises (Koin.S.Ep.), Agricultural Cooperatives (ACs), Producer Groups (PGs), Civil Cooperatives, Agricultural Corporate Partnerships (ACPs)

  • Consortia engaged in commercial activity

  • Public and municipal enterprises and their subsidiaries

Eligible Regional Aid Expenditures

The eligible costs of investment projects for which regional aid is granted are as follows:

  • Construction, expansion, and modernization of buildings and auxiliary facilities, including facilities to ensure accessibility for persons with disabilities and landscaping. These costs may not exceed 45% of total eligible regional aid costs. This limit increases to 70% for logistics services investment plans (NACE 52.29.19.03) and 60% for tourism investments.

  • Purchase of all or part of existing tangible assets (buildings, machinery, equipment) under specific conditions.

  • Purchase and installation of new modern machinery and equipment, including technical installations and on-site vehicles.

  • Leasing costs for new modern machinery and equipment.

  • Modernization of special and mechanical installations.

  • Technology transfer through the acquisition of intellectual property rights, licenses, patents, know-how, and non-patented technical knowledge.

  • Quality assurance and control systems, certifications, purchase and installation of software, and business organization systems.

For large enterprises, eligible costs in intangible assets cannot exceed 30% of the total eligible regional aid costs; for SMEs, the maximum is 50%.

The wage cost of new jobs created as a result of the investment plan is calculated for two (2) years from the creation of each position. This wage cost is eligible only independently (not combined with other categories) and only if an initial investment is made.

Conditions for support:

  • The investment project must result in a net increase in Annual Work Units (AWU) compared to the previous twelve months.

  • All positions must be filled within three (3) years from completion and start of operations.

  • Each job created must be maintained for at least five (5) years for large enterprises, four (4) years for medium enterprises, and three (3) years for small enterprises.

Eligible Non-Regional Aid Costs

  • Consulting services for SMEs, related to studies and consultant fees for investment plans of new small and medium-sized enterprises, provided they are not part of routine or periodic activities.

  • Professional training costs.

  • Consulting services related to professional training.

  • Personnel costs of trainees and general indirect costs (administrative costs, rent, general expenses) during training hours.

  • Investment aid costs for SMEs.

Types of Aid

The following types of incentive payments are provided in the scheme:

This consists of exemption from paying income tax on pre-tax profits generated in accordance with applicable tax legislation, derived from all activities of the enterprise, after deducting the tax attributable to distributed or assumed profits by partners.

The amount of tax exemption is calculated as a percentage of the eligible expenditure of the investment plan or the value of new machinery and other equipment acquired through financial leasing, and constitutes an equivalent reserve maintained in a separate account in the company’s financial statements.

This consists of the free provision by the State of a monetary amount to cover part of the eligible expenditure of the investment plan, determined as a percentage thereof.

This consists of the State covering part of the installments paid under a financial leasing agreement concluded for the acquisition of new machinery and other equipment, determined as a percentage of their acquisition value and included in the installments.

The leasing subsidy may not exceed seven (7) years and the period commences from the date of completion of the investment.

This consists of the State covering part of the wage cost of new jobs created in connection with the investment plan, for which no other state aid is received.

Aid Intensity and Amounts

The aid intensities for eligible expenditure of initial investments are granted based on the maximum aid intensity limits set in the Regional Aid Map, as approved by the European Commission decision C(2002) 25 final/06-01-2022 and amended by decision C(2023) 6801 final/16-10-2023.

The current Regional Aid Map is available on the website of the General Secretariat for Private Investments of the Ministry of Development:
https://ependyseis.mindev.gov.gr/uploads/photos/chpe.pdf

The aid intensities for eligible expenditure of initial investments are granted as follows:

a. For micro, small and medium-sized enterprises, the aid intensities for all types of incentives except the grant are granted up to the maximum percentage of the Regional Aid Map.

The grant incentive is granted up to eighty percent (80%) of the maximum limit of the Regional Aid Map. Additional increases are provided for investments implemented in specially disadvantaged areas of the country.

b. For large enterprises, all types of incentives except the grant are granted up to eighty percent (80%) of the maximum limit of the Regional Aid Map.

Minimum Investment Amounts

To be eligible under the scheme, the investment plan must meet a minimum eligible cost, which depends on the size of the enterprise, specifically:

  • €1,000,000 for large enterprises

  • €500,000 for medium-sized enterprises

  • €250,000 for small enterprises

  • €100,000 for micro enterprises

  • €50,000 for Social Cooperative Enterprises (Koin.S.Ep.), Agricultural Cooperatives (A.S.), Urban Cooperatives, Producer Groups (O.P.) and Agricultural Corporate Partnerships (A.E.S.)

Maximum Aid Amounts

The total amount of aid per submitted investment plan may not exceed twenty million euros (€20,000,000) for all types of aid (grant, tax exemption, leasing subsidy or wage cost subsidy) and fifty million euros (€50,000,000) for all collaborating or affiliated enterprises combined.

Investment Plan Financing Scheme

  • Each entity must participate in the cost of the investment plan with own funds, external financing, or a combination of both.
  • At least twenty-five percent (25%) of the eligible cost of the investment plan must not include any state aid, public support or provision.
  • The participation of the entity in the eligible cost of a conventional investment is calculated on the total eligible expenditure, after deducting the requested grant amount, where applicable.
  • If the investment plan includes a wage cost subsidy for newly created employment, the non-subsidized part may be covered by own funds or external financing.

Scoring Criteria

The scoring criteria are divided into four (4) groups:

  • Group of criteria assessing the investment plan’s maturity, scoring range 0–45

  • Group of criteria assessing the entity’s financial data, scoring range 0–25

  • Group of criteria assessing sustainable development elements, scoring range 0–10

  • Group of criteria assessing employment increase, scoring range 0–20

Evaluation of Investment Plans

  • The evaluation process starts from the date of submission of the application and is completed with the evaluation committee’s result within ninety (90) days from the closing date of the scheme.
  • The reasonableness of costs and the review of scoring indicators are carried out using the comparative evaluation method.
  • Each investment plan must achieve a minimum score of 50 points to be included in the ranking tables.
Aid Scheme Announcement

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