Investment Law subsidy program due to start next weeks.

A new cycle of the famous subsidy program of the Investment Law is due to commence next weeks. The Investment Law provides a general framework, which is expected to be specified for each aid scheme through the ministerial circulars to be issued. In essence, the provisions of the new Law will start to apply following the issuance of the relevant ministerial circulars. The most important points are summarized below.

General remarks:

• An explicit reference to the provisions of the General block exemption Regulation (“G.B.E.R.”) of the European Commision (651/17.07.2014, L. 187/1/26.06.2014) is being made for first time.
• The new Law is structured into two sections: (a) the General Section, which includes the main regulations and restrictions of the G.B.E.R. and refers to all aid schemes, and (b) the Special Section, which describes the specific aid shemes, to which the provisions of the General Part and of the G.B.E.R. are applied.
• Focus is being made on the tax incentives in comparison to the other types of aid.
• A threshold is being provided for the types of aid available to individuals investment projects, as well as to companies and group of companies, in order to achieve dispersion of the beneficiaries of state aid.
• Special categories of aid are being determined, either (a) on the basis of the performance of the companies (extroversion, mergers, employment increase, sectors, high added value), or (b) on territorial basis (highland, border areas and areas with increased migration burden, Industrial Areas, Innovations Zones).
• Companies that fall under the special categories may be reinforced through capital aids, in case the latter are not provided, or by additional capital aids, in case the latter are provided.

Beneficiaries of the aid.

Individual companies, commercial companies, cooperatives, social cooperative companies of L. 4019/2011, groups of producers, agricultural partnerships of L. 4015/2011, companies under formation or under merger, on the condition that they have been incorporated or merged before the commencement of the project, joint ventures provided that they have been registered with General Commercial Registry (GEMI).

Terms and prerequisites for participation.

• The compulsory nature of own-participation is being abolished. The participation of the beneficiary in the cost of the investment project can take place either through own equity or through external financing. The main Beneficiaries of the aidm Terms and prerequisites for participation General remarks prerequisite is that the 25% of the total investment cost does not contain state aid, support or subsidy.
• The minimum investment amount ranges from EUR 50,000 (for Social Cooperative Companies) to EUR 500,000.00 for large companies.
• The investment projects that fall under the aid schemes should have the character of initial investment (buildings, machinery, intangible) and meet certain conditions (indicatively, creation of new plants, extension of existing plants’ capacity, etc.).

Covered investment projects.

The investment projects that are covered by the new Law relate, in principal, to all economic sectors, subject to certain exceptions (sector of steel, coal, synthetic fibers, shipbuilding, etc.). Under conditions, the investment projects that are covered relate also to:

• Production or co-production and distribution of heat from Renewable Energy Sources and production of electricity by small hydroelectric projects;
• Tourism;
• Processing and marketing of agricultural products, fisheries and aquaculture products;
• Logistics services.

Implementation and completion of investment projects.

• Investment projects which fall under the aid schemes are audited at any time and at any stage of implementation of the investment project or at any stage of fulfilling their long term liabilities.
• The investment project is completed following the commencement of the productive operation of the investment and in any case within the period prescribed in the relevant ministerial decision, which may not exceed three (3) years from the date of issuance of that decision. An extension for two (2) years ia also provided, under certain conditions.

Aid scheme - Types of aid granted.

• Machinery Equipment –  Tax exemption.
• General Entrepreneurship –  Tax exemption, subsidy of leasing and subsidy of employment cost.
• New Independent Small and Medium Enterpirses (SMEs) Tax exemption, subsidy of funds, subsidy of leasing and subsidy of employment cost.
• Innovative Character Aid for Small and Medium Enterpirses (SMEs).
• Clusters.
• Integrated Regional and Sector Projects.
• Intermediary funding organisations – Funds of Funds Public funding to private investors through: (a) equity or “virtual” equity investment or sponsorship, or (b) loans for funding of corporate risk directly or indirectly to eligible companies.
• Major Investments – Fixed corporate income tax rate for 12 years from the completion of the investment project, until the exhaustion of the aid and up to the amount of EUR 10,000,000.00. Alternatively, tax exemption at a percentage of 10% of the eligible investment cost and up to the amount of EUR 5,000,000.00. Possibility to make use of the “Fast Track” procedure.

The beneficiaries, the eligible expenses, the type of aids, the percentage of aids, the implementation procedure, as well as the evaluation and audit process are being specifically prescribed per each separate scheme of aid. Each scheme of aid will be established by virtue of a Ministerial Circular, which will prescribe the framework for the filing of applications, as well as additional relevant details and clarifications.

Having successfully deployed tens investment proposals throughout the Greek region, VisionTask supports with complete success any investment idea you might have in any sector of the economy, with the drafting of the study, the submission of the dossier application and finally the monitoring and the implementation and completion of the project. Call us today (info@visiontask.gr) to make the investment of your dreams a reality. Our 100% success record over the past 10 years in all the previous Development Laws, is your key to success.