18 June 2025

Law 5203/2025 – Amendment of Development Law 4887/2022

Introduction

Law 5203/2025, which came into effect on June 2, 2025, amends the existing regulatory framework of Development Law 4887/2022. This new legislative move signals the State’s intention to adopt a more modern, flexible, and effective development strategy. The goal? To boost sustainability and innovation, while ensuring a more balanced geographical distribution of investments — focusing especially on regions with development needs.

This new institutional intervention introduces a series of changes directly impacting the structure and operation of the Development Law. These changes concern the reform of support schemes, promotion of new financing tools, enhancement of transparency in evaluation and control processes, and the adaptation of incentives to the evolving needs of the Greek economy.

The key changes introduced for the Development Law are as follows:

Amendments to the Incentive Regimes

Aid Limits

Maximum Limit Per Investment Project

  • The maximum aid limit is doubled, from €10,000,000 to €20,000,000 per investment project.

Cumulative Limits Per Entity

The total amount of aid that each enterprise (including cooperating or connected enterprises) may receive is set as follows:

  • Single enterprise: up to €20,000,000
  • Group of cooperating or connected enterprises: up to €50,000,000

The above limits apply subject to the restrictions set out in Article 4 of the General Block Exemption Regulation (GBER).

Incentives – Types of Aid

The new law introduces a refreshed incentive framework aimed at effectively supporting investors, with greater flexibility, faster procedures, and targeted options depending on the size and type of business.

  • Fast-Track Licensing Incentive

This applies exclusively to the schemes:

  • “Areas of Special Aid”
  • “Large Investments”

With this tool, the State aims to unblock bureaucratic obstacles that usually slow down significant investments.

  • Grants for Medium-Sized Enterprises

Medium-sized enterprises can now receive support in the form of direct grants (not only tax exemptions), enhancing their immediate liquidity.

  • Access to Loans with State Guarantee

The incentive for providing loans guaranteed and supported by the Greek State through the “Development Law Financial Instrument Guarantee Fund” (DeLFIGF) or alternatively another supported financing tool of the Hellenic Development Bank (HDB) is established for SMEs and for investment projects approved under the “Large Investments” aid scheme.

  • New Terms for Use of Tax Exemption

It is foreseen that the tax exemption benefit can be used annually at half (1/2) of the total approved amount of the tax exemption, upon certification of implementation of fifty percent (50%) or sixty-five percent (65%) of the investment project’s cost.

Evaluation – Control

The new law introduces a stricter yet more transparent and functional framework for the evaluation, control, and certification of investments, aiming to speed up and ensure effective implementation of investment projects.

  • Comparative evaluation applies to all schemes, ensuring objective selection of investments.
  • Approval of investment projects must be completed within 90 days from the application deadline. Additionally, investors must submit updated certificates of judicial solvency, tax, and social security clearance within 30 days from the issuance of the final ranking list.
  • Certification following a regular audit is established, upon request of the project entity, confirming the implementation of at least 25% of the physical and financial scope of the investment.
  • Requests for modifications can be examined even at the stage of certifying the 25% progress of the investment.
  • Projects will be disqualified if 10% of the investment has not been implemented within 2 years.
  • A penalty of an additional 10% applies for the repayment of aid if the approval decision is revoked.

According to the Ministry of Development’s plan, the new aid schemes of the revised Development Law 4887/2022 are scheduled to be announced gradually during 2025–2026. Funding totaling 1 billion euros is allocated to activate targeted incentives that will support productive activity, regional development, and technological upgrading of businesses.

At the core of this plan is the publication of the first calls under the amended law, focusing on three strategic aid schemes:

  • Large Investments,
  • Areas of Special Aid, and
  • Manufacturing – Supply Chain.

For more information regarding the upcoming new aid regimes of the revised Development Law 4887/2022 and planning your investment projects, you can contact us at tel. 231 0 552000 & 210 9580000 or email [email protected].