Introduction

The Ministry of Development has launched a public online consultation on the new draft law titled:

“Sustainable Development, Productive Transformation of the Greek Economy – Amendments to the Provisions of Development Law 4887/2022 (Development Law – Greece Strong Development) and Other Provisions.”

The consultation will be open until Friday, May 2, 2025, at 09:00.

This initiative represents a critical stage in the process of institutionalizing changes to the operation and implementation of the existing development framework of Law 4887/2022. The goal is to incorporate improvements that will make it more effective and flexible, in line with current economic and business conditions.

The Ministry invites all social partners, professional and scientific organizations, investors, entrepreneurs, as well as any interested citizens, to actively participate by submitting their proposals, comments, or objections.

The consultation process is not merely formal, but substantial, as it offers citizens and the market the opportunity to contribute to shaping more functional and developmentally effective legislation. Through active participation, it is ensured that the final provisions will better address the needs of the economy, while also promoting investments, simplifying procedures, and strengthening sustainable development.

Key Points of the New Draft Law for the Reform of the Development Law

The new draft law, which has been put up for public consultation by the Ministry of Development, brings radical changes to the Development Law, redefining the support schemes and introducing new financial and administrative incentives. The aim is to enhance the competitiveness of the Greek economy, support investments in key sectors and regions, as well as simplify the evaluation and control mechanisms. The proposed framework aims for a more effective distribution of aid, particularly towards the regions and businesses that need it the most.

Below are the key changes:

• Abolition and replacement of existing support schemes:
• The scheme “Digital and Technological Transformation of Enterprises” is abolished and replaced by the new scheme “Modern Technologies”, focusing on advanced digital tools and technological applications
• The scheme “New Entrepreneurship” is abolished and replaced by the new scheme “Social Entrepreneurship and Craftsmanship”, aimed at supporting small, creative, and socially-oriented businesses
• The scheme “Fair Development Transition” is replaced by the new scheme “Areas of Special Support”, focusing on regions with special developmental needs. Supported regions include border areas on the northern borders, areas with GDP per capita below 70% of the national average, regions with population shrinkage, and areas affected by natural disasters
• The scheme “Research and Applied Innovation” is abolished

• Support for Medium Enterprises: Medium-sized businesses will now be eligible for grants to enhance their investment plans, rather than just tax exemptions as previously
• Establishment of New Investment Incentives: New incentives are introduced to accelerate investment licensing processes and facilitate financing through loans with guarantees or support from the Greek government. Small and medium-sized enterprises (SMEs) participating in the Large Investment Support Scheme can now be funded for both short-term subsidy coverage and the completion of long-term investment plans. Additionally, large investments—regardless of the size of the business—participating in the new support scheme can apply for funding from the European Investment Bank (EIB)
• Increase in Maximum Grant Limits: The increase in the maximum grant limits aims to enhance investments and make the business environment more attractive and competitive. The new limits are set at 20.000.000€ for a single business and 50.000.000€ for a group of collaborating or affiliated companies. In cases of tax exemption, the limits increase by 50%, providing more flexibility for financing
• The administrative audit will be conducted by the relevant authority, while on-site inspections may be carried out either by the authority itself or by an appointed inspection body
• Additional Penalties for Revoked Grants: If an approved grant is revoked, the amount must now be repaid with an additional 10% penalty. This aims to enforce compliance and ensure adherence to obligations

The draft law aims to redesign the framework of the Development Law to more effectively respond to the needs of the modern Greek economy. It focuses on creating new funding schemes and incentives to enhance competitiveness, sustainability, and regional development. The law provides for a total of twelve investment support schemes, covering critical and strategic sectors of the economy:

1. Modern Technologies
2. Green Transition and Environmental Upgrade of Businesses
3. Social Entrepreneurship and Handicrafts
4. Areas of Special Support
5. Agri-food, Primary Production, Processing of Agricultural Products, Fisheries, and Aquaculture
6. Manufacturing and Supply Chain
7. Business Extroversion
8. Tourism Investment Support
9. Alternative Forms of Tourism
10. Large Investments
11. European Value Chains
12. 360° Entrepreneurship

Upon the completion of the consultation process and the presentation of the final version of the law, a more comprehensive and clear picture of the new opportunities, as well as the support mechanisms that will enhance the development and competitiveness of Greek businesses, is expected to be provided. Entrepreneurs and market stakeholders will have the opportunity to leverage these incentives in order to strengthen their position in the Greek and international markets, while the broader economy will benefit from the reinforcement of regional development.

For further information regarding Development Law 4887/2022, other available funding opportunities, or any support related to the planning and implementation of your investment projects, please do not hesitate to contact us at 231 0 552000 or 210 9580000, or via email at [email protected].