Introduction

The project, within the framework of the National Recovery Plan “Greece 2.0” with funding from the EU – NextGenerationEU, financially supports businesses and public entities for the creation or enhancement of child care centers for infants aged 2 months to 2.5 years, covering 50% of the cost. The goal is to increase available spaces, making it easier for parents to return to work while ensuring that children receive quality care and education. In Greece, there are 38.000 places in infant care centers, with a significant shortage, especially in the center of Athens.

Eligible Beneficiaries & Participation Requirements

Under the framework of this program, eligible beneficiaries for the grants may include:

1. Existing Small, Very Small, and Medium Enterprises, as defined in Commission Recommendation 2003/361/EC, which, before the electronic submission date of the funding application, are substantially active (Main Activity Code or the Activity Code with the highest revenues) in the following eligible NACE code: 88.91 – Activities of infant and toddler care centers.

It is clarified that the following NACE subcategories are not eligible:

88.91.1 – Day care services for children

88.91.11 – Day care services for children, except those for children with disabilities

88.91.12 – Day care services for children and young people with disabilities

88.91.13 – Childminding services for young children

• New Small, Very Small, and Medium Enterprises, businesses that will be established after the publication of the program and before the submission of the funding application, with the main activity being the above eligible NACE code.
• Legal Entities under Public Law of the Central Government or First-Level Local Government (Municipalities), or the Central Government entities and Local Authorities where daycare centers and infant care centers have already been licensed and operating, or can be licensed.
• Civil Society Organizations (CSOs), according to the definition of Law 4873/2021 “Protection of Volunteering, Strengthening the Role of Civil Society, Tax Incentives for Supporting the Charitable Activities of CSOs, and Other Provisions”.

The main participation requirements for businesses are as follows:

• Businesses must have a valid operating license and comply with the requirements for their activity according to Greek legislation
• In the case of a new structure, a rental agreement or property deed is required for a period of 3 years. For an existing structure, ownership, concession, or rental agreement of the property is required for at least 3 years
• The business must operate as an SA, LLC, PCC,GP, etc., and adhere to the accounting standards of Law 4308/2014
• The business must meet the EU’s definition criteria for SMEs (Small and Medium Enterprises)
• The business must be active within the Greek territory and declare only one Region for the implementation of the project
• The business must not have received funding for the same project from another program
• Mandatory commitment to accessibility for persons with disabilities
• The business must have at least 25% of the required private contribution for the project

According to Law 4873/2021, public sector entities, Local Government Organizations, and Civil Society Organizations (CSOs) can participate in the program if they do not engage in economic activities and meet the following conditions:

• The expenses included in the funding application must not have already been financed or submitted for approval under another national or EU program
• If a business is engaged in both eligible and non-eligible activities, the grant will only cover expenses related to the eligible activities. The business must ensure that no grant funds are used for non-eligible activities
• The buildings to be used must be accessible to people with disabilities according to the applicable legal framework. If they are not already accessible, they must be adapted by the completion of the project
• Local Government Organizations and other non-profit entities providing free or low-cost childcare services (that do not cover the full cost) are not subject to the rules of de minimis state aid (EU Regulation 2023/2831)
• An official decision must be provided from the responsible body confirming the approval of funding for the remaining public share of the investment project from own resources or other financing programs
• Offshore companies and related entities, investment plans concerning the main residence of the beneficiary, and problematic businesses, as defined in the call, are not eligible

Type and Amount of Funding:

The maximum grant per investment plan is 300.000€ (including VAT). The public grant covers 50% of the investment plan, provided the cumulative aid limit is maintained. The funding is granted under EU Regulation 2023/2831 (De Minimis).

Funding per New Infant Placement:

The public grant is calculated based on the new infant placements created:

1 placement → 3.400€

2 placements → 6.800€

3 placements → 10.200€

n placements → n × 3.400€ (where n is the number of new placements resulting from the project).

! The new infant placements must be maintained for at least three (3) years after the completion of the investment project.

Implementation Duration:

The start date of the project is the publication date of the Call for Interest by the Implementing Authority. Potential beneficiaries should take the following timelines into account:

• Final submission date of the participation application
• Start of expenditure eligibility from the submission date of the funding application.
• Issuance of approval for inclusion in the project (a prerequisite for the advance payment)
• Completion of investment project implementation by 28.02.2026
• Maintenance of new infant placements for at least three (3) years after the completion of the investment project

Specific conditions for fulfilling these milestones for each beneficiary will be specified in the approval decision.

Eligible Expenses:

The project budget is divided into three categories:

Category 1: Building Infrastructure and Outdoor Space Development (construction, renovation, purchase) – up to 80% of the budget. It is clarified that the purchase of property is eligible only if the property is not owned by a physical/legal person involved with the potential beneficiary or their spouse/close relatives (up to the second degree).

Category 2: Permanent equipment necessary for the operation of the facility – up to 100% of the budget (applicable to the establishment and/or expansion of an existing business).

Category 3: Required preparatory and support studies and services – up to 50% of the budget, aimed at covering the startup costs of childcare centers.

Once the project is approved for funding, budget reallocations between expense categories are permitted, provided that the maximum limits per category are respected and the planned number of new infant care placements, as outlined in the investment plan, is maintained. The total funding amount cannot exceed the approved project budget (public expenditure) at any given time. Funding is provided as a grant in accordance with EU Regulation 2023/2831 on De Minimis aid.

Ineligible Expenses:

The following expenses are not eligible:

• Expenses incurred before the eligibility start date of the costs.
• Costs for work done before the approval of required licenses and permits.
• Employer contributions for construction work and expenses related to duties, taxes, or fees.
• Interest expenses, financial transaction fees, and other financial costs.
• Deductions or withholding taxes that are refunded to the beneficiary.
• Cash on delivery costs.
• Maintenance and repair costs for equipment already used by the company.
• Any invoices issued before the start of cost eligibility or after the end date of the project.
• Bank charges and costs for guarantee letters.
• Fees for project managers or administrative and secretarial support.
• Self-invoicing receipts will not be accepted as eligible expenses.

Submission Period, Application Process, and Project Duration:

Submission of funding applications began on 13/01/2025 at 12:00 PM.

The call for applications will remain open until the total available budget has been fully allocated.

Applicants can submit applications throughout this period, as long as there is available budget. Applications will be evaluated in order of priority based on the date of electronic submission to the VNS system (vns-2-0.tee.gov.gr).

The start of cost eligibility begins from the submission date of the funding application, and investment projects must be completed by 28.02.2026.

For further details on this specific program, 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].