4 July 2025

Up to 75% Aid Intensity: Call Announced for the “Special Aid Areas” Scheme under Development Law 4887/2022 with a Total Budget of 150 Million €

Introduction

The “Special Aid Areas” scheme under Development Law 4887/2022 aims to provide substantial support to investment projects implemented in regions of the country facing serious economic and demographic challenges. More specifically, the scheme targets:

  1. The border regional units located along the northern frontiers of the country.
  2. Areas where the per capita Gross Domestic Product (GDP) does not exceed 70% of the national average or where significant population decline has been recorded, as a result of adverse economic and social conditions.

The regional units eligible under this scheme include the following:

  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

Additionally, the following islands of the South Aegean Region are also included in the scheme: Kasos, Megisti (Kastellorizo), Halki, Symi, Nisyros, Pserimos, Tilos, Leipsoi, and Agathonisi.

The total budget for the program amounts to 150,000,000€, of which 75,000,000€ is allocated for tax exemptions. The remaining 75,000,000€ is intended for grants, leasing subsidies, and wage cost subsidies for new job creation. The financing is provided through the Public Investment Program of the Ministry of Development.

Eligible Investment Projects

The current scheme supports investment projects implemented within the designated regions, which fall under the following categories:

Productive investments by enterprises of all sizes (large enterprises, SMEs, micro-enterprises, and start-ups), aiming at:

  • Economic diversification, meaning the expansion or shift in the range of products or services produced, in order to reduce dependency on a single sector or market.
  • Modernization of production processes and infrastructure, focusing on upgrading technological capabilities, production lines, and operational efficiency.
  • Economic growth, referring to increased production capacity, turnover, or profitability.

Furthermore, the scheme supports:

Investments in the establishment of new businesses, directly linked to the creation of new job positions, which is considered a critical factor for strengthening local employment.

Investments in the circular economy, which:

  • Contribute to waste prevention,
  • Promote the efficient use of natural resources,
  • Include activities such as reuse, repair, and recycling of materials,
  • And fall within specific Activity Code Numbers (KAD) as defined and published by the Ministry of Development.

Basic Eligibility Criteria for Investment Inclusion

Investment projects must qualify as initial investments with a fully integrated character, meaning they should involve the introduction of new productive capacity rather than a mere renewal or replacement of existing assets.

Specifically, the investment must include at least one of the following actions:

  1. Establishment of a new facility (Greenfield Investment): Setting up an entirely new production unit within the target area.
  2. Expansion of an existing production unit: Increasing the production capacity through the addition of new production lines or equipment.
  3. Diversification of production output: Launching the production of new products or services that have never been manufactured or offered by the existing unit. In this case, the eligible investment costs must be at least 200% higher than the net book value of the assets that are reused.
  4. Fundamental change in the overall production process: A substantial modernization that radically alters the method of production.

For large enterprises, an additional requirement applies: the eligible investment costs must exceed the depreciation of the assets related to the modernized activity over the previous three fiscal years, in order to ensure a substantial upgrade.

Important clarification: Investments solely involving the replacement of old equipment or facilities are not considered initial investments. Similarly, the acquisition of shares in other enterprises is not eligible under this scheme.

Furthermore, specific rules and eligibility conditions apply for investment projects in the following sectors: processing of agricultural products, logistics services, and tourism, in accordance with the current aid scheme.

1. Processing of Agricultural Products

When an investment project concerns the processing of agricultural products without producing a new agricultural product, the aid applies only to the part related to the processing activity. In other words, only the transformation process of the raw materials is subsidized, not the primary agricultural production.

2. Transport and Logistics Services

For supply chain management services (logistics – NACE code 52.29.19.03) provided to third parties, it is allowed to serve companies within the same group, but this may not exceed 30% of the total services provided.
The facilities used for these services must be distinct and separate from other business activities of the same company or group.
A mandatory requirement for the establishment or modernization of logistics units is the installation of integrated IT and telematics systems supporting the management of warehousing and loading/unloading operations.

3. Tourism Sector

Investment projects in tourism apply exclusively to areas such as the North Aegean, Samothraki, and the islands of the South Aegean.
The total aid percentage for the tourism sector cannot exceed 15% of the total public funding of the scheme. Eligible projects include:

  • Establishment or expansion of hotels with at least 4 stars.
  • Modernization of hotels with three stars or more, operating for more than 5 years since the last investment or since their opening.
  • Expansion or modernization of hotels that have been closed for at least 2 years, provided the building’s use has not changed and the hotel is upgraded to 4 stars or above.
  • Establishment, expansion, or modernization of organized campsites (camping) with at least 3 stars.
  • Establishment or modernization of hotels in traditional or heritage buildings, with upgrades to 3 stars or more.
  • Establishment of Glamping tourist accommodations (luxury camping in the countryside).

Excluded Sectors

The scheme does not apply to:

  • The fisheries and aquaculture sector.
  • The primary agricultural production sector.
  • Sectors excluded under Article 1 of the General Block Exemption Regulation (GBER).
  • Sectors excluded from regional aid as specified in Article 13 of the GBER.

Eligible Beneficiaries

Eligible beneficiaries under this scheme are investment entities that are either already operating or intend to commence their activity within the Greek territory at the time the implementation works of their investment project begin.

The main categories of beneficiaries include:

  • Commercial companies, regardless of size or legal form, such as:
    • Public Limited Companies (S.A.)
    • Limited Liability Companies (LLC)
    • Private Capital Companies (IKE)
    • General Partnerships (OE) and Limited Partnerships (EE)
    • Other forms of commercial companies as provided by Greek law.
  • Cooperatives, irrespective of the sector of activity.
  • Special types of corporate forms in the primary and social sectors, including:
    • Social Cooperative Enterprises (Koin.S.Ep.)
    • Agricultural Cooperatives (AS)
    • Producer Groups (OP)
    • Urban Cooperatives
    • Agricultural Partnerships (AES).
  • Companies undergoing mergers, provided that all required publicity procedures have been completed prior to the commencement of the investment project’s works.
  • Consortia, as long as they engage in commercial activities.
  • Public and municipal enterprises, as well as their subsidiaries, subject to the following strict restrictions:
    • They must not be assigned the fulfillment of a public service obligation.
    • They must not be entrusted with exclusive execution of services by the state.
    • Their operation must not be subsidized by public funds during the period in which they maintain long-term obligations under the investment law.

Basic Participation Requirement for Potential Beneficiaries – Incentive Nature

The grants provided under this scheme act as a genuine incentive for making investments only if the investor (beneficiary) has submitted a written application for inclusion before commencing any work or activity related to the investment project. This means that submitting the application is a fundamental prerequisite to consider that the grant contributed to the realization of the investment.

If the beneficiary has already started the investment project works before submitting the application, the application is automatically deemed inadmissible and rejected. Furthermore, even if initially approved, the decision may be revoked by the competent authorities at any stage of the investment, if it is found that the commencement of works preceded the application.

The above procedure is verified within a specific timeframe after the completion of the investment to ensure that the support scheme functions correctly as an incentive and that subsidies are not granted for projects that have already started without prior approval.

Project Budget, Amount, and Intensity of Aid

A key prerequisite for inclusion in this aid scheme is achieving a minimum eligible investment cost. Specifically, each submitted investment project must have eligible expenses amounting to at least 2.000.000€.

The maximum public aid amount per investment project is capped at 20.000.000€, subject to lower limits set by Article 4 of the General Block Exemption Regulation (GBER).

At the enterprise level, the total cumulative aid cannot exceed 20.000.000€ for a single company and 50.000.000€ for a group of cooperating or linked enterprises within a three (3) year period from the date of the application submission.

This limit is calculated based on the approved aid amount in the inclusion decision. If exceeded, the surplus is proportionally reduced across the aid categories and eligible cost groups.

These limits increase by 50% when aid is provided in the form of a tax exemption, provided that the GBER restrictions are observed.

The aid percentages on eligible expenses are determined according to the maximum thresholds set by the Regional Aid Map, as detailed below:

Conditions and Restrictions:

  1. Removal of increased aid intensities for SMEs in large projects: The increased aid intensities provided by the Regional Aid Map (RAM) for Small and Medium-sized Enterprises do not apply to investment projects with eligible expenses exceeding 55.000.000€. The same applies to expenses excluded from regional aid under Article 7.
  2. Flexibility in “type a” areas (TFEU Article 107(3)(a)): In areas with special aid status (known as “type a” areas under the Treaty on the Functioning of the European Union), aid is granted regardless of the size of the enterprise, provided it concerns an initial investment.
  3. Special scaling of aid for large investment projects (>55.000.000€):
  4. For the portion up to 55.000.000€, 100% of the maximum regional aid ceiling applies (without the SME increase).
  5. For the portion from 55.000.001€ to 110.000.000€, 50% of the maximum regional aid ceiling applies.
  6. For the portion exceeding 110.000.000€, no aid is granted.

Types of Aid

Within the framework of this scheme, investment projects can benefit from the following types of aid:

  • Tax Exemption: This involves exemption from paying corporate income tax on the company’s pre-tax profits. It is calculated as a percentage of the eligible investment cost or the value of new equipment (including leasing). The corresponding amount is recorded in a special reserve in the company’s financial statements.
  • Grant: This is a direct financial support from the State, provided as a percentage of the eligible expenses of the investment project. It constitutes non-repayable capital support.
  • Leasing Subsidy: This covers part of the leasing installments related to the acquisition of new machinery or other equipment. The subsidy can last up to 7 years, with eligibility starting from the investment completion date.
  • Subsidy for New Employment Costs: This covers part of the wage costs for new jobs created within the investment project. It applies only to positions directly linked to the investment and cannot be funded simultaneously by other state aids.

Important Clarifications: Tax exemption, grants, and leasing subsidies can be granted either individually or in combination, provided that the overall aid limit per investment project is respected. The employment subsidy is granted independently, only for new jobs and only for the related wage costs.

Fast-Track Licensing Incentive

Within this framework, a special fast-track licensing procedure is provided for investments eligible for support under the scheme.

After the investor submits a complete application dossier to the General Directorate of Development Laws and Foreign Direct Investments (Γ.Δ.ΑΝ.Ν.Α.Ξ.Ε.), all required permits and approvals—including environmental and spatial planning—must be issued within two (2) months. If any information is missing, the administration may request additional documents, effectively “pausing” the deadline until these are submitted.

The process proceeds with absolute priority. Should the deadline be exceeded, the responsibility shifts to the Minister of Development, who must issue a decision within one (1) month. The General Secretariat for Private Investments is also recognized as a competent licensing authority.

This fast-track licensing procedure is designed to drastically reduce waiting times for permit issuance, limit bureaucratic uncertainty, and strengthen investment confidence. It creates a more predictable and investor-friendly administrative environment, with clear deadlines, institutional accountability, and concrete intervention mechanisms in case of delays. The strategic goal is to enable the prompt commencement of investment projects without unjustified administrative hurdles, thus enhancing the country’s overall attractiveness as an investment destination.

Basic Categories of Eligible Expenses for Regional Aid

Eligible expenses for investment projects, which qualify for regional aid subject to specific terms and conditions, include the following:

  1. Investment expenses in tangible fixed assets:

Construction, expansion, and modernization of buildings and facilities: This includes special and auxiliary facilities, accessibility features for people with disabilities, and landscaping of surrounding areas.
Expense limits: up to 45% of the total eligible regional expenses.
Special cases:

  • 70% for logistics investments (code 52.29.19.03).
  • 80% for listed (protected) buildings.
    Additionally, constructions legalized under specific laws (Law 1337/1983, 4178/2013, 4495/2017) are eligible provided the legalization process has been completed.
    → For tourism investments, the upper limit increases to 60%.

Purchase of existing fixed assets
Conditions apply:

  • The business facility must have ceased operations.
  • The buyer must not be related to the seller, except in limited cases (e.g., employees, family members in small businesses).
  • The transaction must be conducted under normal market conditions.
  • Costs of assets previously subsidized are excluded.

Purchase and installation of new modern machinery and equipment
This also includes technical installations and transport vehicles within the unit.

Leasing expenses for new equipment
Ownership transfer to the lessee at the end of the lease contract is required.

Modernization of specialized mechanical installations not connected to buildings.

Expenses for ensuring accessibility for people with disabilities.

2. Investment Expenses in Intangible Assets:

Technology transfer: Purchase of intellectual property rights, exploitation licenses, patents, know-how.

Quality assurance systems, certifications, software, and business organization systems.
Limits: Large enterprises up to 30% of the total aid amount, and SMEs up to 50%.
These expenses must cumulatively meet the following conditions:

  • Exclusive use within the enterprise receiving the aid.
  • Connection to the subsidized project and retention in the assets for the duration of the long-term obligations.
  • Depreciation according to accounting standards.
  • Purchase from unrelated third parties.

3. Modernization of Hotel Units and Organized Campsites:
Defined by specific ministerial decisions (No. 43965/30-11-1994 for hotels, No. 58692/05-08-1998 for campsites) and valid until further regulation.

4. Payroll Costs for New Jobs Created:
Payroll costs are eligible for two (2) years from the creation of each job and can only be claimed separately, i.e., cannot be combined with other eligible expenses of the investment project.
To be considered eligible, the following conditions must be met:

  • There must be a clear and verifiable increase in the number of employees, measured via Annual Work Units (AWU) — meaning a real increase in the enterprise’s workforce.
  • New jobs must be filled within three (3) years from the date of completion and operation commencement of the investment.
  • Created positions must be maintained for a specified period depending on enterprise size:
    • Five (5) years for large enterprises,
    • Four (4) years for medium-sized enterprises,
    • Three (3) years for small enterprises, counted from the date of the first salary payment.

Basic Categories of Eligible Expenses Beyond Regional Aid

Investment projects subject to this scheme may receive additional aid—beyond regional incentives—for certain specific categories of expenses described below:

  • Consulting Services for SMEs
    Eligible expenses include external consultants for preparing investment studies and generally supporting new SMEs. Routine operational services (such as accounting, tax, legal, or advertising expenses) are explicitly excluded. A “new enterprise” is defined as one that has not completed a full 12-month fiscal year at the time of application.
  • Energy Efficiency Measures (excluding buildings)
    Only additional costs leading to substantial improvements in energy efficiency in equipment or processes are eligible, but not investments related to buildings (according to Article 38 of the General Aid Framework). Investments for compliance with existing EU standards are not funded. Exception: investments anticipating future standards if completed at least 18 months before their enforcement.
  • Environmental Damage Remediation and Habitat Restoration
    Eligible expenses include decontamination or restoration of natural ecosystems. Important condition: projects related to natural disasters or the closure of energy units/mines are not supported. The “polluter pays” principle remains a fundamental eligibility criterion.
  • Efficient Use of Resources and Circular Economy
    Additional expenses needed to improve resource use efficiency or support the transition to a circular economy are eligible. The company must demonstrate that the cost exceeds that of a less environmentally friendly alternative (counterfactual), based on clearly defined parameters (Article 47 of the General Aid Framework).
  • Professional Training of Staff
    Expenses related to skill upgrading or retraining of personnel are subsidized. This includes trainer fees, travel and accommodation expenses, training materials, equipment depreciation, and part of the salary costs for employees during training hours. Training programs for compliance with mandatory national professional standards are excluded.
  • Innovation in SMEs
    Funded expenses include:
    • Patent applications and protection of intangible rights.
    • Secondment of specialized personnel from research organizations or large companies.
    • Consulting and support services in the field of innovation.
  • Process and Organizational Innovation for SMEs and Large Enterprises
    Eligible expenses include:
    • Personnel costs.
    • Equipment, buildings, and land used exclusively for the project.
    • Contract research, purchase of know-how, exploitation licenses, etc.
    • Operating expenses and materials directly related to the project.
  • High-Efficiency Cogeneration from RES and Energy Production from RES
    Only investment projects opting for grant aid as an incentive are eligible. Eligibility is regulated by Article 47 of the General Aid Framework.

Non-eligible Expenses

  • Operating expenses
  • Purchase of office furniture and utensils, unless they are part of hotel equipment or are a fundamental component of the productive equipment of the investment
  • Purchase of passenger cars up to 6 seats
  • Purchase of plots, land, agricultural parcels
    In case of building purchase, the corresponding land value is not subsidized
  • Contribution of real estate, machinery, and other fixed assets to corporate capital is not considered an eligible expense as it does not result in new investment cost
  • Construction or expansion of buildings on land not owned by the investor
    Eligible only if:
    • The plot is granted by the State or General Government body (based on article 14 of law 4270/2014), or
    • There is a legal long-term lease (for a duration sufficient to cover the long-term obligations of the project plus 4 years from the completion of the investment), or
    • There is a superficies right with the same time coverage

The lease must:

  • Be registered in the Land Registry or recorded in the Mortgage Registry
  • Be declared electronically to the Independent Authority for Public Revenue (AADE)
  • Obtain legal validity according to article 618 of the Civil Code (valid against third parties)

Scored Criteria

The scored criteria of the “Special Aid Areas” regime (Law 4887/2022) are divided into four scoring groups, as follows:

Group A: Evaluation of Investment Project Maturity (score 0-45)
Factors proving the readiness of the investment for implementation are examined, such as:

  • Availability of installation site.
  • Submission of applications for environmental licensing, pre-approval, and issuance of building permits, as well as applications for installation permits.
  • Priority is given to organized hosting areas.
  • Next come the designated areas without full licensing.
  • Finally, facilities outside these areas receive lower scores.

Group B: Evaluation of Financial Data of the Entity (score 0-25)
The evaluation differs depending on whether the entity is existing or new:

  • For existing entities, financial ratios are calculated based on the average values of financial figures recorded in the financial statements of the last two (2) closed fiscal years before the application.
  • For new entities, the evaluation is based on the financial figures of their shareholders/partners from the last two closed fiscal years, as follows:
    • Shareholders/Partners Legal Entities: If they hold more than 25% participation in the investment entity, the financial figures of the last two years of the companies they participate in are cumulatively taken into account.
    • Shareholders/Partners Natural Persons with participation in other companies: If they hold more than 25% in the investment entity and more than 25% in other companies, the financial figures of these companies are also cumulatively taken into account.
    • Shareholders/Partners Natural Persons exercising Management: If they hold more than 25% in the investment entity but not more than 25% in other companies, yet have exercised executive management (e.g., CEO, Executive Chairman) in other companies for at least 6 months per year, the financial figures of those companies are also included.

Group C: Evaluation of Sustainable Development Elements (score 0-10)
The score for Group C is based on three main criteria:

  • STEP Seal Index: Evaluation of the presence of certifications related to environmental management, social responsibility, and sustainable development.
  • Extroversion Index: Calculated as the average export percentage of the company, based on the last two closed fiscal years before the application. The higher the export percentage, the higher the score.
  • Only for tourism investment projects: The following are evaluated,
    • Sustainability Certification (LEED): Assessed whether the investment includes certification for environmental sustainability.
    • Type of operation: Examined whether the unit will operate annually or seasonally.
    • Thematic targeting: Consideration of the investment’s specialization in forms such as gastronomic tourism, spa, conference, sports, etc.

Group D: Evaluation of Employment Increase (score 0-20)
The score in this group results from the number of new dependent employment positions expected to be created by the investment project, proportionally to the total eligible investment cost (calculated in thousands of euros).
The more jobs created relative to the amount of expenditure, the higher the score.

Period, Submission Method, and Implementation Duration of Investment Projects

The application period for submitting investment projects under this regime begins on July 1, 2025, and ends on September 10, 2025. Applications are submitted through the Development Laws Information System (ΠΣ-Αν) and are filed with the following competent authorities:

  • For investment projects with a budget up to €3,000,000 implemented in the Regions of Western, Central, and Eastern Macedonia and Thrace, submissions are made to the Directorate of Private Investments of the Ministry of Interior, Macedonia – Thrace Sector.
  • For all other investment projects, submissions are made to the General Directorate of Development Laws and Direct Foreign Investments of the General Secretariat for Private Investments of the Ministry of Development.

For more information regarding the new Support Regime – Special Aid Areas of the updated Development Law 4887/2022 and the planning of your investment projects, you can contact us at tel. 231 0 552000 & 210 9580000 and via email at [email protected].