New bill amending Investment Incentives Law 3299/2004 brought to Parliament

The aim is to modify the current regime in Greece so as to take advantage, to the fullest extent possible, of the regional aid ceilings allowed by the new -approved by the European Commission (N 408/2006)- Regional Aid map 2007-2013 for Greece. In addition, the proposed changes adopt the latest benefits provided for SMEs under the new Guidelines on national regional aid 2007-2013 (OJ C54, 4-3-2006).

Under the new rules:

• The aid percentages available exhaust the regional aid ceilings of Regional Aid map 2007-2013.
  For example, Western Greece will be eligible at an aid ceiling of 40% for the whole period, while Peloponnisos will start with an aid ceiling of 40% on 1-1-2007, which will then be lowered to 30% on 1-1-2011.
• For medium sized enterprises the aid ceilings can be increased by 10% and for small enterprises by 20%.
• Additional aid of up to 2 million euros will be available to support business start-ups and the early stage development of small enterprises.
• Eligible costs shall now include the cost to purchase fixed assets for production units as well as the cost for small enterprises to buy land (up to 10% of total eligible costs) in order to realise the planned investment.
  • An advance payment of 50% of the total aid amount approved is available.