New Development Law

Gazette of the Hellenic Republic

1. This scheme includes investment projects related to:


a. Establishment or expansion of hotel units of at least four (4) stars,


b. modernization of the integrated form of hotel units that belong to or are upgraded to a category of at least three (3) stars, after five years have passed from the start of operation of the unit or from the date of completion of the previous investment in the modernization of the integrated form of the unit, as well as the modernization of non-main tourist accommodation, provided are upgraded to a category of at least three (3) stars,


c. expansion and/or modernization of an integrated form of hotel units that have ceased operation, for at least two (2) years before the date of submission of the affiliation application, provided that during the period of interruption the use of the building has not changed and that, through the expansion or modernization of a complete form, are upgraded to a category of at least four (4) stars,


d. establishment, expansion and/or modernization of an integrated form of Tourist Organized Camps (camping), which belong to or are upgraded to a category of at least three (3) stars,


e. establishment and/or modernization of an integrated form of hotel units within designated traditional or preserved buildings, which belong to or are being upgraded to a category of at least three (3) stars, f. establishment, expansion and/or modernization of complex tourist accommodation, as defined in law 4276/2014 (Α΄ 155), which belong to or are upgraded to a category of at least four (4) stars, which are submitted as a single investment project excluding buildings and facilities to be transferred or leased for a long time,


g. establishment, or modernization of non-main tourist accommodation, if cumulative,


- bear the distinctive title "hospitality hostel",


are implemented within traditional settlements in one of the following areas:

i) mountainous areas, according to the classification of ELSTAT (Greek Statistical Authority), except for the municipal units that are part of the urban complex of Athens,

ii) areas located at up to thirty (30) kilometres from the borders of the Hellenic Republic,


iii) islands with a population of less than three thousand one hundred (3.100) inhabitants,


- are classified in a category of five (5) keys, according to the law 12868/2018 (Β΄ 3119) decision of the Minister of Tourism and

- maintain a minimum number of twenty (20) rooms for rent, as stated in the relevant permission documents,


h. establishment, expansion and/or modernization of condominium hotels, as defined in law 4276/2014, which belong to or are upgraded to a category of at least four (4) stars and provided that the transfer or long-term lease of enhanced parts of which takes place after the end of the long-term obligations of the investment body, subject to sub-para. of paragraph c of article 25 of the law.


Investment Character

The investment plans submitted must have the character of an integrated initial investment and in particular meet one of the following conditions:

a. Creation of a new unit.

b. Expansion of the capacity of an existing unit.

c. Diversification of a unit's output into products that have never been produced or services that have not been provided by it provided, for large enterprises, that the aided expenditures exceed by at least two hundred percent (200%) the book value of the assets that are used again, as this value has been recorded in the tax year, which precedes the application for inclusion of the investment project.

d. Fundamental change of the entire production process of an existing unit.


For large enterprises, it is also required that the supported investment costs exceed the depreciation of the last 3 tax years of the assets, which are linked to the activity to be modernized. If the activity-related depreciation of the assets is not clearly recorded, it is considered that the above condition is not met.


3. a. For the investment projects of paragraphs b, c, e, and with regard to the hotel units of paragraphs f and h, of paragraph 1, the type and extent of the projects included in the modernization of hotel units, so that the modernization is considered complete form, are determined by under law 43965/ 30-11-1994 (B' 922) joint ministerial decision, which remains in force in accordance with paragraph 5 of article 130 of Law 4887/2022 until the issuance of the provision provided for in paragraph 1 of article 90 of the law of this, a joint decision of the Ministers of Development and Investments and Tourism.


b. For the investment projects of paragraph d of paragraph 1, the type and extent of the projects included in the modernization of the tourist of organized campings, so that the modernization is considered complete, are determined by the under law 58692/05-08-1998 (Β΄ 870) joint ministerial decision, which remains in force in accordance with paragraph 6 of article 130 of Law 4887/2022 until the issuance of the provision provided for in paragraph 2 of article 90 of the law of this, a joint decision of the Ministers of Development and Investments and Tourism.


4. In the investment plans of para. f of par. 1, eligible costs of the single plan may be the set of facilities included in the supported activities of para. c of para. 4 of Annex A of law 4887/2022.


5. The investment plans submitted may also include additional eligible expenses of article 7 "Eligible Expenses other than Regional subvention ".


6. With this announcement, one (1) investment project per organization including its affiliated businesses is included in the same Municipal Unit.


7. The application for inclusion of an investment plan for the modernization of an existing unit in accordance with the cases of par. 1, requires the certification of the completion of a previous investment plan of the unit that has been included in this regime.


8. The submitted investment plans are developed in each Regional Unit, subject to par. 9, and may be divided into sections exclusively and only in cases where they are inextricably linked parts of the same - single investment plan, which has the character of an initial investment, except that they are governed by a different institutional framework or differ in the intensity of the defined subvention. In cases where the investment plan is structured in sections, the subventioned expenses must be completely distinct and governed by the provisions of articles 6 and 7 hereof in their entirety.


9. Investment projects located in the Regional Unit of Mykonos and from the Regional Unit of Thira, in the Municipality of Thira, except for the Municipal Community of Thira, are not subject to this regime.


Eligible Expenses

1. The eligible costs of investment projects for which regional subvention is granted, subject to more specific terms and conditions provided for herein, are the following:

a. Investment costs in tangible assets and specific costs for:

ah. The construction, expansion, and modernization of building facilities, as well as special and auxiliary facilities of the buildings, and for constructions to ensure accessibility for people with disabilities, as well as landscaping of the surrounding area. These costs cannot cumulatively exceed sixty percent (60%) of the total supported costs of the project. The above coefficient is established at eighty percent (80%) for investment projects implemented in buildings, which are classified as preserved. These costs are also supported if they are carried out on constructions which, at the time of submission of the request for inclusion in the subvention regimes herein, have been subjected to law 1337/1983 (A' 33) or to law 4178/2013 (A' 174) or in law 4495/2017 (A΄ 167). The beginning of the payment of the subvention cannot be carried out, as long as the approved physical object of the investment includes constructions for which the above process of legalization or regularization has not been completed.


ab. The purchase of all or part of the existing fixed assets, such as buildings, machinery, and other business establishment equipment, under the following conditions, which must be cumulative:


1. the business establishment has closed at least two (2) years before the date of submission of the application for incorporation,

2. the purchase is made by the entity of the investment plan, which is not related to the seller of the business establishment of c. i unless it is a small business, which is acquired by an employee of the original owner, who is not related up to the 3rd degree to the owner/owners of the unit that ceased operation (in the case of a legal entity, the owner means the natural persons who own a share/shares of the company/share capital) and the employment relationship lasted at least two (2) years,

3. the relevant transaction is carried out under normal market conditions. These eligible costs shall deduct the cost of assets which have previously been granted or subsidized through development laws or other subvention schemes prior to their purchase,

4. The purchase and installation of new modern machinery and other equipment, including technical installations and means of transport that move within the premises of the joining unit.


ad. The rents of the financial lease leasing of new modern machinery and other equipment, the use of which is acquired, provided that the leasing contract stipulates that the equipment becomes the property of the lessee at the end of the contract.


ah The modernization of special facilities that do not concern buildings, and mechanical facilities,


b. Investment costs in intangible assets, and specific costs for: ba. The transfer of technology, through the purchase of intellectual property rights, licenses, patents, know-how and non-proprietary technical knowledge, bb. quality assurance and control systems, certifications, supply and installation of software and business organization systems.


The expenses of the sub. ba and bb must cumulatively meet the following conditions:


i. to be used exclusively in the business establishment that receives the subvention and to remain connected to the project, for which the subvention is granted, for the period of compliance with the long-term obligations of paragraph b of article 25,


ii. to be included in the depreciable assets of the business,


iii. be purchased in accordance with the terms of the purchase by third parties unrelated to the buyer.



For large enterprises, the subsidized costs for intangible assets cannot exceed thirty percent (30%) of the total subsidized regional subvention costs. For SMEs, the maximum percentage is set at fifty percent (50%).


c. The salary cost of the new jobs created because of the implementation of the investment plan is calculated for two (2) years from the creation of each position. The above salary cost is an eligible expense only independently and not in combination with para. a' and/or b' and if an initial investment is implemented.


2. When the eligible costs are calculated based on the estimated salary costs of the new jobs resulting from the implementation of the investment plan, the following conditions must be met cumulatively:


a. The investment project entails a net increase in the number of employees expressed in Annual Labor Units (ALUs) in the business establishment and respectively in the enterprise, compared to the ALUs. of the previous twelve months from the date of submission of the affiliation application,


b. the filling of all jobs takes place within three (3) years from the date of completion and start of productive operation of the investment, and


c. each job created through the investment is maintained in the specific aided facility for a period of at least five (5) years for large, four (4) years for medium enterprises and three (3) years for small enterprises, from the date of its first payment.


Eligible expenses other than regional subvention


1. The investment projects subject to this regime may be reinforced in addition to the regional subvention for the eligible costs of article 6 and for the following categories of eligible costs: a. Costs for consulting services to SMEs. These costs are defined in paragraph 1 of Annex B of law 4887/2022 and in Article 18 of the G.A.K. and refer to studies and consultancy fees for investment plans of new small and medium-sized enterprises and cannot be the subject of continuous or periodic activity, nor be linked to the normal operating costs of the enterprise. A new business is considered a newly established business that has not been closed at the time of submitting the application for inclusion in the administrative use regime.


b. Vocational training costs.


In particular, the following costs are eligible: a) personnel costs of the trainers, for the hours during which the trainers participate in the vocational training, b) operational costs of trainers and trainees directly related to the vocational training project, such as travel costs, materials and supplies directly related to the project, depreciation of logistics and equipment, to the extent that they are used exclusively for the vocational training project. Excluded are accommodation costs, except for the minimum necessary accommodation costs of trainees who are workers with disabilities, c) costs of consultancy services in relation to the vocational training project, d) staff costs of trainees and general indirect costs, such as administrative costs, rents, and general expenses, for the hours during which the trainees participate in the vocational training. c. The costs for participation of SMEs in trade fairs.


By the Hellenic Republic