SMEs: Tax Breaks, Grants, and Leasing Subsidies for Investments under the New Development Law

The new Development Law offers various types of support for SMEs, with the relevant bill currently in consultation until May 2. The updated Development Law, following its previous version from 2022, introduces new incentive regimes and modifies existing ones. It establishes incentives for rapid licensing of both large and small to medium-sized enterprises while improving the evaluation and control process of investments. Specifically, SMEs that integrate their business plans into the Development Law can benefit from support for advisory services, innovation development, energy costs such as energy efficiency measures, and initiatives related to the circular economy. Special provisions cover renewable energy production, environmental restoration, biodiversity protection, and climate change adaptation. Additional incentives include vocational training, installation of efficient heating and cooling systems, and hiring disadvantaged workers or those with disabilities. There are also specific provisions to boost investments in areas facing economic, climatic, and demographic challenges, including remote regions. The law outlines three main types of support: tax relief on pre-tax profits, grants to cover part of investment costs, and leasing subsidies lasting up to seven years. Beyond these, the law includes subsidies for creating new jobs, with the government covering part of the payroll costs for employees working on investment projects. For major investments, whether by large or SMEs, there is a fast-track licensing incentive, reducing the approval time to two months for project permits and three months for environmental approvals. Loans backed by Greek public guarantees are also available for SME investment projects under the Large Investment Support Regime, either through the Guarantee Fund or other tools from the Greek Development Bank. For integrated large investments, funding may come from the European Investment Bank with Greek public guarantees. Maximum aid amounts are capped at €20 million per enterprise and €50 million for groups of connected companies, with higher limits for tax relief.