The types of incentives are categorized as follows:
- Grant
- Tax Exemption
- Leasing Subsidy
- Employment Cost Subsidy
- Venture Capital Financing (only for the “New Entrepreneurship” regime)
Incentives may be granted individually or in combination.
- Grant
A grant consists of a non-repayable financial amount provided by the State to cover part of the eligible expenses of the investment plan. It is determined as a percentage of these expenses. For the grant incentive, there is a restriction that existing businesses, established more than 7 years ago, must have at least one profitable fiscal year to qualify for the grant or leasing subsidy.
- Tax Exemption
This involves exemption from paying income tax on the pre-tax profits generated according to tax legislation, from the total activities of the company. The corporate tax corresponding to distributed or withdrawn profits by the partners is excluded. The amount of tax exemption is calculated as a percentage of the eligible expenses of the investment plan or the value of the new machinery and other equipment acquired through leasing. The exempt amount forms a reserve of the same value.
- Leasing Subsidy
This involves covering a portion of the leasing payments by the State, which are made for the acquisition of new machinery and other equipment. It is calculated as a percentage of the acquisition value of the equipment included in the payments. The leasing subsidy cannot exceed seven (7) years.
- Employment Cost Subsidy
This involves the State covering the wage costs of the new jobs created, which are associated with the investment plan and do not receive any other form of state aid.
- Venture Capital Financing via an Equity Fund (for the “New Entrepreneurship” regime)
Specifically, the venture capital financing incentive is implemented through an equity fund and takes the following forms, according to Article 21 of the General Block Exemption Regulation (GBER):
a. Equity or quasi-equity, or investment grants for the provision of venture capital financing, directly or indirectly, to eligible businesses.
b. Loans for the provision of venture capital financing, directly or indirectly, to eligible businesses.
Read more
Types of Incentives
14 June 2023
ΙΩΝΙΚΗ Finance
The types of incentives are categorized as follows:
- Grant
- Tax Exemption
- Leasing Subsidy
- Employment Cost Subsidy
- Venture Capital Financing (only for the “New Entrepreneurship” regime)
Incentives may be granted individually or in combination.
- Grant
A grant consists of a non-repayable financial amount provided by the State to cover part of the eligible expenses of the investment plan. It is determined as a percentage of these expenses. For the grant incentive, there is a restriction that existing businesses, established more than 7 years ago, must have at least one profitable fiscal year to qualify for the grant or leasing subsidy.
- Tax Exemption
This involves exemption from paying income tax on the pre-tax profits generated according to tax legislation, from the total activities of the company. The corporate tax corresponding to distributed or withdrawn profits by the partners is excluded. The amount of tax exemption is calculated as a percentage of the eligible expenses of the investment plan or the value of the new machinery and other equipment acquired through leasing. The exempt amount forms a reserve of the same value.
- Leasing Subsidy
This involves covering a portion of the leasing payments by the State, which are made for the acquisition of new machinery and other equipment. It is calculated as a percentage of the acquisition value of the equipment included in the payments. The leasing subsidy cannot exceed seven (7) years.
- Employment Cost Subsidy
This involves the State covering the wage costs of the new jobs created, which are associated with the investment plan and do not receive any other form of state aid.
- Venture Capital Financing via an Equity Fund (for the “New Entrepreneurship” regime)
Specifically, the venture capital financing incentive is implemented through an equity fund and takes the following forms, according to Article 21 of the General Block Exemption Regulation (GBER):
a. Equity or quasi-equity, or investment grants for the provision of venture capital financing, directly or indirectly, to eligible businesses.
b. Loans for the provision of venture capital financing, directly or indirectly, to eligible businesses.
Development Law 4887/2022
Read more
