Greece is preparing a new package of tax breaks and fast-track licensing procedures aimed at attracting foreign direct investment, as the government seeks to steer overseas capital toward technology, advanced manufacturing and other sectors considered important to the country’s economic transformation.
A draft law released for public consultation by the Ministry of Development would offer qualifying investors income-tax exemptions, accelerated permitting and, in some cases, access to financing backed by the Hellenic Development Bank.
The proposed framework is designed to increase foreign investment while directing capital toward digital and technological transformation, innovation, skilled employment and economic activity outside Greece’s main urban centers.
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Eligible investments would range from €10 million to €50 million, with specific thresholds depending on the size of the company and the terms of each call for applications.
The government has identified a broad group of eligible sectors, including manufacturing and industrial production, research, applied innovation and artificial intelligence, biotechnology, industrialized primary production, defense and aerospace, logistics, healthcare and social care.
The foreign-investment program would open for applications once a year following a decision by the development minister. Each call would specify the available budget, source of public funding, eligible expenditures, incentive rates and evaluation criteria.
At the center of the framework is a corporate income-tax exemption. Companies admitted to the program would be exempt from paying tax on a portion of their pretax profits, with the benefit calculated as a percentage of eligible investment expenditure or the value of new equipment acquired through leasing.
The legislation also seeks to tackle a longstanding concern for investors in Greece: the time required to secure government approvals.
Under the proposed rules, licenses and approvals necessary for the construction, installation or operation of an eligible project—including planning and spatial approvals—would have to be issued within two months of the submission of a complete application file.
For international companies weighing investment destinations, faster and more predictable licensing could prove as important as the financial incentives themselves, particularly for industrial projects where administrative delays can significantly increase costs.
The legislation also provides financing support for smaller businesses. Investment projects by small and medium-size enterprises admitted to the program could receive loans backed by guarantees from the Hellenic Development Bank.
Eligible spending would include, subject to certain conditions, the construction, expansion and modernization of buildings and the purchase, installation or leasing of new machinery and equipment.
Support would also cover some intangible assets, including technology transfers, intellectual-property rights, licenses, patents, technical know-how, software and quality-control and organizational systems.
Operating expenses, furniture and ordinary office equipment would be excluded, along with passenger vehicles with up to six seats and purchases of land, plots or agricultural property.
Applications would be submitted electronically through the information system used for Greece’s Development Law. An Evaluation Committee would then have 90 days to complete its assessment and submit its report.
