L. 5203/2025 Sustainable development, productive transformation of the Greek economy - Amendment of provisions of the Development Law 4887/2022 - Strong Growth for Greece

Law 5203/2025 has been published in the Government Gazette (A' 87/02-06-2025), introducing amendments to the previously applicable Development Law 4887/2022.

With the establishment of 12 state aid schemes for investment projects, an effort is being made to promote the extroversion and competitiveness of the Greek businesses and of the domestic economy in sectors including modern technologies, green transition, social entrepreneurship, supply chain, and more.

The schemes target large, medium-sized, small, very small, and startup businesses aiming to support specific sectors and geographical areas of the Greek economy and to simplify the existing procedures for granting aid and incentives.

Objective

More particularly, the objective of the new development law is to promote sustainable development at national level, which includes reducing social and regional inequalities, enhancing interventions to address the acute demographic problem of the country, in conjunction with the productive transformation of the Greek economy. Such actions aim to shape a new productive model with an enhanced role for the industry and manufacturing, while also attracting larger investments with a strong multiplier economic footprint.

The «12» aid schemes

• L. 5203/2025 introduces twelve (12) schemes for granting state aid to investment projects. Please note that the scheme “Research and Applied Innovation” which was a separate scheme under Law 4887/2022, is now incorporated  into "Modern Technologies” scheme. The aid schemes are now structured as follows: 

1. Modern Technologies (NEW)
2. Green Transition - Environmental business upgrade
3. Social Entrepreneurship and Handicrafts Scheme (NEW)
4. Special Aid Areas Scheme (NEW)
5. Agri-nutrition - primary production and processing of agricultural products - fisheries and aquaculture
6. Manufacturing - Supply chain
7. Business extroversion
8. Support for tourism investments
9. Alternative forms of tourism
10. Large-scale investments
11. European value chains
12. Entrepreneurship 360^o

The announcement pertaining to each aid scheme is issued in the first and third quarter of each year, pursuant to a decision made by the Minister of Development.

Key Changes

• Incentives for fast-track licensing are provided for the schemes "Special Aid Areas Scheme" and "Large-scale Investments”.
• Incentives for the granting of loans are offered with the guarantee or support of the Greek State, either through the "Development Law Financial Instrument Guarantee Fund" or alternatively through another financing tool of the Hellenic Development Bank (HDB) or the European Investment Bank (EIB).
• The maximum thresholds/ amounts of aid granted are increased.
• Each entity is from now on allowed to submit an application for the same investment plan under more than one aid scheme.
• For aid co-financed by the "National Strategic Reference Framework (“ESPA”) for the period 2021-2027, as additional requirement is for the project to adhere to the principle of not causing significant harm to the environment.
• The evaluation of investment plans under all aid schemes will be conducted comparatively.
• Approval of investment projects is to be completed within 90 days (see also below).
• The inclusion decision is revoked in case of violations, and the granted aid must be returned with an additional surcharge of ten percent (10%).
• Energy efficiency measures in buildings are not eligible under non-regional aid expenditure categories.
• A certification is issued upon audit with respect to the completion of 25% of the physical and economic object of the investment.
• The aid in the form of tax exemption may be utilized annually annually, up to one half (1/2) of the total approved tax exemption amount, in case provided that completion of fifty percent (50%) or sixty-five percent (65%) of the cost of the investment project is certified.
• Fees for submitting an application for submission, for requesting an inspection regarding completion and for requesting modifications of the investment plans are non-refundable.

Types of aid

As for the types of aid, there is no differentiation under Law 5203/2025. Therefore, the types of aid provided under this regime may take the following forms:

• Tax exemption: exemption from the payment of income tax on pre-tax profits, minus the tax of the legal entity or legal person that corresponds to the profits distributed or assumed by the partners. The amount of the tax exemption is calculated as a percentage of the value of the eligible expenses of the investment plan or the value of the new machinery and other equipment acquired through financial leasing, which constitutes an equivalent reserve that is maintained in a separate account in their financial statements.
• Subsidy: provision of a monetary amount from the State to cover a portion of the eligible expenses of the investment plan.
• Subsidy for financial leasing: partial coverage by the State of the financial leasing installments, paid for the acquisition of new machinery and other equipment.

Procedure regarding the submission of applications, evaluation and audit of investments plans

With respect to the procedure for submitting an application for the inclusion of an investment plan in a specific aid scheme, please note that there is  no signification alterations compared to the previous scheme.

• Application: The application for inclusion, as well as the required supporting documentation is submitted through the Development Law Information System. The competent approval authority is notified electronically for their receipt and registration.

The receiving authority for the applications is determined in the announcement of each aid scheme. The following entities may be designated as receiving authorities:

1. the General Directorate of Development Laws and Foreign Direct Investments of the General Secretariat for Private Investments of the Ministry of Development,
2. the Directorates of Development Planning of the various Prefectures of Greece,
3. the Directorate of Private Investments of the Ministry of Internal Affairs, Macedonia - Thrace Sector.

• Evaluation: The evaluation is carried out by the Evaluation Committee or by a member of the National Registry of Certified Evaluators (E.M.P.A.) or by a member of the Registry of Certified Auditors or may be assigned, through the issuance of a ministerial decision, to the Intermediate Body of the Operational Program “COMPETITIVENESS AND ENTREPRENEURSHIP” (E.F.E.P.A.E.) or to financial institutions.

Evaluation of the investment plans is always comparative and initiates as of the lapse of the deadline for submission of applications to the relevant state aid scheme. Evaluation shall be concluded within a ninety (90) - day period.

• Audit: Investment plans subject to aid schemes are audited during their implementation, at the stage of completion and commencement of the productive operation of the respective investment as well as for their compliance with their long-term obligations. Such audit may be either administrative, that is, based on the documents included in the file, or on-site, as well as regular or unscheduled.

EY possesses extensive experience and expertise in the design and implementation of investments through co-financed instruments, having successfully managed a significant number of proposals in the fields of energy, environment, new technologies, manufacturing, supply chain, business extroversion, and tourism.

EY operates with a holistic and personalised approach that assists beneficiaries of the Development Law's aid schemes in maximising the potential of the Law. Our consulting and technical services encompass the entire cycle of the aid leveraging, from assessing the eligibility of an investment project and providing recommendations for its alignment with the Law's requirements, to the preparation and submission of competitive proposals, monitoring the implementation of approved projects, and compiling the final completion reports.