The Greek government is set to introduce significant tax relief measures aimed at encouraging large-scale private investments, enhancing manufacturing and supporting the financing of startups. This new initiative follows a proposal by Minister of Development, Takis Theodorikakos and is expected to be announced in the first quarter of 2025.
According to official sources, the proposed tax exemptions align with common practices across EU countries, where tax breaks are a primary tool for stimulating investment, designed to boost the economy.
The tax relief for investments is calculated as a percentage of the eligible expenses of the business plan or the value of equipment acquired through leasing. The maximum amount of tax relief per investment can reach up to 5 million euros, while direct grants capped to 3 million euros. Additionally, a firm can only claim a maximum one-third of their total tax relief per year.
For instance, if a firm receives a 3 million euros tax exemption this amount can be utilized over a period of up to 15 years with any unused balance carrying over to subsequent years.
According to the Ministry of Development, businesses applying for tax breaks are typically those with the highest added value to the country’s GDP. These are firms that, after thoroughly assessing investment risks, demonstrate confidence in the sustainability and profitability of their ventures, thereby qualifying for the tax relief incentives.
Notably, the tax benefits are only accessible once investors have completed either 50% or 65% of their project, ensuring that the investments are well underway and likely to be successful.
The new tax bill, expected to be tabled in Parliament in the coming days, also includes a special section with incentives for business mergers, acquisitions, scientific research, and startup visas.
Theodorikakos, recently presented a plan focused on productive transformation, boosting investments, and supporting industry to promote growth and create new jobs across Greece.
He further revealed that a total of 150 million euros in tax exemptions will be allocated specifically for significant investments over 10 million euros, emphasizing the government’s commitment to attracting high-value projects that drive economic growth and technological advancement.
