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Tax exemptions for investments in CapEx under the Greek investment incentives Law

Submission Deadline: September 20, 2020

The Investment Incentives Law scheme “Mechanical Equipment Aid”, aims to strengthen businesses with tax exemptions concerning expenses for capital (eg. Production equipment, Heating, Air conditioning, Ventilation units, Substation – Electrical Installations, Liquid or gas determination waste systems, Installation of compressed air and / or gases, Pumps, Fire detection – Firefighting, forklifts, storage systems, H/W, S/W, ISO systems, knowledge transfer etc), provided that they relate to the creation of a new facility or to the capacity expansion or modernization in an existing facility.

Features of the program:

The tax exemption consists of the exemption from the payment of income tax on pre-tax profits, which arise on the basis of tax legislation, from all the activities of the company, deducting the tax of the legal entity or legal entity corresponding to the profits distributed. Tax exemption is up to the maximum of €5 mil.

The tax exemption is up to 55% of the investment, depending on the rates of the Greek Regional Aid Map and the size of the company.

Eligible amount

The eligible amount is up to 55% of the eligible budget and at the range of 150.000€ to 5.000.000€. The exact eligible amount is determined based on the size of the company and the prefecture where the investment will take place.

The use of the tax exemption can be made in a period of 5 to 15 years from the moment of certification of implementation at least  50% of the investment plan.

Types of CapEx for tax exemptions:

Expenditures could be included in the scheme if they are related to:

  • Purchase and installation of new equipment such as machinery for production Line, machine bases, Heating facilities, Air conditioning – Ventilation units, Substation – Electrical Installations, Liquid or gas determination system waste, Installation of compressed air and / or gases, Pumps, Fire detection – Firefighting.
  • Purchase of vehicles for on-site use. The purchase of passenger cars up to six (6) seats is not supported.

Beneficiaries:

All types of companies could be eligible for the investment incentive, except of Non-Profit Organizations.

For more information, please contact VK PREMIUM on the bellow form: