Tourism sector: 75% aid for investments under the Greek Investment Law for the year 2023

Significant incentives (grants, tax exemptions  and wage subsidies) are entitled to companies that are investing in the Greek Tourism sector (i.e. investment plans for the establishment & expansion of hotels of at least 4*).

Type of aid:

• Grant
• Subsidy
• Tax exemption
• Wage Subsidy
• Leasing Subsidy

The maximum aid intensity is up to 75% of the eligible budget*.

*The maximum aid intensity depends on the geographical area where the investment will be applied.

Indicative activities – Tourism (Hotels – camping – condo hotels)

• Establishment or expansion of hotels of at least 4*
• Modernization of hotels that belong to or are being upgraded to a category of at least 3*, under the condition that 5 years have passed since the start of operation of the unit or the date of completion of a previous modernization
• Establishment, expansion and modernization of camping that belong to or are upgraded to a category of at least 3*
• Expansion or modernization of hotels that have stopped operating, provided that there has been no change of use of the building and that they are upgraded to at least a 4* category
• Establishment and modernization of an integrated form of hotel units in traditional or preserved buildings which belong to or are being upgraded to a category of at least 3*
• Establishment, expansion and modernization of complex tourist accommodation facilities
• Establishment of joint ownership hotels (condo hotels), provided that the transfer or long-term lease of enhanced buildings takes place after the end of the long-term obligations of the investment entity

Maximum aid intensity: up to 75% of the eligible budget.

Maximum amount of aid: up to €5.000.000

What are Condo Hotels?
They are 4* or 5* hotels, on parts of which, in the form of independent apartments or houses, horizontal and vertical properties can be established and long-term leased to third parties, provided that the latter undertake the obligation to grant them against at an agreed price to the operator of the tourist business freely for use as parts of the hotel, for a period of six (6) months per year and for a period of at least 20 years. The long-term lease is concluded for a period of at least ten (10) years.

What is a Complex Tourist Accommodation?
A complex accommodation includes, within the same property, a 5* class hotel, a special tourist infrastructure facility (such as thermal tourism facilities, golf course, tourist port, sports tourism training center, conference center, entertainment theme park, etc.) and tourist furnished houses.

Minimum investment amount of business plans

• Very small sized companies: 100.000 €
• Small sized companies: 250.000 €
• Medium sized companies: 500.000 €
• Large sized companies: 1.000.000 €

Aid percentages

The amount of aid provided to each investment project depends on the size of the qualifying enterprise (investment vehicle) and on the prefecture where the investment plan is implemented.

Aid percentages per Greek Region

Exceptions

Investment projects that will be implemented in the Central, North, South Sectors of Athens, in the Regional Unit of Mykonos island and in the Municipality of Thira which belongs to the Regional Unit of Thira island are not eligible for the above grants. 

Eligible Expenses

Expenses which qualify for the incentives provided by the new law for qualifying investments refer to tangible and intangible assets as well as to Research and Development projects and programs.

The most important provisions are the following:

• Construction, expansion and modernization of buildings, of special and auxiliary facilities and the cost of landscaping. These costs may not exceed 40% of the subsidized cost of the investment project.

• The purchase and installation of modern machinery and equipment.

• New leasing rentals of brand new machinery and other essential equipment. The equipment can also be acquired, if the lease includes an obligation to purchase these at the end of the lease.

• Intangible assets, such as spending quality assurance and quality control, certification, supply and installation of low interest ware and system organization of the business spending on technology transfer through the purchase of intellectual property, licensing, patents, know-how or unpatented technical knowledge etc. Intangible assets must be depreciable assets used exclusively in the assisted investment to remain at the premises for at least five years and the cost does not exceed 50% of the subsidized cost of the project.

Deadline for the submission of applications: October 13, 2023

Click Here to Read More about Investment Incentives Law In Greece

The article was updated at 22/05/2023

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