Greece Encouragement Laws

Investment Incentives:

• Greece actively seeks foreign investment.  
• Foreign investors receive equal treatment to domestic investors regarding investment benefits.

Factors Attracting Foreign Investment:

• Membership in the European Union.
• Established business relationships with Balkan and Southeast European countries.  
• Comparatively lower labor costs than Western European countries.
• Double Taxation Prevention Treaties.
• EU development budgets.

Investment Benefits:

• Investment benefits are offered in the following forms:
  • Cash grants.
  • Income tax benefits (up to 10 years after investment completion).
  • Cash grants for new employee wages.

Regional Benefit Zones:

• Greece is divided into four investment benefit zones: A, B, C, and D.
• Zone D is further subdivided into D1, D2, and D3.
• Zone D, encompassing areas within 20 kilometers of Greek borders, offers the highest benefits.

Benefit Levels:

• Maximum benefit levels vary by zone.
• Potential benefits include:
• Cash grants up to 40%.
• Income tax exemptions up to 100%.
• Cash grants for new employee wages up to 48.19%.

Cash Grant Limits:

• Cash grants have specified upper limits.
• Certain investment types are exempt from these limits.

Investor Participation:

• Investors must have a minimum 25% equity participation in the investment to qualify for benefits.

Real Estate Restrictions:

• Restrictions exist on foreign real estate purchases in border areas and specific Greek islands due to national security concerns.