PurposeThe scheme Strengthening tourist investments, aims at a wide field of tourist investments that mainly concern the creation, expansion and modernization of an integrated form of tourist accommodation, with the aim of qualitatively upgrading the quality of the tourist product.DEVELOPMENT LAW SUPPORTING TOURISM INVESTMENTS Beneficiaries of the Development LawBeneficiaries of the scheme, are the investment bodies that are established or have a branch in the Greek Territory at the time of commencement of the investment project and have one of the following forms:a. Trading company, b. Cooperative, c. Social Cooperative Enterprises (S.E.P.), Agricultural Cooperatives (AS), Producer Groups (O.P.), Producer Organizations (O.P.), Urban Cooperatives, Agricultural Corporate Partnerships (A.E.S.), d. Consortiums engaged in commercial activity, e. Public and municipal enterprises and their subsidiaries (subject to conditions).Investment budgetTo be included in this aid scheme, the minimum amount of the eligible cost of the investment project amounts to:a. 1,000,000 euros for large companies,b. 500,000 euros for medium-sized enterprises,c. 250,000 euros for small businesses,d. 100,000 euros for very small businesses,e. 50,000 euros for Social Cooperative Enterprises (SOEs), as well as Agricultural Cooperatives (AS), Urban Cooperatives, Producer Groups (PO) and Agricultural Partnerships (AES).Financial SchemeThe financial participation of each institution in the cost of the investment plan can be covered either with own funds or with external financing, provided that twenty-five percent (25%) of the supported cost does not contain any state aid, public support or provision.REINFORCEMENT OF TOURIST INVESTMENTS Eligible investment projectsa) establishment or expansion of hotel units at least 4*,b) modernization of an integrated form of hotel units that belong to or are upgraded to category 3* at least, after five years from the start of operation of the unit or from the date of completion of the previous investment modernization of the integrated form of the unit, as well as modernization of non-main tourist accommodations, as long as they are upgraded to category 3* at least,c) extension and/or modernization of a complete form of hotel units that have ceased operation, for at least 2 years before the date of application, provided that during the period of interruption the use of the building has not changed and that, through the extension or modernization of integrated form are upgraded to category 4* at least,d) establishment, expansion and/or modernization of integrated form of tourist organized camps (camping), which belong to or are upgraded to category 3* at least,e) establishment and/or modernization of integrated form of hotel units within designated traditional or preserved buildings, which belong to or are upgraded to category 3*,f) establishment, expansion and/or modernization of complex tourist accommodation, which belong to or are upgraded to category 4* at least as defined in Law 4276/2014 (A’ 155 ), which are submitted as single plans, not including buildings and facilities to be transferred or leased for a long time,h) establishment, expansion and/or modernization of condo hotels, as defined in Law 4276/2014, which belong to or are upgraded in a category 4* at least and under the condition that the transfer or long-term lease of these reinforced parts takes place after the end of the long-term obligations of the investment body.Establishment or modernization of non-main tourist accommodation, as long as cumulatively:g) bear the distinctive title “hospitality guesthouse”, gb) are implemented within traditional settlements in one of the following areas: i) mountainous areas, ii) areas located at a distance of up to thirty (30 ) kilometers from the borders, iii) islands with a population of less than three thousand one hundred (3,100) inhabitants, g) are classified in a category of five (5) keys, according to the decision No. 12868/2018 (B’ 3119) of of the Minister of Tourism and zd) maintain a minimum number of twenty (20) rooms for rent.Limitations– Only one (1) investment project per entity including its affiliated businesses is subject to the same Municipal Unit.– Excluded from the scope of the aid of Law 4887/2022 are investment projects in the field of Tourism and for the next two years, the Regional Unit of Mykonos and from the Regional Unit of Thira, the Municipality of Thira, except for the Municipal Community of Thira.TOURISM DEVELOPMENT LAW Types – Intensity of SupportThe investment plans of the “REINFORCEMENT OF TOURIST INVESTMENTS” regime are strengthened with the incentives of tax exemption, grant, leasing subsidy and subsidizing the cost of the employment created. For medium and large enterprises, the aid includes the above incentives except the grant. The aid percentages for the eligible costs of the initial investments are granted based on the maximum intensity limits of the Regional Aid Map as follows:Organization Size Tax Exemption Subsidy Financial Lease Cost of Employment Created Small 100% 80% 100% 100% 90% or 100% of the CHPE in special categories* Medium 80% – 80% 80% 90% or 100% of CPE in special categories* 90% or 100% of CPE in special categories* 90% or 100% of CPE in special categories* Large 80% – 80 % 80% 90% or 100% of the CPE in the special categories* 90% or 100% of the CPE in the special categories* 90% or 100% of the CPE in the special categories* * Special Categories Increased aid rates are granted to the investment projects implemented in: a. mountainous areas, b. areas up to thirty (30) kilometers from the border, c. islands with a population of less than three thousand one hundred (3,100) inhabitants, d. areas affected by natural disasters. e. 90% of the CPE if the investment projects are implemented in buildings classified as preserved,Amounts of Aid– The total amount of aid per investment project submitted by very small and small businesses cannot exceed 3 million euros for all types of aid.– The total amount of aid per investment project submitted by medium and large enterprises cannot exceed: – EUR 3 million for the aid of the leasing subsidy or the subsidy for the cost of the employment created, as well as the grant in the case of the aid for medium enterprises in the Regional Units of Thrace – the 5 million euros to strengthen the tax exemption.The aid provided to each investment plan entity, including aid to cooperating or affiliated companies, cannot cumulatively exceed 20,000,000 euros for an individual company and 30,000,000 euros for all cooperating or affiliated companies.SUPPORT FOR TOURISM INVESTMENTS 2023Map of Regional SupportGreece – NUTS Regions Support Percentages Large businesses Medium businesses Small & micro businesses EL41 North Aegean / Voreio Aigaio 60% 70% 75% EL42 South Aegean / Notio Aigaio 40% 50% 60% EL43 Crete / Kriti 50% 60% 70% EL51 Eastern Macedonia, Thrace/ Anatoliki Makedonia, Thraki 50% 60% 70% EL52 Central Macedonia / Kentriki Makedonia 50% 60% 70% EL53 Western Macedonia / Dytiki Makedonia 50% 60% 70% EL54 Epirus / Ipeiros 50% 60% 70 % EL61 Thessalia / Thessalia 50% 60% 70% EL62 Ionian Islands / Ionia Nisia 40% 50% 60% EL63 Western Greece / Dytiki Elláda 50 % 60% 70% EL64 Sterea Elláda / Sterea Elláda 40% 50% 60% EL30 Attica/Western Sector / Dutikos Tomeas/ 15% 25% 35% EL30 Attica/East-West Attica/Piraeus/Islands / Anatoliki-Dutiki Attiki / Peiraias / Islands 25% 35% 45% EL65 Peloponnisos / Peloponnisos 40% 50% 60% Municipality of Megalopolis, Tripoli, Gortynia, Oichialia 50% 60% 70% – For the North Aegean Region the maximum aid rate is set for large businesses at 55% , for medium-sized enterprises at 65% and for small and very small enterprises at 75%– In the investment projects implemented by medium-sized enterprises in the regional units of Rodopi, Evros and Xanthi, the incentive of the grant is also provided, at a rate of 60% for the Regional Unit of Evros and 30% for the Regional Units of Rodopi and Xanthi, of the rate provided by the other provisions of this aid rate with the remaining tax exemption rates being 40% and 70% respectively.– For the investment projects implemented in the Depoliticization Zones, which are the Regional Units of Florina and Kozani and the Municipality of Megalopolis, the aid rates are the highest of the Regional Aid Chart, depending on the size of the business and according to the defined types of aid.– For the investment projects implemented in the Regional Units of Kastoria and Grevena and in the Municipalities of Tripoli, Oichalia and Gortynia, the grant rate for small and very small businesses is set at 90% and for medium and large businesses the rate of tax exemption is set at 90 % of the upper limit of the Regional Aid Map.TOURIST ACCOMMODATION DEVELOPMENT LAW Eligible ExpendituresEligible Regional Aid Expenditures – Expenditure Categoriesa. Building Facilities. Costs of construction, expansion and modernization of building facilities, special and auxiliary facilities of the buildings as well as the building constructions to ensure accessibility for people with disabilities. b. Environmental design projects. Earthworks, Landscaping, Plot fencing, Biological cleaning structures, Plantings, Environmental electrical installations, Environmental plumbing, Water supplyThese expenses cannot cumulatively exceed 60% of all supported expenses of a regional nature and 80% for investment projects implemented in buildings, which are classified as preservedc. Mechanical equipment – techniques – special facilities. Purchase & installation of modern machinery, including technical installations and generally arrangements made for their permanent installation and connection to the production circuit. Costs of construction, purchase, supply or modernization of special facilities (e.g. heating facilities, air conditioning units or storage tanks).d. Other equipment. Expenses for purchase and installation of other equipment and/or Purchase of furniture and office equipment only if it is a basic part of the productive equipment of the investmente. Means of transport. all types of vehicles with which the company carries out transport and movement of staff and customers, provided that they move within the premises of the unit. Vehicles with up to 6 seats are not eligible.f.Purchase of fixed assets of a unit that has ceased operation at least two years before the date of submission of the affiliation application, – Purchase of the property (building) of the unit – Purchase of the mechanical and other equipment of the unitg. Intangible assets. Expenditures for the transfer of technology – know-how, Certification of products and quality assurance procedures, Purchase, software development, Business organization systemsh. Salary cost of new jobs. Eligible is the wage cost expenditure of the new jobs created as a result of the implementation of the investment plan, calculated for a period of two (2) years from the creation of each position.Eligible costs outside of Regional AidsThe total amount of aid per investment project concerning eligible costs outside of regional aids cannot exceed 100,000.00 euros calculated within the limits of cases a and b.a. Investment costs for consulting services in SMEs. These costs concern studies and consultancy fees for investment projects of new small and medium enterprises. These costs are supported up to 5% of the total supported cost of the investment project and up to the amount of 50,000 euros.b. Expenses for professional training (upgrading qualifications or retraining). Eligible are the expenses related to upgrading qualifications or retraining employees. Education / training of staff (existing and new) of the business in matters important for the operation and organization of the business, which clearly contribute to its goal according to the submitted business plan.c. Subsidies for SME participation in trade fairs. Expenses for renting, setting up and managing a stand for participating in a trade fair. The costs are eligible, as long as the participation in the exhibition is directly related to the physical object of the investment project. For the participation of SMEs in trade fairs, the intensity of the aid does not exceed 50% of the eligible costs and the costs are supported up to 10% of the total supported cost of regional aid.TOURISM DEVELOPMENT LAW Assessment of Investment PlansIn order to be included in this regime, it is necessary to carry out an assessment of the investment plans, which includes a legality check, as well as an assessment of reasonable costs and a check of rating indicators:a. Legitimacy check, for each investment plan, includes the following with penalty of disqualification: aa. Full compliance of the affiliation application and the investment project under approval with the provisions of Law 4887/2022 ab. documentation of the solvency of the entity of the investment plan, (tax and insurance awareness) ag. documentation of the possibility of financing the cost of the investment project through equity or external financingb. The evaluation of reasonable costs is carried out on the basis of: ba. Assessment of the reasonable cost of the eligible costs of the investment plan, pp. assessment of the submitted sustainability analysis of the investment project.c. The control of rating indicators is carried out on the basis of criteria that are specified by the use of specific indicators which are rated based on specific characteristics of the investment plan or the investment entity.The criteria are divided into 4 Groups: i. Investment Plan Maturity Criteria Group with a score range of 0 to 10. ii. Group of Evaluation Criteria of the financing scheme with a score range of 0 to 25. iii. Group of Evaluation Criteria of the institution of the investment plan with a score range of 0 to 25. iv. Evaluation criteria group of the investment project with a score range of 0 to 40. The total score of the investment projects implemented in the Evros Regional Unit is increased by 10% and of the investment projects implemented in the Xanthi and Rodopi Regional Units is increased by 5%. The minimum score required for each investment project to be included in the rankings is 70 points.
