INCENTIVES FOR REALIZING
PRODUCTIVE INVESTMENTS
Article 1
DEFINITION OF THE TERM ÒPRODUCTIVE INVESTMENTS
1 For the purposes of the provisions of this law, productive investments shall mean:
a. The construction, expansion and modernization of industrial plants, building installations, hotel facilities and auxiliary facilities of the eligible undertakings stipulated in article 2.
b. The purchase of completed or semi-completed industrial or craft industry building installations located in Hellenic Industrial Development Bank (ETBA S.A.) Industrial Estates and which belong in a proprietary capacity to those estates. Also, the purchase of unused, completed or semi-completed industrial or craft industry building installations whose construction began prior to the promulgation of the present law and which have remained idle and not used for productive purposes for at least two years before submission of the application seeking eligibility for the benefits of this law.
The above shall apply provided the said building installations:
(a) are located in Thrace
(b) are located in other areas but on the condition in this latter case that they are to be used for the relocation of undertakings from Area A (in accordance with instance [a] of paragraph 4, article 9). A prerequisite for the implementation of this provision is that the building installations do not belong to an undertaking, the majority of whose capital belongs to partners or shareholders having the majority of the capital in the undertaking realizing the investment.
A decision of the National Economy Minister shall determine the way and relevant details concerning the return of the investment grant and interest subsidy which may have been awarded in instances where the said building installations were included in investments which were made eligible for the provisions of Law 1262/82 (Government Gazette 70/A/82) and were not completed or ten years did not pass from the date of publication of the relevant decision confirming their completion.
c. The purchase and installation of new machinery and other mechanical and technical production equipment.
The purchase and installation of new systems for the automatization of processes and computerization (such as informatics or telematics systems).
Such expenditures shall include the purchase of the software necessary for the investment and staff training (during the stage of installation of the system).
d. Expenditures for studies and investments aiming at the import, development and application of modern technology (informatics and telematics), as well as the cost of installing a prototype test unit. The investment costs for applied research and the purchase of laboratory instruments or equipment for applied research in industry or mining. Expenditures for ergonomics studies and studies pertaining to the protection of the physical and mental health of workers.
e. Expenditures for relocation pertaining to the dismantling, transportation and reassembly (in the new location) of the existing equipment of the unit relocating (in accordance with that stipulated in paragraph 4 of article 9).
f. The construction of new storage areas, cold storage areas, areas for the drying and preservation of products and the purchase of new refrigerator trucks or refrigerated vessels.
g. The purchase of new means of transport for the movement of materials and the mass transportation of manual workers and office staff, as well as of equipment and facilities for the handling of materials.
h. The construction of new workersÕ homes to house the staff of an undertaking, nurseries as well as buildings or facilities or equipment intended for recreation or catering for manual workers and office staff, provided they are constructed in the area where the undertaking in question is located.
i. The construction, expansion and modernization of hotel installations, spa installations, centres for sea therapy, therapeutic and winter tourism centres, as well as the purchase of equipment for these installations, subject to the consenting opinion of the Greek National Tourist Organisation (GNTO) and on the basis of specifications to be stipulated by joint decision of the Ministers of Environment, Town Planning and Public Works and of Tourism.
j. Expenditures for the repair, restoration and conversion of traditional houses or buildings into guest houses or hotels, irrespective of whether they are situated in or outside settlements designated as traditional or listed. The renovation of hotels of a traditional character which are listed and which are protected by special legislation with respect to building specifications. Expenditures for the renovation of buildings designated as traditional, historical or listed, incurred by nonprofitmaking legal persons for the purpose of adapting them for social and cultural activities.
k. The purchase of breeding stock by livestock undertakings and of propagation material by agricultural and livestock undertakings and fish farms. l. Expenditures for investments aiming at the construction, expansion, modernization and equipping of central markets, slaughterhouses and premises intended for social and cultural activities.
l. Expenditures for investments aiming at the construction, expansion, modernization and equipping of central markets, slaughterhouses and premises intended for social and cultural activities.
m. The purchase of craft industry premises in standardized craft industry buildings situated on Industrial Estates or in multi-storey craft industry centres built or being built by ETBA, either alone or in cooperation with the Hellenic Organisation for Small- and Medium-Size Enterprises and Handicraft Undertakings (EOMMEX), as well as in multi-storey craft industry buildings whose construction was funded by ETBA loans, irrespective of when they were constructed and used.
n. The erection, expansion and modernization of facilities and the purchase of equipment for undertakings providing support services to tourist and hotel units.
o. The construction, expansion and modernization of marinas in locations and according to specifications to be approved each time by the GNTO, the Ministry of Environment, Town Planning and Public Works and the Ministry of Merchant Marine.
p. The construction, expansion and modernization of conference centres, subject to approval by the GNTO and in accordance with specifications to be determined by joint decisions of the Ministers of National Economy, of Environment, Town Planning and Public Works, and of Tourism.
q. The construction, expansion and modernization of golf courses and all necessary facilities as well as the purchase of the necessary equipment subject to the approval of the GNTO.
r. Expenditures for the construction or conversion of building installations, either in Greece or abroad, for the needs of export trading companies, in order to be used as storage, refrigerated or exhibition areas, or as facilities for the drying, preservation and sorting of products or as packing houses, as well as expenditures for the purchase of new equipment for the above facilities, including quality control equipment, computers and other systems for the computerization or automatization of the operating procedures of such undertakings. Also, the expenditures for the purchase of new refrigerator trucks and refrigerated vessels.
This instance concerning the eligibility of export trading companies has been abolished.
s. The purchase and installation of second-hand machinery and the purchase by or contribution to a legal person in the course of establishment of semi-completed or completed industrial building installations, but only for the purposes stipulated in paragraph 4 of article 2, i.e. for investments abroad (Albania).
t. The purchase and installation of means of transport equipment (apart from the equipment for the infrastructure and movement of the means of transport) on the condition that the means of transport are necessary for the transportation of persons and goods to areas which are isolated, inaccessible and at a great distance from the main body of the country.
u. The exploratory and preparatory work of mining companies.
2 The following are not classed as productive investments: The acquisition of passenger vehicles of up to six (6) seats, office furniture and fixtures, building plots, sites and parcels of land.
Nor are the following considered productive investments:
a. The construction or expansion of building installations on land which does not belong in a proprietary capacity to the investor.
b. The construction and expansion of hotels of all operational types lower than B class, the construction, expansion and modernization of self-catering accommodation, rented rooms and rented furnished apartments irrespective of class, the modernization of hotels of all operational types lower than C class and the construction and modernization of organized camp sites.
c. The modernization of hotels of all operational types before ten years have passed since the hotel began operating or since the completion of the investment for the hotelÕs modernization, which investment has been made eligible for the provisions of the present law or of Law 1262/82 (Government Gazette 70/A/82) or of Law 1116/81 (Government Gazette 8/A/81).
3 By way of exception, the following are classed as productive investments:
a. the construction of building installations on land which does not belong in a proprietary capacity to the investor, provided the use of such land has been granted to the said investor for a period of at least 20 years by the State, the GNTO, the ETBA Industrial Estates (including those operating under the regime of a free zone) or by local government organisations.
b.investments in greenhouses, camp sites and winter tourism centres as well as the construction, expansion and modernization of golf courses (with respect to the expenditures for establishment and equipment), on land, the use of which has been granted for this purpose to the investor for a period of at least 20 years.
c. investments in coastal aquaculture units.
d. the construction of building installations by undertakings which have become established in technology parks(1), on land, the use of which has been granted by the managing agency of the technology park for a period of at least 10 years.
MINIMUM SIZE OF PRODUCTIVE INVESTMENT
1 The minimum size of a productive investment in order to be made eligible for the provisions of the present law with respect to the investment grant and interest subsidy is as follows:
(1) According to Min. Dec. 2287/93 of the Minister of National Economy,
the minimum size of productive investment which must be realized by craft industry and handicraft undertakings of all branches in order to be made eligible for the provisions of Law 1892/90 was set at 45 million drachmas, in the case of investments involving establishment or expansion.
b. For investments involving establishment or expansion by the other categories of undertakings of article 2: 60 million drachmas.
INCREASE IN THE MINIMUM SIZE OF TOURIST INVESTMENTS
For investments involving the expansion of the aforementioned categories of hotels/facilities/centres, the limit was raised to 200 million drachmas.
In Area D and in Thrace, the aforementioned limits were set
at 200 million drachmas and 100 million drachmas respectively.
c. For investments involving the repair, restoration and conversion of traditional listed houses and buildings into guest houses or hotels, in accordance with instance (j) of paragraph 1, article 1 and instance (o) of paragraph 1, article 2: 15 million drachmas(1)
(1) increased to 25 million drachmas by virtue of Min. Dec. 43500/94
d. For investments involving establishment or expansion by undertakings of instances (r) and (v) of paragraph 1, article 2: 2.5 million drachmas.
e. For investments involving modernization by undertakings of instances (r) and (v) of paragraph 1, article 2: 2.2 million drachmas.
f. For investments involving modernization by all the other categories of undertakings of paragraph 1, article 2: 10 million drachmas.
The limit for investments involving the modernization of the units referred to above (i to vii, see box) was set at 50 million drachmas. The minimum size of investment involving modernization for hotel companies which apart from the actual hotel unit also have certain of the facilities or centres referred to above (see box), is the sum of the minimum investment limit for the hotel unit and of the corresponding limits for all the other categories of facilities or centres being modernized by virtue of the investment.
The provisions of this paragraph do not apply for the investments of instances (a), (b), (c), and (e) of paragraph 1, article 9, i.e. investments involving environmental protection, energy, applied research laboratories and special institutions.
2 The limits of the preceding paragraph and the minimum investment
size for certain areas of economic activity or for regions with special problems may be readjusted by decisions of the National Economy Minister.
By virtue of Min. Dec. 43500/94(1),the following amendments
were introduced:
For investments involving the establishment of:
i. hotels
ii. spa facilities
iii. winter tourism centres
iv. marinas
v. conference centres
vi. golf courses
vii. sea therapy or therapeutic tourism centres (which are realized within the framework of the operation of hotel units) the minimum limit was increased to 300 million drachmas.
INCREASE IN THE MINIMUM SIZE OF TOURIST INVESTMENTS INVOLVING MODERNIZATION BY VIRTUE OF MIN. DEC. 43500/94(1) THE FOLLOWING
AMENDMENTS WERE MADE:
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