Article 9
SPECIAL INVESTMENTS
1 A grant amounting to 40% of the total productive investment cost in Areas B and C and 45% and 55% in Area D and Thrace respectively shall be awarded for the following investments carried out by the undertakings of article 2 of the present law:
a. Protection of the environment, reducing pollution of the soil, subsoil, water and atmosphere, restoring the natural environment and recycling water.
b. Energy-related investments involving:
[1] the exploitation of renewable sources of energy,
[2] the substitution of liquid fuels or electrical energy with gaseous fuel, processed refuse, renewable forms of energy, recovery of lost heat,
[3] the conservation of energy, provided that the investment does not consist in the production equipment, but rather in the equipment and installations for the operation of the unit and such equipment/installations result in a reduction of at least 10% of consumed energy per unit of manufactured product.
With respect to such investments, the reduction of environmental pollution is taken into consideration. The Ministry of Industry, Energy and Technology is responsible for recommending whether investments of this type should be made subject to the provisions of the present law, within 20 working days from the date of submission of the relevant request by the Ministry of National Economy.
c. Establishment or expansion of laboratories for applied industrial, energy or mineral research, realized by the productive units of article 2, paragraph 1.
d. The production of new products, subject to the implementation of instance (d) of par. 1, article 23b. New products are considered to be those which were not being produced at the time of submission of the application by other productive units in the country, either in an identical or variant form.
[1] The production of products and provision of services involving highly advanced technology.
[2] For the purchase and instal lation of highly advanced technology equipment for the production of products or the rendering of services.
With respect to the above categories of investments, the Ministry of Industry, Energy and Technology shall decide whether products may be designated as ÒnewÓ and whether products, services and equipment qualify for the designation Òhighly advanced technologyÓ, such opinion being based on the proposed investment plan of the Special Committee of Experts set up at the General Secretariat for Research and Technology of the Ministry of Industry, Energy and Technology, and shall issue its relevant opinion within 2 months from the date of submission of the relevant investment dossier to the competent service of the General Secretariat for Research and Technology.
The aforementioned Special Committee shall be formed by joint decision of the Ministers of National Economy and of Industry, Energy and Technology. By virtue of the same decision, the procedures and criteria for the examination by the General Secretatiat for Research and Technology of the above-mentioned categories of investments will also be determined.
Dossiers containing proposals for investments in this category may be submitted by investors directly to the General Secretariat for Research and Technology before submission of an application seeking eligibility for the provisions of the present law, provided that the dossier is accompanied by a certificate issued by the competent (as per case) service provided under this law, confirming that the dossier contains all the necessary data.
e. Investments by special institutions and workshops engaged in the rapid rehabilitation of persons with special needs with the aim of enabling them to find employment, in accordance with the provisions of Law 1648/1986 (Government Gazette 147/A/86) par. 4 (1), as well as investments by undertakings in which persons with special needs hold a majority interest or by undertakings employing mainly persons of this category. Undertakings shall be made eligible for this category on the recommendation of the Manpower Employment Organization submitted to the Ministry of National Economy, EOMMEX or the Agricultural Bank of Greece, as the case may be.
(1) Also protected are handicapped persons between the ages of 15-65 who have limited possibilities of employment due to any chronic physical, mental or psychological condition or defect, provided they are included in the register of handicapped persons of the Manpower Employment Organization.
Protection is also afforded to persons having children or siblings with serious psychological or psychosomatic problems rendering them more than 67% handicapped as well as to parents with 5 children and above or one of the children and not more than one member of the family.
The criteria, bodies and procedure for recognizing the capacity of the protected persons of the preceding paragraph were determined by decision 30435/19/24 Feb. 1987 of the Ministries of Health, Welfare and Social Security and of Labour.
f. Investments by undertakings engaged in the development of technologies and software, as well as laboratories engaged in applied industrial, energy or mineral research.
2 In Area A, a grant of up to 40 percentage points is awarded to undertakings realizing investments listed under (a), (b), (c), (d), (e) and (f) of the previous paragraph up to 5 billion drachmas.
The same investments by processing undertakings of over 5 billion drachmas and up to 25 billion drachmas are entitled to a grant of 30 percentage points for that part of the investment cost over 5 billion drachmas.
– Undertakings listed under (b) of paragraph 1, article 2 (i.e. agricultural, forestry, livestock and fishery/aquaculture undertakings using modern technology), which carry out investments in Area A, are subject to the grant and interest subsidy terms which apply to the undertakings of Area B.
– Undertakings of instance [x] (i.e. technical companies for their modernization, the replacement of their machinery and other equipment) are subject to the grant and interest rate subsidy terms which apply to Area B, irrespective of the area in which they are registered.
– Undertakings which carry out investments in Area A involving the repair, restoration and conversion of listed or traditional houses or buildings into guest houses or hotels. Also, the renovation of traditional-type hotels which are designated as listed, as well as of listed traditional or historical buildings by nonprofitmaking legal persons for the purpose of converting them into premises for social and cultural activities, are subject to the grant and interest subsidy terms applicable for Area C (1).
(1) A further 5 percentage points of grant are awarded provided that the said traditional buildings or houses are located in significant traditional settlements, as same shall be designated by a single joint decision issued by the Ministers of National Economy, of Environment, Town Planning and Public Works, and of Tourism.
A grant of 30 percentage points is awarded to the investments of this category realized in Areas B, C and D, with the exception of those carried out in Thrace which are entitled to the percentage of grant applicable for that area.
– The technical assistance and joint business action centres described in instance (d) of paragraph 1, article 2 which are set up in Areas A, B and C are entitled to the grant and interest subsidy applicable for Area C. Such centres established in Area D and Thrace are entitled to the grant and interest subsidy of those areas. The expenditures of the aforesaid centres incurred abroad qualify for the grant and interest subsidy applicable for Area C.
– Undertakings which carry out investments aimed at making use of or in general exploiting pearlite, bentonite, kaolin, pozzuolana, volastonite, vermiculite, zeolite, white marble and granite are subject to the grant and interest subsidy terms applicable for Area D, irrespective of the area in which they are located with the exception of Area A.
3 Investments by:
[1] agricultural, forestry, livestock and fishery undertakings using modern technology
[2] undertakings exploiting agricultural, industrial and urban refuse and waste
[3] undertakings of agricultural or agro-industrial co-operatives with respect to investments in mechanical means of sowing, cultivation, harvesting and the packing of agricultural products realized in any area, are subject to the grant and interest subsidy terms applicable for the undertakings of Area D, unless they are carried out in Thrace, in which case the terms applying for that region are applicable.
– Investments by mining and quarrying undertakings, irrespective of the area in which they are realized, are subject to the grant and interest subsidy terms normally applicable for undertakings of Area C, with the exception of those carried out in Area D and Thrace, which are entitled to the incentives provided for those areas.
RELOCATION
4 a. Undertakings relocating from Area A (including the Lavreotiki zone, the eparchy of Lagadas and the area west of the Axios river) to the ETBA Industrial Estates of Areas B and C or to Area D and Thrace or to the special zones of article 3 of the present law which enjoy the incentives of Area D, will be given a grant equal in size to the percentage of grant normally provided for these areas, increased by 10% for the ETBA Industrial Estates of Areas B and C, for Area D and the special zones entitled to the incentives of Area D. In the case of Thrace, an additional 15% of grant is awarded.
In the event that an undertaking which has just relocated simultaneously carries out an investment in the new location, in accordance with par. 1 of article 1 of the present law, the investment grant normally given (as per case) shall be increased by an additional 6 percentage points for the new investment expenditures in all cases, with the exception of Thrace for which the corresponding figure is 10 (additional) percentage points.
This provision also applies to the relocation of livestock and poultry undertakings of instance (b), paragraph 1 of article 2.
The validity of the establishment and operating permit for an activity which has been relocated expires irrevocably upon the publication of the decision confirming completion of the relocation investment and neither the same nor any similar permit may be issued for the location which was abandoned.
b. Undertakings relocating from Area A to the ETBA Industrial Estate in the prefecture of Thessaloniki are entitled to the percentage of grant of Area B. In addition, processing undertakings belonging to high-polluting branches which relocate from Area A to special areas with the suitable infrastructure (throughout the country) which will be designated by joint decisions of the Ministers of National Economy, of the Environment, Town Planning and Public Works and of Industry, Energy and Technology, are entitled to a grant of 50% for the expenditures of relocation, including expenditures for the construction of building installations in the new location. The aforementioned (high-polluting) branches shall be determined by virtue of the same decisions.
c. Undertakings relocating from Areas B, C and D to an ETBA Industrial Estate of the same or more favourable (vis-a-vis incentives) area, are entitled to the percentage of grant applicable for the ETBA Industrial Estate to which they relocate.
d. Undertakings relocating from Areas B, C and D and Thrace to the same or more favourable (vis-a-vis incentives) area shall, with respect to the relocation expenditures of instance (e) of paragraph 1, article 1, i.e. dismantling, transportation and reassembly of the existing equipment, be entitled to the percentage of grant applicable for the area to which they relocate.
This provision shall be implemented on the condition that the relocation of the unit is dictated by environmental concerns in accordance with legislation in force and provided the competent body has issued a relevant decision which must accompany the application seeking eligibility.
5 Joint decisions of the Ministers of National Economy and of Industry, Energy and Technology may stipulate branches of the manufacturing sector designated as Ôhigh priorityÕ. Undertakings carrying out investments in such branches in Areas B, C, D and Thrace shall be entitled to an additional grant of 5 percentage points.
6 Undertakings under instances: (s), i.e. publishing or printing undertakings of the Athens and Thessaloniki daily press with respect to all their publications as well as undertakings publishing daily provincial newspapers, and (z) i.e. treatment and rehabilitation centres and undertakings providing independent living accommodation to persons with special needs, of paragraph 1, article 2, which carry out investments in Areas A and B, shall be subject to the grant, interest subsidy, tax allowance and increased depreciation rate terms of the present law applicable for Area C.
7 With respect to investments carried out by undertakings of subparagraph (t), i.e. undertakings constructing or operating car parks (garages) for public use of paragraph 1, article 2, irrespective of the area in which they are realized, only a grant amounting to 300,000 drachmas for each lawful parking space shall be awarded.
This amount may be revised by joint decisions of the Ministers of National Economy and of the Environment, Town Planning and Public Works. Similar decisions shall stipulate the other terms and conditions under which such investments become eligible for the provisions of this law.
8 a. Undertakings under (u) of paragraph 1, article 2, i.e. undertakings operating marinas, conference centres and golf courses, as well as hotel undertakings carrying out investments involving the construction and modernization of marinas, conference centres and golf courses in any area, including Area A, shall be entitled to a grant of 25 percentage points in Area A and 35 percentage points in the other areas, including Thrace. The same percentages of grant shall also be given to undertakings under (n), i.e. undertakings operating spas and winter tourism centres which carry out investmentsin any area including Area A.
Instance 8b of Law 1892/90 has been abolished.
MERGER
9 In the event an investment is carried out by a corporation (A.E.) or limited liability company (E.P.E.) formed by the merger of undertakings active in their fields for at least 5 years, which had the minimum of production equipment required and did not belong to the same natural or legal person, such an investment shall be entitled to a grant increased by an additional five percentage points.This provision applies only to the undertakings of instances (a) and (b) of paragraph 1, article 2, i.e. processing industries, craft industry and handicraft undertakings of all branches, as well as agricultural, forestry, livestock and fishery undertakings using modern technology.
INVESTMENTS ABROAD
10 Investments by the undertakings stipulated in paragraph 4 of article 2 which are carried out abroad are entitled to the percentage of investment grant provided for Area D. In the case of the relocation of processing industries, craft industries and handicraft undertakings of all branches to specific regions and countries abroad (e.g. the entire territory of Albania), Area C shall be considered the area of relocation irrespective of the area from which the undertaking is relocating.
11 In order for undertakings of paragraph 4, article 2 which carry out productive investments to be made eligible for the provisions of the present law, the decision of the Minister of National Economy, notwithstanding the provisions of paragraph 2, article 7, shall be issued following the opinion of a special five-member committee to be chaired by the General Secretary of the Ministry of National Economy and which will be set up and formed by decision of the Minister of National Economy. The aforementioned eligibility may be conferred provided the investments proposed for each period of examination meet the viability criteria of paragraph 2, article 7 and, in addition, provided they contribute, to the greatest extent possible, to the expansion of the productive activities of border regions and to keeping the inhabitants of these regions in their place of residence.
12 Hotel undertakings and other undertakings providing services to the tourist sector which establish themselves and carry out investments in the Integrated Tourist Development Areas (POTA) as such areas are defined in article 3 of the present law, shall be entitled to the investment grant provided in instance (b) of paragraph 1, article 7 for the construction and expansion of hotel installations and installations for the provisions of support services to the tourist sector. Investments stipulated in instance (a) of paragraph 8, article 9 of the present law shall be entitled to the investment grant provided in this provision.
MODERNIZATION
13 Hotel undertakings carrying out modernization investments, in accordance with instance (ee) of paragraph 1, article 2, i.e. integrated forms of modernization of installations and equipment, shall be entitled to an investment grant of 25 percentage points in all areas, including Area A.
Contents Next Article Previous Article