- 1. GREECESNEWINVESTMENT INCENTIVES & FINANCING TOOLSExplore the opportunity MINISTRY OF DEVELOPMENT SPECIAL SECRETARIATFOR COMPETITIVENESS MANAGEMENT AUTHORITYFOR THEOPERATIONAL PROGRAMME'COMPETITIVENESS AND ENTREPRENEURSHIP'Eleftherios Stavropoulos Special Secretary for Competitiveness [email_address]
2. Overview of Greece 3. Greececan serve as thespringboard for U.S. firms entering the evolving markets in the region
- Location:Southern Europe, bordering the Aegean Sea, Ionian Sea, and the Mediterranean Sea, between Albania and Turkey
- Border countries:Albania 282 km, Bulgaria 494 km, Turkey 206 km,FYRoM246 km
4. Greeceandthe evolving markets in the region
- Greeces proximity to other countries in southeastern Europe, and the traditional trade ties of Greek business people with these neighboring countries, offer a variety of opportunities for U.S. businesses with Greek partners.
- Greece, particularly through its northern port city of Thessaloniki,offersa natural gateway to the Balkan countries.
5. Greeceandthe evolving markets in the region
- Greek firms enjoy good commercial ties to central and eastern European markets as well, including the Black Sea region.
- U.S. firms may wish to target these markets from a base in Greece or to explore three-way arrangements with Greek companies or partners.
6. Location 7. Greece offers investors a favorable investment environment
- Economic and political stability
- Growth above EU average(4,2% in 2008)
- Accessibility to the sizeable emerging markets of the Black Sea, the Eastern European and the Eastern Mediterranean regions. This may be achieved by setting up a company in Greece or by teaming up with one of the thousands Greek companies that are active in these markets .
8. Greece offers investors a favorable investment environment
- Generous investment incentives(up to 60%)
- Productive and highly skilled human resources
- Competitive industry sectors, optimal supply and great variety of raw materialsand infrastructure
- A great infrastructure network, upgraded for the 2004 Olympic Games
9. Greece offers investors a favorable investment environment
- One of the top tourist destinations in the world that attracts more than 14 million visitors annually
- A unique culture and a good environment to live and to work!
10. Sectorswith Market Opportunities
- Information Technology and Business Software; Medical Equipment;
- New Thermal and Renewable Energy Power Plants; Systems and Equipment;
- Environmental Equipment and Engineering Services; Security and Safety
- Equipment; Telecommunication Services.
11. Sectorswith Market Opportunities
- Services represent the largest and fastest growing sector of the Greek economy.
- Trade, banking, insurance, transportation and shipping, communications, healthcare, education, and tourism are the largest service sub-sectors. The world-wide economic slowdown has already negatively impacted some of these sectors,howeverthis represents anopportunity to enter .
12. Sectorswith Market Opportunities
- Energy is a best prospect for U.S. companies because of the deregulation of Greeces energy sector. There are many opportunities for U.S. businesses in the electricity, gas and renewable energy sectors.
- US Commercial Service2009 Country Commercial Guide for U.S. Companies
14. The role of the Special Secretariat for Competitiveness
- Our objective is to improvethe competitiveness and extroversion of enterprises and industry emphasizing oninnovation.
15. The role of the Special Secretariat for Competitiveness
- This objective will be attained through actions supporting:
- The development of healthy, sustainable and extrovert entrepreneurship,
- The acceleration of thetransition to the knowledge-based economy
16. The role of the Special Secretariat for Competitiveness
- The goal of making Greece a more attractive place for developing business activitiesthat promote sustainable development
- Our financial tools = 2Operational Programmes , which are co-financed by the European Union:
- Operational ProgrammeCompetitiveness 2000-2006
- 3 billion public spending
- Operational ProgrammeCompetitiveness and Entrepreneurship 2007-2013
- 3.2 billion public spending
- Development of the necessary infrastructure for entrepreneurship and investments support
- Simplification of Business Environment by simplifying business legislation
- Motivation for business modernization and attraction of new investments
- The investment incentives law is applicable to enterprises having business activities in the following sectors:
- Primary (e.g. greenhouses, animal farms, fisheries etc.).
- Secondary (e.g. manufacturing, energy etc).
- tourism (hotel units, conference centres, marinas, thematic parks, golf courses, development of mineral springs, thalassotherapy centres, health tourism centres, centres for training-sports tourism etc).
- other services (e.g. applied industrial research laboratories, commercial centers, software development, supply chain services, logistic centers etc.).
- Business activities which fall under the provisions of the Law are divided in two (2) categoriesand are described in detail. The exempted cases which fall under other incentive means are also noted.
INVESTMENT INCENTIVES LAW 20. 21. INCENTIVES ON OFFER
- For the investment projects which fall under the provisions of the Law, the following incentives are available:
- Cash grant, which covers part of the expense for the investment project by the State
- Leasing subsidy, which covers part of the payable installments by the State relating to a lease which has been entered into for the use of new mechanical and other equipment
- Wage subsidy for employment created by the investment.
- Tax allowance. This incentive allows income tax exemption on non-distributed gains. The allowance is effective upon completion of the investment for the first ten (10) years of operation. It is created through a tax exempted reserve.
22. Cash grant / Leasing subsidy OR Wage subsidy for employment created To medium size enterprises, as these are from time to time defined in theE.U. legislation, an additional percentage of subsidy up to 10% is granted.To small and very small enterprises an additionalpercentage of subsidy up to 20% is granted. 35% 25% 15% Category 2 40% 30% 20% Category 1 Zone C Zone B Zone A Investment Category 23. TaxallowanceEmployment positions relative to the investment are considered new employment positions which are created for the assistance of the investment within the first three years of its completion and start of productive operation. The subsidy is payable on the expenses for wages for the total employment positions relative to the investment for the first two years as of the creation of each employment position. By expenses for wages it is understood the salary before taxes and the compulsory contributions to social security. Eligible for the grant are enterprises which operate in every sector of the economy, if they fulfill the criteria for the submission to the incentives system, as laid out in the Law. 100% 100% 50% Category 2 100% 100% 60% Category 1 Zone C Zone B Zone A Investment Category 24. GREEK INNOVATION SYSTEM WWW.GSRT.GR
- 12 research centers covering the following disciplines:
- natural sciences (33 institutes)
- engineering(7 institutes)
- information technologies (7 institutes)
- social sciences(4 Institutes)
- humanities (5 Institutes)
- S&T Parks and Incubators forthe development of innovative and knowledge-intensive enterprises :
- 7 public S& T Parks (Athens, Crete, Patra, Thessaloniki, Epirus, Thessalia, Lavrion)
- 8 Incubatorswith private sectors participation(Athens, Thessaloniki)
- Sector oriented technology companies aiming atsupportingthe competitiveness of their corresponding sector through the provision of tailored services of technological or scientific nature to the enterprises of each sector :
- c eramics and refractories
- metallurgy and metallic material