Greece

Foreign tax credit

Tax paid abroad for income taxable in Greece is credited but is limited to the amount of Greek tax due.

Incentives for job enhancement

Under certain conditions, an increase of tax deductibility by 50% and up to 14 times the minimum wage of an unmarried employee over 25 years old per employment of the employers’ contributions is provided.

Scientific and technological research expenses

The expenses of scientific and technological research, including the depreciation of equipment and instruments used for these purposes, are deducted from the gross income of companies at the time of their realisation, increased by 100%.

Under the November 2024 amendment (L.5162/2024), effective from fiscal year 2025, this tax deduction is increased to 150% for expenses related to collaborations with companies in the National Startup Registry, recognised research centers, universities unaffiliated with the service recipient, as well as for depreciation of research equipment and instruments. Moreover, subject to specific conditions, this benefit can be further increased to 215% for small and medium-sized enterprises (SMEs).

The criteria for the characterisation of the above expenses are determined by a joint decision of the Minister of Finance and the Minister of Development, which is issued after a suggestion of the Governor of the IAPR. In the event that losses occur after deduction of the above percentage, they shall be carried forward for up to five years, in accordance with Article 27 of the Greek ITC. 

With effect from September 2022, according to Article 12 of L. 4965/2022, for R&D projects greater than EUR 60,000, certification of scientific and technological research expenses by a certified auditor or audit firm is mandatory.

Patent incentives

According to the provisions of Article 71A of the Greek ITC, the profits of a company arising from the exploitation of an internationally recognised patent in its name and developed by itself are exempt from income tax for up to three consecutive years, starting from the year in which these profits were realised for the first time. The exemption is granted on the condition that there is a connection with the research and development (R&D) expenses incurred by the company for the development of the patent.

Moreover, the amount of the above-mentioned exemption is calculated as follows:

Eligible R&D expenses / Total R&D expenses x Profits from the exploitation of the patent = Exemption amount

The numerator may be increased up to 30%, on condition that it does not exceed the total amount of R&D expenses. 

Additionally, the amount of the exemption, which is calculated as above, is depicted in a special reserve account and is subject to taxation in accordance with the general provisions of the Greek ITC when distributed or capitalised (i.e. upon use).

This exemption is granted provided that there is R&D expense that was carried out by the patent development company. 

According to the new law 5162/2024, from fiscal year 2025, the following modifications have been made:

• Extended exemption period: Businesses that have developed and hold internationally recognised patents are entitled to an income tax exemption for profits from these patents for up to three consecutive tax years. Additionally, for the following seven years, there is a 10% exemption from the income tax payable on the company's profits from the exploitation of the patent.
• Calculation of exemption: The method for calculating the exemption remains the same, but the new law emphasises the connection between the patent and the R&D expenses incurred by the company for its development.

These changes aim to further incentivise innovation and the development of patents by providing extended tax benefits.

Other tax incentives

Strategic Investment Law

The framework of strategic investments is used to support large-scale investments that, due to their strategic importance for the national or local economy, can strengthen employment, productive reconstruction, and the promotion of the natural and cultural environment of the country, according to the principles of socially just, inclusive, balanced, and sustainable development, with the main characteristics being the attraction of investment funds, extroversion and export activity, innovation, competitiveness, integrated planning, saving natural resources in the perspective of the circular economy, and high added value, especially in areas of economic activity of internationally tradable products or services. Specific rules apply for green projects.

Recent amendments expand the framework for Emblematic Investments of Exceptional Importance. The updated criteria now cover projects that promote the green economy, technological innovation and low-carbon development, including renewable energy and hydrogen production systems, offshore wind and floating PV installations. The scope also extends to investments in critical raw materials, the circular economy, and the shipbuilding industry, as well as projects that significantly strengthen the competitiveness of the Greek economy in internationally tradable sectors

Investment plans are classified based on investment size, FTEs, and industry sectors in four categories: Strategic Investments 1, Strategic Investments 2, Emblematic Investments, and Fast-track licensed Strategic Investments. Types of aid vary depending on the kind of investment but typically include (i) spatial planning, (ii) income tax rate stabilisation, (iii) fast track licensing, (iv) tax exemption, (v) cash grants for capex/opex (only for emblematic investments, and (vi) cash grants for R&D or recruiting disabled. It should be noted that tax exemption can be used for a period of 15 years.

Aid intensity is calculated on 651/2014 (GBER) provisions and are subject to absolute maximums. In particular, regional aid is calculated based on the region of the investment (regional aid map) and company size, and R&D is calculated based on type of research and company size.

Important notes:

• Pursuant to Law 5255/2025 (Government Gazette A’ 219/28.11.2025), it is stipulated that eligibility for the incentives provided under Articles 8 and 10—individually or cumulatively—requires that each investment project be completed by the deadline defined in the respective Funds or financing schemes.
• Projects and investments funded through the Strategic Investment Law cannot additionally be funded by any other incentive (for the same expenses).
• Aid claim shall be submitted before start of works.

Development Law - Sustainable Development, Productive Transformation of the Greek Economy

Enacted in June 2025, the new Development Law ’Sustainable Development, Productive Transformation of the Greek Economy‘ represents a major overhaul of Greece’s investment-aid framework, prioritising challenged regions, streamlines licensing, and broadens the incentive mix to accelerate green, digital, and large-scale projects.

Key updates at a glance:

• 12 targeted aid regimes covering modern tech, green transition, social entrepreneurship, agri-food, manufacturing, tourism, and large investments.
• Focus on challenged areas (border zones, disaster-hit regions) with enhanced aid intensities and fast-track licensing.
• Diverse incentives: Tax exemptions, grants (including for medium-sized enterprises under the new law), leasing and employment subsidies.
• A threshold is introduced for the types of aid available to individual investment projects, as well as to companies and corporate groups, in order to ensure a wider dispersion of state aid beneficiaries.
• EUR 20 million cap per project, per enterprise (EUR 50 million per group) with exceptions for large investment projects).
• New financing tools: European Investment Bank (EIB)-guaranteed loans for large investments; Hellenic Development Bank (HDB)-guaranteed SME loans across all regimes.
• Procedural reforms: 90-day evaluations, ’multiple submissions – single approval‘, stricter activation deadlines, and fast-track licensing for large and special-area projects.

In detail, this new legislative framework is an amendment of Law 4887/2022 and introduces a comprehensive and modernised structure for state aid schemes, aiming to promote sustainable development, regional cohesion, and the green and digital transition of the Greek economy. The Law provides a general framework, specified for each aid scheme foreseen through ministerial decisions issued. In essence, the provisions of the new Law start to apply following the issuance of the relevant ministerial decisions. Up to date, the Ministry of Development and Investments has solely proceeded with the issuance of ministerial decision for the following aid schemes: 'Manufacturing - Supply chain', 'Enhancement of Tourism Investments', 'Agri food - primary production and processing of agricultural products - fisheries and aquaculture', ‘Entrepreneurship 360°’, ‘Special Aid Areas Scheme’ and ‘Large-scale Investments’.

Under the Law, an explicit reference to the provisions of the General Block Exemption Regulation (GBER) 651/2014 and its susbsequent amendments is made.

General Section

The General Section of the new Law regulates the beneficiaries of aids provided, the terms and prerequisites for participation, the covered investment projects, the eligible expenses, the types of aids, the procedure regarding the filing of applications and evaluation of investments projects, as well as the issues regarding the implementation and completion of investments projects.

Beneficiaries of the aid schemes are commercial companies, cooperatives, social cooperative companies of Law 4019/2011, groups of producers, organisations of producers, agricultural partnerships of Law 4384/2016, urban cooperatives, companies under formation or under merger (on the condition that they have been incorporated or merged before the commencement of the project), public and municipal enterprises and their subsidiaries (under specific conditions), joint ventures provided that they have been registered with General Commercial Registry (GEMI), and individual companies with a maximum eligible investment project cost of EUR 200,000 and solely for the aid scheme 'agri food - primary production and processing of agricultural products - fisheries and aquaculture'.

As regards the terms and prerequisites for participation, it is provided that the compulsory nature of own participation is abolished. The participation of the beneficiary in the cost of the investment project can take place either through own equity or through external financing. The main prerequisite is that 25% of the total investment cost does not contain state aid, support, or subsidy.

The minimum investment amount ranges from EUR 50,000 (for social cooperative companies, agricultural partnerships, groups of producers, organisations of producers, urban cooperatives, and agricultural partnerships) to EUR 1 million (for large companies). Moreover, for medium-sized companies, the investment amount is set at EUR 500,000, for small companies at EUR 250,000, and for very small companies at EUR 100,000. The minimum investment amount may vary in certain schemes (indicatively, under the Special Aid Areas Scheme the minimum investment amount is set at EUR 2 million and in Large Investments at EUR 15 million). 

The investment projects that fall under the aid schemes should have the character of initial investment (buildings, machinery, intangible) and meet certain conditions (indicatively, creation of new plants, extension of existing plants’ capacity, etc.).

The investment projects that are covered by the Law relate, in principle, to all economic sectors, subject to certain exceptions (sector of steel, coal, synthetic fibres, etc.). Under certain conditions, the covered investment projects could also relate to:

• Production or co-production and distribution of heat from renewable energy sources and production of electricity by small hydroelectric projects.
• Tourism.
• Logistics services.

In respect of the eligible expenses, these are divided into: (i) eligible expenses of regional state aid nature based on the Regional State Aid Map (capital expenditure in tangible and intangible assets, employment cost of new employees) and (ii) eligible expenses of non-regional state aid, which aim to broaden and enrich the investment options towards new qualitative directions. The maximum amounts and percentages of regional state aids and non-regional state aids are also being determined. Based on the general framework, the maximum amounts and percentages of each individual aid scheme are being specified, in accordance with the provisions of the Special Section of the new Law.

Further, with regard to the types of aid, the following types are provided:

• Tax exemption (exemption from the payment of CIT on profits, before taxes, generated from the total business activity of the company, following the deduction of the CIT that corresponds to the profits distributed to the company’s shareholders).
• Subsidy of funds in order to cover part of the eligible expenses of the investment project.
• Subsidy of leasing for the acquisition of new machinery and other equipment (which cannot exceed the period of seven years).
• Subsidy of employment cost (which cannot be enhanced with any other state aid).
• Business risk financing only for Modern Technologies and Social Entrepreneurship and Handicraftaid schemes.
• Aid scheme providing loan guarantees through the Hellenic Development Bank S.A.

Aids can be provided either separately or in combination thereof and are all taken into account for the determination of the total aid amount of each investment project. The types of aid are granted (and, respectively, the benefit starts to apply), following a relevant certification, either in lump sum (following the issuance of the decision certifying the completion and the commencement of the productive operation of the project) or gradually (according to the specific requirements per each type of aid granted).

Moreover, as regards the support and implementation of the Law (filing of applications, documentation file, evaluation, etc.), all procedural matters shall be carried out under specific conditions, by:

• the General Directorate of Development Laws and Foreign Direct Investment of the General for Private Investments of the Ministry of Development
• the Directorate of Development Planning of the country's Regional Authorities, or 
• the Directorate of Private Investments of the Ministry of Interior, Macedonia-Thrace Sector.

The evaluation process includes the stage of completion and legality control and the evaluation stage and is carried out either through the method of comparative evaluation or through the method of direct evaluation. Investment projects that fall under the aid schemes are audited at any time and at any stage of implementation of the investment project or at any stage of fulfilling their long-term liabilities.

The approval decision is revoked for investment projects that have been included under the framework, if 10% of the eligible investment cost has not been implemented within 24 months from the publication of the summary of the approval decision. 

Special Section

Aid schemes

In the Special Section of the Law, the following aid schemes are being prescribed:

• Modern Technologies
• Green transition - Environmental Enterprise Upgrade
• Social Entrepreneurship and Handicraft
• Special Aid Areas Scheme
• Agri-food - Primary Production and Processing of Agricultural Products - Fisheries - Aquaculture
• Manufacturing - Supply Chain 
• Enterprise Extroversion
• Enhancement of Tourism Investments
• Alternative Forms of Tourism
• Large-scale Investments
• European Value Chains
• Entrepreneurship 360°

The beneficiaries, the eligible expenses, the type of aids, the percentage of aids, the implementation procedure, as well as the evaluation and audit process are being specifically prescribed per each separate scheme of aid.