The Ministry of Development and Investment has published the announcement of the second round of the “Strengthening Investment in Tourism” scheme of the new Development Law 4887/2022.

The purpose of the scheme is to assist a wide range of tourism investments, which are mainly related to the creation, expansion and modernization of integrated tourism facilities throughout the territory in order to improve the quality of the tourism product. According to the published official gazette, the total budget of the scheme for 2023 is 150,000,000 euros, of which 75,000,000 euros are for tax exemption assistance. The remaining 75,000,000 euros are related to grant support, rental subsidies and subsidies for the cost of created jobs and come from the public investment budget of the Ministry of Development and Investment.

The minimum acceptable cost of investment projects is:

a) EUR 1,000,000 for large companies.

b) 500,000 euros for medium-sized enterprises.

c) EUR 250,000 for small businesses.

d) EUR 100,000 for a very small business.

e) 50,000 euros for social cooperative enterprises (SOEs) as well as agricultural cooperatives (AS), urban cooperatives, producer groups (PO) and agricultural associations (AES)).

Assistance rates can be up to 75% of the approved budget, depending on the size of the business and the location of the investment.

Investment projects submitted for support under the Development Act must be in the nature of a comprehensive seed investment and, in particular, meet one of the following conditions:

– Create a new module.

– Expansion of capacities of the existing division.

– Diversification of the unit’s output into products it never produced or services it never provided.

– A fundamental change in the entire production process of an existing installation.

In particular, investment projects related to:

a) Creation or expansion of hotel units of at least four stars.

b) Integrated form upgrades of accommodation units that are rated or upgraded to at least a three-star category after five years from the start of operation of the unit or from the date of completion of previous investment in integrated form unit upgrades.

c) Extension and/or modernization of the integrated form of hotel units that ceased operation at least two years before the date of application for accession, provided that through the expansion or modernization of the integrated form they will be upgraded to a category of at least four stars.

d) creation, expansion and (or) modernization of a complex form of organized tourist bases (camping sites), related to or raising the category of at least three stars.

e) Creation and/or upgrading of an integrated form of hotel units in designated traditional or preserved buildings that are rated or upgraded to at least three stars.

f) Creation, expansion and/or modernization of complex tourist facilities, as defined in Law 4276/2014 (Α΄ 155), which are categorized as at least four stars or upgraded to it.

g) Creation or upgrading of non-essential tourism facilities, if they are cumulative: they are distinguished by the name of “hotel house” and are implemented within traditional settlements in one of the following areas:

– Mountainous areas, according to the ELSTAT classification, with the exception of the municipalities included in the urban complex of Athens.

– Areas located at a distance of up to 30 kilometers from the border.

– Islands with less than 3,100 inhabitants.

They are classified into a category of five keys according to no. 12868/ 07/24/2018 (Β΄ 3119) the decision of the Minister of Tourism and maintain a minimum number of 20 rooms for rent, as indicated in the permit documents.

h) Creation, expansion and/or modernization of condo hotels, as defined in Law 4276/2014, which are rated at least four stars or upgraded to it.

It is noted that:

– Investment projects located in the Regional Unit of Mykonos and from the Regional Unit of Thira, in the Municipality of Thira, with the exception of the Municipality of Thira, are not subject to this regime.

– The minimum required score that each investment plan must achieve in order to be included in the ranking is 70 points.

Applications are submitted through the Development Laws Information System (PS.-Αv) at the online address (https://opsan.mindev.gov.gr). The full text of the announcement and details can be found on the new website of the General Secretariat for Private Investment and PPP.

Applications are accepted from 06/12/2023 to 10/13/2023.

* Ms. M. Paspalari is the Managing Director of AMBIO SA.