The Development Law 2025 (Law 5203/2025) brings a new breeze to the business landscape of Greece, aiming at sustainable growth and the productive restructuring of the economy. With an emphasis on manufacturing, innovation, and extroversion, this law offers a wide range of incentives for businesses seeking to invest in sectors with a strong developmental and environmental footprint.
🔍 What the Development Law 2025 Provides
🎯 Objectives and Priorities
The new law focuses on stimulating entrepreneurship in regions facing significant developmental or demographic challenges, such as population decline and natural disasters. At the same time, it emphasizes strengthening industry, manufacturing, and innovation, with the goal of increasing productivity and competitiveness in the Greek economy.
💰 Types of Aid
The law provides five main types of support:
- Tax exemption: Exemption from paying income tax on pre-tax profits.
- Capital grant: Financial support from the State to cover part of eligible expenses.
- Leasing subsidy: Coverage of part of the financial lease for up to seven years.
- Wage cost subsidy: Applies to new jobs created within the framework of the investment.
- Business risk financing: Includes coverage of interest rates or insurance premiums on high-risk loans.
📊 Maximum Aid Limits
The maximum aid amounts are set at up to €20 million for individual companies and up to €50 million for groups of connected or collaborating enterprises. Additionally, a 50% increase is provided if the aid is granted in the form of a tax exemption.
🧭 Who Can Benefit
The Development Law 2025 targets businesses of all sizes seeking to invest in areas such as:
- Industry and manufacturing
- Innovation and digital technologies
- Green development and environmental upgrading
- Agri-food sector and aquaculture
- Tourism and alternative forms of tourism
Particular emphasis is placed on investments that contribute to job creation, the promotion of extroversion, and the reduction of social and regional inequalities.
⚠️ What to Watch Out For
- Strict timelines: Investment plan approvals will be completed within 90 days of application submission, through a fully digitized evaluation system.
- Implementation clause: In case less than 10% of the investment is implemented within two years, exclusion from the program is foreseen.
- Penalties in case of withdrawal: If the inclusion decision is revoked, an additional 10% is imposed for the repayment of the aid.
📝 In Conclusion
The Development Law 2025 is an important tool for strengthening entrepreneurship and the competitiveness of the Greek economy. With targeted incentives and a focus on sectors with high growth potential, it offers opportunities for businesses aiming to invest in the country’s future.
For more information and to see if your business meets the requirements, you can visit the official website of the Ministry of Development or consult your accountant or financial advisor.
Elina Karamanou CEO | Co-Founder | Business Consultant at AFS
