The draft bill introducing the proposed reforms to the Development Law provides for €150 million in support for the Defense Industry through tax incentives and other investment incentives.
The scheme supports investment projects with dual-use applications in strategic sectors such as defense, as well as the manufacturing of vehicles and aircraft.
Eligible investment projects include those operating in the following sectors:
- Manufacture of weapons and ammunition
- Manufacture of motor vehicles
- Manufacture of electrical and electronic equipment for motor vehicles
- Manufacture of other parts and accessories for motor vehicles
- Manufacture of aircraft and related machinery
- Manufacture of military combat vehicles
Through the Development Law, aid of up to 75% of the eligible costs of the investment project may be granted.
As stated in the draft bill, the investment projects submitted must have the character of a complete initial investment project.
Forms of Aid
a) Tax super-deduction of expenses, increased by 100%
b) Fast-track licensing procedure in accordance with Article 9(3) of Law 4887/2022
Maximum Aid Amounts
- Per enterprise and per project: up to €20 million, subject to the notification thresholds set out in Article 4 of the GBER.
- In total, for affiliated or cooperating enterprises: up to €50 million
Application and Implementation Period
Aid is granted following an application by the beneficiaries.
In any case, the commencement of works of the investment project must take place within the years 2026, 2027, or 2028.
Aid Intensity
The maximum aid intensity is 75% depending on:
- the size of the enterprise, and
- the region where the investment project is implemented.
How we can support your business
At VK PREMIUM, we guide businesses through the respective funding process, from evaluating eligibility to preparing grant applications and maximizing incentives.
📩 Contact us today to explore how we could support your investment project!
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