NEW STATUS OF DEVELOPMENT LAW 4887/2022 "Strengthening Tourism Investments"

May 19th 2023 1:55pm

NEW STATUS OF DEVELOPMENT LAW 4887/2022 "Strengthening Tourism Investments"

Aug 9th 2022 1:55pm

The "Strengthening Tourism Investments" Status of the Development (Investment) Law 4887/2022 was published by the Ministry of Development and Investments. [here]

The participation applications last from 05.09.2022 with the closing date of the submission cycle on 05.12.2022. The evaluation is comparative (no order of priority) while the results of the Evaluations are expected to be immediate (45 days from the end of the Submission cycle).

The program amounts to 150 million Euros and subsidizes investment projects that aim to upgrade the quality of the tourism product and belong indicatively to the following sectors:

• Establishment or expansion of at least 4* hotels
• Modernization of the integrated form of existing hotels owned or upgraded to at least 3*. A prerequisite is that 5 years have passed since the start of operation of the unit or the date of completion of a previous modernization
• Hotel units that have ceased operation, without their use having changed and as long as they are owned or upgraded to 4*
• Establishment, expansion and modernization of a camping of at least 3*
• Establishment/modernization of an integrated form in traditional or preserved buildings which belong to or are being upgraded to a category of at least 3*
• Establishment of youth hostels, subject to conditions

Expenditures are subsidized for Building Projects, Landscaping, Purchase of Machinery and Hotel/Mechanical/other Equipment - Furniture, etc. Intangible costs, salary costs as well as consulting fees and studies are also supported (eligible costs are described below).

The subsidy rates follow the New Support Charter (2022 - 2027), where small/very small businesses are increased by 20%, while medium-sized businesses are increased by 10%. The maximum Support can be up to 75%, either as a grant or as a tax exemption (subject to conditions).

The granted incentives are the following:

1. Tax exemption.
2. Grant
3. Leasing subsidy.
4. Subsidizing the cost of the new employment created.

Investment projects start from 100,000 euros (net value) depending on the size of the business. The object of each investment must concern the Creation of a new unit, or the Expansion/Modernization of an integrated form existing unit.

The evaluation is based on specific quantitative criteria (discussed below) where a proposal must receive at least 50% to be included in the tables to be evaluated.

New Additions to the Development Law

The New Law includes new procedures, such as:

• Sole proprietorships are not eligible under the Tourism status.
• The Regional Unit of Mykonos and the Municipality of Thira are not eligible, except for the Municipal Community of Thirasia (in the Tourism status). The Northern, Central & Southern Sectors of Athens are also not included (applies to all statuses of the Development Law)
• An investment plan is submitted per entity in the same Municipal Unit (including affiliated businesses).
• All modernizations of existing units presuppose the certification of completion of any previous accessions to the status of the Development Law.
• The results of the evaluations are announced within 45 days of the end date of the status.
• Applications for projects over 700,000 euros require a certification report signed by a member of the Hellenic Chamber of Economics, registered in the National Register of Certified Appraisers (covered by our company).
• The publication of each announcement is planned to have a fixed annual cycle (either for cases of immediate or comparative evaluation). No extension is provided for the Application Submissions.
• There is a possibility of an intermediate phase grant during the implementation of 25% of the project (through a Chartered Accountant's report).

PRESS RELEASE  Ι MINISTRY WEBSITE  Ι  GOVERNMENT GAZETTE 4210/Β/9.8.2022

[CHARTER % SUPPORT 2022]  Ι % SUPPORT PER REGION  Ι  Activity Code Numbers (ΚΑΔ) 2008

The Investment Center (Business Consultants - NSPR Consultants) provides complete and comprehensive support, from the first eligibility check, the estimation of the expected score (pre-assessment) as well as the preparation - submission of an excellent business plan which will yield the maximum possible score. With over 10 years of experience, we fully undertake the integration and support of businesses.

 See successful examples of Approved Businesses from the Investment Center for the Development Law since 2010.

More information at 2108028330, 2810823002, (info@kei.gr).

☆More than 10 years of experience in business Upgrade support ☆

*NSPR Consultants: PEP, OAED, Tourism NSPR, Leader, Development

The high success rates  in recent sponsored programs are the guarantee of the excellent support from our firm.

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