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The Development Law 4887/2022 subsidizes productive investments for manufacturing units (establishment - modernization - expansion) as well as supply chain (logistics) companies. The total budget for the 4th cycle is €150 million.
The application period runs from April 17, 2026, to June 30, 2026. The evaluation is comparative (no strict priority order), and the evaluation results are expected promptly (within 90 days from the end of the submission cycle).
▲Key Program Elements
4th Cycle for the "Manufacturing - Supply Chain" Regime of the Development (Investment) Law 4887/2022 [here]
| Regime | Manufacturing – Supply Chain | Law | 4887/2022 | Cycle | 4th Cycle |
| Budget | €150,000,000 | Subsidy | Up to 75% | Evaluation | Comparative |
The program has a budget of €150 million (€75 million in the form of Tax Exemption and €75 million as a Cash Grant) and is aimed at businesses in the manufacturing sector and supply chain (logistics).
Subsidized expenses include Building Facilities and Landscaping, Machinery, and Mechanical / Other Equipment. Intangible assets, wage costs, as well as consultant/study fees are also supported.
▲Summary of Eligible Sectors
The eligible activities are briefly summarized in the following grouping of eligible NACE codes per sector:
Basic Manufacturing Categories (NACE 10 - 31)
- 10 - Food Industry: Processing of plant and animal products (olive oil, dairy, bakery, meat).
- 11 - Beverage Manufacturing: Production of alcoholic and non-alcoholic beverages, and water bottling.
- 13 - Textile Production: Spinning, weaving, and fiber preparation.
- 14 & 15 - Clothing and Leather: Apparel manufacturing, leather processing, production of footwear and travel goods.
- 16 - Wood Industry: Production of wood and cork products (excluding furniture).
- 17 & 18 - Paper and Printing: Production of paper goods, cardboard boxes, and printing/reproduction services.
- 20 & 21 - Chemicals and Pharmaceuticals: Production of basic chemicals, fertilizers, and pharmaceutical preparations.
- 22 & 23 - Plastics and Minerals: Manufacturing of rubber/plastic products and production of glass, ceramics, and building materials.
- 24 & 25 - Metallurgy: Production of basic metals and fabrication of metal products (frames, tanks, etc.).
- 26, 27 & 28 - Technology and Machinery: Manufacturing of computers, electrical equipment, and machinery.
- 29 & 30 - Transport Equipment: Manufacturing of motor vehicles and other transport equipment.
- 31 - Furniture Manufacturing: Production of furniture for all uses (domestic, professional).
- 33 - Repair and Installation of Machinery: Maintenance and repair of industrial equipment, ships, and boats, as well as the installation of specialized machinery.
Specialized Manufacturing (NACE 32)
- Manufacturing of jewelry from precious metals.
- Production of medical and dental instruments and supplies.
- Manufacturing of sporting goods and equipment.
- Production of all types of toys.
- Manufacturing of musical instruments.
Supply Chain / Logistics (NACE 52)
- Creation and modernization of storage and distribution centers.
- Supply chain management services.
- Logistics facilities that directly support trade and industry, improving transport times and product costs.
▲New Additions to the Development Law
- Evaluation results are announced within 90 days from the closing date of the regime.
- Applications for projects over €700,000 do not require a certification report from an Economist who is a member of the Registry.
- Medium-sized enterprises are now also eligible to receive the cash grant incentive.
- The investment body must implement at least 10% of the investment plan within 24 months from the publication of the approval summary, otherwise, it is rejected.
- The amount of aid granted to each investment plan does not exceed the limit of €20,000,000 (increased by 50% in cases of tax exemption).
- The minimum required score that each investment plan must gather is 50 points.
- The method of covering one's own participation is not scored, and the IRR indicator is not scored.
▲Frequently Asked Questions
1. What is the 4th Cycle "Manufacturing - Supply Chain"?
The 4th Cycle is an aid regime of the Development Law 4887/2022 and concerns investment plans in manufacturing, construction, and the supply chain. Its goal is to support productive investments, upgrade facilities, procure equipment, and strengthen businesses with a substantial developmental footprint.
2. Which businesses does it concern?
It concerns businesses planning to establish a new unit, expand existing capacity, diversify production, or fundamentally change the production process. It is of particular interest to manufacturing companies, craft industries, production units, logistics companies, and companies with a mature investment plan.
3. What expenses are subsidized?
Indicatively, building works, landscaping, purchase of new machinery, mechanical and other equipment, intangible assets, IT systems, certifications, consulting services, wage costs of new jobs, and special expenses under certain conditions are supported.
4. What is the minimum investment amount?
The minimum investment amount is formed according to the size of the entity. For micro-enterprises it starts at €100,000, for small enterprises from €250,000, for medium enterprises from €500,000, and for large enterprises from €1,000,000.
5. How is the evaluation conducted?
Evaluation is comparative and does not operate on a first-come, first-served basis. Applications are ranked based on their score, and the highest-scoring proposals are supported until the available budget is exhausted. For this reason, the quality of the dossier and the documentation of the investment plan are of particular importance.
6. Why is a preliminary assessment crucial?
A preliminary assessment helps to verify eligibility, estimate the score, identify gaps, and determine if the investment plan has a realistic prospect of inclusion. It is especially important before making any expenses, advance payments, or contractual commitments.
7. When should dossier preparation start?
Preparation must begin before the implementation of the investment plan and before any purchases, orders, or advance payments. In the Development Law, it is critical to observe the incentive nature of the aid, as the project must not have started before the application submission.
1. Basic Inclusion Conditions
Beneficiaries of the aids under the Development Law are businesses (existing, under establishment, under merger) that are established or have a branch in the Greek territory and operate as commercial companies (SA, Ltd, IKE, GP, LP).
The following corporate forms are also eligible: Social Cooperative Enterprises (Koin.S.Ep.), Agricultural Cooperatives (AS), Producer Groups (OP), Agricultural Corporate Partnerships (AES), businesses operating as consortiums, provided they are registered in the General Commercial Registry (GEMI).
Applications must strictly refer to one of the following:
- Creation of a new unit.
- Expansion of capacity of an existing unit (certified by official data).
- Diversification of a unit's production into products or services not previously produced.
- Fundamental change in the entire production process of an existing unit.
- Acquisition of all the assets belonging to a business establishment that has closed down, and the purchase is made by an investor completely unrelated to the seller.
For a company to be included, it is essential that the subsidized project has not started in advance (purchase of machinery, payment of advances, etc.) prior to the submission of the Application. Also, problematic companies are not eligible, nor are those that have relocated to the investment site where the subsidized project will take place in the last 2 years.
2. Eligible Types of Businesses - NACE Codes
The productive sectors subsidized by the Investment Law under the "Manufacturing - Supply Chain" regime include investment plans that fall under the sector of production and manufacturing of products, manufacturing of non-agricultural products, as well as supply chain (logistics) services.
A detailed specialization of eligible NACE Codes is available here.
- In the Manufacturing sector, craft industries, workshops, manufacturing units, and businesses related to production and construction are included, such as product processing or standardization units, bakeries, pastry shops, carpentry workshops, meat processing units, bottling units, aluminum and iron units, etc.
- In the Supply Chain sector, storage - logistics units, transport services with supply chain management for third parties, etc., are included. In the case of establishment, expansion, or modernization of supply chain service units, an essential prerequisite, if they do not already exist, is the implementation of investment projects for the installation and operation of integrated IT and communication - telematics systems, to support warehousing, loading/unloading, and the general management of materials - goods. In the case of a group, the provision of services to companies within the same group cannot exceed 30% of the total services provided.
3. Subsidy Amount and Aid Map
The subsidy rates (cash grant aid, tax exemption) vary depending on the size of the business and the Region where the investment plan is implemented. Investment projects start from a minimum amount of €100,000 (except for Cooperatives, Koin.S.Ep., etc. where the minimum is €50,000).
For small and micro-enterprises, all types of aid are provided, including the cash grant, while medium-sized enterprises also have the option to receive a cash grant. Large enterprises are provided with incentives such as tax exemption, leasing subsidies, and wage cost subsidies (excluding the cash grant).
Small and micro-enterprises receive 80% of the aid indicated in the above map when it comes to cash grants, except for certain "special categories" where they receive 100% of the map's aid. If, instead of a cash grant, a tax exemption or another incentive is requested, they receive 100% of the map's aid.
Medium enterprises can receive a cash grant at 80% of the maximum limit of the Regional Aid Map, except for certain "special categories" where the grant can reach 100% of the upper limit. Large enterprises receive all incentives except the cash grant.
Special Categories for Maximum Aid (100%) of the Map
In the following cases, the grant can reach the maximum aid percentage of the Aid Map (i.e., 100% of the listed percentages without the 80% reduction):
Investments implemented in the following areas:
- a. Mountainous areas, according to the ELSTAT categorization (excluding Municipal Units that are part of the Athens metropolitan area).
- b. Border areas, i.e., areas within a distance of thirty (30) kilometers from the borders.
- c. Island areas, i.e., islands with a population of less than three thousand one hundred (3,100) inhabitants.
Investments by businesses concerning cases that:
Involve the reopening of industrial units that have ceased their operations. The value of the fixed equipment of the industrial unit to be reopened must cover at least fifty percent (50%) of the supported cost of the investment plan.
4. Subsidized Expenses
Almost all expenses relating to the construction/modernization/expansion of a facility/unit are eligible.
Indicative Subsidized Expenses:
- Construction, expansion, and modernization of building facilities and landscaping.
- Purchase of new machinery and other equipment, Technical Installations.
- Purchase of buildings and equipment for units that have ceased operation.
- Intangible assets (certifications, software systems, IT equipment, etc.).
- Special Expenses (outside Regional Aids) with specific limitations: Advisory Services, Remediation of contaminated sites, Recycling and reuse of waste, Professional training, Participation in Trade Fairs.
- Financial Leasing for new machinery, which will be purchased at the end of the lease.
- Technology transfer, licenses, patents, know-how.
- Wage cost of new jobs created.
Detailed [SUBSIDIZED EXPENSES] and special expenses are described in the relevant official notice.
5. Minimum Investment Amount
The minimum eligible investment amount for the inclusion of investment plans in this aid regime is determined based on the size of the entity:
| Large enterprises | €1,000,000 | Medium enterprises | €500,000 |
| Small enterprises | €250,000 | Micro enterprises | €100,000 |
| Koin.S.Ep., A.S., Urban Cooperatives, O.P., A.E.S. | €50,000 | ||
6. Evaluation Criteria
Applications are evaluated comparatively and ranked in descending order based on their gathered score. All proposals that meet the minimum acceptable score (50 points) are evaluated until the respective budget is exhausted.
An investment plan is examined against the following evaluation criteria:
[Assesses the Immediate availability of the installation site, Existence of Environmental Licensing, Building Permit, Installation License, Approval of Building Terms, installation in Industrial Parks (VIPE/VEPE/VIOPA)].
[Evaluates financial indicators such as General Liquidity, Net Profit Margin, Capital Structure, Total Borrowing Capacity, Cash Flows from core operations. For Newly Established Entities (which have not completed a 12-month management use until the application submission date), the shareholders' companies (over 25%) are examined].
[Assesses the possession of a STEP Seal (Strategic Technologies for Europe Platform) as well as the Average export percentage of the last two (2) closed fiscal years].
[Assesses the commitment to increase employment relative to the investment size].
7. Indicative Recent Projects
The Investment Center responsibly undertakes the inclusion of businesses in investment programs through the Development / Investment Law. The subsidy concerns the establishment, modernization, or expansion of units.
Below are some Investment Projects in the primary, secondary sectors, as well as in tourism, executed under this initiative.
Indicative Subsidized Projects for the Year 2019-2020:
- Capacity Expansion & Modernization of an Existing Cheese Dairy: €299,030.0.
- Capacity Expansion of an existing nut processing and production unit, with the procurement and installation of new technology mechanical equipment: €522,338.0.
- Construction of a 3-star (*) hotel unit, with a capacity of 11 rooms and 24 beds: €449,449.03.
- Comprehensive Modernization (Fundamental change of the production process) of a hotel unit, with an upgrade to 3 stars (*): €417,251.03.
- Establishment of a new unit providing LPG storage services for third parties: €621,781.80.
- Comprehensive Modernization of a Hotel Unit: €780,000.0.
Ready to Elevate Your Business?
The Investment Center offers full and comprehensive support, from the initial eligibility check and score estimation, to the preparation and submission of a flawless application ensuring an optimal result. Don't miss this opportunity to grow and modernize under the Greek Development Law. [View our past projects here].
Contact us today for a free preliminary assessment at 210 8028330, 281 0823002, or via email at (info@kei.gr).
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