Incentives for a new model
The government aspires to promote the change in Greece’s production model through massive tax deductions for research and development spending, which will even reach 315%, up from 200% today, reduced tax for a decade on income from products protected by patents, and tax credits for investment in startups.
Athens wants a model based on the production of innovative products with high added value, whether it is food or medical technology applications.
At the same time, in accordance with one of the main proposals of the “Pissarides report,” the government is proceeding with the establishment of tax and financial incentives to promote mergers.
The relevant bill, the main points of which were presented on Monday by the ministers of development, Takis Theodorikakos, and national economy and finance, Kostis Hatzidakis, is expected to be submitted for a vote in Parliament within the next two months. The fiscal cost of the new measures is estimated based on existing business activity at 40 million euros per year, with Theodorikakos pointing out that the benefits to the real economy from their implementation will be multiple.
The tax and other incentives concern the additional tax breaks for research and development, with a higher limit on and a greater scope to the amount invested in R&D that gets excluded from the taxable income; the limit of investments for which a 50% deduction from taxable income applies, when made by angel investors in registered startups registered in the National Register of Young Enterprises, is increased to €900,000 from €300,000; from January 1, 2025, a residence permit (Golden Visa) will be granted to those who invest at least €250,000 in registered startups; and incentives for patent use are expanded.
In addition, Hatzidakis on Monday announced the creation of a special fund for patents (Patent Fund) planned by the Hellenic Development Bank. A central objective will be to fund the processes a business must follow to obtain an international patent, as well as the development of a minimum viable product – an early product or prototype to be tested and then, based on observations, to evolve.
