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Greek Startup Visa Program

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Greek Startup Visa Program

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Greek Startup Visa Program

One of the flagship measures is the introduction of the Greek Startup Visa, which mirrors the successful Golden Visa program that has been a gateway for foreign investment in the country. Starting from January 1, 2025, third-country nationals will be eligible for a residence permit if they invest a minimum of €250,000 in a Greek startup that is part of the Elevate Greece platform. An additional condition for acquiring the visa is that the investment must result in the creation of two new jobs within the first year of the startup’s operation.

This initiative broadens the scope of the existing Golden Visa program, which grants residence permits to individuals investing at least €400,000 in Greek businesses. The Greek Startup Visa, however, focuses on promoting innovation-driven investments, aligning with Greece’s efforts to support the startup ecosystem and attract foreign entrepreneurs and investors interested in the high-potential technology and innovation sectors.

Patent Commercialization and Tax Relief

The government is also taking significant steps to boost the *lcommercialization of patents. Currently, businesses benefit from a three-year tax exemption on profits derived from patents. Under the new framework, the government will introduce a 10% income tax reduction that applies for an additional seven years after the initial tax-free period, providing long-term fiscal benefits for innovators.

This tax incentive is designed to encourage companies to invest in research and development (R&D) and capitalize on their intellectual property, ultimately fostering a more innovation-driven economy. By extending tax benefits over a longer period, the government aims to make Greece a more attractive hub for patent-related activities and international collaboration.

Expanded Tax Incentives for Angel Investors

Another critical measure is the expansion of tax incentives for angel investors supporting startups. Currently, investors can deduct 50% of the capital they invest in startups registered with Elevate Greece, up to a maximum of €300,000 from their taxable income. The new regulation significantly raises the ceiling, allowing investors to claim deductions for investments up to €900,000, thereby tripling the maximum amount eligible for tax relief.

This move is aimed at driving more private investment into the startup sector, making it more appealing for high-net-worth individuals and venture capitalists to support early-stage companies. By enhancing these incentives, the government hopes to accelerate the growth of Greece’s startup ecosystem, positioning the country as a key player in the global startup scene.

Increased R&D Tax Deductions

The government is also introducing enhanced tax deductions for businesses that invest in scientific and technological research. Currently, companies are eligible for a 200% deduction on R&D expenses. Under the new rules, this will increase for certain types of R&D activities, as follows:

– 250% deduction for collaboration projects between businesses and startups or research centers,

– 300% deduction for small and medium-sized enterprises (SMEs) that are knowledge-intensive, meaning their R&D expenses account for over 20% of their total expenditures,

– 315% deduction for knowledge-intensive SMEs that surpass the average R&D expenditure of the previous two years.

These measures are designed to foster research collaboration between startups and established companies, as well as encourage SMEs to invest more heavily in R&D. The increased deductions provide a strong incentive for businesses to engage in high-value research activities, which are key to driving innovation and ensuring the long-term competitiveness of the Greek economy.

Establishment of a Patent Fund

To further support innovation, the Greek government will establish a Patent Fund by the end of the year. This fund, managed by the Greek Development Bank, will finance the acquisition of international patents and the development of minimum viable products (MVPs) based on those patents. The creation of this fund will enable Greek companies to secure   global intellectual property rights, facilitating the commercialization of their innovations on a broader scale.

The Patent Fund will be a critical tool in helping Greek startups and innovators transition from the research and development phase to the market-ready phase. By financing MVP development, the fund aims to reduce the risk associated with early-stage innovation, helping businesses turn patented ideas into marketable products.

National Investment Fund

In addition to the Patent Fund, the government will create a National Investment Fund, with an initial investment of €300 million. This fund will complement existing financing mechanisms, such as EATE and EquiFund, and will target critical sectors like technology and the green transition, which are currently underserved by existing funding sources. The fund will operate similarly to investment vehicles in other EU countries, aiming to boost strategic investments that can drive long-term economic growth.

The National Investment Fund will also have the capacity to act as a co-investor, partnering with other funds and private investors, particularly through minority shareholdings in promising businesses. This collaborative investment approach is designed to attract more private capital into sectors that have significant potential for growth and value creation but are currently underfunded.

Mergers and Acquisitions Incentives

To facilitate business consolidation and growth, the government has also introduced changes to the tax incentives for mergers and acquisitions. Specifically, the minimum corporate capital requirement for newly formed companies resulting from mergers or transformations has been reduced from €125,000 to €100,000. This lower threshold enables businesses to qualify for a 30% tax exemption on profits, making mergers and acquisitions more financially viable for companies seeking to expand or restructure.

These changes are intended to promote corporate restructuring and encourage businesses to pursue collaborative growth strategies, which can enhance competitiveness and productivity in key sectors of the economy.

Additional Financial Incentives for SMEs

Alongside the tax incentives, the government is introducing new financial support measures for small and medium-sized enterprises (SMEs). One such measure is an ESPA action that will soon be announced, which will provide approximately €350 million in funding to cover 50% of the investment costs for SMEs. Moreover, businesses that emerge from mergers will be eligible for an additional 10% subsidy, further incentivizing consolidation in the SME sector.

This financial assistance aims to reduce the investment risk for SMEs, particularly those involved in innovative sectors, and ensure they have the capital needed to expand and modernize their operations.

In conclusion, the comprehensive set of new measures announced by the Greek government represents a significant effort to foster innovation, investment, and growth in the startup ecosystem. By offering a combination of tax relief, financial incentives, and investment support, the government seeks to position Greece as a competitive player in the global market, particularly in sectors like technology, green energy, and research-driven industries. These initiatives are expected to have a long-term positive impact on the country’s economic landscape, attracting both domestic and foreign investors.

To discuss how we can help you issue your Greek Startup, Visa, you can contact us via email at econlaw@live.com , by calling (+30) 2103603824 or by filling out our contact form https://www.econlaw.gr/el/contact/. Economou & Economou law office is proud to have been awarded the title of Best immigration Law Office in Greece by Lawzana https://lawzana.com/lawyer/economou-economou-law-office, reinforcing our reputation as the premier legal experts providing top tier legal services to clients all over the world for startup visas in Greece.

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