02 July, 2003
New large foreign investments will be offered a special tax status with lower tax factors and free of any tax inspections for a period of 10 years, according to a draft development law unveiled on Tuesday by Greek Economy and Finance Minister Nikos Christodoulakis.
Presenting the draft law, Mr Christodoulakis stressed that the new legislation was introducing the tax contract status, offering foreign investments tax stability for 10 years with reduced tax factors determined as a percentage of invested capital or turnover and profits.
The Greek minister left the door open to introduce this status also for large Greek investments.
The new development law, whose drafting is expected to be completed in July and to be submitted to parliament, raises subsidies for job creation, offering tax incentives to businesses making fixed investments and counter-incentives for the relocation of Greek businesses in the Balkans.
"We say yes to activities in the Balkans, but no to business migration," Mr Christodoulakis stressed.
The Greek government is adopting the Irish model in its effort to attract foreign investments in the country.
The draft law also envisages abolishing any discrimination between old and new enterprises, offering the opportunity of creation special tax-exempt reserve funds, raising subsidies to 50,000 per job position and remove all commitments for the creation of new job positions in high-technology investments.
More analytically, the draft legislation envisages:
1. Improving incentives for large investments and investments by companies with international activities,
2. Raising subsidies for new job creation,
3. Higher financial support of investments in the tourism sector,
4. Flexible subsidies to investments in the high-technology sector,
5. Simplified intermediate procedures, and
6. Forcing enterprises relocating to neighboring countries to maintain their job positions in Greece.
Source: Athens News Agency