Strategic Investments in Greece

Why carry out a Strategic Investment in Greece?

During the post economic crisis period, Greece is making efforts to attract investments with a positive and long-lasting impact in the national economy with the aim to reduce unemployment, establish modern infrastructure, discover and use new technologies, and in general, ameliorating ameliorate citizens’ life. Greece is providing multiple incentives in order to attract Strategic Investments, including:

• Fast Track procedures,
• Special tax incentives and exemptions,
• Special fees discounts during the licensing process,
• Golden Visa.

What are the competitive advantages of Strategic Investments in Greece?

Consistent with the spirit of the Fast Track procedures and the scope of attracting Strategic Investments, there are special provisions and deviations with regards to:

• The Approval of Environmental Conditions required,
• The Urban Planning conditions,
• The Expropriation of properties or establishment of rights in rem on real estate,
• The Foreshore and Backshore Utilization License,
• The license for auxiliary and accompanying external infrastructure works.

Moreover, in order to accelerate and facilitate the procedure, the Strategic Investments shall be implemented in accordance with the specified “Standard Commitments” and upon “Special Plans for the Spatial Development of Strategic Investments (ΕΚΧΑΣΕ)”.

As far as taxation is concerned, there are no specific provisions set by the Law. However, it is explicitly provided that special tax regime may be regulated and shall be specified by the law ratifying the inclusion of the investment. Such special tax provisions may include a stable tax regime for a specific period, the establishment of tax‐free reserves, the procedure and time frame for refunding the VAT receivable balance, the reduction or exemption from taxes, special taxes and duties or third parties fees etc.

Furthermore, it is highlighted that, as added benefit, Golden Visa is granted to:

• Up to 10 foreign (non-EU) citizens, including the Strategic Investors, as well as high level executives and working personnel of the investment project.
• Family members of all the above beneficiaries.

What is the regulatory framework?

Strategic Investments in Greece are regulated by Law 3894/2010 (Fast Track Law). In addition to this Law, the relevant EU Law is also applicable. Finally, in accordance with Law 3894/2010 and within the limits set by it, the legal framework is being enriched by delegated Ministerial Decisions as well as with the Decisions of the Interministerial Committee for Strategic Investments (ICSI).

What investments are considered to be Strategic Investments?

Not all Investments are defined as Strategic. For investments to be considered Strategic, they have to be the productive investments; that is, they must result in a quantitative and a qualitative impact of major significance on the national economy.

Strategic Investments may be implemented by either Public Entities (Public Strategic Investments) or Private Investors (Private Strategic Investments), or by Public‐Private Partnerships (Strategic PPP Investments), or by mixed contracts.

The Strategic Investments refer to large scale projects and may, in particular, include the construction, reconstruction, expansion, restructuring, modernization or maintenance of existing infrastructure, facilities and networks, in the following sectors:

• Manufacturing
• Energy
• Tourism
• Transport and Communications
• Provision of Health Services
• Waste Management
• High Technology and Innovation
• Education
• Culture
• Primary Sector and the processing of Agri-Foodstuffs
• In general provision of services of the Tertiary Sector

What are the quantitative and qualitative criteria for an investment to be considered as Strategic?

Quantitative criteria

The quantitative criteria refer mainly to the project’s budget and the employment positions created or maintained. In particular, in order for an investment to be considered as strategic, at least one of the following conditions must be met:

Qualitative criteria

The qualitative criteria must be fulfilled in addition to the above quantitative criteria. In particular, the competent Authority will take into consideration:

• the viability of the proposed or existing investment and the creditworthiness of the investor, and
• the transfer of knowledge and expertise, the estimated growth or maintenance of employment, the country’s regional or local development, the adoption of innovation and high technology, the increase of export activity, the environmental protection and the energy saving.

What is the procedure for Strategic PPP Investments?

A Public Strategic Investment may be included in the Strategic Investment Procedures by virtue of a relevant Decision issued by the competent ICSI.

Thereafter, Public Strategic Investments carried out with private funds or co‐financing, with the cooperation or partnership between Public Entities and Private Investors, either through concession or long‐term leasing contracts, shall be awarded, as a matter of regular procedure, through onestage Open International Tenders, without preliminary selection, and in accordance with EU legislation. The Law provides a specific assessment, which abolishes committee procedures and, thus, reduces potential distortions, subjective evaluations and corruption.

The conduct of the tender procedures will be entrusted to “Enterprise Greece S.A.” (the official agency of the Greek State), which is responsible for the preparation of all the required tender documents (Tender Notice, the draft of the award contract etc.) within 60 business days at the latest, counting from the notification date of the ICSI’s approval for the inclusion.

The Bidders shall submit their bids for the auctioned investments in a sealed envelope with three separate sealed sub‐folders containing the required by the Tender Notice documents, as well as the technical and the economic offer.

The evaluation of the submitted bids shall be carried out through a three stages procedure which must be completed in full within 60 business days at the latest. The evaluation is deemed complete upon the issuance of the “Record of the Election of the Temporary Contractor” (the Record), which will be posted online within 3 days from its issuance. Upon legitimate interest and within the provided deadlines, possible objections, complaints or appeals can be raised against the tender procedure and the Record.

Following the Final Decision on any raised objections/complaints/appeals, the final appointment of the Contractor will take place. Any subsequent negotiations or alterations on the bid are prohibited.

What is the Fast Track standard application procedure for Private Strategic Investments?
Private Strategic Investors seeking to include their proposals in the Strategic Investment Procedures are required to submit an application accompanied by a dossier with all the required documents and the necessary information.

Content of the dossier (mandatory)

1. Application for the inclusion of the investment
2. Investment Business plan
3. Investment Impact Assessment
4. Urban and Environmental characteristics of the real estate as well as an Εnvironmental Impact Assessment and proposed countermeasures
5. Certificates of ownership of the assets or leasing or partnership contracts with the owner of the fixed assets (e.g. land, patent)
6. Copies of documents with regards to the licensing of the investment (previous licensing attempts, relevant correspondence, summary of the actions already taken)
7. Legal documents for the identification/representation of the Investor
8. Declaration of irrevocable mandate and authorization to “Enterprise Greece S.A.”, in order to proceed with all the required actions provided by the law with regards to the standard application procedure and the inclusion of the investment.
9. Proof of payment of the Evaluation Management Fee to Enterprise Greece S.A.
10. Solemn Declaration of the Investor attesting that all the documents are official and true.

The procedure

It is at the Private Investor’s discretion to contact “Enterprise Greece S.A.”, in order to arrange a meeting for information purposes, as well as for a brief presentation of his investment plan. Enterprise Greece may conduct a prima facie assessment based on the criteria of the Law.

The standard application procedure must be carried out in two stages:

Stage 1

The Private Investor must send, via the Enterprise Greece’s website, an electronic request to arrange for an official meeting.

The Investor’s request must include the following files:

• Executive Summary of the investment, and
• The direct and indirect Investment Impact Assessment on the Greek economy.

Stage 2

On the day of the meeting for the final submission, the Private Investor must submit to Enterprise Greece the Inclusion Application as well as three hard copies and electronic files of all the documents mentioned above as contents of the dossier and any additional data or information.

Both parties shall sign a comprehensive and detailed receipt of the investment plan and Enterprise Greece shall archive a “master copy” of it. The investor must also sign an irrevocable mandate and authorization to Enterprise Greece to be registered in the ‘Strategic Investment Protocol Book’.

Thereafter, Enterprise Greece shall proceed with the evaluation of the investment proposal and the completeness of the dossier and shall issue and submit its opinion to the ICSI within 15 working days.

The ICSI is the competent Authority to approve and decide with regards as to the inclusion (or not) of the investment proposal in the Strategic Investment Procedures, by virtue of its Final Decision issued within a deadline of 30 working days at the latest. The Decision may also be introduced to the Hellenic Parliament for ratification.

What is the Fast Track procedure for a Strategic Investment’s licensing?

Following the Decision of the ICSI for the investment’s inclusion in the Strategic Investment Procedures, the Private Investor must submit to the Directorate General (D.G.) for Strategic Investments the following:

• Complete dossier with all supporting documentation required by Law for the approval and the issuance of the relevant permits and licenses,
• Proof of payment of the remaining balance of the Management Fee to “Enterprise Greece S.A.”

The D.G. serves as “one-stop shop” for all the necessary licenses. The D.G. shall carry out a preliminary check of the dossier’s completeness (emphasis will be given to the “Standard Commitments”) and all the statutory licensing requirements, and, thereafter, within 5 days from the dossier’s submission, the D.G. is obligated to forward the dossier to the competent Departments in order for them to proceed with the issuance of the licenses/permits.

The administrative procedure (including the relevant opinions) must be concluded and all the necessary licenses must be issued within an exclusive deadline of 45 calendar days. Competent officers, who do not comply with the aforementioned deadline, commit a disciplinary offense.

Can existing investments be included in the Fast Track Law?

Yes. Existing investments may be included in the Strategic Investment Procedures following the application procedure, provided that they align with the Fast Track Law.

Furthermore, all investment proposals, which were submitted in accordance with the repealed fast track law (L. 3775/2009), fall in the scope of the new Law and may be included to the Strategic Investment Procedures.

Finally, the Fast Track procedures may be applicable in investments for which, at the time of the application’s submission, the licensing procedure is still pending according to the regular (non-fast track) framework. In case of approval, the projects will be included to the Strategic Investment Procedures and the licensing process will be completed in accordance with the Fast Track Law.

Is it possible to modify the Investment Plan after its inclusion in the Strategic Investment Procedures?

Following the final ICSI’s decision, which has accepted the Investment to the Strategic Investment Procedures, the investment proposal is binding for the Private Investor, who has no right to modify it, unless there is a relevant opinion of Enterprise Greece and, ultimately, the consent of ICSI.

By exception, though, it is possible to revise the approved Investment Plan, solely for Strategic Investments regarding energy production from Renewable Energy Sources (RES) and in case there are insurmountable legal or factual obstacles during the licensing procedure. In this respect, such projects may be established in another equivalent or similar area, as the only acceptable modification.

What are the necessary costs?

Management Fee

Pursuant to the Fast Track Law, the Private Investor shall pay a proportional Management Fee to “Enterprise Greece S.A.”, so as to cover the administrative cost of the dossiers’ processing. The Management Fee is set at the rate of 0.2% of the total investment cost, with a minimum limit of € 100,000 and a maximum limit of € 300,000. The Management Fee shall be paid into two installments. The first installment must be equal to 10% of the total Management Fee and must be paid upon the submission of the dossier to Enterprise Greece. The second installment, equal to the remaining 90%, must be paid before the ICSI’s meeting during which the inclusion of the investment will be discussed.

Fees for licenses

During the administrative procedure with respect to the licenses/permits’ issuance, the Private Investor must pay the relevant public fees (paravola), as provided by law, for each case, with a 10% discount.

What happens in the case the inclusion application is rejected?

In case of non-inclusion, the balance of 90% of the Management Fee will be refunded to the applicant Investor (with no interest), within 30 days from the date of the relevant meeting of the ICSI (the instalment equal to the 10% of the Management Fee is not refundable).

In case of a rejection, the Private Investor may apply again for the necessary licenses for his investment, following the regular (non-fast track) procedure. Another option would be for him to apply for the investment to be included in the special regime of the “Investment Law”.

Can a Strategic Investment be excluded or declassified?

After the inclusion decision and upon the Private Investor’s petition, the investment may be excluded from the Strategic Investment Procedures in case the investment cannot be implemented due to the Authorities’ unjustified delay to fulfill their obligations. The relevant Decision is issued by the ICSI. In case of exclusion, the deposited amount of 90% of the Management Fee will be refunded to the Private Investor (with no interest).

Declassification of the Strategic Investments may take place upon the relevant proposal of the General Secretariat for Strategic and Private Investments and by virtue of a justified decision of the ICSI, in case the investments no longer meet the characteristics of a Strategic Investment or the Private Investors have not fulfilled their financial obligations with regards to the Management Fee.

Are there special provisions with regards to the arising disputes?

According to the Fast Track Law, the Council of State (Plenary Session) is the competent judicial body to decide on petitions for annulment against any decision issued in accordance with the Law.

Moreover, the Law provides special provisions with regards to raising challenges before Courts against Expropriations declared for the implementation of the Strategic Investments.

As a general comment, the legislator chose to provide shorter deadlines than those of the regular procedures, so as the Decisions are issued in reasonable time and in accordance with the spirit of the Fast Track Law.

What is the deadline to apply for inclusion in the Fast Track procedure?

Applications for the inclusion in the Strategic Investment Procedures must be submitted by 1 January 2020.

What are the rights and benefits of Golden Visa for Strategic Investors?

With Golden Visa (L. 4251/2014 article 16.Β), the Strategic Investor shall be granted:

• VISA (type D) and
• Residence Permit of a 10 year duration with the possibility to renew it for the same period
  The Residence Permit shall be issued through fast track procedures, i.e. within 5 days from the submission date of the relevant application.

After the acquisition of the Residence Permit, Strategic Investors may enjoy the following benefits:

• Travel to other EU Member States of Schengen Zone without the need of a visa, while residence is permitted up to 90 days in each six-month period.
• Access to public health or education services, equal to Greek citizens.
• Tax incentives and exemptions.

However, the beneficiaries shall have no entitlement to employment permit.

Last, it is highlighted that the option of a Strategic Investment in Greece does not entitle Investors to Greek citizenship. However, according to the latest amendments of the Greek Citizenship Code, Strategic Investors (but not executives or staff) who possess Residence Permit for investment purposes, have the right to acquire Greek citizenship through naturalization, provided that all the other conditions set by the law, are also met.