The government intends to improve Greece’s startup environment through a set of measures outlined in a new National Economy and Finance Ministry law.
The draft law will provide tax breaks of up to 315% for R&D, additional incentives for investing in startups by “angel investors” (private investors who fund tiny innovative enterprises), and incentives for patent commercialization.
The law aims to strengthen the ecosystem of innovators and Indigenous entrepreneurs with capitalizations above 8 billion euros.
Check Also: Greece’s Golden Visa Program Sees Major Changes Investment Limit Increased
In addition to the previously stated, incentives are now available through the Golden Visa program, which now includes startups in addition to real estate. According to Prime Minister Kyriakos Mitsotakis, who spoke on stage at the Thessaloniki International Fair on Saturday, those who invest at least €250,000 in Greek businesses would now be eligible for a five-year residence permit.
According to Kathimerini, the specific action is scheduled to take effect on January 1, 2025, and will be announced soon. Until now the Golden Visa has mostly been associated with the real estate sector. However, a new “parallel” system will be implemented, whereby foreign investors who invest at least €250,000 in Greek start-up companies will be eligible for a residence permit. This is because of market saturation as well as the phenomenon of the sharp rise in real estate prices in popular areas of Greece. These are technology businesses that have filed with Elevate Greece, the national startup registry, which already has over 800 companies in diverse areas (edtech, agrotech, enterprise software, finance).
In past years, when the investment climate was more favorable for high-risk investments, Greek startups were on the radar of major global venture capital firms. For example, the Greek Hack the Box secured $55 million in finance from American private equity firm Carlyle Group, and Augmenta, a Volos-based company, was acquired by CNH Industrial, the world’s second largest tractor maker.
Meanwhile, some international “angel” investors have donated funding to Greek entrepreneurs, including Lars Rasmussen, co-founder of the popular Google Maps program who is originally from Denmark but has lived in Greece permanently for the past few years. He has invested in Greek Phos Print, which has created technology that allows it to print 3D cells, as well as Greek biotechnology startup ResQ Biotech.
“People from the entire spectrum of startup entrepreneurship, such as the founders of startups as well as investors, should be drawn in as well. This can be achieved with the launch of the Talent Visa and the Tech Visa,” a representative of the Greek startup industry told Kathimerini.
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