1. R&D and Patent Tax Incentives
R&D tax super-deduction
Greece offers one of the most generous R&D tax incentives in the European Union through a super-deduction mechanism applied at the level of corporate income taxation. Qualifying scientific and technological R&D expenses, including depreciation of R&D equipment, are deductible from taxable income at an enhanced rate.
Under the standard regime, eligible R&D costs are deductible at 200% of their value, meaning that companies may deduct the full cost plus an additional 100% uplift.
Legislative amendments introduced by Law 5162/2024, effective from the 2025 financial year, further enhance the regime in specific circumstances. Where R&D activities are carried out in collaboration with entities registered in the National Startup Registry, universities, recognised research centres or research institutes, the deduction increases to 250% of eligible expenditure.
Small and medium-sized enterprises may benefit from an even higher deduction of up to 300%, provided that qualifying R&D expenses exceed 20% of the company’s total annual expenses. These enhanced deductions are designed to encourage collaboration, scale-up activity and intensive R&D investment by smaller firms.
Patent box regime
Law 5162/2024 also introduced a targeted patent box-style incentive. Profits derived from the exploitation of internationally recognised patents may benefit from a phased tax relief mechanism.
Patent-related profits may be fully exempt from corporate income tax for up to three consecutive years. This initial exemption period is followed by a further seven-year period during which a partial exemption applies, effectively reducing the income tax payable on qualifying patent profits.
Taken together, the R&D super-deduction and patent box incentives significantly reduce the effective cost of innovation and encourage the development and commercialisation of intellectual property in Greece.
2. Recovery and Resilience Facility Funding
The Greek National Recovery and Resilience Plan, known as Greece 2.0, represents the largest single source of public funding for innovation and investment. The plan mobilises approximately €36.6 billion in EU grants and loans, with implementation scheduled to run until August 2026.
A substantial portion of this funding is directed towards innovation, research and digital transformation. In addition to grants, the Recovery and Resilience Facility provides access to long-term loans under highly favourable terms.
RRF loans may cover up to 50% of the total eligible investment cost, subject to a minimum equity contribution of 20% by the investor. Interest rates are significantly below market levels, particularly for small and medium-sized enterprises. Eligible expenditure includes tangible and intangible R&D assets, digital systems, innovative equipment and organisational transformation initiatives.
This mechanism provides low-cost capital for large-scale private investments and plays a central role in financing Greece’s green and digital transition.
3. Development Law and State Aid Schemes
The Development Law enacted in 2025 introduced a revised framework for state aid, consolidating and modernising Greece’s investment incentive regime. The law establishes twelve distinct aid schemes, including schemes specifically targeting modern technologies, innovation and R&D-intensive investments.
Investment support may be granted in the form of tax exemptions, cash grants or subsidised loans backed by institutions such as the Hellenic Development Bank or the European Investment Bank. Approved tax exemptions are typically utilised progressively, subject to the completion of defined investment milestones, and are capped annually at a proportion of the total approved amount.
Aid intensity varies by region, with higher rates available for investments in less-developed or mountainous areas. The Attica region generally attracts lower support intensity, reflecting its more advanced economic profile.
The Development Law steers private investment towards national strategic priorities, including advanced manufacturing, green technologies and digital transformation.
4. Start-up Ecosystem and Investor Incentives
The Greek government has established a structured framework to support start-ups and early-stage innovation.
The National Startup Registry, known as Elevate Greece, serves as the official platform for identifying and certifying innovative start-ups. While registration does not automatically confer financial support, it is a prerequisite for access to several funding schemes and enhanced tax incentives.
From January 2025, a dedicated start-up visa scheme allows non-EU investors to obtain a residence permit by investing at least €250,000 in a registered start-up. This measure is intended to attract international capital and entrepreneurial talent.
Legislative changes introduced in 2024 significantly strengthened incentives for angel investors. The maximum aggregate amount deductible from the taxable income of individual investors has been increased to €900,000 per tax year, substantially improving the attractiveness of early-stage investment in Greek start-ups.
5. Venture Capital and EU Financial Instruments
Greece’s venture capital market has expanded in recent years, supported by public co-investment mechanisms and EU-backed financial instruments.
The Hellenic Development Bank plays a key role in facilitating access to finance for innovative companies through guarantee schemes and co-financing programmes. These instruments reduce risk for commercial lenders and improve financing conditions for growth-oriented businesses.
Greek companies are also active participants in competitive EU programmes, including the European Innovation Council Accelerator and initiatives supported by the European Institute of Innovation and Technology. These programmes provide grants, equity financing and access to international networks, accelerating the commercialisation of research and innovation.
Conclusion
Greece’s innovation funding framework combines highly attractive R&D tax incentives, including deductions of up to 300%, with unprecedented access to low-cost capital through the Recovery and Resilience Facility. This is complemented by a modernised Development Law and a structured start-up support ecosystem centred on Elevate Greece.
Together, these measures create a compelling environment for research, innovation and strategic investment. For businesses willing to navigate the administrative requirements and align projects with national and EU priorities, Greece offers one of the most comprehensive innovation funding packages in the region.
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