Greece’s Ministry of Development is pushing forward a new, more comprehensive framework aimed at boosting Foreign Direct Investment (FDI), with the goal of attracting significant capital into sectors of strategic importance for the Greek economy. The proposed legislation is designed to create a complementary incentive system that aspires to improve the investment climate, speed up processes, and offer greater security and predictability to those choosing to deploy capital in the country.
The central pillar of the new framework is the support of investments funded exclusively by non-domestic capital, targeting sectors with high developmental and technological significance. The bill provides for investment projects of up to €50 million, directed at areas including manufacturing and industry, research and development, technology and artificial intelligence, supply chain and logistics, industrialized primary production, defense and aerospace, as well as biotechnology, healthcare, and social welfare.
Targeted Incentives and Financing
At the heart of the proposed measures are tailored incentives, which will vary depending on the region where the investment is implemented and the characteristics of each project. These include tax exemptions or accelerated asset depreciation, measures designed to reduce investment costs and improve capital returns over the medium term. Alongside this, fast-track licensing with strict deadlines is envisioned, to minimize the delays that often discourage large-scale investment initiatives.
Financing plays a particularly significant role under the new framework. It introduces the possibility of loans backed by the Hellenic Development Bank for investments of up to €50 million, with the aim of establishing more favorable borrowing terms, lower interest rates, and reduced collateral requirements. This approach seeks to enhance investors’ access to liquidity and reduce financial risk, especially for projects of strategic importance that require substantial upfront capital.
Another notable innovation is the provision for streamlined residence permit procedures for investors, a feature that strengthens the overall appeal of the framework for international investors and corporate executives. Additionally, admission of investment plans will follow a transparent and fair first-in, first-out (FIFO) process, in order to minimize disputes and reinforce confidence in the system.
Attracting Quality Investments
The rationale behind the bill rests on the need for Greece to attract high-quality foreign investments that go beyond the mere transfer of capital, generating multiplier benefits for the broader economy. Strengthening the productive base, advancing technology, facilitating knowledge transfer, and promoting more modern business practices are considered core elements of the new approach. In this context, the Ministry of Development aims to tie foreign investment directly to the real economy, supporting sectors capable of delivering long-term value.
At the same time, the framework is expected to contribute to job creation, both directly through the investment projects themselves and indirectly through their downstream effects on the services market, supply chains, and the ecosystem of partner businesses. Particular emphasis is placed on regional development, as spreading investment beyond the major urban centers can serve as a tool for reducing inequalities and stimulating economic activity in less developed areas.
The new institutional framework is presented as a targeted reform addressing longstanding weaknesses of the Greek investment environment, including bureaucracy, lengthy licensing procedures, and financing constraints. By introducing clear rules, financial instruments, and faster processes, the Ministry of Development aims to send a message of stability and forward momentum to the international investment community.
At a broader level, the government’s goal is for the new framework to act as a lever for improving the country’s competitiveness and elevating Greece’s standing on the international investment map. Its ultimate success will be measured by how effectively the proposed provisions translate institutional reform into real investment interest, productive new projects, and tangible economic growth.
