Special 100% Over -Defense Regime for investment in selected branches of industrial businessis established by the draft law of budget 2026 which is under consultation.
The aim is to mobilize businesses in order to invest in specific sectors, which are considered to be strategic national importance, with the draft law to clarify who the Eligible CADs are.
In practice, it is a powerful, tax -targeted incentive that reduces the net cost of capital for critical value chains. For these CADs, each investment euro “counts double” on the tax base, improving tax returns and accelerating decisions of installation, re -industrialization and supply self -sufficiency.
Specifically, the overrun is for investments in:
- Construction of weapons and ammunition (CAD 25.40),
- Construction of motor vehicles (CAD 29.10),
- Construction of electric and electronic equipment for motor vehicles (CAD 29.31),
- Construction of other parts and components for motor vehicles (CAD 29.32),
- Construction of aircraft and related machinery (CAD 30.30) and
- Construction of military vehicles (CAD 30.40). The regulation covers chains of value in defense, vehicles and air industry, from end -manufacturers to critical suppliers.
How the businesses of the above CAD benefit
The regime gives a double tax discount for eligible investment costs. The relevant costs are deducted once from gross revenue and in addition, another equal amount as a 100%overrun. The benefit is distributed in time with an annual “ceiling”, as each year it can be used up to half of the total approved over -thesis so that the benefit spreads to more uses and does not run out of time. If the application of the increased discount results in tax loss, it is transferred in accordance with the rules of the CCP.
Investments that are included must be ‘initial investment’ under the General Removing Regulation (651/2014), that is, projects that increase production capacity, differentiate a product, establish a new unit or bring about essential technological upgrades.
Eligible are expense on tangible elements (machinery, equipment, building infrastructures when provided) and intangible (know -how, software, rights) used in enhanced activity. The over -decline can also be applied to depreciation, since no other surcharged depreciation for the same fixed.
The establishment period of right is set for investment plans with launching in the years 2026, 2027 or 2028. The right to exploit the overcoming may be exercised up to fifteen tax years from the year of foundation. Beneficiaries are businesses of any size with a seat or branch in Greece operating in the aforementioned CADs and apply for affiliation.
The status is activated by a ministerial decision setting the maximum benefits per plan and per year, the process of affiliation, the supporting documents, the audits and the terms of recall in the event of non -compliance.