News: Greece Increases R&D Budget and Introduces Tax Breaks

The Greek government has adopted the bill aimed at development of R&D companies. Now, the startups will be able to take advantage of an array of tax breaks and receive tax deductions. Greece has increased deductions in R&D from 30% to 100% of taxes. This regulation will come into effect from September 1, 2020.

The tax breaks have also been introduced for the individuals, so called “business angels”, investing in startups. Therefore, if the individual invests in the startup company registered within the territory of Greece, it will be able to use tax deduction equaling 50% of the contribution. The deduction is made from taxable income and applies to the tax period in which the contribution is made.  

The Greek government has set the maximum limit, to which the tax deduction applies – no more than 100,000 euros for one startup. Meanwhile, the deduction applies to no more than three startups. Thus, the individual may invest up to 300,000 euros in three different companies and obtain up to 150,000 euros of tax deductions. The bill also provides for a penalty amounting to the requested benefit if it is proven that the individual acted with intent to obtain tax benefit.

Law & Trust law firm offers services for corporate clients and individuals working in Greece. Our lawyers will tell how to take advantage of tax deductions, help to arrange investments correctly and take upon themselves the communication with tax authorities.