Law 4864/2021 establishes a robust legal framework aimed at attracting foreign direct investment (FDI), improving business competitiveness, and enhancing administrative efficiency in Greece. This legislation aligns domestic regulatory mechanisms with European Union (EU) economic policies, positioning Greece as a strategic hub for investment by eliminating bureaucratic inefficiencies and instituting structured financial incentives.
By fostering a transparent and investment-friendly environment, the law reduces regulatory burdens, expedites approvals, and introduces fiscal benefits for enterprises in high-growth sectors. This analysis explores the critical provisions of Law 4864/2021, evaluates the economic opportunities it creates, and highlights how Baltakos Law Firm delivers expert legal services to ensure compliance and optimal business outcomes.
Key Provisions:
- Streamlined Licensing and Administrative Processes: The law introduces a centralized, digitalized platform that significantly reduces processing times and administrative redundancies, ensuring swift market entry for foreign investors.
- Tax Incentives for Strategic Investments: Enterprises classified as strategic investors benefit from reduced corporate tax rates, accelerated depreciation of capital expenditures, and exemptions from import duties on industrial equipment and technology.
- Enhanced Investor Protections: The law strengthens legal certainty by incorporating dispute resolution mechanisms aligned with international investment treaties, thereby mitigating regulatory risks.
- Residency Provisions for Investors: Foreign investors meeting capital thresholds qualify for long-term residency permits, facilitating executive mobility and cross-border financial inflows.
“Strengthening Business Competitiveness.”
Business Competitiveness and Economic Expansion
- Sector-Specific Corporate Tax Reductions: Key industries, including technology, pharmaceuticals, and renewable energy, enjoy targeted tax reductions, stimulating industrial growth and innovation.
- Digitalization of Administrative Procedures: Businesses benefit from fully digitized registration, compliance, and reporting processes, enhancing operational efficiency and transparency.
- Financial Support for Startups and SMEs: The law provides grants and low-interest financing to emerging enterprises, particularly those in innovation-driven sectors.
- Employment Incentives: Companies creating jobs receive payroll tax reductions, social security exemptions, and workforce training subsidies.
Energy and Environmental Sustainability
- Accelerated Approval for Renewable Energy Projects: The legislation simplifies licensing for wind, solar, and hydroelectric energy projects, facilitating Greece’s transition to renewable energy.
- Green Investment Incentives: Companies adopting sustainable business models benefit from green tax credits, carbon credit trading, and preferential financing.
- Carbon Emission Reduction Measures: The law imposes strict carbon reduction targets while offering subsidies for businesses adopting cleaner technologies.
- Circular Economy Initiatives: Investment in recycling, sustainable production, and waste management is actively promoted.
How Baltakos Law Firm Can Facilitate Compliance and Investment Optimization
We deliver specialized legal expertise in navigating Law 4864/2021, offering strategic counsel on investment structuring, regulatory compliance, tax optimization, and dispute resolution. Our firm ensures clients maximize investment incentives while mitigating legal risks, providing tailored solutions for corporations, investors, and entrepreneurs. With deep industry knowledge and legal acumen, we help businesses secure long-term success in Greece’s evolving economic landscape. Contact us at info@baltakoslaw.com today for expert legal support tailored to your investment and operational needs.