New NSRF program for the establishment and support of tourism businesses
The pre-publication for the support of the establishment and operation of new small and medium-sized tourism enterprises was made on October 11, 2023. Through this action, the Ministry of National Economy and Finance focuses on increasing the competitiveness of the Greek tourism industry with key pillars:
- the creation of new businesses,
- the extension of the tourist season and
- the creation of new jobs.
The Investment Plan described by the Action
Investment Plan Budget
The minimum limit of subsidized investment project budgets is €80,000 and the maximum limit is €400,000.
Investment Plan Support Rates
Overall, the aid rate can reach up to 55% for investments carried out in remote areas or that create jobs.
- The basic aid rate for investment projects is 45% of the submitted costs.
- The aid rate may be increased by:
- 10% if the investment is made in a remote or fire-stricken or flood-stricken area or small islands.
- An additional 5% upon achieving the employment target of at least 0.2 EMU, in the first year after the completion of the investment.
Duration of Investment Plans
24 months
Which Investment Plan expenses are covered by the grant?
The expenses covered are:
- Buildings
- Facilities and Environment Space
- Machinery – Equipment
- Digital Equipment and Software
- Other Equipment
- First-time operation (SME start-up) aid
- Promotion and Outreach Expenses
- Technical Studies
- Consulting Services
- Means of Transport
- Indirect costs (up to 7% of the eligible direct costs of the investment project)
Basic Participation Requirements
The financing action concerns start-ups and newly established medium, small and very small enterprises that are expected to operate in the tourism sector.
Location: Investment exclusively in one region of the country. Projects with a location in the Regional Unit of Mykonos and the Regional Unit of Thira, in the Municipality of Thira, except for the Municipal Community of Thirasia, are excluded . Eligible KADs: The eligible KADs will be announced in the Detailed Invitation. Location: The company must provide accurate information and location data of the location of the investment. Building permit: The company must have an approved building permit or at least a filed application for its issuance in cases of construction and completion of buildings. Land use certificate and use rights Private Participation: Private Participation is the percentage of the investment that will be financed from the company’s own resources. The percentage of Private Participation will be defined in the Detailed Invitation. Reg. EU 1407/2013: Meet the conditions for the application of EU Regulation 1407/2013 (De Minimis) on which the Action is based.
Specifically for investments in tourist accommodations, the action distinguishes two categories: Main Hotel Accommodations and Non-Main Hotel Accommodations.
The basic requirements for Main Hotel Accommodations are:
- Hotels with a classification of category 4 (four stars) and above with a capacity of twelve (12) beds and above
- Hotel tourist accommodations within traditional buildings provided for in Presidential Decree 33/1979
- Organized tourist camps – camping
- Hotels with a rating of 3 (three stars) and above
The basic requirements for Non-Main Hotel Accommodations are:
- Self-catering accommodation – tourist furnished residences with a minimum number of 3 residences. All self-catering accommodation – tourist furnished residences must be incorporated into the same MHTE Mark.
- Furnished rooms for rent – apartments with a category classification of 4 keys and above and a minimum capacity of Twelve (12) beds
Submission and evaluation of funding applications to the NSRF.
What entrepreneurs who want to take part in the action and submit their application should know is that the participation requirements and comparative evaluation will be checked.
Benchmarking is the process by which applications are evaluated against each other. Each application is scored based on certain criteria and the applications with the highest scores are selected for funding.
For this investment plan, it must meet specific conditions:
- The application must provide a clear and comprehensive description of the investment plan, which must be viable.
- The investment plan implementation team must have the appropriate experience and knowledge to implement it.
- The investment plan must
- include private participation,
- to be ready for implementation,
- to have secured the necessary permits.
- be consistent with the national strategy for smart specialization.
- have a realistic implementation schedule.
To have a better chance of getting your plan approved, you need a specialized partner who will help you create a viable and profitable business plan.