Author:
George Giannopoulos
Prooptiki SA
E: [email protected]
W: www.prooptikisa.gr
Edited by:
Integra International
Grant Gilmour, B.Sc., MBA, CA, CPA Canada, BC, CPA USA, Az, GDipICL.Sc.
INTEGRA TAX WORLD NEWSLETTER EDITOR
E: [email protected]
Updates to R&D Tax Incentives in Greece
Greek Tax Incentives for Research and Development R&D Projects – Updates
Greece has significantly strengthened its tax incentives for Research and Development (R&D), aiming to stimulate innovation, attract investment, and align national policy with OECD best practices. Recent legislative updates—particularly Article 35 of Law 5162/2024—transform the traditional flat super‑deduction into a more dynamic, performance‑based system that rewards collaboration, sustained R&D intensity, and high‑value innovation activities. We summarize the current framework, highlights key changes, and outlines the practical implications for companies undertaking R&D projects in Greece.
New Article 22A of Law 4172/2013 (Income Tax Code) – Incentives for R&D projects
Beneficiaries: All companies based in Greece
- R&D costs of their own funded projects are deducted at the time of their realization from legal entities’ gross income, increased by 100%.
- The process involves an annual application (by the deadline for submitting tax returns) for Research and Innovation, in order to certify the R&D costs carried out during the previous year.
Eligible expenses:
- Depreciation of building costs (purchase, construction, repair, maintenance, renovation)
- Depreciation of purchase or leasing costs of laboratory equipment
- Depreciation of costs for the purchase of specialized software licenses.
- Current operating expenses (rent, bills, etc.)
- Staff remuneration (in proportion to the time spent on the project).
- Travel costs for cooperation with laboratories, communication of research results and participation in relevant conferences, etc.
- Expenditure on consumables (reagents, small accessories, disposable instruments, etc.).
- Expenses for the purchase or issuance of patents in Greece and abroad.
- Subcontracting expenditure with external partners or bodies
- Expenditure on the purchase of intangible assets, know-how, approval fees and patent fees for pharmaceutical preparations under development and production in Greece for R&D projects
Tax treatment of R&D expenses with Article 35 of Law 5162/2024
The fundamental rule remains as R&D expenses are 100% deductible (standard deduction) and PLUS an additional uplift (super-deduction)
New deduction structure
- 200% total deduction (100% normal + increased by 100%)
- The law introduces behavior-based incentives:
- Collaboration incentive: If the company collaborates with: Universities, Research centers and Certified startups, then Additional increase applies and the total deduction can approximately reach 250%
- R&D intensity criterion: if current R&D spending exceeds the average of the previous 2 years, then additional bonus increase of approximately 15%
These incentives can be combined, and the total deduction can reach approximately 300% – 315%
Article 35 shifts the system from Flat incentive for all companies to targeted, performance-based incentives and promotes collaboration, high R&D intensity and growth in R&D investment.
New procedural element
For larger R&D projects, certification may also be performed by statutory auditors. This speeds up the process but increases compliance responsibility.
Angel Investors (No changes since 2023)
- An Angel Investor is a taxpayer – natural person- who contributes funds to startups for the purpose of their development.
- Tax resident in Greece or abroad holding a Greek tax registration number.
- Capital contributions are made in cash exclusively through bank transfer.
- The Angel Investor is entitled to an income tax deduction equal to 50% of the capital contributed to eligible startups (max. 300K).
Tax incentives for patents in Greece
Tax incentives for patents in Greece has been significantly enhanced in recent years, especially after Law 5162/2024.
- Patents (registered inventions).
- In some cases, qualifying innovative know-how.
Current regime (applicable 2025–2026)
Phase 1:
- 0% tax for the first 3 years on income attributable to the patent.
Phase 2:
- Reduced tax (~10%) for the next 7 years
Total benefit duration:
- Up to 10 years of preferential taxation
Key conditions
IP ownership: The company must:
- Own the patent or
- Have exploitation rights
Link with R&D: The regime follows the OECD Nexus Approach meaning the tax benefit depends on R&D performed by the company itself and not acquiring a patent without developing it.
What qualifies as patent income:
- Royalties (licensing fees)
- Licensing income
- Sales of products incorporating the patented technology
- Technology exploitation revenues
Conclusion
Greece’s updated R&D tax framework provides a powerful set of incentives for companies investing in innovation. With super‑deductions now reaching up to 300–315% for high‑intensity and collaborative projects, enhanced patent tax relief lasting up to ten years, and stable benefits for angel investors, the system strongly encourages long‑term research activity and commercialization of intellectual property. The shift toward targeted, behavior‑based incentives reflects a modern policy approach designed to reward genuine innovation and strengthen Greece’s competitiveness in the global knowledge economy. Companies engaged in R&D—whether domestic or international—should review these provisions carefully to ensure they maximize available tax benefits while meeting certification and compliance requirements.
Disclaimer
This communication contains general information only based on collective research. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No representations, warranties or undertakings (express or implied) are given as to the accuracy or completeness of the information in this communication, and none of PROOPTIKI SA , Integra International, related entities, employees or agents shall be liable or responsible for any loss or damage whatsoever arising directly or indirectly in connection with any person relying on this communication.
PROOPTIKI SA and Integra International, and their related entities, are legally separate and independent entities.
© 2026 Integra International Ltd and PROOPTIKI SA
About the Author:
George Giannopoulos
Partner – Managing Director
George Giannopoulos is a Partner and Managing Director at PROOPTIKI SA with extensive expertise in accounting, taxation, and international finance. A graduate of the University of Piraeus, he furthered his studies with a Master’s in International Accounting and Finance from the University of Kent, UK, and has completed advanced tax training at the Athens University of Economics and Business. With broad professional experience in Greece and internationally, George specializes in helping businesses navigate complex accounting and tax matters. As the primary client relationship lead, he works closely with new and existing clients to understand their business needs and develop tailored, long-term solutions.
About PROOPTIKI SA:
Prooptiki was established as an accounting firm back in 1984; today, it is one of the most successful companies in the economic sector, providing consultation on accounting-tax and payroll issues.
Prooptiki’s success is based on personal relations with clients, prompt response for addressing any problem that may arise, provision of high-quality services, ongoing training and specialization of our members and partners. For forty years, we have been evolving at the same strong pace, always providing services and solutions to clients in and out of Greece, so that their businesses successfully adapt to the current, demanding and constantly changing economic environment.
Prooptiki’s clientele lists a wide range of economic sectors, such as tourism, hotels, commerce, service provision, IT, telecom, real estate management etc.
Taking into consideration the needs, not only of the market but also of the businesses for customized payroll services, Prooptiki has established an independent payroll department in the last 20 years. The department is staffed with highly qualified professionals, emphasizing on this specific subject matter within an ongoingly changing environment.
Our vision is for our clients to correlate our company with professionalism, directness, consistency, effectiveness and transparency. The vision of Prooptiki’s people is to unfailingly evolve and preserve the team spirit among our members.
Integra International Bio:
https://www.integra-international.net/find-an-integra-firm/find-firm-profile/name/giorgos-giannopoulos/
Firm Profile:
https://www.integra-international.net/find-an-integra-firm/find-firm-profile/name/prooptiki-sa/
PROOPTIKI SA Website:
https://prooptikisa.gr/en/home/
https://prooptikisa.gr/en/viografika/georgegiannopoulos/
