The Greek Prime Minister last week announced the plan to adopt a dynamic package of measures to attract investment in defense, automotive, and aerospace industries. At the core of the plan is a 200% tax deduction on expenses for initial investments starting in 2026, 2027, and 2028.

The incentives will cover weapons, ammunition, military vehicles, electronic systems, and automotive and aircraft manufacturing. Investors will also benefit from quicker licensing procedures.

At the same time, Greece is set to receive €787.7 million from the EU’s new SAFE (Security Action for Europe) financial instrument, part of a €150 billion initiative to strengthen European defense and industrial capacity.

The combination of these incentives with SAFE funding is expected to make Greece one of Europe’s most attractive destinations for investments in the above industries. Details will soon be specified by the Ministry of Development.

Stay tuned for timely insights and expert updates from KG Law Firm on every development in this matter.