Investors have a wide selection of alternatives for their financing needs to implement their projects:
1. The NSRF (National Strategic Reference Framework) 2014–2020 is the reference document for the programming of European Union Funds at national level until 2020.
2. Public Private Partnerships (PPPs) are a valuable tool leading to the construction of public infrastructure and the provision of quality services to citizens. Via the implementation of PPPs, the public sector is making use of contemporary finance tools to provide services to citizens enhancing the existing framework of public procurement. For more information, please contact the Special Secretariat for PPPs of the Ministry for Economy & Development (http://www.sdit.mnec.gr/en).
3. Venture Capital and Private Equity financing are at a quite mature stage of development in Greece and have enabled many investors to realise their plans.
4. Financial Institutions, namely Banks, offer to the entrepreneur a wide selection of customised financial instruments and complement the above mentioned financial tools to cover financing needs which cannot be met from other sources or shareholder capital. A list of the major Greek Banks is available on the website of the Hellenic Bank Association (www.hba.gr).
Venture capital in Greece
Greece has a favourable position in the upper status of European VC rankings and is among the countries performing better than the European average, thanks to a good balance between the tax and legal environments for private equity and venture capital investors, managers and investee companies.
Greece operates a dedicated domestic fund structure, AKES, for private equity and venture capital, (a closed-end venture capital mutual fund (AKES), formed as a partnership).
AKES is tax-transparent for domestic and non-domestic limited partners, and offers non-domestic limited partners the ability to avoid having a permanent establishment in the country. Furthermore, management fees are exempt from VAT in Greek companies.
Greece provides tax incentives for private equity and venture capital when investing through the AKES. For example, the establishment and management contract of AKES, as well as the payment of the unit holders’ participation, are not subject to any kind of tax, fee, stamp duty, contribution right or any other charge imposed by the State or other third parties.
The overall environment for retaining talent in investee companies and fund management companies in Greece is favourable. Gains from the sale of shares as well as stock options are tax exempt.
Overall, there are 21 venture capital funds active in Greece with approximately 1.2 billion Euro under management. The funds are all members of the Hellenic Venture Capital Association (http://www.hvca.gr/), established in 2003 in Athens.
TANEO – Fund of Funds
Most funds have been incorporated with the participation of TANEO. TANEO is the first and only “fund of funds” in Greece that aims at the competitive development of venture capital funds oriented towards supporting SMEs. Through the 11 TANEO funds, more than 280 million Euro have been directed to Greek SMEs.
Through the collaboration of private and institutional investors, TANEO creates new funds, tailor-made to address the needs of small businesses with a vision and a well-developed business plan.
For more info http://www.taneo.gr/