NEW INVESTMENT OPPORTUNITIES IN GREECE - PowerPoint PPT Presentation

Loading...

PPT – NEW INVESTMENT OPPORTUNITIES IN GREECE PowerPoint presentation | free to download - id: 3ec06f-Y2I0O



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

NEW INVESTMENT OPPORTUNITIES IN GREECE

Description:

P A K L a w F i r m NEW INVESTMENT OPPORTUNITIES IN GREECE Alexandros Papasteriopoulos PAK LAW Firm Athens, Director PAK LAW Firm Athens in cooperation with – PowerPoint PPT presentation

Number of Views:43
Avg rating:3.0/5.0
Slides: 141
Provided by: kon64
Learn more at: http://www.ahiworld.com
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: NEW INVESTMENT OPPORTUNITIES IN GREECE


1

P A K L a w F i r m
  • NEW INVESTMENT OPPORTUNITIES IN GREECE
  • Alexandros Papasteriopoulos
  • PAK LAW Firm Athens, Director
  • PAK LAW Firm Athens
  • in cooperation with
  • AHI the Embassy of Greece
  • Washington D.C., Friday, March 30, 2007

2
THE CHALLENGE of MODERN GREECE
  • East meets West
  • Crossroad of the energy pathways of
  • Eurasia Caucasus
  • at the gates of Middle East
  • at the sea channels toward Suez, India China

3
THE CHALLENGE of MODERN GREECE
  • Geostrategic stability security
  • in Balkans, Southeastern Europe, the Black Sea
    Caucasus
  • Economic political stability
  • The Euro era
  • Fixed political structures

4
THE CHALLENGE of MODERN GREECE
  • Unique full member of EU NATO in Balkans
  • Investments in all countries of the Balkan region
    (Romania, Bulgaria, FYROM etc)
  • Creation of infrastructure networks covering all
    Balkans
  • Contribution to the general cross-border
    financial activities

5
THE CHALLENGE of MODERN GREECE
  • Radical reforms in administration
  • Modernized legal framework
  • Attraction of international funds

6
STATISTICAL EVIDENCE
  • Economic growth 4.4 in 2006 gt3.7 in 2005
  • Inflation 3.3 (2006)lt3.5 (2005)
  • Unemployment rate decreased to 8.3
  • Private consumption increased 41.3million in
    2006 , a 7.2 increase over the Q3 2005 figure
  • Budget deficit reduced to 2.6 of GDP
    (2006)lt5.2 (2005)
  • FDI 3.7billion (1st quarter of 2006)?10 times
    the amount invested on the same period in 2005
  • Consumer confidence from - 33 units (Nov. 2006)
  • to -28 units (Dec. 2006)

7
THE CASE ofENERGY REAL ESTATE
  • Rapidly developing sectors
  • Prospect of immediate evolution
  • Supportive Governmental legislative initiatives
    undertaken
  • Beneficial reformation for private investments in
    Energy Real Estate

8
REAL ESTATESURPLUS VALUE
  • Since 2004 the value of the Real Estate property
    has increased by 15-35 with increasing
    prospects
  • Egnatia Highway in the North Ionian Highway in
    the West (under construction) cause that land in
    Epirus, Eurytania, Arcadia, Macedonia will have
    triple value over the next 10 years.
  • Remote Aegean Sea islands

9
GROWTH INDICATORS
  • Request for huge office spaces by corporate
    tenants
  • Decrease of vacancy rates
  • Total absorption of quality A B office
    space-130,000m² (2006)
  • 150,000m² Class A office space under construction
  • Stabilization of rental rates
  • Convergency of office yields with those in other
    capital European cities

10
RETAIL REAL ESTATE HIGHLIGHTS
  • Multiple transactions for shopping leisure
    centers
  • Construction of new shopping malls (ex. The Mall,
    H nM, Media Markt etc)
  • Expansion of retail through major traffic
    arteries
  • High level of Retail rents

11
PROFITABLE INVESTMENT IN TOURISM
  • AGROTOURISM
  • SEA TOURISM
  • BUSINESS TOURISM etc
  • Convenient tourism infrastructure
  • Unique Investment opportunities

12
THE CASE of ENERGY
  • State investments in traditional alternative
    energy sources
  • Renewable energy sources
  • Governmental search of private investment
  • Supportive strategy
  • Goal increase of the renewable sources
    contribution, from 11 to 20 over all the
    consumed energy

13
THE CASE of ENERGY
  • Intermediate goals
  • Safe energy at the lowest cost
  • Gradual reduction of dependence on a single
    energy source
  • Expansion of the use of renewable energy sources
    bio-fuel
  • Liberalization of Greeces international position
    on global energy map
  • Accelerated completion of new energy
    infrastructures to reinforce private investments

14
THE CASE of ENERGY
  • 10 years contracts to private energy generators
    offered by the State
  • Objective over 2.5 billion invested in the
    field of renewable sources by 2010
  • Law 3468/06
  • Simplifies licensing procedures
  • Greek development Laws
  • Construction cost of energy investment
    infrastructures is subsidized up to 35

15
THE CASE of ENERGY
  • New Energy policies
  • Rationalization of energy balance strengthening
    of pure forms of energy
  • Energy saving
  • Restriction of unilateral energy dependence
  • Environmental protection in practice

16

P A K L a w F i r m
P A K L a w F i r m 8, Saripolou Str. 10682
Athens, GREECE T 30 210 8259321-23 F
30 210 8259320
17
Real Estate in Greece

Alex Laios Attorney Alex Laios Attorney

18
Discussion Topics
  • Part One
  • General Overview of the Real Estate Market
  • Part Two
  • Real Estate Transactions

19
The Residential Market
Greek citizens have traditionally been property
investors Average Home Ownership Europe
63 Greece 83 Value of Greek ownership in
Greece estimated at 640 billion EUR
20
The Residential Market
  • Ministry of Economy is predicting a 9 growth in
    housing
  • for 2007
  • According to the Bank of Greece, there has been
    a recent
  • 50 increase of foreign investment in second
    homes in
  • the last two years

21
The Retail Market
  • High street retailing is most common
  • For prime high street retail locations the
    average rate is
  • at 140 to 180/sq. meters
  • Pre-tax yield is at 6.2 to 7

22
The Retail Market
  • Major shift in Athens towards shopping malls and
  • shopping center concept
  • Only one major shopping mall in operation with
    extremely
  • successful operations
  • Another four projects currently being completed

23
Publicly Owned Real Estate
  • The use of publicly owned property is very low
    and there
  • are major efforts to increase revenue by
    exploiting these
  • opportunities via the private sector.
  • Currently a legal framework underway for
    development of these properties.
  • Leases for 25 to 30 years
  • Joint ventures with developers and investors
  • Management and maintenance of properties

24
Publicly Owned Real Estate
Hellenic Public Real Estate Corporation acting on
behalf of the Ministry of Finance is handling
over 70,000 properties with a surface area of
3,365,000,000 sq. meters (831,509
acres) Approximately 20 are available for
immediate development
25
Publicly Owned Real Estate
  • The National Electricity Company (PPC)
  • owns 1.3 billion in real estate
  • controls 563,000,000 sq. meters nationwide
  • 7,000 are lots of land and mines
  • 300 are buildings
  • The companys consultants (Credit Suisse) are
    currently managing the portfolio for development
    and exploitation of the properties

26
Publicly Owned Real Estate
  • The National Railroad Company (OSE) said to be
    the largest public owner of property
  • 3,500 plots of land with total surface area of
  • 85,000,000 sq. meters
  • 4,558 buildings with total surface area of
  • 500,000 sq. meters
  • Value estimated at 5 billion EUR

27
Real Estate Trends in Tourism Golf
Significant interest in the Golf-Tourism sector
in Greece In the US there are an estimated 40
million golfers and 17,000 golf courses, which
accounts for about 6 of Gross Domestic
Product. Europe has an estimated 8 million
golfers playing at 6,500 golf facilities, with
Britain, France, Germany and Sweden accounting
for 69 of all golf courses and 67 of all
registered players. The number of European
golfers is growing at about 7 annually, with
Norway currently the fastest-growing market.
28
Real Estate Trends in Tourism Golf
  • Government studies have shown that
  • 200,000 tourists
  • to Greece are potential golf tourists
  • Greek Golfers Approximately 1,500
  • Only five full 18-hole golf courses in Greece
  • Currently 30 investment plans underway

29
Real Estate Trends in Tourism Golf
Potential problems in the development of golf
resorts Acquiring the properties Available
properties are owned by multiple parties Note
Usually the buying of property is at no more
than 15/sq. meters
30
Real Estate Trends in Tourism Golf
Why Greece is an attractive golf investment New
market with tremendous potential for
growth Strong existing tourism-infrastructure Grad
ual elimination of bureaucracy Favorable weather
conditions for year-round golf season
31
Discussion Topics
  • Part One
  • General Overview of the Real Estate Market
  • Part Two
  • Real Estate Transactions

32
Real Estate Transactions
  • A Step-by-Step Approach
  • Dealing with a realtor
  • Acquiring an attorney
  • Title Search
  • Public Notary
  • Tax
  • Recording at the Land Registry
  • Financing

33
Dealing with a Realtor
Written Agreement
Buyer pays commission
Seller pays commission
Realtor
Written Agreement
  • Payment at closing
  • No standard set by law or by any associations
  • Usually between 2 to 5

34
A Step-by-Step Approach
  • Dealing with a realtor
  • Acquiring an attorney
  • Title Search
  • Public Notary
  • Tax
  • Recording at the Land Registry
  • Financing

35
Acquiring an attorney
Mandatory for transfers of 30,000 or more in
the Province of Attica 12,000 or more for the
rest of Greece Attorney not required by law for
transfers of lesser value
36
Acquiring an attorney
Attorney duties
  • Negotiation
  • Title search
  • Coordination with notary
  • Closing agent
  • Recording at the land registry

37
Acquiring an attorney
Attorney fees
  • No maximum fee BUT mandatory minimums set by Bar
    Association
  • up to 44,020 at 1
  • 44,020 to 1,467,351 at 0.5
  • 1,467,351 to 2,934,702 at 0.4
  • 2,934,702 to 5,869,405 at 0.3
  • 5,869,405 to 14,673,514 at 0.2
  • 14,673,514 to 29,347,028 at 0.1
  • 29,347,028 to 58,694,057 at 0.05
  • over 58,694,057 at 0.01

38
Acquiring an attorney
Attorney fees
  • Most attorneys charge 2

39
Acquiring an attorney
Attorney fees
Value of property 200,000
Mandatory minimum 440.20 (1 for the first 44,020) 779.9 (0.5 for the remaining 155,980) 1220.10 title work (varies on difficulty)
Market rate for fee 4,000 (2 of transfer)
40
A Step-by-Step Approach
  • Dealing with a realtor
  • Acquiring an attorney
  • Title Search
  • Public Notary
  • Tax
  • Recording at the Land Registry
  • Financing

41
Title Search
  • In the buyers interest to complete a detailed
    title search
  • No title insurance in Greece and is not required
    by banks for mortgages
  • Final contract is deemed enforceable title in
    Greece and shields the buyer
  • Title searches can only be completed by attorneys
  • Cost of title search varies depending on search
    complexity
  • Cost is often included in attorney fee for the
    transfer

42
Title Search
  • All property information is located at land
    registry
  • All liens are recorded at land registry
  • Any liens not recorded at time of purchase are
    invalid
  • The final contract protects the buyer

43
A Step-by-Step Approach
  • Dealing with a realtor
  • Acquiring an attorney
  • Title Search
  • Public Notary
  • Tax
  • Recording at the Land Registry
  • Financing

44
Public Notary
  • Not the same as common law notaries
  • Trained jurists

45
Public Notary
  • Notary duties

Prepares tax forms
Prepares contract of sale
Acts as a state organ at closing
Paid for by the buyer
Cost approximately 1.2
46
Public Notary
  • 200,000 Transfer

Cost approximately 2400
47
A Step-by-Step Approach
  • Dealing with a realtor
  • Acquiring an attorney
  • Title Search
  • Public Notary
  • Tax
  • Recording at the Land Registry
  • Financing

48
Tax

Tax revolves around government assessed value or
declared closing price
The tax system for real estate is currently in a
transitional phase
49
Tax

There are two tax scenarios currently in
enforcement
Transfers for property acquired before January
1st 2006
Transfers for property acquired on or after
January 1st 2006
50
Tax
For the Seller No tax
Transfers for property acquired before January
1st 2006
51
Tax

There are two tax scenarios currently in
enforcement
Transfers for property acquired before January
1st 2006
Transfers for property acquired on or after
January 1st 2006
52
Tax
Transfers for property acquired on or after
January 1st 2006
For the Buyer 1 of the value
  • For the Seller
  • Introduction of Capital Gains Tax
  • Calculation of appreciation based on difference
  • between value at time of purchase with that at
    time of sale

53
Tax for transfers of property acquired on or
after 1/1/2006 For the SELLER
Tax
20 of appreciation if sold within 5 years
after purchase
10 of appreciation if sold within 5-15 years
after purchase
5 of appreciation if sold after 15-20 years
after purchase
0 of appreciation if sold 25 years or more
after purchase
54
Tax
Taxation example for a 200,000 transfer in
Athens based on 10 appreciation since date of
purchase ( 181,818 to 200,00018,181)
Transfers for property acquired on or after
January 1st 2006
Transfers for property acquired before
January 1st 2006
For the Seller 0 to 3,636 3,636 (20 of
appreciation, sale 5 years) or 1,818 (10 of
appreciation, sale 5-15 years) or 909 (5 of
appreciation, sale 15-20 years) or 0 (0 of
appreciation, sale 25 years or more)
For the Buyer 22,351 1350 (9 on the first
15,000) 20350 (11 on the remaining 185,000)
651 (3 of the above 21,700 tax)
For the Buyer 1,170 (1 of current assessed
value)
For the Seller 0
55
A Step-by-Step Approach
  • Dealing with a realtor
  • Acquiring an attorney
  • Title Search
  • Public Notary
  • Tax
  • Recording at the Land Registry
  • Financing

56
Recording at the Land Registry
Transfer is not completed until recorded
Recording completed by filing a certified copy
of the contract at the land registry
Paid for by buyer
57
Recording at the Land Registry
Example 200,000 transfer
Paid for by buyer
950 (0.475 of transfer)
58
A Step-by-Step Approach
  • Dealing with a realtor
  • Acquiring an attorney
  • Title Search
  • Public Notary
  • Tax
  • Closing
  • Recording at the Land Registry
  • Financing

59
Financing
  • Property can be acquired with zero money down
  • Loan amount will depend on applicants credit
  • Rates are offered for
  • stable interest rates
  • fluctuating interest rates
  • Refinancing is available

60
Financing Costs
  • 234 attorney fees
  • 0.0075 of mortgage amount for mortgage recording
    fee at land registry
  • 100 miscellaneous costs
  • For a 200,000 transfer 1884

61
A Step-by-Step Approach
  • Dealing with a realtor
  • Acquiring an attorney
  • Title Search
  • Public Notary
  • Tax
  • Closing
  • Recording at the Land Registry
  • Financing

62
Example of costs for a 200,000 sale
Realtor 2,000 Attorney 2,000 Transfer Tax 3,636 Total for Seller 7,636
63
Why invest in Greek Real Estate?
Low Property Tax
64
Example Home 110 sq. meters (1100 sq. feet) 26 years (0,6 age bracket) With a property tax bracket of 997 Taxed at 0.00035 Calculation area x age x tax bracket x Annual Property Tax
Low Property Tax
23
65
  • THANK YOU
  • FOR YOUR TIME

66
THE FRAMEWORK OF RENEWABLE ENERGY SOURCES (RES)
INVESTMENT IN GREECE
  • By Nasos Nikolopoulos,
  • Lawyer, Athens Bar, LLB, LLM University of London

67
I. COUNTRY PRESENTATION
  • A. Greece occupies an area of 132,000 square
    kilometres, is an EU Member since 1981, has
    transited from the Greek Drachma to the Euro in
    2002, borders with Italy to the West, Albania,
    FYROM and Bulgaria to the North and Turkey to the
    East. Greece has a population of 11 million, its
    per capita gross national product (GNP) is
    approximately 16,200 Euro and its annual rate of
    growth, as a percentage change of the volume of
    the gross national growth, is estimated at 3.5
    percent, one of the biggest within the EU.

68
II. NEW LEGAL RES FRAMEWORK
  • Directive 2001/77/EC on the promotion of
    electricity produced from renewable energy
    sources in the internal electricity market (OJ
    L283/27.10.2001) in its annex sets an indicative
    target for Greece to cover a part of its gross
    national electricity consumption by 2010 from
    renewable energy sources (RES) equal to 20,1,
    including the contribution of large-scale
    hydroelectric plants. This target is compatible
    with the international commitments of the country
    resulting from the Kyoto protocol signed in
    December 1997 within the context of the Rio UN
    framework agreement on climate change. The Kyoto
    protocol anticipates that Greece, by 2010, will
    reduce the rate of increase of CO2 and other
    gases that aggravate the greenhouse effect by 25
    in relation to the base year 1990.

69
  • The Directive was implemented in Greece by Law
    3468/2006 on Generation of Electricity using
    Renewable Energy Sources - High-Efficiency
    Cogeneration of Electricity Heat and
    Miscellaneous Provisions. (Official Gazette
    A129). The Law prescribes 3 types of permits and
    authorisations for the effect of RES investments.

70
1. PRODUCTION AUTHORIZATION
  • For the production of electricity using RES and
    high-efficiency cogeneration of electricity and
    heat, a relevant authorization is required. The
    authorization is granted by the Minister of
    Development following an opinion of the
    Regulatory Authority for Energy (RAE). The
    production authorization lasts for a period of up
    to twenty five (25) years and may be renewed for
    up to an equal time.

71
Exemptions from the obligation of being granted a
production authorization
  • Exempted from the obligation of being granted a
    production authorization are entities or
    individuals generating electricity from plants
    located in property or adjacent properties of
    their ownership or lawful occupation, provided
    that the energy is produced
  • a) By geothermal energy in stations with an
    installed capacity less than, or equal to 0.5 MW.
  • b) By use of biomass or biofuels in stations with
    an installed capacity less than, or equal to 100
    KW.
  • c) Byphotovoltaic systems of stations with an
    installed capacity less than, or equal 150 KW.

72
  • d) From wind energy with an installed capacity
    less than, or equal to 20 KW in case of
    establishments located in isolated micro-grids,
    according to Law 2773/1999 or sites with an
    installed capacity less than, or equal to 40 KW,
    in case of establishments located in islands not
    connected to the mainlands Interconnected System
    and with an installed capacity of less than, or
    equal to 50 KW in case of establishments located
    in the Interconnected System
  • e) From miscellaneous plants with an installed
    capacity less than, or equal to 50 MW in case
    they utilize one or more types of RES in a form
    other than that of the above cases

73
  • The required for the issuance of the permit
    preliminary environmental impact assessment
    should be submitted to RAE within 60 from the
    request. RAE should submit its opinion on the
    grant of the permits within 4 months from the
    approval of the assessment and the Minister may
    grant the permit within 15 days from the
    submission of the opinion by RAE. Max Time 195
    days.
  • TIP Dully Fully Drafted Proposals.

74
2. INSTALLATION PERMIT
  • For the installation or extension of a power
    generation plant using RES or high-efficiency
    cogeneration of electricity and heat a relevant
    permit is required.
  • The permit will have the form of a decision of
    the Secretary General of the Region in whose
    territory the plant will be installed.
  • a) The installation permit of a power generation
    plant using RES or high-efficiency cogeneration
    of electricity and heat as well as for all RES
    projects located in protected areas,
    independently from the category of these projects
    according to the provisions of article 3 of Law
    1650/1986, shall have the form of a joint
    decision of the Minister of Development and the
    Minister having jurisdiction thereto.

75
  • b) The installation permit shall be valid for 2
    years and may be extended to the maximum for an
    equal period, following an application of its
    holder, provided that
  • i. By the end of the two-year period a portion of
    the works have been completed at a cost of 50 of
    the investment budget or
  • ii. No start of the works has been made for
    reasons that in a substantiated way cannot be
    attributed to omission or any kind of fault of
    the holder of the installation permit provided
    that the necessary contracts have been entered
    for the supply of the equipment being necessary
    for the implementation of the project.

76
  • According to Article 8 of PD 3468/2006
    installation permits are issued by the General
    Secretary of the Region in which the investment
    is due to be installed within 15 days from the
    submission of the file. In case of lapse of the
    prescribed period the Minister of Development may
    issue the permit within a period of 30 days
    following the submission of the relevant request.

77
3. OPERATION PERMIT
  • The Authority granting the installation permit
    shall issue an operating permit, valid for at
    least twenty (20) years, subject to renewal for
    an equal period, within 15 following the
    inspection of the investment. Power generation
    plants using RES or high-efficiency cogeneration
    of electricity and heat are exempted from the
    issuance of production authorization and no
    environmental, installation and operations
    permits shall be required. The approval of
    environmental terms with respect to the
    installation of power generations plants shall be
    valid for 10 years, subject to extension, for an
    equal period.

78
4. PHOTOVOLTAIC STATIONS
  • Aiming at the promotion of the production of
    electricity by photovoltaic stations, a
    deployment programme lasting up to December 31,
    2020 is compiled by RAE and approved by the
    Minister of Development. It refers to the
    deployment of photovoltaic stations installed in
    the Greek territory with a total capacity of at
    least 500 MW regarding stations connected to the
    System or with a total capacity of at least 200
    MW for stations connected to the Network of the
    islands not connected to the mainlands
    interconnected system.

79
5. TRANSPORT BIOFUELS
  • The Biofuels directive 2003/30 has been adopted
    by the Greek government late 2005, as Law
    3423/05. According to this, biodiesel will be the
    main biofuel for the Greek transport sector with
    bioethanol playing a less important role until
    2008. The amount of biodiesel required to satisfy
    the indicative target of 2 (on a lower calorific
    basis) for the year 2006 has been estimated to be
    91.000 m3 while the amount to satisfy the
    indicative target of 5.75 for the year 2010 has
    been estimated to be 148.000 m3(and 390,000 m3
    for ethanol).
  • The current law imposes the obligatory use of all
    detaxed biodiesel in the existing biorefineries
    (in up to 5 blend). The detaxed quantities are
    decided on an annual basis under a quota scheme.
    For 2006 14 investors have applied for detaxed
    biodiesel production, that amounts to the 91,000
    m3 set for 2006 and 114,000 m3 for 2007.

80
Bioenergy - Undefined Key Issues
  • Motives to use residual biomass / Feedstock
    supply coupled with CAP that would allow farmers
    to be actively involved in energy crops
    cultivation / Attempts to lower raw biomass
    production costs (mainly for liquid biofuels)
    through contractual agreements between farmers
    and end-users / Market definition and potential
    distribution partners and competitors that would
    allow a successful start up of operations, mainly
    for liquid biofuels / Co-firing with lignite for
    electricity generation.

81
6. SALE CONTRACT WITH HTSO
  • Holders of production authorizations shall
    conclude electricity sale contracts with the
    HELLENIC TRANSMISSION SYSTEM OPERATOR for
    connection of RES investments to the System or
    Network, the System Operator with the holder of
    the relevant production authorization. The sale
    contract shall be valid for ten (10) years and
    may unilaterally be extended for ten (10) more
    years, upon a written declaration of the
    producer, provided that the declaration will be
    served at least three (3) months prior to the
    expiration time of the initial contract.

82
(No Transcript)
83
7. RES INVESTMENT MARKET INVOLVED AUTHORITIES.
  • The was established by the Presidential Decree
    328/2000 and along with the a) MINISTRY OF
    DEVELOPMENT, b) the REGULATORY AUTHORITY on
    ENERGY (RAE) d) ?he HELLENIC TRANSMISSION SYSTEM
    OPERATOR (HTSO) d) the CENTRE for RENEWABLE
    ENERGY SOURCES (CRES) constitute the supervising
    entities of the RES energy market

84
I. THE ROLE OF RAE (www.rae.gr)
  • RAE was established by virtue of article 4 of Law
    2773/1999 as an independent public agency
    entrusted with the task of monitoring and
    controlling the electricity market and the
    delivery of opinions regarding the observance of
    the rules of genuine competition and the
    protection of consumers. In addition, RAE
    formulates proposals to the Minister of
    Development with regard to the issue of power
    generation authorizations and thereafter monitors
    the implementation progress of the RES projects
    through quarterly reports and recommends the
    removal of those investors who exhibit
    unjustifiable delays. It recommends legislative
    measures for the further deregulation of the
    electricity market within which critical RES
    issues can be addressed (as is the case of hybrid
    plants). The evaluation of all applications is
    performed by RAE assisted in the technical part
    by the Centre for Renewable Energy Sources on the
    basis of the criteria laid down in article 9 of
    the Production Authorization Regulation which was
    issued according to Law 2773/1999 article 28.

85
II. THE ROLE OF HTSO (www.desmie.gr)
  • The enactment of a System Operator was provided
    for in article 14 of Law 2773/1999 and was set up
    by virtue of Presidential Decree 328/2000. It
    effects the operation, maintenance and
    development of the electric power transmission
    system, as well as, of its interconnections with
    other systems, in order to secure Greeces
    electric power supply in a sufficient, safe, cost
    effective and reliable way. The HTSO assumed the
    commercial management of the renewable energy
    plants of the interconnected system in October
    2002. According to the provisions of article 21
    of Law 2773/1999, the PPC S.A. which had already
    floated on the stock market by virtue of
    Presidential Decree 333/2000 Conversion of the
    Public Power Corporation (PPC) into a Societe
    Anonyme and approval of its statutes (Official
    Gazette A 278) performs the duties of system
    operator for the island grids which are not
    connected to the mainlands system.

86
THE ROLE OF CRES (www.cres.gr)
  • The establishment of the CRES was provided for in
    article 25 of Law 1514/1985 "Promotion of
    scientific and technological research" and was
    implemented by virtue of Presidential Decree
    375/1987 Establishment of a legal entity under
    private law with the registered name Centre for
    Renewable Energy Sources. The scope of CRES is
    the promotion of RES, energy saving and rational
    use of energy, as well as all kinds of support
    for activities in these fields. Further, by
    virtue of article 11 of Law 2702/1999 CRES
    operates as the national coordinating centre of
    all these activities. CRES has laboratories for
    certification of RES technologies, carries out
    studies for the determination of the physical as
    well as technical and economical potential of RES
    and participates effectively in the evaluation
    and monitoring of the investments implemented in
    the sector, including the energy savings field.

87
III. GREEK ENERGY MARKET DATA
  • According to the most recent estimates, the gross
    consumption of electric power in 2010, amounts to
    68 TWh. Subsequently, production of electric
    power from RES in the order of 13.7 TWh
    (including large-scale hydro-electric plants) is
    the goal for 2010.

88
  • Electricity consumption in 2005 is estimated to
    reach 60 TWh in 2007, with an installed capacity
    of 12,500 MW of PPC-operated plants, i.e the
    Public Power Corporation, and 1400 MW of
    auto-producers, conventional power and renewable
    energy sources generators. The transmission lines
    in the interconnected system have a length that
    exceeds 12,000 km whereas the distribution lines
    exceed 200,000 km. The number of customers served
    is some 7 million. Trading of electricity with
    the Balkan countries Albania, FYROM, Bulgaria and
    Romania is established with connections capable
    of meeting, on an annual basis, electric power
    transactions 7 of Greeces needs.
  • The Greek Transmission grid is reconnected with
    the countries of Central Europe participating in
    the UCTE, following the end of the war in
    Yugoslavia.
  • A submersible link with Italy via a 400 kV
    direct-current cable, with transmission capacity
    of 500 MW was commissioned in 2002.

89
IV.FINANCE INCENTIVES FOR RES INVESTMENT.
  • The main financial instruments for the support of
    RES in recent years were the Operational
    Programme for Energy within the 2nd 3rd
    Community Support Frameworks for Greece and the
    National Development Law 2601/98, while Laws
    2244/94 and 2773/99 provided the legal framework
    for RES deployment. The legal framework currently
    governing RES electricity is Law 2773/99, which
    also sets the rules for the liberalisation of the
    electricity market in the country. Starting in
    February 2001, any private investor can produce
    electricity, subject to the issuing of a
    generation licence by the Regulatory Authority
    for Energy (RAE). A specific mention to
    RES-electricity production is included in Law
    2773/99, which states that the Transmission
    System Operator (HTSO) is obliged to grant
    priority access (priority in load dispatching) to
    RES electricity-producing installations. There
    are two main financial-support instruments that
    provide substantial public subsidies to RES
    investment projects (among others)

90
  • a) The National Development Law (Law 2601/1998
    as revises by Law 3299/2004).
  • The statute regulates all private investments in
    Greece, in all sectors of economic activity. It
    has a strong regional character, in that the
    level of public support depends strongly on the
    particular geographic region, in which the given
    private investment is planned to materialise.
    Regions with high unemployment rates and low
    incomes per capita receive the highest investment
    subsidies from the State.
  • Investments in RES installations (both
    electricity- and heat- producing ones) have a
    special status under Law 2601/98, similar to the
    one bestowed to other selected categories of
    investments, such as investments in high
    technology, environmental protection, etc. More
    specifically, the main provisions of Law 2601/98
    concerning public support of RES investments are
    as follows

91
  • 40 public subsidy (grant) on the total eligible
    RES investment cost 40 subsidy on the interest
    of loans obtained for the purpose of financing
    the RES investment
  • Alternatively, 40 subsidy on the loan interest
    100 tax deduction on the RES investment cost
  • Level of subsidy (40) is independent of the RES
    technology and the geographical region of the
    country
  • Required own capital 40 (min) of the total
    investment cost
  • Minimum investment cost required 176,000 Euro
  • Maximum subsidy granted 14.7 million Euro
  • Maximum investment cost subsidised 36.7 million
    Euro
  • Proposals for private investments can be
    submitted to the National Development Law at any
    time and they are evaluated on their own merit,
    i.e. independently of other submitted proposals.
    Theoretically the Law does not prescribe any
    total budget cup, thus there is no limit in the
    number and budget of proposals that can be funded.

92
  • b) The Greek Operational Programme for
    Competitiveness, one of the eleven (11) National
    and the thirteen (13) Regional Operational
    Programmes, in which the Third Community Support
    Framework (CSF III 2000-2006) for Greece is
    divided.
  • The main provisions of Measure 2.1 of OPC,
    concerning public support of RES investments, are
    as follows

93
  • Public subsidy (grant) on the total eligible RES
    investment cost
  • Wind parks, conventional solar thermal units
    30
  • Small hydro, biomass, geothermal, high-tech solar
    thermal units, passive solar 40
  • Photovoltaics 40-50
  • Level of subsidy () is independent of the
    geographical region of the country with the
    exception of PV
  • Required own capital 30 (min) of the total
    investment cost
  • Minimum investment cost required 44,000 Euro
  • Maximum investment cost subsidised 44 million
    Euro

94
  • Grants are awarded to RES projects by Measure 2.1
    of NOPC following rounds of public calls for RES
    investment proposals and subsequent competitive
    evaluation of the submitted proposals (per
    round).
  • A RES investment-subsidy programme, very similar
    to that of Measure 2.1 of OPC/CSF III, also
    existed in the Second Community Support Framework
    (CSF II 1994-1999) for Greece. This CSF II
    programme granted cumulatively about 92 million
    Euro of public subsidies to 78 RES investment
    projects, having a total budget of about 213
    million Euro (i.e. mean subsidy rate 43) and a
    total installed capacity of 161 MWe 102 MWth.
    This programme was very instrumental in stirring
    up substantial RES activity and in materialising
    a large number of commercial-scale RES projects
    in Greece, particularly in the period 1997-2000.

95
  • The main fuel source is the per annum 70 million
    tons of domestically extracted low-calorific-value
    lignite, property of PPC, which accounted in
    2005 for 56 of the total needs for energy. Oil,
    mainly used by the power plants on the islands
    not connected to the mainlands system, is
    estimated to have a share of 13. Natural gas
    imported from Russia and Algeria in the form of
    LNG covers12 Large-scale hydroelectric plants
    are estimated to produce 6,3, while wind energy,
    small hydro, biomass and photovoltaics combined,
    muster 5,7 percent whereas the net of
    imports-exports make up the remaining 7.

96
RES INSTALLATION REQUIREMENTS TO MEET THE 2010
TARGET

RES INVESTMENT Requirements in installed capacity by 2010 (MW) Energy generated in 2010 in TWh share of every renewable energy source in 2010
Wind parks 3,372 7.09 10.42
Small-scale hydro 364 1.09 1.60
Large-scale hydro 3,325 4.58 6.74
Biomass 103 0.81 1.19
Geothermal 12 0.09 0.13
Photovoltaics 18 0.02 0.03
TOTAL 7,193 13.67 20.10
97
V. POSITIVE PERSPECTIVES
  • Following the enactment of P.D 3468/2006, the
    reform of the RES energy investment framework
    with fast and simplified authorization procedures
    and the offered economic incentives Greece has
    moved from the 13th to the 7th place of the chart
    on RES Country Attractiveness Indices, compiled
    by Ernst Young quarterly. Greece was ranked
    lower than the USA, Spain, India, Germany, Italy,
    China and France, i.e countries and economies
    bigger than the Greek in terms of population,
    size and tradition.

98
  • THANK YOU FOR YOUR ATTENTION
  • QUESTIONS WELCOME

99
TOURISM INVESTMENTSIN GREECE
  • By Zacharias Kesses
  • Attorney at Law, LL.B

100
COUNTRY PRESENTATIONGREECE
  • The tourism industry is a vital economic sector
    that holds a dominant position in the Greek
    economy
  • Greece has established itself over the last three
    decades as one of the most popular destinations
    for leisure tourism and ranks in the
  • top 15 destinations in the global market
  • HITS
  • 2,000 islands to choose from
  • miles of glimmering coastline
  • Roam from the beaches to rocky mountains and
    explore breathtaking scenery
  • Ancient sites, museums and performances are all
    part of Greeces rich cultural heritage

101
STATISTICS
102
I. ARRIVALS
103
(No Transcript)
104
II. ECONOMIC INDICATORS
105
III. EUROPEAN DIMENSION
III.TOURISM DIMENSIONS OF EUROPE III.TOURISM DIMENSIONS OF EUROPE III.TOURISM DIMENSIONS OF EUROPE III.TOURISM DIMENSIONS OF EUROPE III.TOURISM DIMENSIONS OF EUROPE III.TOURISM DIMENSIONS OF EUROPE III.TOURISM DIMENSIONS OF EUROPE III.TOURISM DIMENSIONS OF EUROPE III.TOURISM DIMENSIONS OF EUROPE III.TOURISM DIMENSIONS OF EUROPE III.TOURISM DIMENSIONS OF EUROPE III.TOURISM DIMENSIONS OF EUROPE III.TOURISM DIMENSIONS OF EUROPE III.TOURISM DIMENSIONS OF EUROPE
Main destinations International tourism arrivals International tourism arrivals International tourism arrivals International tourism arrivals International tourism arrivals International tourism arrivals International tourism incomes International tourism incomes International tourism incomes International tourism incomes International tourism incomes International tourism incomes International tourism incomes
(1000) (1000) Change () Change () Share () Share () In hundreds In hundreds In hundreds In hundreds Change () Change () Share ()
2004 2005 2004/3 2005/4 2005 2005 2004 2004 2004 2005 2004/3 2005/4 2005
Europe 424.448 441.528 4,3 4 100 100 328.499 328.499 328.499 348.234 15,9 6 100
Austria TCE 19.373 19.952 1,5 3 4,5 4,5 15.334 15.334 15.334 15.467 9,9 0,9 4,4
Belgium TCE 6.710 6.747 0,3 0,6 1,5 1,5 9.233 9.233 9.233 9.863 12,7 6,8 2,8
Bulgaria TF 4.630 4.837 14,4 4,5 1,1 1,1 2.221 2.221 2.221 2.401 34,8 8,1 0,7
Croatia TCE 7.912 8.467 6,8 7 1,9 1,9 6.848 6.848 6.848 7.463 8,6 9 2,1
France TF 75.121 76.001 0,1 1,2 17,2 17,2 40.841 40.841 40.841 42.276 11,6 3,5 12,1
Germany TCE 20.136 21.500 9,4 6,8 4,9 4,9 27.668 27.668 27.668 29.204 19,7 5,6 8,4
Greece TF 13.313 14.276 -4,7 7,2 3,2 3,2 12.872 12.872 12.872 13.731 19,8 6,7 3,9
Italy TF 37.071 36.513 -6,4 -1,5 8,3 8,3 35.656 35.656 35.656 35.398 14,1 -0,7 10,2
Holland TCE 9.646 10.012 5,1 3,8 2,3 2,3 10.333 10.333 10.333 10.475 12,8 1,4 3
Norway TF 3,628 3.859 11 6,4 0,9 0,9 3.087 3.087 3.087 3.441 16,1 11,5 1
Spain TF 52.430 55.577 3,1 6 12,6 12,6 45.248 45.248 45.248 47.891 4,1 5,8 13,8
Switzerland TH - 7.229 - - 1,6 1,6 10.556 10.556 10.556 11.040 14,9 4,6 3,2
Turkey TF 16.826 20.273 26,1 20,5 4,6 4,6 15.888 15.888 15.888 18.152 20,3 14,2 5,2
UK VF 27.754 29.970 12,3 8 6,8 6,8 282.213 282.213 282.213 0,669 24,6 8,7 8,8
 
 
 
 
 
106
IV. NUMBER OF HOTELS
107
FORMS OF TOURISM
108
SEA TOURISM
  • 6000 ISLANDS AND ISLETS
  • 16.000 km COASTLINE
  • CRUISES
  • 19 MARINAS WITH 6.661 DOCKING PLACES
  • WATER SPORTS
  • YACHTS
  • 373 EUROPEAN AWARDED Blue Flag BEACHES

109
MOUNTAIN-WINTER TOURISM
  • 19 SKI RESORTS
  • 3.500km-long NETWORK OF PATHS
  • 300 ROCKY MASSES FOR MOUNTAIN CLIMBING

110
RELIGIOUS TOURISM
  • Byzantine and Post-Byzantine churches with
    important iconography
  • Monasteries, metochia (monastic dependencies) and
    sketae
  • Unique monastic state of Mount Athos (Agion Oros)
  • Meteora monasteries

111
CULTURAL AND PILGRIMAGE TOURISM
  • 3,500 years of history and civilization offer the
    visitor an unequalled experience
  • Museums, art galleries, concert halls, cultural
    centres, local festivals
  • Quality exhibitions and performances, diverse and
    rich cultural expression of modern Greece

112
THERAPEUTIC-SPA TOURISM
  • 16 hydro-treatment centres (in Natural Mineral
    Springs of tourist importance)
  • 1,400,000 therapeutic treatments offered to
    approximately 100,000 individuals
  • hydro-treatment centres at 40 springs of local
    importance

113
ECOTOURISM Nature-loving tourists  
  • aesthetic forests
  • national parks, rivers lakes
  • wonderful natural monuments, gorges, caves and
    waterfalls
  • observation of rare bird species
  • coastal eco-systems and wetlands
  • highly diverse floral life
  • extreme sports
  • agrotourist units
  • unique marine parks
  • The Mediterranean monk seal (Monachus-Monachus)
  • The Mediterranean green loggerhead turtle
    (Caretta caretta)

114
CONGRESS TOURISM
  • Conventions, business conferences meetings
  • Excellent combination of conference facilities
    with unique museums, archaeological sites,
    shopping and nightlife
  • 13 conference centres outside hotels, with a
    total capacity of 12,000 persons
  • Over 100 hotels at several Greek destinations
    with a full range of conference facilities

115
WHY GREECE?
116
A. COMPETITIVE MARKET
  • According to recent survey
  • Approximately 95 of visitors to Greece are
    satisfied
  • The majority of tourists to Greece had not
    considered other destinations in their decision
  • Friendliness and hospitality of the Greek people
    are the elements which tourists value most(THR,
    International Tourism Consultants, Spain 2005)

117
B. ACCESS MARKET
118
C. INFRASTRUCTURE
  • Completing its vast programme of infrastructure
    projects with the use of the European Unions 3rd
    Community Support Framework
  • Every mode of transport and communication is
    being upgraded on a profound scale

119
D. ECONOMIC STABILITY
  • Tourism is a significant economic activity and
    holds a dominant position in the Greek economy
  • The sector which reaped the most benefit from the
    Athens 2004 Olympic Games
  • Main source of public wealth
  • Contributes annually more than 18 to the G.N.P.,
    creates approximately 700,000 jobs / employment
    opportunities

120
INVESTMENT INCENTIVES
  • SUPPORT BY THE GREEK NATIONAL TOURISM
    ORGANISATION THE HELLENIC CENTER OF INVESTMENT
  • INVESTMENT LAW

121
INVESTMENT LAW
122
ELIGIBLE INVESTMENTS UNDER INVESTMENT LAW
  • Establishment, expansion or complete
    modernization of hotel units and camping sites
  • Conversion of traditional or preferable buildings
    into hotels
  • Establishment, expansion, modernization of
    special tourism infrastructures such as
  • MARINAS (leisure ports)
  • CONFERENCE CENTRES
  • GOLF COURSES
  • NATURAL SPA CENTRES
  • THALASSOTHERAPY CENTRES
  • HEALTH TOURISM CENTRES
  • SKI CENTRES
  • CENTRES OF TRAINING - SPORTS TOURISM
  • AUTOCAR RACING CIRCUITS
  • THEMATIC PARKS

123
FORMS OF AIDS PROVIDED
  • Grant
  • consisting in the offer by the Greek State
  • Covering necessary amount for the part of the
    aided expenditure of the investment or business
    plan
  • Leasing subsidy
  • consisting in the payment by the Greek State
  • part of the paid installments of the leasing
    contract concluded
  • for the acquisition of the right to use new
    mechanical and other equipment

124
FORMS OF AIDS PROVIDED
  • Tax allowance
  • up to a certain percentage or the entire value of
    the implemented and aided investment expenditure
  • or the leasing value of new mechanical and other
    equipment
  • exception from payment of income tax on the
    undistributed profits of the first decade from
    the implementation of the investment or program,
    with the creation of a tax-free reserve, equal in
    amount

125
FORMS OF AIDS PROVIDED
  • Grant for the cost of the creation of new job
    positions
  • consisting in the payment by the Greek State
  • for a period of 2 years
  • of a part of the cost of the new job positions
    created in the first 3 years from the
    implementation of the investment

126
AREAS OF FINANCIAL AID IMPLEMENTATION
127
CASH GRANT/LEASING SUBSIDY OR WAGE SUBSIDY
Investment Category Zone A Zone B Zone C
Category 1 20 30 40
Category 2 15 25 35
128
TAX ALLOWANCE
Investment Category Zone A Zone B Zone C
Category 1 60 100 100
Category 2 50 100 100
129
  • Investors own participation cannot be less than
    25 of the subsidized expenses
  • The minimum amount of investments for the
    implementation of the aids of the law is defined
    in the following way
  • For investments effected by big enterprises
    - 500.000
  • For investments effected by medium enterprises
    - 250.000
  • For investments effected by small enterprises
    - 150.000
  • For investments effected by very small
    enterprises - 100.000
  • Total given aid cannot exceed t
  • he limit of 20,000,000
  • over a period of five years

130
INVESTMENT OPPORTUNITYEXAMPLE ISLAND of ICARIA
East Aegean Sea
131
(No Transcript)
132
(No Transcript)
133
(No Transcript)
134
(No Transcript)
135
ICARIATHE ISLAND of ICARUS
  • COMPETITIVE ADVANTAGES
  • One of the largest islands in the East Aegean Sea
  • 255 square miles total surface
  • 102 miles of coastline
  • 9,000 residents
  • Contraversary topographic sights
  • Green slopes sheer rocks
  • Endless blue ocean sharp cliffs
  • Mild weather
  • Sunshine for 2915 hours per year
  • In July this might reach the 398 hours in a month
    (one of the greatest in Greece)
  • 17 therapeutic springs (of the most significant
    springs in Greece) 8 thermo springs

136
ICARIATHE ISLAND of ICARUS
  • 2 ports - 1 airport - 2 heliports
  • 5 piscatorial (fishing) harbours
  • Marina under construction
  • New road network
  • Autonomous in basic needs (water, electricity
    etc)
  • Developed market (food, entertainment,
    restaurants, clothing etc)

137
ATTRACTIVE FIELD
  • No 4 or 5 star hotel units
  • Only 24 hotel units under 3 stars
  • Total number of beds 935
  • Pure market with tremendous growth potential
  • Elimination of bureaucracy

138
ELIGIBLE TO INVESTMENT LAW
  • 100 Tax allowance
  • OR
  • 35-40 Cash grant and leasing subsidy or wage
    subsidy

139
ELIGIBLE BUSINESS ACTIVITIES
  • ESTABLISHEMNT OF HOTEL UNITS CAMPING SITES
  • CONVERSION OF TRADITIONAL BUILDINGS INTO HOTELS
  • ESTABLISHMENT OF
  • MARINAS (leisure ports)
  • CONFERENCE CENTRES
  • NATURAL SPA CENTRES
  • THALASSOTHERAPY CENTRES
  • HEALTH TOURISM CENTRES
  • CENTRES OF TRAINING - SPORTS TOURISM
  • THEMATIC PARKS

140
  • At your disposal for further information details
About PowerShow.com