Incentives for new-young farmers

1. Young adult novice farmers
2. Urchase of argicultural land
3. Investments
4. Obtaining your home
5. Quota
6. Agricultural Construction (reducing costs)
7. Reduction of eduction of lawyer and notary fees
8. Compensation
9. Assets (Property) and fishing vessels that are mortgaged at the agricultural bank of Greece (ATE)
10. Tax exemptions
11. Agricultural green card (training)
12. Information

A.   YOUNG ADULT NOVICE FARMERS

• Are you the child of a farmer?
• Are you a professional, employee or a laborer?
• Are you unemployed?
• Are you a native of Greece?

    and

• have not exceeded the age of 40?
• wish to employ yourself for the next 10 years in stock-raising or the agricultural industry?

The Agricultural Ministry in cooperation with the European Union will assist you with your initial steps offering you:

1. Gratuity for your first investment that could reach up to:

• 5.5 million Drachmas (approximately 16,667 Euros) considering you are an agricultural green card holder.
• 4.5 million Drachmas (approximately 13,636 Euros) considering you reside in a mountainous or disadvantaged region.
• 4 million Drachmas (approximately 12,121 Euros) considering you reside in a town or settlement with a population of no more than 5,000 people.
• 3 million Drachmas (approximately 9,090 Euros) considering you reside in a town or settlement with a population between 5,000 - 50,000 people.

2. Low interest loan (interest subsidy up to 80%) in order to face expenses such as home repairs, basic machinery, and equipment in general which is necessary to begin your operation.

The low-interest loan will be issued to you, after your application has been submitted, from your bank.

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B.   PURCHASE OF AGRICULTURAL LAND

Are you a young adult farmer that has not exceeded the age of 40 and wishes to purchase agricultural land?

The Law 2520/97 assists you with your choice offering you:

a tax omission for relocating.

a the ability of making your purchase with a loan from your bank, in which the interest rate will be approximately 8%.

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C.   INVESTMENTS

1. Are you a young adult farmer that has not exceeded the age of 40 and wish to carry out investments to:

• reduce production costs.
• improve the quality of your production, or to differentiate your products to fulfill the changing market demands.
• improve your living and working conditions.
• increase your household income with traditional small industry activities, ecotourism activities and handicraft activities.

Law # 2520/97 states that in combination with the rule 950/97 provide you the following abilities:

a. Providing that your main employment involves agriculture, (more than half your income derives from cultivation and or live-stock), then under these prerequisites you are eligible for investments up to 88 million Drachmas (approximately 266,700 Euros) as follows:

• For the first 44 million Drachmas(approximately 133,300 Euros) financial support will be given in cash, which is capable of reaching 29 million Drachmas (approximately 87,880 Euros).
• For the remaining 44 million Drachmas, the support will be given in the form of interest subsidization for investments in agricultural tourism, relocation of livestock plant etc. Considering you carry out the investments with the loan that you received from the bank of your choice.

b. Considering your main employment is not in agriculture but in other similar industries (fishery or agricultural tourism).

• then you may be supported for an investment up to 44 million Drachmas (approximately 133,300 Euros). Your financial support will be issued in the form of an interest-subsidized loan, which you will receive from your bank.

2. Are you an employee, merchant, small industries employee, land laborer, forester, or fishery laborer and:

• reside permanently in a mountainous or disadvantaged region?
• have not exceeded the age of 40?
• obtain 1/4 of your income from agricultural activities?

And desire to carry out investments in agricultural tourism, small agricultural industry and traditional handcrafts. The Law # 2520/97 provides you with the ability to carry out your desires with a loan, in which 50% will be subsidized.

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D.   OBTAINING YOUR HOME

Are you a young or new to the trade farmer and don’t have a home that fulfills your family’s needs?

• Then you may refer to your bank so that you may be issued the needed amount.
• The loan interest rate issued, is up to 9.5% (the basic rate being 15%).

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E.   QUOTA

Are you a young adult / beginner farmer and have not exceeded the age of 40? Do you wish to employ yourself in stock-raising, cultivation of tobacco, or the tomato industry but do not possess the quota needed?

The law 2520/97 provides you with preferential access to quota reserves for

• Cows milk.
• Cow milking process.
• Selective sheep and goats.
• The tomato industry.
• Tobacco farming.

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F.   AGRICULTURAL CONSTRUCTION (reducing costs)

• Are you a farmer?
• Are you young adult or new to the trade of agriculture?
• Are you a farming laborer, forester, or fishing laborer?
• Are you from a former eastern block country and are of Greek decent?
• Are you an employee or professional?
• Do you reside permanently in an agricultural district and plan on building:
  • Your first home?
  • A warehouse, shed, stable etc.?

The law 2520/97 not including the investment support (capital support– interest subsidy) offers you the ability to further reduce the cost of construction considering that:

• It subsidizes from 50% - 80% of the fee that is required for your engineers plans and project supervision.
• Furthermore, it abolishes any burdens that existed until the present time for the issuing of building licenses and reduces mandatory contributions in half, which are necessary for employee insurance (IKA).

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G.    REDUCTION OF LAWYER AND NOTARY FEES

1. Are you a farmer over the age of 55 and wish to enter into the early-age retirement measure?

The Law 2520/97 reduces the cost of this measure by subsidizing lawyer and notary fees, as well as notary transcript document fees.

2. Are you a group of young adult/ beginner farmers consisting of two or more people that wish to propose a new company for group cultivation?
   The Law 2520/97 eases your efforts by subsidizing 90% of lawyer, notary and transcript fees for the proposal of your company.

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H.   COMPENSATION

Are you a young adult/beginner farmer and permanently reside in a mountainous or disadvantaged region, or are roaming stockbreeders?

The Ministry of Agriculture in cooperation with the European Union offers annual compensation that may reach up to 2 million Drachmas (approximately 6,100 Euro) considering you are a Green Card holder.

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I.   ASSETS (PROPERTY) AND FISHING VESSELS THAT ARE MORTGAGED AT THE AGRICULTURAL BANK OF GREECE (ATE)

• Are you a young adult/ beginner farmer and wish to purchase a mortgaged hothouse, stockbreeding plant etc.?
  The Law 2520/97 provides you with the ability to purchase these assets with a loan, paying the equivalent value, to the seller. With the interest rate of the loan being 15%.

• Are you a young adult fisherman and wish to purchase a fishing vessel that is mortgaged at the Agricultural Bank of Greece?
  The Law 2520/97 provides you with the ability of a loan (paying the equivalent value to the seller) to purchase your vessel with an interest rate of 15%.

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J.   TAX EXEMPTIONS

Are you a young adult/ beginner farmer?

The Law 2520/97 (not including previous mentioned incentives) provides you with the following tax exemptions:

1. Discount on your net agricultural income
2. An increase on your tax exemption amount for up to 10 years, in relation to other farmers.
3. Tax exempt amount tripled from inheritance share in relation to other farmers.
4. Exemption from inheritance tax and transfer of all joint inheritance considering inheritance is transferred to you for at least 10 years for agricultural use.
5. Exemptions on transfer taxes of up to 75% of its market value on every 1000 sq. meters that is transferred to you either by death or family transfer of ownership.
6. Exemptions on transfer taxes of up to 75% of its market value on every 1000 sq. meters in the case you purchase land or equipment for agricultural use.
7. Provided you obtain land with the above mentioned manner, you are not only exempt from any transfer taxes

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K.    AGRICULTURAL GREEN CARD (training)

Are you a young adult/ beginner farmer or even older in age farmer and wish to, not including mandatory training, acquire more knowledge on agricultural issues that may trouble you?

The Ministry of Agriculture provides you with the ability to study in:

• One of the 12 technical training schools to obtain your agricultural green card.
• One of the 6 agricultural practical training schools.
• One of the
• One of the agricultural training centers.

During your studies you may be excused from current program commitments that you may be involved in, whereas after you obtain your agricultural green card, you will have access priority to all agricultural programs, tax exemptions and a greater reimbursements.

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L.   INFORMATION

For more information please contact the following:

• Agricultural Development (farming dept) at your prefectures administration, in which you plan to make your relative applications.
• Local agriculturists.
• Your local Δ.Ο.Υ for tax exemptions
• Your local banks for loan issuing.
• Your local IKA for construction workers revenue stamp reductions.
• Ministry of Finance for tax exemptions (tel. 337-5231, 337-5239, 363-8878, 324-3856
• Ministry of Agriculture (tel. 529-1242 or 529-1337)

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