The resources for the selective and automatic programs of HFAC-Creative Greece have been secured – New date for the reopening of the cash rebate platform
CASH REBATE-VGD
Percentage of investment return and state aid cap
Investment projects for audiovisual works which qualify for funding under the CRGR-VGD scheme shall be supported through an investment incentive. This shall consist in the grant by the Greek State of an amount to cover part of the eligible costs of the investment project incurred in the Greek Territory and not exceeding eighty (80%) percent of the total production cost for the entirety of the audiovisual production work (eligible production expenses), calculated as follows:
(a) Ten (10%) percent of the value of eligible costs for the production of the prototype, after the certified end of work on this phase of implementation of the investment project. An advance payment of fifty (50%) percent of the grant for the first phase may be paid upon issuance of the decision qualifying the project for the aid scheme. The advance payment shall be recoverable by the Granting Authority (H.F.A.C.-Creative Greece) if the audit for any phase or sub-phase is not successfully completed in accordance with the provisions.
(b) Thirty (30%) percent of the value of the eligible costs for the final phase of completion of the investment project, after the certified end of the work of this phase in the implementation of the project.
The total subsidy for the CRGR-VGD aid scheme may not exceed EUR one million (1,000,000) per audiovisual work.
State aid beneficiaries
Beneficiaries for aid under the CRGR-VGD scheme are undertakings of any legal form established or having a branch in the Greek territory from the time of application for qualification to the completion of the random check procedures and operate for the purpose of production or executive production of video game software prototypes, under the following conditions:
(a) they have declared the relevant Activity Code 62.01. Production of computer game software prototypes, as a main or secondary code in the preceding calendar year;
(b) they have marketed, within the two (2) preceding years, at least one commercial video game for computer, video game console or mobile device on a game distribution platform. Video games not eligible for the programme do not count as previous games.
Foreign undertakings that are established or have their registered office in states that are not included in the non-cooperating states of Article 65 par. 3 of the Income Tax Code may also be considered beneficiaries, provided that for the purposes hereof, said undertakings cooperate under contract with a business established or with a branch in the Greek territory and operating as executive producer of video game software prototypes of the related Activity Code. For this case to apply, the application for qualification shall be submitted by an undertaking established or having a branch or presence in the Greek territory, while aid shall be provided to the undertaking that the contracting parties expressly specify as beneficiary thereof, in the application for qualification.
Companies in the process of establishment or merger, are required to have completed the publicity formalities prior to the start of the investment project.
Total minimum eligible costs implemented in the Greek territory (minimum local spending)
For an investment project for an audiovisual work with video game development content to qualify for funding under the CRGR-VGD aid scheme, the total eligible costs implemented within the Greek territory, regardless of applicant size, must amount to at least EUR fifty thousand (50,000).
Non-qualifying video game investment projects
On-line gambling and social betting games, lottery games and competitions, in particular with money as a prize, digital gambling and betting programmes of indirect or direct economic benefit as well as video games with pornographic content or videogames showing lack of respect for human dignity and programmes that include or promote discrimination based on sex, racial or ethnic origin, nationality, religion or belief, disability, age or sexual orientation.
Eligible costs
(a) costs relating to personnel fees;
(b) costs related to expenses of connected services, such as translation, actors’ fees, and writers’ fees up to twenty (20%) percent of the amount of eligible costs, provided they are in a language other than Greek;
(c) costs relating to invoices for other services provided by third parties, up to twenty percent (20%) of the amount of eligible costs;
(d) costs relating to PEGI Rating certification;
(e) costs relating to software licences, purchase of game assets, rentals (of equipment and studios), up to ten per cent (10%) of eligible costs; and
(f) costs relating to maintenance fees for accounts on the digital stores through which the game will be distributed.
The following costs shall not be calculated in the total eligible production cost: a) the cost for financial assets, fixed assets and depreciation thereof, such as technical equipment, plots and buildings, lending cost, bank expenses; b) the cost for marketing, promotion and communication actions.
Starting date of cost eligibility
The starting date of cost eligibility shall be the day of submission of the application for qualification. Costs of the investment project incurred in the period between the application for inclusion and the start of the investment project may be included in the aid scheme, provided that they meet the eligible cost conditions of “VGD Greece”. Production costs for a pilot of an independent audiovisual work shall not be included in these costs. In the event that work starts on an investment project before the aforementioned date of the application for qualification, with the exception of pre-production activities which do not constitute the start of an investment project, the entire investment project shall become ineligible to receive funding.
Application submission – Evaluation process
Applications for qualification shall be submitted to the Granting Authority “Hellenic Film and Audiovisual Center S.A.-Creative Greece” (H.F.A.C.-Creative Greece), up to ten (10) days before the start date of the production of the investment project, through the information system determined by the Granting Authority.
The evaluation process of the application shall be conducted by three-member Evaluation Committees, within three (3) months from submission of the application to the information system.
The applicant undertaking may request the issue of a letter of intent by the Granting Authority upon successful completion of the completeness and legality evaluations, namely in thirty (30) business days from the submission of the application. The Granting Authority (H.F.A.C.-Creative Greece) shall provide the letter of intent, subject to the successful completion of the evaluation by the competent Evaluation Committees and the issuance of the relevant decision qualifying the investment project for the aid scheme.
The evaluation process is hereafter particularly strict and no extension for resubmission, completion or correction of supporting documents or data shall be granted after these thirty (30) working days. An extension to the deadline may be granted only in extraordinary or unforeseen circumstances or due to demonstrable fault of the public body which delays the issue of the relevant documents.
A single appeal – objection may be filed electronically through the information system designated by the Granting Authority within a deadline of seven (7) business days from the notification of the relevant rejection act issued: (a) in response to the application for qualification for funding after the evaluation procedure; and (b) against the decision approving the conclusions of the Evaluation Committee, if the content of this decision differs from the content of the application. Such appeals shall be considered administrative appeals within the meaning of article 25 of the Code of Administrative Procedure (Law 2690/1999, A’ 45). A single appeal – objection may be filed against the conclusions of the evaluation of the application for qualification for funding. The decision on the appeal shall render the decision to approve or reject the evaluation conclusions final, and no other stages of administrative appeal shall be permitted.
Monitoring and Verification of the Investment Projects
The implementation of the investment projects shall be monitored and verified by an appointed Monitoring and Verification Officer of the Investment Project, who shall be responsible for ensuring compliance with the terms of qualification throughout the implementation of the investment project, and support the investor throughout the entirety of the co-operation with H.F.A.C.-Creative Greece, until the successful and lawful completion of each investment project.
Amendments to the terms for qualification of investment projects approved for funding by the Evaluation Committees are permitted during and until the end of implementation, by application of the undertaking before the end of the investment project, and may exclusively concern:
(a) The variable internal redistribution of categories of eligible costs included in the approved investment project, under the condition that no category of eligible cost exceeds an increase of twenty (20%) percent.
(b) Amendments concerning the physical scope of the investment project, associated with changes to the cultural criteria.
(c) Amendments concerning the extension of the completion time of the investment project, as declared in the decision qualifying the project for funding. Extensions may not exceed six (6) months or, exclusively for cases of force majeure, a period equal to that of the interruption or delay due to the extraordinary circumstances. In this case, the applicant undertaking shall provide a detailed description of the time-line, the events which led to the interruption or delay in the completion of the investment projects, and documents and data justifying the reasons for the amendment.
(d) Amendments concerning the applicant undertaking, due to merger or spin-off or transfer due to universal succession, which occurs during the process of implementation of the investment project.
(e) Increases to the eligible cost budget of up to ten (10%) percent within the approved production budget in cases of unforeseen circumstances.
Applications for amendment shall be accepted provided that the general terms and conditions for qualification of the project for funding continue to be fulfilled and their nature is not altered.
Any new application by the same operator regarding the amendment of the terms of the decision qualifying the work for funding with the same content shall not be examined in substance and is archived. Applications resubmitted within the provided deadlines in compliance with the observations of the competent Evaluation Committee shall not be considered new applications.
Amendments hereof shall not apply to eligible costs on invoices that have been issued by natural or legal persons or other legal entities having their registered office or permanent establishment in a foreign country (foreign invoices).
The addition of new television series or mini-series episodes regardless of content cannot be the subject of an application for amendment of an existing investment project and shall require a new application for qualification for funding. Any new applications for additional television series or mini-series episodes to an existing season shall be considered an application for a second season.
The amendment in the total number of shooting days or the total number of days of other production operations included in the qualifying investment project, if done within the time limits of implementation of the investment project and keeps intact or does not significantly alter the place of shooting as described in the investment project that qualified for approval, shall be submitted as part of the final Report of the certified auditor and shall not require the issuance of a relevant amendment decision by the Granting Authority. Any amendments in accordance with the above shall require that all the necessary legal procedures for obtaining permits and declaration – notification of change of work schedules in accordance with labour legislation are maintained.
Certification of completion of phases in investment projects under the CRGR-VGD aid scheme and disbursement of the subsidy
Certification of completion of phases in investment projects under the CRGR-VGD aid scheme shall take place in two stages:
(a) within the three (3) month period from the end of phase (a) of the investment project. The reconciliation and certification of costs for phase (a) of the investment project shall be conducted by the competent monitoring and verification officer of the investment project, who shall verify the deliverables of phase (a) and the fulfilment of the conditions of article 54 par. 8, and recommend that the investment project be approved or not approved for phase (b). In the case that the competent body of the Granting authority issues a negative decision, the advance payment of the aid for phase (a) shall be recovered by the supervising Ministry in accordance with the provisions in force regarding State aid recovery.
For Phase B, the undertaking may apply for reconciliation and certification within the six (6) month period from the end of the investment project, as defined in the decision qualifying the investment project for funding, or in the amendment decision, in the case of extensions. The end date of the investment project identifies with the date of application for audit by certified auditor from the undertaking to H.F.A.C.-Creative Greece.
H.F.A.C.-Creative Greece shall verify the submitted supporting documents within fifteen (15) business days from the submission of the application, or within one month, in case any completion of the auditor’s technical report is required. A certification decision is issued within ten (10) business days from the relevant recommendation of the service.
The subsidy shall be disbursed within three (3) months from the issue of the decision certifying the end of the investment project, via electronic payment to a bank account of the beneficiary of the investment project, as defined in the decision qualifying the project for funding, held at a credit institution in Greece or the state in which the beneficiary has its registered seat or permanent establishment, and may not be assigned to third parties.
40% investment return for audiovisual work with video game development content
With financial incentives and skilled experts
A world of digital games
View the Gallery (3 Images)
Legislation in effect
In August 2017, the Greek Parliament passed a law (No. 4487/2017) introducing a cash rebate programme that will be covering part of the eligible costs for national and international audiovisual productions.
Since September 2018 (Law 4563/2018) until recently, the Greek cash rebate amounted to 35% while in July 2020 (Law 4704/2020) it was raised to 40% of the eligible expenses made on Greek territory, with a flexible floor amounting to €30,000 in the case of digital games and may be used as a collateral through the Greek banking system.