Investment aid is regional support aimed at encouraging investments and creating new jobs in Slovakia. Individuals and legal entities that are authorised to do business in Slovakia, and whose investment activities and projects meet the conditions of the Act on Investment Aid (Act 561/2007 Coll. on Investment Aid), are eligible to apply for investment aid.
Zones
Overall aid from all sources is limited by EU legislation and divided into several categories. For this purpose, Slovakia is divided into three parts – western, central, and eastern. In contrast with the previous legal regime, cash forms of investment aid can in principle be granted in all regions.
Forms of investment incentives
If an investor meets the set conditions, they can apply for the following types of state aid:
a subsidy for the acquisition of noncurrent tangible or intangible assets
income tax credit
a contribution for new jobs
transfer of real estate
Conditions for industrial projects
the building of a new business, the expansion of an existing one, the diversification of production to new products which were not manufactured before, or a radical change in the production programme of an existing business
the acquisition of non-current tangible and intangible assets at no less than €10 million, €5 million, €3 million or €0.2 million while no less than 50% must be covered by business’ equity or assets
the acquisition of new production and technological equipment designated for production purposes
reaching the required share of new technology from the total amount of eligible costs (60%, 50%, 40% or 30%)
creation of new jobs – increase of the overall number of employees by at least 40, or 10 new jobs
Conditions for technology (R&D) centres
Conditions for granting investment incentives to technology centres include:
the construction of a new technology centre or expansion of an existing one
the acquisition of non-current tangible and intangible assets valued at no less than €500,000, while no less than 50% must be covered by business’ equity or assets
creation of new jobs – increase of the overall number of employees by no less than 30
at least 70% of the total number of staff of a technology centre must have a university education
Conditions for business service centres
Conditions for granting investment incentives to strategic service centres include:
the construction of a new strategic service centre or the expansion of an existing one
the acquisition of non-current tangible and intangible assets valued at no less than €400,000 while no less than 50% must be covered by business’ equity or assets
creation of new jobs – increase of the overall number of employees by no less than 40
at least 60% of the total number of staff must have a university education
Conditions for tourism
the construction of a new comprehensive tourism centre or an expansion of an existing one by offering new services
the acquisition of new technological equipment designated for offering services
reaching the required share of new technology from the total amount of eligible costs (40% or 20%)
the acquisition of non-current tangible and intangible assets at no less than €10 million, €5 million, €3 million or €0.2 million while no less than 50% must be covered by business’ equity or assets
creation of new jobs – increase of the overall number of employees by at least 40, or 10
Lucia Guzlejová Zuzana Palkechová is senior consultant at PwC in Slovakia.
Author: Zuzana Palkechová
