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Supporting investments in Slovakia

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 for investment aid. This act is currently being amended and new rules will come into force in December 2014.

(Source: TASR)

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 for investment aid. This act is currently being amended and new rules will come into force in December 2014.

Types of investments eligible for support

- Industrial production
- Technology centres
- Strategic service centres
- Tourism

Forms of investment incentives

If an investor meets the set conditions, it can apply for one of the following types of state aid:
- a subsidy for the acquisition of non-current tangible or intangible assets
- income tax relief
- a contribution for new jobs
- a transfer of intangible assets or replacement of intangible assets at a price lower than the general value of the asset

Zones

Overall aid from all sources is limited by EU as well as Slovak legislation. A new classification of the districts of Slovakia into zones A, B and C according to the average unemployment rate in the district applies. This classification influences the opportunities to be granted the particular cash form of investment aid. The opportunity to be granted the corporate income tax credit should be sustained in all zones. Districts in the western Slovakia (i.e. in Trnava, Nitra and Trenčín regions) are considered Zone C districts irrespective of the unemployment rate.

Conditions for industrial projects and tourism

The investment projects can be supported provided they meet the following conditions:

Industry
- the building of a new business, the expansion of an existing one, the diversification of production to new or additional products, or a radical change in the production programme of an existing business
- the acquisition of new production and technological equipment designated for production purposes
l reaching the required share of new technology from the total amount of eligible costs (60%, 50% or 40%)
- the creation of new jobs – increase of the overall number of employees at least by 10%, not less than 40 new jobs

Tourism
- the construction of a new comprehensive tourism centre or the expansion of an existing one by offering new services
- 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 (40% or 20%)
- the creation of new jobs – increase of the overall number of employees at least by 10%, not less than 40 new jobs

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
- the creation of new jobs – increase of the overall number of employees at least by 10 percent, not less than 40 new jobs
- at least 70 percent of the total number of staff of a technology centre must have a university education

Shared services centres

Conditions for granting investment incentives to the strategic service centres include:
- the construction of a new strategic service centre or the expansion of an existing one
- the acquisition of long-term tangible and intangible assets valued at no less than €400,000
- the creation of new jobs – increase of the overall number of employees at least by 10 percent, not less than 40 new jobs
- at least 60 percent of the total number of staff must have a university education

Lenka Bartoňová is manager of investment assistance and state aid at PwC in Slovakia

For more information about the Slovak business environment please see our Investment Advisory Guide.

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