New conditions for investment incentives at the least developed districts of the SR

The Slovak government approved new law to support the least developed Slovak districts, which has also included the amendment of the Investment Aid Act. The amendment to the Investment Aid Act lowers general conditions for investment aid at the least developed Slovak districts, valid from 15 December 2015.

For investment projects at the least developed districts in industrial production and tourism, the minimum amount of investment in tangible and intangible assets decreased to 200 000 EUR, while at least 50% must be covered by own equity. The minimum share of new machinery and equipment is reduced to 30% of the total acquired tangible and intangible assets. Implementation of the investment project in industrial production has to lead to the creation of at least ten new jobs. In case of tourism the investments must create at least five new jobs.
 

Minimum investment amount Industrial Production	200 000 EUR		Minimum investment amount Tourism	200 000 EUR
Own equity	50%		Own equity	50%
Amount of new machinery and equipment	30%		Amount of new machinery and equipment	30%
Minimum number of newly created jobs	10		Minimum number of newly created jobs	5

                                                                                          
The new legislation defines the least developed district as the one in which the unemployment rate is higher than 1.6 times the unemployment rate in Slovakia for at least nine questers in the previous 12 consecutive quarters. Currently, the development of unemployment rate is monitored in the period between October 1^st, 2012 to September 30, 2015.
The final list of the least developed districts will be published on the website of the Central Office of Labour, Social Affairs and Family by the end of December and will be quarterly updated. The list should include districts of Lučenec, Poltár, Revúca, Rimavská Sobota, Veľký Krtíš, Kežmarok, Svidník, Sabinov Vranov nad Topľou, Rožňava, Trebišov and Sobrance. 

If you are interested in more detailed information, please contact us at invest@sario.sk and we will be glad to provide you consultation on this topic.

Picture: The anticipated least developed districts of the SR