FAQs

1. What is investment aid?
Regional investment aid is a form of state aid for entrepreneurs. Its main objective is to support economic development of the least developed regions of Slovakia and to reduce existing regional disparities.

The investment aid should encourage domestic and foreign investors to the realization of significant initial investments, expansion of established companies and to the creation of sustainable jobs.

2. What laws govern the investment aid?

  • Act no. 561/2007 Coll. on Investment Aid (“Investment Aid Act”)
  • Act no. 231/2001 Coll. on State Aid
  • Act no. 5/2004 Coll. on Employment Services
  • Act no. 595/2003 Coll. on Income Tax
  • Government Regulation no. 481/2011, defining the maximum intensity of investment aid and the amount of investment aid according to the form of investment aid and unemployment rates in districts of the Slovak Republic

EU Legislation:

  • Regulation of the EC no. 651/2014 declaring certain categories of aid compatible with the internal market according to the articles 107 and 108 of the contract (“General regulation about group exemptions“)
  • Guidelines for the regional state aid for the years 2014-2020 (2013/C 209/01)
  • Regional aid map for 2014-2020

 
3. What types of investment projects may apply for the investment aid?
Only investment projects in the following four categories may be granted investment aid:

  • industry
  • technology centers
  • shared service centers
  • tourism

Each category has specific basic conditions for the granting of investment aid that need to be fulfilled in order to be eligible to apply for investment aid.  
 
4. What economic activities/industries are not eligible?
 European regulations exclude the following sectors from applying for the regional investment aid:

  • agriculture and fisheries
  • coal industry
  • shipbuilding
  • transport
  • production, distribution and energy infrastructure

In case of steel industry and synthetic fibers sector specific products are excluded from regional aid.(specified in article 13 General regulation about group exemptions).
 
5. What forms of initial investment can be supported?
Eligible forms of initial investments (into long-term material and immaterial assets) are:

  • setting-up of a new production establishment / technology center / shared service center/ tourist center
  • expansion of an existing industrial company / technology center / shared service center / tourist center
  • diversification of the production of an existing industrial company to the new products, which haven’t been previously produced
  • fundamental changes in the overall production process of existing industrial company

 
6. What can be regarded as eligible costs for the purpose of aid calculation?
Eligible costs of the investment project consist of:

  • tangible fixed assets in the form of land, buildings, machinery and technological equipment
  • intangible assets in the form of patents, licenses, rights, know-how or non-patented technical knowledge

Tangible and intangible assets to be considered eligible costs must be purchased under the market conditions. Intangible assets can‘t be acquired from the personal and economic related parties.

The eligible costs for calculating the amount (intensity) of investment aid that may alternatively considered, are the total wage costs of new employees for the period of 2 years.
 
7. What are the minimum requirements for a company to be eligible to apply for investment aid?
The minimum amount of investment to fixed assets (eligible costs) and share of new technology equipment depends on the type of investment, the unemployment rate in the district and the company size of the applicant (in case of industrial projects).

The minimum investment amounts for technology centers
and shared services centers are the same in all Slovak districts.

Industrial production:

  • 10 mil. EUR, 60% share of new technology - in districts with an unemployment rate lower than the national average
  • 5 mil. EUR, 50% share of new technology - in districts with an unemployment rate above the national average
  • 3 mil. EUR, 40% share of new technology -  in districts with an unemployment rate at least 35% higher than the national average

Minimum amount of investment for SME’s s is reduced by 50% of costs for large enterprises.
 
Technology centers:

  • 0.5 mil. EUR in all districts of Slovakia

Shared Service Centers:

  • 0.4 mil. EUR in all districts of Slovakia

Tourism:

  • 10 mil. EUR, 40% share of new technologies - in districts with an unemployment rate lower than the national average
  • 5 mil. EUR, 20% share of new technologies -  in districts with an unemployment rate above the national average
  • 3 mil. EUR, 20% share of new technology - in districts with an unemployment rate at least 35% higher than the national average

Another condition is the creation of at least 40 (30 in case of technology centers) new jobs.

In case of expansions of existing establishments, the investment has to lead to an increase in the production volume by at least 15% (comparing with an average for last three financial years).
 
8. What are the basic steps of the approval process?
Investment Aid Act regulates following steps of the approval process:
 

  • Submission of the investment plan and all obligatory annexes to the Ministry of Economy (works on the project may start at this point)
  • Execution of the expertise of the submitted investment plan
  • Execution of the draft of aid offer for investment aid providers
  • Execution of statements by investment aid providers to the draft of aid offer
  • In case of the approval, the Ministry of Economy issues investment aid offer
  • Applicant’s acceptance of the offer through the application for granting of investment aid
  • Final assessment and approval by the Slovak government 

 
9. When can works on project start?
Works on the project may start at the moment of submission
of investment plan and all obligatory annexes to the Ministry of Economy.

Start of works means either the start of construction works or the first legally binding order of machinery and technology equipment, start of works does not cover feasibility studies.

If works on the project commenced before the written confirmation is released, the whole project cannot be supported by investment aid.
 
10. What needs to be included in the investment plan?
All required documents related to the investment plan together with obligatory annexes are defined in the Investment Aid Act (§ 9 and annex to the Investment Aid Act - further details of the investment plan). One of the obligatory annexes is the Form for granting of investment aid.
 
11. What are the maximum aid intensities?
Maximum aid intensity means the maximum amount of investment incentives calculated as a portion from the eligible costs. For this purpose, the territory of Slovakia is classified into three zones (A to C), the available maximum intensity is higher in districts with higher unemployment rates.
 

  • Max. intensity in C zone: 25%
  • Max. intensity in B zone: 35 %
  • Max. intensity in A zone: 35%

 
For industrial projects in zones B and A are available also direct forms of aid (cash grants, contributions).
 
Districts in Bratislava region are excluded from the Investment aid scheme.
 
12. What are the criteria for the granting of investment aid?
There is no legal entitlement to the granting of investment aid. The final decision has the Slovak Government. The decision whether project will be supported depends on the anticipated benefit for the selected region and budget availabilities of aid providers. According to §10, section 6 of the Investment aid act, the investment must have the prerequisite of having "Significant regional contribution".