Consultation on the new development law

The new development law puts emphasis on supporting SMEs and start-ups, the social economy and cooperatives, municipal enterprises, etc., while maintaining the scheme of the 2011 law that refers to the creation/ modernization of hotel units.
The new law subsidizes much smaller investments than the previous one, since the threshold drops to EUR 150.000 for small businesses, 250.000 for medium and 500.000 for large (previously 1 mil. Euros).

The following nine different types of aid will most probably be provided:

  • Exemption from payment of income tax for all business activities. The amount is calculated as a percentage of the value of the aided expenditure of the investment plan or the value of equipment acquired under finance leases.
  • Grant from the state to cover eligible expenses of the investment business plan.
  • Subsidy lease for seven years, the coverage of installments for leasing acquisition of new machinery and equipment. The grant is determined as a percentage of the acquisition value.
  • Interest subsidy.
  • Offsetting debts to taxes.
  • Coverage by the State of the wage cost of new jobs created and associated with the investment plan.
  • Fixed tax system for seven years.
  • Rapid licensing.
  • Venture financing through equity fund to provide equity, loans or guarantees to cover losses.

The nine different types of aid may be individually provided or combined. The aid ceiling is set at 10 million Euros for a single firm and at 20 million Euros in case of affiliated/ associated companies. The maximum grant percentage reaches 45% in the new Regional Aid Map, but is considerably smaller in practice for most areas of the country.

The reduction of subsidies is expected to limit the recipients of the new development law to those who have the necessary funds as well as an effective investment plan.

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