NEW VIP SUBSIDY TO IMPROVE COMPETITIVENESS FOR MEDIUM-SIZED AND LARGE ENTERPRISES

NEW VIP SUBSIDY TO IMPROVE COMPETITIVENESS FOR MEDIUM-SIZED AND LARGE ENTERPRISES

VNT3In line with the approval of the European Commission on May 6, 2021, a new Subsidy to Improve Competitiveness has been introduced by the Ministry for Foreign Affairs and Trade, with HIPA Nonprofit Ltd as the managing body. The new incentive program is available from May 10 2021, for medium-sized and large enterprises throughout Hungary based on the amendment of the Decree 7/2020. (IV.16.) of the Ministry for Foreign Affairs and Trade on the subsidy to improve competitiveness required as a consequence of the COVID-19 pandemic.

In order to mitigate the economic effects of the COVID-19 outbreak, the Hungarian government has adopted a new incentive program that aims to increase the productivity of higher value-added manufacturing capacities as well as to promote the development of counties that are underdeveloped compared to the national average.

The non-refundable cash grant will be available for medium-sized and large companies with at least 50 employees throughout Hungary that have experienced a minimum of 25% decrease in sales revenue/orders in connection with the coronavirus pandemic.

The beneficiaries shall invest at least EUR 2 million by 31 December 2022 besides creating a minimum of 25 new jobs or achieving a combined increase of 15% in their sales revenue and gross wages. The investor in addition has to commit to maintain this increase in the two years following the completion of the investment.

The maximum available aid amount is EUR 1.8 million and the maximum available aid intensity is 20% of the investment costs in the developed and 33% in the less developed counties (i.e. Szabolcs-Szatmár-Bereg, Békés, Borsod-Abaúj-Zemplén, Nógrád, Jász-Nagykun-Szolnok, Somogy and Baranya).

For further information please contact your dedicated consultant at HIPA or contact us via incentive@hipa.hu.

For further details please check out our presentation.