Promising Changes on the Regional Aid Map

Promising Changes on the Regional Aid Map

Regional aid map 2022-2027

This year's significant and favourable changes concerning the system of regional state aid were presented at HIPA's popular business breakfast.

The year 2022 is kicked off for businesses interested in state aid in an optimistic mood as key national regulations containing promising opportunities were modified as of January 1.

In particular, large companies in Pest county can look forward to a whole new chapter in their operation thanks to the Government decree on earmarked subsidy scheme provided on the basis of individual government decision (Gov. decree on VIP cash subsidy) according to which those corporations investing in Pest county may be entitled to a regional aid intensity of up to 50%.

Apart from the above, the amendment of the Gov. decree on VIP cash subsidy also provides further significant tools for companies. However, Budapest-based businesses still don't qualify for aid on a regional basis.

According to the regulation effective until 2021, in Pest county regional subsidies could only be granted for initial investments in favour of new economic activity in case of large enterprises. From 1 January 2022, however, new legislation on state aid provides for that large enterprises could be subsidised in case of a capacity expansion of an existing establishment as well.

The background of the modification is the revised EU guidelines on regional State aid for the period of 2022-2027 adopted by the European Commission. Accordingly, the rules are set out under which Member States can grant State aid to companies to support the economic development of disadvantaged areas in the European Union.

According to the revised Regional Aid Guidelines, based on the latest available Eurostat statistics on GDP and unemployment, Pest county is now qualified as an assisted 'a'-area which resulted in a heavy increase of the maximum regional aid intensity in Pest county up to 50% in case of large enterprises.

These significant and favourable legislative changes are bound to provide further possibilities for the Hungarian Authorities in supporting the investment plans of those companies that are planning to invest in Hungary.

On January 6, 2022, in a HIPA Café event, the favourable changes of the incentive system were also introduced to our possible investors first hand.

Regional Aid map