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FDI Incentives to Be Targeted at Poorer Regions

Ljubljana, 14 August (STA) - The government adopted Thursday a reform decree on incentives for foreign direct investments, tweaking the existing provisions to favour companies that want to invest in the economically underdeveloped parts of eastern Slovenia.

Under the new decree, the incentives will depend on whether a company wants to invest in eastern or western Slovenia in line with the country's east-west division for the purposes of cohesion aid.

In eastern Slovenia large companies will be eligible for aid amounting to 25% of the investment, medium-sized companies up to 35% and small companies up to 45%.

For western Slovenia, the figures are 15%, 25% and 35%, respectively; beyond 2018, the share of eligible funding for medium-sized and small companies will drop by 5 percentage points.

Moreover, in eastern Slovenia all companies will be eligible for aid for all types of investments covered by the decree (manufacturing, services, R&D).

In western Slovenia only small and medium-sized companies will be eligible for subsidies for all investments, whereas large companies will only be able to apply for aid for diversification.

The changes are in line with the 17 June European Commission regulation declaring certain categories of aid compatible with the internal market, the Government Communications Office said.

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