New Investment Incentive Law for Micro Enterprises Allows Up to 70 Percent Support

If it weren’t for the congress of hoteliers organized last Monday by the Association of Entrepreneurs in Hospitality of Croatia, the upcoming amendments to the Investment Incentive Law would not be publicly known at this time. The mentioned law has undergone seven to eight amendments so far, the latest being in February of this year. 

According to announcements from the Ministry of Economy and Sustainable Development, new amendments to the Law should soon be submitted for approval, specifically in the first quarter of 2022. Namely, after the European Commission gave the green light on November 24 for a new regional division of Croatia into four areas for the allocation of regional aid from January 1, 2022, to December 31, 2027, the law now needs to be aligned with EC Regulation 651/2014 on the assessment of certain categories of aid compatible with the internal market. One of the goals of these amendments is to align the existing investment support program with the strategic objectives of the National Development Strategy until 2030.  The business community will be most pleased with significantly higher co-financing for all regions, including the City of Zagreb. Until now, the maximum intensity of support for companies was 25 percent, and now it rises to 50 percent, and in the case of micro enterprises in some regions, up to 70 percent.

The annual amounts of the support program from the state budget will total a maximum of 150 million euros. Although the Investment Incentive Law applies to all sectors of the economy and companies of all sizes, as we learn, very few companies are even aware that they are offered support under this law, especially in the category of micro and small enterprises.

Anyone who has made investments in the last two years and applied for support has seen that it is very worthwhile. Especially now, when the new Investment Incentive Law should significantly reduce corporate income tax and thereby free up trapped investments.

What are all the conditions for obtaining support and what experts believe should be changed in it can be read in the new printed and digital edition of Lider.

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