25Apr

Significant changes to the support scheme granted under individual government decision (IGD)

The conditions of the EKD (support scheme available under individual government decision) are undergoing significant changes, through which the investment incentive grant will offer more favourable opportunities for competitive domestic enterprises and help strengthen the supplier value chain.

The most important changes:

Lower investment thresholds:
In less developed municipalities, the grant will become available already for investments of EUR 2 million.

New mandatory commitments:
The basic obligation to maintain headcount will be abolished and replaced by commitments to increase per capita payroll and turnover as key criteria.

The new minimum required investment volume by municipality

  • EUR 2 million:
    In municipalities that are not county seats in the counties of Borsod-Abaúj-Zemplén, Heves, Nógrád, Szabolcs-Szatmár-Bereg, Bács-Kiskun, Békés, Csongrád-Csanád, Baranya, Somogy, Tolna and Zala
  • EUR 3 million:
    In municipalities that are not district seats in the counties of Hajdú-Bihar, Jász-Nagykun-Szolnok, Pest, Fejér, Komárom-Esztergom, Veszprém, Győr-Moson-Sopron and Vas
  • EUR 5 million:
    In Salgótarján, Miskolc, Nyíregyháza, Békéscsaba, Pécs, Kaposvár, Szolnok, or in municipalities that are district seats in the counties of Hajdú-Bihar, Jász-Nagykun-Szolnok, Pest, Fejér, Komárom-Esztergom, Veszprém, Győr-Moson-Sopron and Vas
  • EUR 10 million:
    In Győr, Székesfehérvár, Tatabánya, Szekszárd, Kecskemét, Szombathely, Veszprém, Zalaegerszeg, Debrecen, Szeged or Eger.

New commitments

  • Additional payroll of EUR 2 million over the maintenance period, and
  • Additional turnover of EUR 15 million over the maintenance period

AND

At the beneficiary’s choice, one of the following:

  • At least 30% growth in the average annual per capita payroll for companies with at least 50 employees, or
  • At least 30% growth in the average annual per capita turnover for companies with at least 50 employees, or
  • Creation of 25 new jobs

AND

At least two of the following, chosen as mandatory additional commitments:

  • Creation of 10 new R&D jobs
  • Use of at least 30% self-generated renewable energy during the maintenance period
  • 10 new employees in dual vocational training or employed under student/vocational training employment contracts
  • 30% increase in R&D expenditure on average over the maintenance period
  • 30% supplier ratio from suppliers located within a 100 km radius
  • Supplier development cooperation with the Hungarian Investment Promotion Agency for the full duration of both the investment and the maintenance periods

The aim of the new rules and simplifications is to increase the competitiveness of domestic enterprises and to promote sustainable development. The level of support for each investment project will in all cases be determined by an individual government decision. In order to secure the highest possible amount of support, thorough and careful project preparation is essential, for which you can confidently rely on the MAPI Group’s more than 20 years of professional experience.