Significant changes are expected to take effect from April 2024 regarding the conditions for VIP Cash Grant (individual government decisions), as outlined in the draft legislation. The aim of these modifications is to encourage investments with higher added value, support economic growth, and promote the development of disadvantaged regions. These changes will impact several areas, including the minimum required investment amount, revenue and wage commitments, and new mandatory obligations.
The expected changes to investment support conditions are summarized in the table below:
| Current VIP Cash Grant Conditionsi | Expected VIP Cash Grant Conditions from Aprili | |
| Investment Size | 10 million euros in cities such as Győr, Székesfehérvár, Tatabánya, Szekszárd, Kecskemét, Szombathely, Veszprém, Zalaegerszeg, Debrecen, Szeged, and Eger. 5 million euros in cities like Salgótarján, Miskolc, Nyíregyháza, Békéscsaba, Pécs, Kaposvár, Szolnok, and other district seat towns. 3 million euros in other towns. | EUR 10 million in Győr, Székesfehérvár, Tatabánya, Szekszárd, Kecskemét, Szombathely, Veszprém, Zalaegerszeg, Debrecen, Szeged and Eger; EUR 2 million in Szabolcs-Szatmár-Bereg, Heves, Nógrád, Borsod-Abaúj-Zemplén, Bács-Kiskun, Békés, Baranya, Tolna, Zala and Somogy (except in the county capitals! ) EUR 5 million in the cities of Salgótarján, Miskolc, Nyíregyháza, Békéscsaba, Pécs, Kaposvár, Szolnok and in all the counties except the counties with a budget of EUR 2 million. EUR 3 million in all municipalities which are not located in a district, county or county seat or in counties other than those subject to the EUR 2 million condition. |
| Revenue Commitment | For new businesses: min. 3 million euros/year (9 million euros over 3 years). For existing businesses: min. 30% increase compared to the baseline period for each year of the maintenance period, in combination with the wage commitment. | min. EUR 25 million in total for the maintenance period (maintenance period min. 3 years) |
| Wage Commitment | For new businesses: min. 300,000 euros/year (900,000 euros over 3 years). For existing businesses: min. 30% increase compared to the baseline period for each year of the maintenance period, in combination with the revenue commitment. | min. EUR 5 million in total for the maintenance period (maintenance period min. 3 years) |
| Other Optional Commitments (at least 1 must be chosen) | None | ✅ Increase in wage bill: the ratio of the company's wage bill to the average statistical headcount during the maintenance period is at least 30% higher than in the business year before the investment (condition: at least 50 employees at the time of application for aid) ✅ Increase in turnover: the ratio of the company's turnover to the average statistical headcount during the maintenance period is at least 30% higher than in the business year before the investment. (Requirement: at least 50 employees at the time of application for aid.) ✅ Job creation: the company creates at least 25 new jobs during the maintenance period (persons employed in dual training, on a student contract or on a vocational training contract are included if the employment reaches 60 hours per month). |
| Other Optional Commitments (at least 2 must be chosen) | None | 📌 Research and development jobs: create at least 10 new R&D jobs, of which at least 50% require a tertiary education. 📌 Use of renewable energy: at least 30% of the energy used by the company will come from renewable sources of its own production. 📌 Training programmes: the number of employees in dual training, student employment contracts or vocational training contracts will increase by at least 10 during the maintenance period compared to the academic year before the investment. 📌 Increase in R&D expenditure: the company's R&D expenditure increases by at least 30% in the maintenance period compared to the previous financial year (condition: at least 50 employees at the time of application for aid). 📌 Involvement of local suppliers: at least 30% of the products and services used by the company are provided by suppliers located within 100 km of the investment site. 📌 Participation in a supplier development programme: The company actively participates in supplier development activities organised by the operating structure. |
The new VIP Cash Grant regulations are also expected to allow an advance of up to 25% of the investment support to be approved for SMEs, based on the sponsor’s own risk assessment.
