New grant opportunity – instead of tax relief for large companies there will be a cash grant in Hungary
According to government plans, from early 2024 a new funding program may be launched under the framework of the Individual Government Decision („EKD” or „VIP”) grants, specifically targeting companies adversely affected by the introduction of the global minimum tax.
Under the proposed program, these companies could receive cash grant for their planned investments instead of a development tax incentive. The cash grant would be payable within 10 years following the completion of the investment, provided the company has a positive tax base.
Eligibility
- Companies carrying out investments in Hungary (excluding Budapest) with a minimum size of €3 million, €5 million, or €10 million, depending on the location.
Aid intensity
- The maximum grant corresponds to the maximum regional aid intensity applicable at the investment location, which can reach up to 60%.
- The actual grant amount is determined on a case-by-case basis by the granting authority and depends on the company’s projected and actual pre-tax results.
Conditions
- No additional collateral is required.
- There is no need for bank guarantees, surety agreements, or mortgage registration.
- Submission of authorization letters to the company’s bank account may be sufficient, creating favorable conditions for the company.
We are ready to assist your company with applying for this grant and with the entire grant process.
If you have any questions regarding the grant program, please contact our team.
