Government Green Lights More Investment Incentives

Today parliament adjusted the rules of investment stimuli according to the Investment Assistance Act, putting greater emphasis on needier regions while enticing more investors by reducing the entitlement threshold.

Slovak Parliament (c) Tibor Macak, The Daily

The new rules mean that companies planning to invest in the Bratislava region will likely get no help at all, while the level of assistance will increase proportionate to the unemployment rate of the particular region. This could spell good news for East Slovakia, in particular, as it suffers from the highest unemployment, but the regions of Zilina and Banska Bystrica should also benefit from it.

Investments with higher added value will be favoured more, while the minimum amount of investment to be halved, meaning more companies will be entitled to receive it. Economy minister Juraj Miskov pointed out, though, that the government was not planning on handing out cash for the likes of job creation, but would instead provide the companies with tax relief.

Another incentive for companies is that the duration of investment assistance is to be doubled from five to ten years. The government is hoping the step will attract more investors to Slovakia, but ironically many companies setting up here are having problems getting an adequate and suitable workforce.

A lack of labour is already being felt by Taiwanese company AU Optronics, which opened a new plant in Trencin this week, as it is struggling to get the 1,300 or so workers it needs for its production plan.

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