The government is changing the rules on investment aid

The amendments are designed to offer greater flexibility in executing investment projects that have received approval but remain unfinished compared to the initial plans submitted with the investment aid request. In many cases, the challenges associated with job creation and investment have significantly complicated the implementation of these projects. Below, we highlight the key changes:

The amendment states that investment projects with a budget of up to EUR 50 million will now need to be completed within a five-year timeframe instead of the previous three years. For projects requiring greater investment, a seven-year duration will now be implemented, extending the previous five-year limit.

A significant change is that the actual investment amount during the 2026-2028 period must now be at least 70% of the project outlined in the aid request, down from the previous requirement of 85%. Similarly, an amendment has been introduced regarding job creation: the actual number of new jobs must reach at least 70% of the target, down from the earlier requirement of 90%, effective before April 1, 2026.

Under the current regime, creating new jobs is not mandatory. However, in that context, companies were required to maintain 90% of their existing workforce for up to five years after completing the investment project. This requirement has now been adjusted, lowering the percentage to 70% for the period from 2026 to 2028.

Author

Branislav Kajánek
Manager, EU & Public

Several other conditions have been amended but are not discussed, as they are minor compared to the three amendments above. Note that the above amendments only apply if the investment aid was granted or approved by 31 March 2026 and the beneficiary was not required to fulfil the following conditions or obligations by 31 March 2026. In other scenarios, the old regime applies. Aid beneficiaries are required to inform the Ministry of Economy about their application for this regime before the year 2029.

We note again that the amendment focuses on ongoing investment projects. It does not extend to aid requests submitted and approved after March 2026. Consequently, it is unlikely to significantly affect the inflow of new foreign direct investment into Slovakia in 2026 and beyond.

Also, the provisions regarding extraordinary investment aid have been modified. The extraordinary investment aid will now be provided under new EU rules, which took effect on 1 January 2026. However, the new rules do not differ significantly from the previous rules.

Extraordinary support is being offered for investment projects that boost production capacity in clean technology sectors, including batteries, health pumps, and solar technologies. This extraordinary aid can now be applied for until December 31, 2030. The major change is that under the new rules, more sectors can apply for extraordinary aid, for example, electric engines.

Extraordinary aid is typically provided for investment projects that have investment costs exceeding EUR 110 million. Under normal circumstances, these aid measures must be submitted to the EU for approval in accordance with standard investment aid regulations. However, aid granted under the extraordinary aid provisions does not require EU approval, which can often take up to a year to obtain. In most situations, it is advisable to seek standard investment aid.

Additionally, companies located in the Bratislava region may also be eligible for extraordinary aid. This region is generally excluded from investment aid under the standard investment aid rules.

Please contact KPMG if you have further questions on this issue.

Contact us

Should you wish more information on how we can help your business or to arrange a meeting for personal presentation of our services, please contact us.