New Development Law

Beneficiaries

The following companies can be included in the New Development Law:

Commercial company (OE, EU, SA, IKE)
Cooperatives, Koin.S.Ep, Agricultural Cooperatives (AS), Producer Groups (PO), Urban Cooperatives, Agricultural Partnerships (AES)
Companies under establishment or merger (recommendation after the approval of the investment plan)
Joint ventures subject to registration with GEMI
Public and municipal enterprises and their subsidiaries under certain conditions

Support Branches

Processing – Agri-food
Industry
Tourism (main accommodation)
Special forms of tourism
Warehousing – Logistics
Sports – Wellness – Health
Research and Development of new products and services
Audiovisual Industry

Strengthening Investment Plans

Investment plans with initial investment character, that is:

create a new unit – new business setting

capacity building of an existing unit,

diversifying the production of a unit into products or services that have never been produced on it. The condition is that the eligible costs exceed by at least 200% the carrying amount of the reused assets. This is based on the entry in the financial year preceding the commencement of work on the investment plan, or

fundamental change of the whole production process of the existing unit. A prerequisite for large companies is that the increased costs must exceed the depreciation of the previous three tax years. Those assets that are related to the business to be modernized are taken into account. If the depreciation related to the activity is not clearly reflected, the condition provided in this is not met.

Types of Aid

Tax exemption

It consists in the exemption from the payment of income tax on the pre-tax profits, which arise in accordance with the relevant tax legislation, from all the activities of the company.

Subsidy

It consists in the free provision by the State of a sum of money to cover part of the supported costs of the investment plan and is determined as a percentage of them.