We provide expert support for obtaining and utilising non-refundable grant (VIP cash grant) provided by individual decision of the Hungarian Government for the implementation of large-scale investments (with a minimum investment volume of EUR 2–10 million, depending on location).

Due to the case-by-case nature of the decision-making procedure, and in order to ensure that our partners receive the maximum available level of grant, we structure the investment in an aid-optimal manner from a state aid perspective and represent the interests of the investor throughout the entire process. In addition to EKD, we also help our partners access available tax incentives, thereby unlocking further financial support.

Over the past years, we have participated in more than 50 government-supported projects, supporting our partners in the successful implementation of their developments.

The conditions of the VIP cash grant scheme underwent significant changes, resulting in more favourable opportunities for competitive Hungarian enterprises and contributing to the strengthening of domestic supplier value chains.

Key changes include:

– Reduction of minimum investment thresholds
Support is now available from an investment volume of EUR 2 million in less developed locations.

– Introduction of new mandatory commitments
The previous baseline job retention obligation has been abolished. Instead, commitments related to the increase of wage mass per employee and revenue per employee have been introduced.

Minimum Investment Volume by Location

The newly required minimum investment volume is as follows:

• EUR 2 million
  In non-county-seat municipalities of
  Borsod-Abaúj-Zemplén, Heves, Nógrád, Szabolcs-Szatmár-Bereg, Bács-Kiskun, Békés, Csongrád-Csanád, Baranya, Somogy, Tolna and Zala counties

• EUR 3 million
  In non-district-seat municipalities of
  Hajdú-Bihar, Jász-Nagykun-Szolnok, Pest, Fejér, Komárom-Esztergom, Veszprém, Győr-Moson-Sopron and Vas counties

• EUR 5 million
  In Salgótarján, Miskolc, Nyíregyháza, Békéscsaba, Pécs, Kaposvár, Szolnok, or in district-seat municipalities of
  Hajdú-Bihar, Jász-Nagykun-Szolnok, Pest, Fejér, Komárom-Esztergom, Veszprém, Győr-Moson-Sopron and Vas counties

• EUR 10 million
  In Győr, Székesfehérvár, Tatabánya, Szekszárd, Kecskemét, Szombathely, Veszprém, Zalaegerszeg, Debrecen, Szeged or Eger

New Mandatory Commitments

Mandatory for all projects:

• EUR 2 million additional wage mass during the maintenance period, and

• EUR 15 million additional revenue during the maintenance period

PLUS – one of the following (at the applicant’s choice):

• At least 30% increase in annual average wage mass per employee (for companies with at least 50 employees), or

• At least 30% increase in annual average revenue per employee (for companies with at least 50 employees), or

• Creation of 25 new jobs

PLUS – mandatory selection of at least two of the following commitments:

• • Creation of 10 new R&D jobs

  • Use of at least 30% self-generated renewable energy during the maintenance period

  • Employment of 10 new participants under dual vocational training or student/vocational employment contracts

  • 30% increase in R&D expenditure on average during the maintenance period

  • 30% supplier ratio from suppliers located within a 100 km radius

  • Supplier development cooperation with the Hungarian Investment Promotion Agency (HIPA) throughout both the investment and maintenance periods

The purpose of the new VIP cash grant rules and relaxations is to enhance the competitiveness of domestic enterprises (including SMEs) and to promote sustainable economic development.

The exact aid intensity of each investment project is determined exclusively by individual government decision. In order to secure the highest possible support amount, thorough and well-considered project preparation is essential—an area where partners can confidently rely on the more than 20 years of professional experience of the MAPI Group.