Make the Most of Investment Aid

Newsletter – 12.07.2026

Dear clients and partners,

In this edition of mailingLeitner Slovakia, we take a closer look at the current opportunities for financing investment projects, including regional investment aid and the Industry 4.0 Investment deduction, both of which can generate significant tax savings for investors.

EFFECTIVELY STRUCTURED INVESTMENT PROJECTS CAN RESULT IN MILLIONS OF EUROS IN SAVINGS

The amendment to the Slovak Investment Aid Act, effective from 2026, introduces greater flexibility for existing investment projects while creating new opportunities for future investors. Proper structuring of an investment project can now make a substantial difference through significant tax savings and enhanced access to state aid.

What’s New in Investment Aid

As of 1 April 2026, amendments to Act No. 57/2018 Coll. on Regional Investment Aid entered into force. One important change is the discontinuation of investment aid in the form of subsidies for newly created jobs previously administered by the Ministry of Labour, Social Affairs and Family of the Slovak Republic. Going forward, investment aid will be granted by the Ministry of Economy and in the case of tax relief by the Ministry of Finance. However, personnel costs may still be included when calculating eligible investment costs.

A significant improvement concerns projects involving the expansion of existing production facilities. Companies may now transfer existing employees to positions directly related to the new investment project. Where no new jobs are created, the transferred positions must be maintained throughout the implementation period and for an additional three years thereafter. Employees assigned to newly created or transferred positions must receive remuneration at least at the level declared in the investment aid application.

Previously, companies implementing investment projects were required to fulfil at least 90% of their planned job creation commitments. The amendment reduces this threshold to 70%, providing investors with considerably greater flexibility.

In addition, companies may now apply for an extension of the project completion deadline by up to 12 months.

The amendment also introduces Extraordinary Investment Aid aimed at strengthening manufacturing capacity in strategic clean technology sectors, including solar, wind, battery and nuclear technologies, heat pumps, carbon capture and storage, renewable fuels, hydrogen technologies and other strategic clean-tech industries.

Greater Flexibility for Existing Investment Projects

The legislative changes effective from 1 April 2026 also provide greater flexibility for investors with already approved investment projects, particularly in response to the current challenging international economic environment. Key changes include:

possible extension of the implementation period for investment projects (from 3 up to 5 years),
greater flexibility where planned eligible investment costs or employment targets are not fully achieved, as investment aid will generally not be revoked provided that at least 70% of the planned eligible investment costs or 70% of the planned newly created jobs are achieved, compared to the previous thresholds of 85% and 90%, respectively).
reduction of the obligation to maintain existing employment to 70% during the period 2026–2028.

The applicability of these changes must always be assessed individually. The new regime primarily applies to investment projects where investment aid was approved or granted by 31 March 2026, provided the relevant obligations had not yet become due before that date.

In all other cases, the previous legal framework continues to apply. Companies wishing to benefit from the new regime are required to notify the Ministry of Economy of the Slovak Republic accordingly.

Significant Savings in Practice

Our practical experience demonstrates that properly structured investment projects can generate substantial financial benefits.

Key success factors include:

identification of eligible investment costs,
setting an appropriate project timeline,
selection of a suitable location,
optimisation of the form of state aid,
proper consideration of the project’s tax and regulatory aspects

Regional investment aid is not the only available incentive. Depending on the specific circumstances, investment projects may also qualify for additional tax incentives, subject to an individual assessment of the applicable conditions.

We would also like to draw particular attention to the Industry 4.0 Investment Deduction, the benefits of which may, from 2026 onwards, be claimed under the newly extended regime until 2030. (read more in our newsletter)

A One-Stop-Shop Approach as a Competitive Advantage

Today’s investment projects require a multidisciplinary approach combining finance, taxation, legal advisory and state aid expertise. Professional advisory support plays a crucial role in identifying available incentives and minimising risks already during the planning phase of an investment.

At LeitnerLeitner, we assist clients with: