The National Assembly has approved with 75 votes a proposal for amendments and additions to the Investment Promotion Act, which facilitates procedures for foreign investors in Slovenia.
What changes does it bring?
The amendments allow for the submission of an application for investment incentives even before the registration of a company or branch in Slovenia. It is now possible for a branch of a foreign company from the EU to receive an investment incentive without having to establish a new company in Slovenia. This represents a significant reduction in bureaucracy and an additional incentive for foreign investors.
The changes to the law were necessary to ensure compliance with European rules on state aid, which were updated in 2023. The new law allows an investor to apply for incentives before the registration of a business entity or branch, provided that it is registered by the time the incentive is paid out.
Principle of Free Movement of Services and Capital
Furthermore, the law introduces the possibility of obtaining incentives for branches of foreign companies within the EU. It reflects the principles of the free movement of services and capital among member states. This innovation simplifies procedures and enhances the attraction of foreign investments.
The law specifies exclusions from granting incentives for certain sectors, such as lignite and broadband connections. It expands the scope of eligible activities, including shipbuilding and the synthetic fibers industry.
At the same time, the law prohibits incentives for projects within the European Partnership for Innovation in agriculture and limits incentives that could restrict the use of research and innovation results in other EU member states.
For personalized guidance on how the latest Slovenian investment laws can benefit your business, email us today at info@unija.com.
Source: GOV
