The answer to the question of how much support you can receive for purchasing a new machine, building or equipping a new production facility can be found, among other things, in the document Regional Support Map.
This document determines how much regional support, i.e. the intensity of co-financing, a medium-sized entrepreneur in the Slavonia region will receive, for example, compared to an entrepreneur of the same size in the City of Zagreb or in another location in the Republic of Croatia.
In the previous programming period, a map was in effect that defined the same intensity of support regardless of the part of Croatia in which the investment was realized, i.e. regardless of the development of an individual region, the intensity was: 25% for large entrepreneurs, 35% for medium-sized ones and 45% for micro/small ones.
New map of regional grants
The new map, approved by the European Commission, allows for higher aid intensities for entrepreneurs of all sizes in all parts of Croatia.
For example, a small entrepreneur in Karlovac can obtain a high 70% co-financing for the purchase of machinery in tenders (from 2022), instead of the previous 45%.
Investors in the City of Zagreb area also receive higher support. If we look at a small entrepreneur investing in the City of Zagreb, instead of the previous 45%, he can now receive 55% co-financing, i.e. 45% of the total eligible costs are financed from his own funds.
The basis for the application of new intensities is the new division of Croatia into 4 NUTS 2 regions, namely:
- Pannonian Croatia – covering Bjelovar-Bilogora, Virovitica-Podravina, Požega-Slavonia, Brod-Posavina, Osijek-Baranja, Vukovar-Srijem, Karlovac, and Sisak-Moslavina counties.
- Adriatic Croatia – covering Primorje-Gorski Kotar, Lika-Senj, Zadar, Šibenik-Knin, Split-Dalmatia, Istria, and Dubrovnik-Neretva counties.
- City of Zagreb
- Northern Croatia – covering Međimurje, Varaždin, Koprivnica-Križevci, Krapina-Zagorje, and Zagreb counties.
*Do 2027.g. Sisačko-moslavačka županija ima uvećane intenzitete potpore u visini od 10 %.
Intenziteti potpora prema regijama
Aid intensities for each region are as follows:
The aid intensities are defined based on how each region compares to the average GDP per capita of the EU-27. For Lika-Senj County, classified as a sparsely populated area, a more favorable treatment in the context of operational aid allocation is proposed.
The European Commission has also made decisions on Regional Aid Maps for Poland, Slovakia, the Czech Republic, and Hungary:
- Poland: It has 17 NUTS 2 regions, of which 14 can receive regional aid. Co-financing rates for large enterprises range from 30 to 50%, while some more developed segments of these regions will have a slightly lower aid rate (15-20%).
- Slovakia: It has 4 NUTS 2 regions, of which 3 can receive regional aid. Co-financing rates for large enterprises range from 30 to 50%.
- Czech Republic: It has 8 NUTS 2 regions, of which 4 can receive regional aid. Co-financing rates for large enterprises range from 30 to 40%, while some more developed segments of these regions will have a slightly lower aid rate (15-20%).
- Hungary: It has 8 NUTS 2 regions, of which 7 can receive regional aid. Co-financing rates for large enterprises range from 30 to 50%.
In all these countries, a 10% higher rate applies to medium-sized enterprises, and a 20% higher rate for small and micro-enterprises.
Conclusion
The new regional aid map brings significant changes for entrepreneurs across Croatia, enabling greater co-financing intensities and better investment opportunities.
Given the new division of the country into four NUTS 2 regions, entrepreneurs now have the opportunity to obtain greater financial support depending on the location of their investment. This means that when planning investments, it is crucial to analyze the support conditions in your region in order to take maximum advantage of the new regional aid map.
For example, if you are a small entrepreneur and you are planning to invest in the Istria or Zadar counties, you can receive up to 60% co-financing of eligible costs.
On the other hand, if your investment takes place in Bjelovar-Bilogora or Varaždin County, you are entitled to an even more favorable support intensity of as much as 70%.
This difference in financial support can have a big impact on investment location decisions, so it’s important to study the terms well to ensure maximum business benefit.
The new regional aid map provides entrepreneurs of all sizes with the opportunity to more easily finance their projects, whether it is the purchase of machinery, the construction of a production facility or the modernization of their business.
With proper planning and information, it is possible to significantly reduce your own financial burden and ensure sustainable business growth with the support of EU funds and national co-financing programs.
For the last 12 years, we have been helping to prepare documentation for EU funding. We are monitoring all available sources of funding. Get in touch so we can be your right hand.
Author: Tatjana Štefanac Zjalić
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Sources:
[1] https://narodne-novine.nn.hr/clanci/sluzbeni/full/2019_12_125_2507.html
[2] https://razvoj.gov.hr/regionalni-razvoj-i-itu-mehanizam/4215
[7] https://ec.europa.eu/commission/presscorner/detail/en/ip_21_6206
