The European Commission has approved the regional aid map for Hungary for the period 2022-2027

Based on the official communication published on 16 September 2021, the new regional aid map for Hungary for the period 2022-2027 was among the first maps approved by the European Commission. The recently approved regional aid map for Hungary is already based on the revised Regional aid Guidelines, (RAG) approved by the Commission in April 2021, entering into force on 1 January 2022.

Budapest, 2021.09.29.

The regional aid map defines the regions eligible for regional investment aid and the maximum aid intensity for large companies in a given region, taking into account the GDP per capita of that region compared to the GDP per capita of the EU. The aid intensity is the maximum amount of regional investment aid available in each region expressed as a percentage of the total eligible investment cost.

Based on the regional aid map recently adopted by the Commission, from 1 January 2022 the regions eligible for regional investment aid and the applicable maximum aid intensities for large companies in Hungary will be as follows:

  • In the regions of Pest, Dél-Dunántúl, Észak Magyarország, Észak-Alföld and Dél-Alföld 50%,
  • In the regions of Közép-Dunántúl and Nyugat-Dunántúl 30%.

Favourable changes regarding Pest county

The approved regional aid map contains significant favourable changes regarding Pest county compared to the map being in force between 2014 and 2021, as it becomes a separate region (i.e. separate from Budapest). Therefore, from 2022 regional investment aid will be available in all settlements in this region as well, with maximum aid intensity of 50% for large companies (Budapest will still not be eligible for regional investment aid).

* Maximum regional investment aid intensities available for large companies in Hungary

Similarly, as in the current regulation, from 2022 the maximum regional investment aid intensity determined for large companies could be increased by 20 percentage points in the case of small companies and by 10 percentage points in the case of medium-sized enterprises. These aid intensities represent the maximum aid intensities available, however the individual grant opportunities may provide lower intensities and determine the amount of aid available in absolute terms.

What is next?

In the light of the above information, it is worth considering/reviewing investment plans for which state aid may be claimed, especially focusing on the following aspects of the investment:

  • the schedule and locations of the planned investment,
  • availability and conditions of grant opportunities,
  • other changes of RAG (e.g. rules on sectoral exclusions).

If you need more information on state aid and grant & incentive opportunities, please contact our expert one of the contact details below.

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