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I&L Investment Incentives in CEE-17

In this chapter, CMS and Sorainen have provided a country-by-country guide to understanding and comparing what incentives are potentially available to Industrial & Logistics investors seeking to start operations in one or more the CEE countries covered in the report. Investment incentives are a key element of the decision-making process when investors are selecting countries and locations. Therefore, we look at some of the more frequently asked questions and provide an overview of the general conditions that were applicable at the time of preparation.

Serbia
Slovenia
Slovakia
Albania
Belarus
Bulgaria
Croatia
Czech Republic
Estonia
Hungary
Latvia
Lithuania
Montenegro
Poland
Romania
Ukraine

Expertise

Infrastructure & Projects Real Estate Tax

Romania

Legal incentives for investments specifically in the Industrial & Logistics sector in CEE-17

To support sectors that were most affected by the COVID-19 pandemic, the Romanian Government set up an EU-funded project for small and medium enterprises (SMEs), allocating funds of up to EUR 550 million.

Part of this grant scheme, for investments and for the economic reconversion of SMEs operating in the sanitary, pharmaceutical, food, automotive, IT, energy, construction, transport, tourism and clothing sectors, is allocated for expenses relating to production and the purchase of equipment, machinery and technologies. This grant does not specifically apply to foreign investments, but there are no limitations as to the eligibility of SMEs constituted with foreign capital.

General incentives, from which investors in the I&L sector in CEE-17 can benefit, if no specific ones are available

Two state aid schemes covering a large number of economic sectors are available to investors, namely: (i) a cash grant scheme covering salary costs in job-creating investments; and (ii) a cash grant scheme covering the creation or acquisition of tangible and intangible assets in investments which have a major impact on the economy.

In the first case, a minimum of ten new jobs per location must be created, and three out of the ten jobs should be for disadvantaged workers. The jobs created must be maintained for three years for SMEs and five years for large enterprises. The investment must remain operational over the same period.

In the second case, a minimum investment of EUR 1 million is required. The investor must source at least 25% of the eligible costs from their own equity. The costs associated with tangible assets cannot exceed 50% of the total eligible costs of the investment.

Available tax exemptions or preferences for investors specifically in the I&L sector in CEE-17

Under Romanian law, industrial parks are exempt from land and building taxes. In addition, several exemptions may be granted by the local authorities. Regarding free economic zones, deliveries of goods that will be placed in a free economic zone are exempt from VAT, as well as the provisions of services related to such deliveries.

General tax exemptions or preferences for investors in CEE-17 that would apply to the I&L sector

Romania offers several tax incentives, for example a corporate income tax exemption for reinvested profit (under certain conditions) which also apply to Industrial & Logistics investors.