DECISION no. 807 of 2014 on establishing State aid schemes with the object of stimulating investments that have a major impact on the economy

4. July 2018

1. Term, budget and objective of the scheme

Duration of the program   Until 31.12.2020
Payment period 2015 – 2023
Annual budget 638 mil. Lei (145 mil. Euro)
Total multi-annual budget 4,070 bln. Lei (925 mil. Euro)
Estimated number of projects funded 150
Management Authority Ministry of Public Finances
Submission  Annual calls for projects

2. Eligible Expenditure

The program reimburses expenses for tangible and non-tangible assets connected to an initial investment:

  • Acquisition of tangible assets:
    • Buildings of any type, respectively expenses with construction works (the maximum eligible value is 1.650 lei / sqm, equivalent of 375 Euro / sqm)
    • New equipment, technical installations and machinery classified as assets.
  • Renting buildings (the maximum eligible value for rent is 22 lei / sqm / month, equivalent of 5 Euro / sqm / month) during the initial investment execution
  • Acquisition of non-tangible assets – such as licenses, patents, know-how and other intellectual property rights (adding up to a maximum of 50% of the total eligibile value of the project).

3. Type of investment

A project is considered an initial investment if it implies investing in tangible and non-tangible assets placed in the same location, if they are connected to:

  • Opening a new facility or
  • Expanding the capacity of an existing facility or
  • Diversifying the product portofolio of an existing facility by introducing new, previously un-included products or
  • A fundamental change in the production process of an existing facility.

For projects located in the Bucharest region, only initial investments in favour of a new activity are considered eligible. Initial investments in favour of a new activity are investments in tangible and non-tangible assets, located in the same area, if they are connected to:

  • Opening a new facility or
  • Diversifying an existing facility’s activities, as long as the new activities are not identical or similar to previous activities done in the facility.

4. Terms and conditions

  • The applicant plans an initial investment in Romania, in any economic sector (with the exception of the excluded sectors)
  • The project can be classified as initial investment and has a total value (without VAT) of minimum 3 million Euro (13.5 million lei).
  • The applicants are legal entities, incorporated according to Law 31 / 1990 in Romania
  • Applicants with previous economic activity must meet all of the following conditions at the date of submitting the application form:
    • The company’s return on turnover for the last closed financial year is positive.
    • The company’s equity for the last closed financial year is positive.
  • Newly set up applicants must meet all of the following conditions at the date of submitting the application form:
    • The company has a minimum subscribed capital of 100.000 lei
    • The shareholders do not currently own and have not owned in the past 2 years previous to submitting an application for the program another company incorporated according to Law 31 / 1990 with the same economic activities for which funding is requested.
  • The selected projects must start no later than 4 months after signing the funding agreement. The investment can start after submitting the application.
  • The investment project contributes to regional development, through taxes paid to the general state budget and local budget
  • hroughout the implementation period and 5 years after the project is finalized.
  • The applicant is not classified as an enterprise in difficulty
  • The applicant is not insolvent, bankrupt, under legal restructuring, enforcement or dissolution procedures, or any other similar situations
  • The applicant is not the subject of any decision to recover state aid given or, if such a decision exists, it has already been executed.
  • The applicant has not received other regional state aid for personnel costs for the same investment project
  • The applicant has not shut down an identical or similar economic activity anywhere within the European Economic Area during the last 2 years preceding the application and does not have any plans of shutting down such an activity during the next 2 years after concluding the investment project
  • The state aid offered has an incentive effect on the investment
  • The project meets the quantity and quality indicators mentioned in the Applicants’ Guide.
  • The project has a quantifiable leverage effect on the economy, by encouraging connected investments and development of local product and service suppliers.
  • The assets funded through the program will be used exclusively by the applicant, they will be registered in the applicant’s asset registry and will remain connected to the investment project for a minimum of 5 years after the project is concluded.
  • Intangible assets cannot be purchased from any affiliated companies.

5. Beneficiaries

  • SMEs
  • Large Companies
  • Newly incorporated companies if their share capital subscribed and paid according to legal provisions is of at least Lei 100.000;

6. Intensity and level of State aid

Maximum level of State aid Maximum intensity of the State aid
Bucharest – 2018 – 2020 7,5 million EUR 10%
West and Ilfov Region 26,25 million EUR 35%
North-West, Center, North-East,
South, South-West, Oltenia Region
37,5 million EUR 50%

Important: The financial aid granted must not be higher than the project’s total contributions to regional development, that means not higher than all social contributions for new employees and all taxes paid to the general state budget and local budgets throughout the implementation period and 5 years after the project is finalized.

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