Policy win: minimum investment requirement for large-scale investment support reduced from EUR 100 million to EUR 70 million

On 8 August, amendments to large-scale investment support entered into force, reducing the minimum investment requirement from EUR 100 million to EUR 70 million and easing the job creation requirement.

When large-scale investment support was first being developed, the Chamber pointed out that a minimum investment threshold of EUR 100 million was too high. Given the geopolitical situation and the European economic environment, it is not realistic to expect many investments of at least EUR 100 million to be made in Estonia in the coming years. We therefore proposed reducing the minimum investment threshold. We welcome the fact that the Ministry of Economic Affairs and Communications took the Chamber’s earlier proposal into account and reduced the minimum investment threshold to EUR 70 million.

In addition, the requirements for priority technology and defence industry projects were reduced. For a priority technology project, the investment must now amount to at least EUR 35 million instead of the previous EUR 70 million. Priority technologies include the development and production of net-zero technologies; the decarbonisation of energy-intensive industry; the extraction, processing, refining, recycling or substitution of critical and strategic raw materials; strategic digital technologies; biotechnologies; and food and beverage production. For defence industry projects, the investment requirement is at least EUR 20 million.

Alongside the reduction in the minimum investment threshold, the job creation requirement was also eased: instead of the previous requirement to create at least 30 new jobs, the investment must result in the creation of at least 20 new jobs.

The maximum amount of support is EUR 20 million per project. Applications can be submitted on an ongoing basis, and prior to preparing an application, applicants must undergo pre-application consultation with the Estonian Business and Innovation Agency.

More information on applying for support is available on the website of the Estonian Business and Innovation Agency.

The detailed conditions for large-scale investment support are available HERE.