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State Aid

State aid: Icelandic scheme for promoting initial investment cleared

13.10.2010

PR(10)57
Today the Authority approved a scheme notified by Iceland on state aid to investments in the regions outside the capital region.


The scheme provides for a range of tax and fee concessions up to 10 years. In addition it opens up for direct grants and the possibility to sell and lease land below market value.

The Authority assessed the scheme under the Regional Aid Guidelines, allowing aid to be granted in the less populated areas of Iceland.

Per Sanderud, the Authority's president emphasizes that in principle the Authority does not favor ad hoc regional aid: “In contrast, the new scheme applies to a broad group of companies within most sectors. Here, Iceland has duly notified the Authority of its plans to implement a state aid scheme and has demonstrated that the scheme forms a part of a defined regional development strategy,” says Mr. Sanderud.

The scheme applies to all companies in all sectors except for the financial sector, planning to invest in a project with a minimum annual turnover of 300 million ISK (approximately 2 million EUR) and creating at least 20 direct jobs in the regions eligible. Projects that have already started before applying for aid will not be considered. Aid will be granted only after a positive analyzes has been carried out by the Invest in Iceland Agency, establishing that the investment is conditional upon the aid, and aid will only be granted to the extent necessary. The duration of the scheme is until 31 December 2013, when the Regional Aid Guidelines expire.

Iceland will publish the full text of the scheme on the website www.idnadarraduneyti.is/

The decision is published on the Authority's website.


For further information, please contact:


Trygve Mellvang-Berg
Press and Information Officer
tel: (+32) (2)2 286 1866
mobile: (+32)(2)492 90 01 87

 
or

Sif Konráðsdóttir
Officer
Competition and State Aid
tel: (+32) (2)2 286 18 55





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