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State Aid

PR(06)54: Icelandic regional aid maps authorized by the EFTA Surveillance Authority for the period from 2007 to 2013


The EFTA Surveillance Authority has today approved the new maps of areas eligible for regional investment aid proposed by the Icelandic Government. The new maps are defined with reference to the new State Aid Guidelines on National Regional Aid 2007 – 2013 adopted by the Authority on 6 April 2006. The maps of assisted areas have been authorized for the period of 1 January 2007 to 31 December 2013.

In view of the forthcoming reform of the Icelandic classification of geographic regions[1], the Icelandic authorities have notified two maps of assisted areas based on two successive classifications: one based on the current classification, Regional aid map for the period from 1 January 2007 to 31 December 2007 and one based on the new classification - approved by EUROSTAT as from 1 January 2008 – Regional aid map for the period from 1 January 2008 to 31 December 2013.

Regarding the period from 1 January 2007 – 31 December 2007, the assisted areas in Icelandcover 31.4% of the total population and qualify for regional investment aid because they are low population density regions (i.e. less than 12.5 inhabitants per square kilometre).

Based on the revised classification of regions which will apply from 1 January 2008 - 31 December 2013, a larger area covering 37.5% of the Icelandic population will be eligible for regional aid (population living in areas with less than 12.5 inhabitants per square kilometer).

A more detailed overview of the geographical scope of the assisted areas may be seen from the two maps attached.

Aid can be granted up to 15% of investment costs for large enterprises, with possible top-ups of 10% for medium-sized enterprises and 20% for small enterprises[2].

Approval of the regional aid maps is not an authorization of aid as such. It is the responsibility of the Icelandic authorities to decide what kind of regional investment aid they would grant and to notify aid schemes or individual aid grants to the Authority as appropriate.

Read the full decision and see the maps by clicking this link.


[1]Geographic regions are, from an administrative point of view, classified into NUTS regions. Under the current classification, Icelandis made up as such of one NUTS I, one NUTS II and one NUTS III region. Under the new classification, Icelandwill be made of two NUTS III regions.

[2]A medium-sized enterprise employs fewer than 250 persons whereas a small enterprise employs fewer than 50 persons. Other considerations regarding the level of the annual turnover/balance sheet must also be taken into consideration in order to determine whether an undertaking may be categorized as a small or medium-sized enterprise.


For further information, please contact:
Mr. Amund Utne
Director, Competition & State Aid Directorate
Tel. (+32)(0)2 286 1850

Ms. Marianne Clayton
Officer, Competition & State Aid Directorate
Tel. (+32)(0)2 286 1823

6 December 2006


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