Foreign investors based in the EU will be able to apply for state incentives even before they have registered a company or established a subsidiary in Slovenia but will have to register it by the time they receive the incentive, under legislative changes adopted by the government on 22 February.

The government sees the changes as a step towards less red tape and as an additional encouragement for foreign companies to invest in Slovenia.

Amendments to the Investment Promotion Act, which follow changes in EU law, include certain terms that make it clear that an investor can submit an application for an incentive even if they have not yet registered a company or a subsidiary of a foreign company in Slovenia.

The condition is that either the company or the subsidiary is registered by the time the incentive has been paid.

This option will apply only to companies headquartered in EU member states, while investors based in third countries will still have to incorporate or register a company in Slovenia before applying for an investment incentive.

Under the existing act, incentives for foreign investments cannot be awarded for activities such as energy production or distribution. The proposed changes add the lignite and broadband sectors, and energy storage and transmission to these activities.

Also proposed to be added are projects of the European Innovation Partnership operational groups in agricultural productivity and sustainability, and incentives for aid measures that limit the possibilities of the beneficiaries to utilise the results of research, development and innovation in other EU member states.

Shipbuilding and the synthetic fibre industry are meanwhile proposed to be removed from this list.