Based on the communication about the Brexit Adjustment Reserve (BAR) Regulation, a cash grant facility of HUF 22 billion (approximately EUR 62 million) will be available for Hungary to compensate companies residing in Hungary for the negative effects of Brexit and to help economic operators adapt to the new market environment.
The main purpose of the aid is – besides loss compensation – to incentivize further economic development and investments.
The main conditions are as follows:
- Documented loss due to the Brexit in the period between 1 February 2020 and 31 December 2023.
- A CAPEX investment in Hungary.
The amount of the cash grant is up to 20-50% of the CAPEX amount, but maximum the generated loss attributable to Brexit.
The period for the submission of applications will be very short. Based on the current plans it will start on 11 October 2021 and end on 15 October 2021. The exact conditions of the cash grant will be known later, presumably around 1 October 2021.
Companies that are interested have the opportunity to pre-register (https://brexit.questionpro.com/). During pre-registration, the following need to be provided for information purposes: basic data of the Hungarian company, the extent of the damage and basic information on the planned investment. This registration does not qualify as an application. Completing the online pre-registration is not a prerequisite for a successful application but is an advantage during the evaluation process when the actual applications are received.
Please let our EY contacts know if you are interested in the above-mentioned cash grant. We would be glad to set up a call or videoconference to discuss the details.