CEE-based incentives boosting appeal of offices

Business Forum
Investment incentives across CEE are proving to be a major draw for Research and Development (R&D) and Business Services Sector (BSS) projects, with support reaching up to 70% of qualified costs, according to Colliers' report.

The incentives across the CEE region enhance leasing appeal, offering some of the highest state aid limits in the EU. 

Jan Kamoji-Czapinski, Director, Incentives Advisory, Europe Strategic Advisory at Colliers, says: “Most of the countries focus on supporting industrial and R&D projects. However, office projects can benefit from financial aid through cash subsidies and tax incentives in most of the regional and select capital cities, such as Tallinn, Riga, Vilnius, and Zagreb. Incentives can be substantial, with some reaching up to €30,000 per new employee (e.g., Croatia).

Office landlords can leverage these incentives to enhance their leasing appeal, as tenants prioritise locations with financial support,”

The report shows that incentives in individual countries vary. Bulgaria offers high aid intensity but mainly relies on general tax relief, while Croatia provides extensive tax and cash-based incentives, including aid for job creation and investments in high-tech equipment. 

Meanwhile, The Czech Republic offers CIT exemptions and additional grants for R&D investments, and Estonia supports R&D projects with grants up to €2 million.

Hungary negotiates cash grants and CIT relief up to 80% for a maximum of 13 years, and Poland allows for maximum EU-permitted aid, with recent increases in grants for industries related to the net-zero economy and R&D. 

Romania provides high aid intensity but focuses mainly on manufacturing investments, while Serbia aligns with EU aid structures, offering cash grants and tax holidays. 

At the same time, Slovakia has high aid intensity but limited cash subsidies for shared services.

The report concludes that these incentives, combined with investment competitiveness, industrial and logistics growth, and a limited office supply, make CEE an appealing destination for investors. 

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Business Forum  |  18 March, 2025 at 6:50 PM
Business Forum  |  18 March, 2025 at 3:28 PM