Regional investment aid (regionalt investeringsstöd) exists to offset the cost disadvantages of running a business in sparsely populated parts of Sweden. You can have up to 35% of an investment covered, provided you meet the conditions and apply before you start.
What is regional investment aid?
Regional investment aid is a government grant administered by Tillväxtverket. It targets businesses in assisted area A and B, the parts of Sweden where transport, labour and infrastructure cost more than in the metropolitan regions.
The aid covers part of the cost of buildings, machinery or intangible assets. It is a grant, so you do not pay it back if you meet the conditions.
Which areas qualify?
Sweden is divided into assisted area A and assisted area B. Assisted area A is the northernmost and most sparsely populated. Assisted area B covers parts of northern and central Sweden.
Assisted area A includes, among others: the inland areas of Norrbotten, Västernorrland and Jämtland, as well as parts of Dalarna and Värmland.
Assisted area B covers, among others: parts of Gävleborg, northern Dalarna, Värmland and coastal towns in Norrbotten outside the A area.
Not sure which assisted area your municipality belongs to? Tillväxtverket's website has a map where you can search by municipality name.
How much aid can you get?
The aid is calculated as a percentage of the eligible investment cost. The percentage depends on the assisted area and the size of the business.
Assisted area A: up to 35% for small businesses, 25% for medium-sized, 15% for large. Assisted area B: up to 25% for small, 15% for medium-sized, 10% for large.
The minimum eligible investment is SEK 100,000. There is no formal ceiling, but the aid is limited by the EU's rules on state aid and cumulation.
What counts as an eligible investment?
Three types of assets are eligible: land and buildings for production purposes, machinery and equipment, and intangible assets such as patents and licences.
Ongoing operating costs, passenger transport vehicles and financial investments do not count. Land only counts if it is directly necessary for the project.
Step by step: how to apply
1. Check the assisted area. Go to Tillväxtverket's map and confirm that your place of business is located in assisted area A or B.
2. Apply before you start. You must submit your application before the investment begins. Retroactive applications are not approved.
3. Gather your documentation. You need quotes, a business plan, your most recent annual report and details of the number of employees and turnover.
4. Submit the application digitally. The application is made via Tillväxtverket's e-service. The processing time is normally 2-4 months.
5. Carry it out and request payment. Once the decision is approved, you carry out the investment and claim the aid with invoices and receipts as documentation.
Important conditions to know about
You must keep the investment in place for at least five years, three years for small and medium-sized businesses. If you sell or move the investment, you may have to pay the aid back.
If you have received other government aid for the same project, it reduces the possible amount. The EU's cumulation rules set a ceiling on how much aid a single project can receive in total.
Frequently asked questions
Can I combine regional investment aid with other forms of aid? Yes, often. Combining it with, for example, new-start jobs (nystartsjobb) or business development checks (affärsutvecklingscheckar) is possible, but the aid levels are added together.
Can I apply if I have already started the investment? No. The application must be submitted and confirmed by Tillväxtverket before you begin the work.
Need help with your application?
Tillväxtstöd helps you with the whole process, from assessing whether you qualify to completing and submitting the application. Contact us for a free review.