Grants for the creation of new jobs

The purpose of grants for the creation of new jobs is to help companies that are interested in growing and expanding to create new jobs. Grants are provided for the acquisition of the necessary fixed assets.

Applications are accepted on an on-going basis until the financial resources allocated for the grants are exhausted.

Companies or self-employed persons that meet the following conditions are eligible for the grants:

  • the applicant is located in Tallinn and the investments made with the help of the grant are directed at promoting small business in Tallinn; 
  • the applicant has 2 to 250 full-time employees; 
  • at least 51% of the company’s shareholders and/or stockholders are physical persons; 
  • the applicant has operated for at least two financial years and submitted at least two annual reports to the Commercial Register; 
  • the applicant’s average added value per employee during that last two financial years is at least 50% of the average added value per employee in the particular field of activity (based on a comparison with the Statistics Estonia database);
  • the applicant has paid its national and local taxes;
  • Liquidation, reorganisation or bankruptcy proceedings have not been initiated in regard to the applicant;
  • during the previous 12 months before making the application, the applicant has not dismissed any full-time employee(s) or reduced their working hours; 
  • the applicant has not received a grant for the creation of new jobs during the previous 12 months.

Eligible costs
The grant that is being applied for must be used to acquire fixed assets (machinery and equipment or other listed assets) and to cover the relevant direct costs that are related to the creation of new jobs, whereas the acquisition cost of the tangible fixed assets (a single item or set of related items) must total at least € 150 and have a service life of at least 3 years..

In addition to the aforementioned, the following costs are also eligible:

  • transport and installation costs related to the acquisition of the tangible fixed assets;
  • costs related to the acquisition of application software and the costs related to the programming and testing of application software, if the applicant is forecasting the receipt of sales revenues from the sale of licenses for use of the application software or auxiliary services being developed. In the case of the development of application software, the applicant must retain ownership of the intellectual property;
  • costs related to the creation and/or development of an integrated solution (design solution and technical solution) for a website with information in at least two languages.

Expenditures related to the acquisition of assets and/or expenditures related to such acquisitions made by businesses or self-employed persons are eligible, if the company or self-employed person’s area of activity during the last year has been the sale of the corresponding assets. The area of activity shall be determined based on the annual reports submitted to the Commercial Register.

The following significant costs are ineligible:  

  • costs related to the acquisition of current assets, real estate or cars;
  • costs related to the acquisition of buildings as well as construction and renovation;
  • costs related to home electronics, except if the home electronics are directed related to the provision of services being planned within the framework of the project;
  • acquisition costs for office equipment and furniture, except if the acquisition of the computers and furniture is necessary for creating new jobs, for producing products or providing services;
  • personnel costs;
  • VAT, except in cases where the applicant is not liable to VAT.

Costs related to transactions with associated persons in the context of the Income Tax Act are not eligible. 

Grant limits and requirements related to the number of new jobs

Up to € 5,000                       At least 2 new jobs
Up to € 10,000                     At least 3 new jobs
Over € 10,000 to € 20,000     At least 5 new jobs

The new full-time jobs must be created within 6 months of the signing of the contract between recipient of the grant and the Tallinn Enterprise Board, and the jobs must last for at least 3 years.

Applications for grants cannot be made by company that operate in the following fields of activity:

  • agriculture, forestry and fishing;
  • production of tobacco products and beverages, except for alcohol-free beverages, mineral water and other bottled drinks;
  • supply of electrical power, gas, steam and air-conditioned air;
  • water supply and sewage;
  • wholesaling and retailing, except for the maintenance and repair of motor vehicles and motorcycles;
  • transport and warehousing;
  • financial and insurance activities;
  • activities related to real estate;
  • legal actions and accounting, headquarters activities and management consulting, advertising (including web advertising) and market research;
  • leasing and operational leasing;
  • and the organisation of gambling and wagering.

Maximum grant amount is € 20,000.
Self-financing must be at least 50% of the total cost of the project.
The processing period for the grant applications is 30 days.

 

More information:

Krista Kink
Business Adviser

Tallinn City Enterprise Department
Vabaduse väljak 7
15199 Tallinn, ESTONIA
Phone + 372 640 4225
Fax +372 640 4208
E-mail: ettevotlus@tallinnlv.ee