On 10 September 2025, the Federal Cabinet approved a draft bill to promote private investment and the financial centre (Location Promotion Bill). The draft law aims to provide a stronger impetus for private investment. To this end, the framework conditions for private investment should improve, particularly with regard to infrastructure, renewable energies and venture capital. Companies in the financial market sector will be relieved of unnecessary bureaucracy with the elimination of unnecessary auditing, reporting and disclosure requirements.
The Supreme Tax Court has upheld a lower court decision to the effect that the payments to the project partner within a public/private partnership can be split between repayment of principal (payment for the capital investment) and VAT-free interest. This split is possible, even if the exact amounts are not known when the contract is signed.
