INCENTIVES AND RELIEFS FOR INVESTORS

BENEFITS FOR INVESTORS IN THE INDUSTRIAL ZONE NEMETIN:

annual fee of 1.00 HRK/m2 until the expiration of 36 months

reduction of the land price according to the construction time
reduction of the land price according to the justified costs of creating new jobs
reduction of the land price according to the activities in which the investor is engaged
reduction of the land price for export-oriented investors
exemption from payment of public utility charges

Investors receive reliefs through the Incentive and Relief Program for the Industrial Zone Nemetin (Official Gazette of the City of Osijek 22/21) and Decision of public utility charges (Official Gazette of the City of Osijek 2/19, 8/20 i 23/21)

MODULE 1: reliefs and incentives related to the building/purchase right

1.1 Measure – building right with:

1.1.1. an annual fee of HRK 1.00/m2 until the expiration of 36 months from the conclusion of the building right agreement

1.1.2. an annual fee of HRK 10.00/m2 after the expiration of 36 months from the conclusion of the building right agreement

The right to build is established for a period of 50 years.

1.2 Measure – purchase after using 1.1 measures with the reduction of the price of building land according to the time of construction of economic facilities:

1. group:

- reduced prices of building land by 100% if the economic facility was built before the expiration of 24 months from the conclusion of the building right agreement

2. group:

- reduced prices of building land by 75% if the economic facility was built before the expiration of 36 months from the conclusion of the building right agreement

3. group:

- reduced prices of building land by 50% if the economic facility was built before the expiration of 48 months from the building right agreement

Deadlines from sub-item 1.2. may be extended if the City of Osijek, by its actions or omissions, puts investors in a situation where they cannot meet the agreed obligations and deadlines, or such reasons are caused by force majeure. The time for extending the deadlines must be proportional to the time in which the investor was unable to fulfill the contractual obligations due to the actions or omissions of the City of Osijek or due to force majeure.

1.3 Measure – reduction of the price of building land during purchase after using 1.1 Measures implemented by obtaining reliefs for the justified costs of new jobs

An investor who creates new jobs after starting the activity in the Industrial Zone Nemetin shall have the right to a reduction of the price of land when buying the building land in the amount of the justified costs of creating new jobs (gross two annual salaries) related to the investment as follows:

20% of the eligible costs of a new job to create 1–4 jobs
40% of the eligible costs of a new job to create 5–9 jobs
70% of the eligible costs of a new job to create 10–20 jobs
100% of the eligible costs of a new job to create ≥ 20 jobs

and the purchase price of building land shall be reduced by that amount.
The measure applies only to employees residing in the area of the City of Osijek.

1.4 Measure – reduction of the price of building land during purchase according to the activities of the investors:

1. group:

Development and innovation activities
- reduction of the price of building land by 30%

2. group:

Business support activities
- reduction of the price of building land by 20%

3. group:

High value-added service activities
- reduction of the price of building land by 10%

1.5 Measure – reduction of the land price for export-oriented investors

Investors who have realized exports in the minimum amount of HRK 100,000.00 in the year preceding the year in which the land purchase agreement was concluded shall be entitled to a 25% relief rate of the reduction of the land price.

Incentive and relief rates referred to in Module 1 of this Program, expressed as a percentage of the reduction of the total amount of land price, may not exceed 100% of the land price.

Exemption from payment of public utility charges

Obligor of payment of public utility charges who builds an economic and business building in I., II., III. and IV. zone, is exempt from paying the utility chargesvin full.

Commercial space is not considered a residential building, regardless of whether the investor builds it for sale, rent or other purposes.

If the obligor of payment of public utility charges, within 7 years from the day of execution of the decision by which he is exempted from paying, converts the building, he is obliged to pay the public utility charges.

INCENTIVES AND RELIEFS FOR INVESTORS

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