INCENTIVES AND RELIEFS FOR INVESTORS

BENEFITS FOR INVESTORS IN THE ECO-INDUSTRIAL ZONE NEMETIN:

  • 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
  • installment payment of public utility charges

Investors receive reliefs through the Incentive and Relief Program for the Eco-Industrial Zone Nemetin (Official Gazette of the City of Osijek 11/16)

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

1.1 Measure – building right with:

  • a) an annual fee of HRK 1.00/m2 until the expiration of 36 months from the conclusion of the building right agreement
  • b) an annual fee of HRK 20.00/m2 after the expiration of 36 months from the conclusion of the building right agreement

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

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 Eco-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.

MODULE 2: installment payment of public utility charges

2.1 Measure – public utility charges

The public utility charges for facilities under construction in the Eco-Industrial Zone Nemetin amount to HRK 15.00/m³.

The option of paying in monthly installments:

A) NATURAL PERSONS

- from HRK 15,000.00 to HRK 40,000.00 – in 5 monthly installments, but the first installment must amount to 30% of the total commitment, and the remaining amount is paid in equal monthly installments

- over HRK 40,000.00 – in 9 monthly installments, but the first installment must amount to 30% of the total commitment, and the remaining amount is paid in equal monthly installments;

B) LEGAL PERSONS

- from HRK 100,000.00 to HRK 500,000.00 – in 5 monthly installments, but the first installment must amount to 30% of the total commitment, and the remaining amount is paid in equal monthly installments

- over HRK 500,000.00 – in 9 monthly installments, but the first installment must amount to 30% of the total commitment, and the remaining amount is paid in equal monthly installments.

In the case of the obligation to pay the public utility charges in the total amount of over HRK 1,000,000.00, the Mayor may approve a longer payment deadline, but it cannot be longer than the planned completion date of the building.

INCENTIVES AND RELIEFS FOR INVESTORS