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KOPRIVNICA KRIZEVCI COUNTYINVESTORS GUIDE(FDI)Koprivnica, June  2011
CONTENTGEOGRAPHICAL POSITIONTRAFFIC CONNECTIONSLOCATION OF BUSINESS ZONES IN KOPRIVNICA-KRI?EVCI COUNTYTAX POLICYCONSTRUCTIONBUSINESS PERMITSCOMPANY ESTABLISHMENTSUPPORT INSTITUTIONS
I. GEOGRAPHICAL POSITION OF THE REPUBLIC OF CROATIA TheRepublicof Croatia (RH) is a europeancountry, geographicallysituated at thecrossingfrom Central to Southeast Europe. Croatia borderswithSloveniaandHungary on north, withSrbia on east, on thesouthand east withBosniaandHerzegovinaandMontenegro. Croatia has a seaborderwith Italy at Adriatiacsea. Area total oftheRepublicof Croatia: 56.538 km2 Numberofinhabitants: 4.437.460GDP(Grossdomesticproduct) RH (2009): 10.246 €Teritorialorganization: 20 counties + The City of ZagrebArea total of Koprivnica Kri?evci  County: 1.748 km2Numberofinhabitants: 124.467 GDP KK?:  8.560,00 €
INTERNATIONAL INTEGRATIONS OF THE REPUBLIC OF CROATIA3. EU  Croatia will become a 28th fullmember of EU(European Union) until the year 2012UNOn May 22nd 1992 Croatia became a full memberof theUN (United Nations)INTERNATIONAL AGREEMENTS WITH THE PEOPLE'S REPUBLIC OF CHINA AND THE REPUBLIC OF CROATIA1. Agreement between the Government of the Republic of Croatia and the Government of the People¡®s Republic of China for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income2. Agreement between the Government of the Republic of Croatia and the Government of the People¡®s Republic of China Concerning the Encouragement and Reciprocal Protection of Investments4. CEFTA (Central European Free TradAgreement) members are Albania, Bosnia and Herzegovina, Montenegro, Croatia,Macedonia, Moldova,SerbiaandUNMIK / Kosovo2. NATO On April 1st 2009Croatia became a full memberof NATO(North Atlantic TreatyOrganisation)
II. TRAFFIC CONNECTIONS ¨C AIR TRAFFIC9 airports(7 international- Zagreb, Osijek, Pula, Rijeka, Zadar, Split, Dubrovnik, 2 local- Bra?, Mali Lo?inj)Air distance:Be? - 360 kmPariz - 1410 kmBruxelles - 1355 kmPrag - 620 kmBudimpe?ta - 350 km Rim - 880 km
TRAFFIC CONNECTIONS - RAILWAY Distance from Koprivnica to major cities			              RAILWAY(KM)         Zagreb (airport)		  87Koprivnica ¨C Rijeka (seaport)	316Koprivnica ¨C Wiena	                       387Koprivnica ¨C Budapest                             307Inthe plan is constructionofthesecond railway trackline from Rijeka to theHungarianborder, withpossibilityofEuropean R-65 corridorinthedirectionofport Rijeka to theBalticdetermination.
TRAFFIC CONNECTION PANEUROPEAN RAILWAY CORRIDOR  VBBOTOVO-ZAGREB-RIJEKAMaximumspeedplannedpersections:Botovo ¨C Dugo Selo		160 km/h
 railway junction		120 km/h
 Horvati ¨C Krasica		160 km/h
 railway junction		  80 km/hApproximate distance:Botovo ¨C Koprivnica ¨C Zagreb ¨C Rijeka 	242 kmApproximateinvestmentcostsUpgrade of the existing tracks and construction of new tracks on the section Botovo¨CZagreb¨CRijeka per sectors   I.Botovo¨C DugoSelo	0,47 billion€II. 	Zagreb Junction	0,49 billion€III. Horvati¨C Krasica	2,47 billion€IV. 	Rijeka Junction**	0,22 billion€ 	Total		3,65 billion€
TRAFFIC CONNECTIONUPGRADE AND MODERNIZATION OF RAILWAY LINE DIRECTION BOTOVO¨C ZAGREB¨CRIJEKAImportance for the RoC:connects central and maritime part of the country,
connects agriculture and tourism,
connects industrial potential of the country with port capacities in the Rijeka basin, SIGNIFICANT DEVELOPMENT OF THE RIJEKA PORT ON THE ADRIATICPort of RijekaRijeka Gateway Project:
Construction of container, passanger and Ro-Ro terminal
EUR 190 million (IBRD loan EUR 160 million)
Porto Baross 	   - Urban port interfaceImportance for the RoC and the EU:  the shortest railway connection between Hungary, other Central European countries and Mediterranean,
  encourages the development of the Rijeka Port and transit railway traffic between Croatia and Central European countries,
  provides opportunity for subsequent development of transit railway traffic between Western Europe and the Balkan via Croatia,
  has significant influence on environmental protection due to redirection of large volumes of freight from road to railway.TRAFFIC CONNECTIONS ¨C ROADPAN EUROPEAN CORRIDORSPan-European transport corridors in the Republic of Croatia:Vb ¨C Budapest-Vara?din-Zagreb-RijekaVc ¨C Budapest-Osijek-Sarajevo- Plo?eVII ¨C Danube riverX   ¨C Salzburg-Villach-Ljubljana-Zagreb-Beograd-Skopje-ThessalonikiXa ¨C Graz-Maribor-Zagreb
TRAFFIC CONNECTIONS ¨C ROADDistance from Koprivnica to major cities		ROAD(KM)ZAGREB (airport)	  101RIJEKA (seaport)	  288WIENA		  370BUDAPEST		  315PRAGUE		  740WARSZAW		1110BERLIN		1120PARIS		1460ISTAMBUL		1450MADRID		2310TRANSPORT CORRIDORS ESTABLISHED IN CHAPTER 21PLANNED HIGHWAY CONSTRUCTION           2.720 km railways    29.547 km roads (public)
IV. BUSINESS ZONEDIVISION OF THE REPUBLIC OF CROATIA BY COUNTIES AND STATISTICAL REGIONSIn Koprivnica Kri?evci County is total of 38.000 inhabitantsemployed, fromwhich 5.000 is employedat theareaofthebusinesszonesin 116 companiesDanica-thebiggestbusiness zone in Koprivnica Kri?evci Countyemployes2.000 people. Belupo, Podravka, CarlsbergMore informationsaboutthezones: www.pora.com.hr
Businesszonesin Koprivnica-Kri?evci CountyMore informationsaboutthezones: www.pora.com.hr
PRIORITY BUSINESS ZONEBUSINESS ZONE KOPRIVNI?KI IVANEC, KOPRIVNI?KI IVANEC?Useandpurposeofthe zone Locationoftheareacoverage UPU ?Business zone Koprivni?ki Ivanec related to broaderarea¡°?AREA TOTAL OF THE ZONE: 241 ha 1. phase: 30 ha, fromwhich is approximately 26,6 ha for sale Ownership: Koprivni?ki Ivanec MunicipalityPrice: 12-15 Eur/m2Wayofselling: publictendersContact: opcina.kop.ivanec@kc.t-com.hr
 INCENTIVES TO ENTREPRENEURSLOCAL INCENTIVES TO ENTREPRENEURS IN THE ZONE KOPRIVNI?KI IVANECUtility fee payment incentivesThe utility fee decision on the area of Koprivni?kiIvanec Municipality (KoprivnicaKri?evcy County Official Gazzete 14/07 i 14/08)	The utility fee height  is determinated with zone coefficient multiplication (0,2) with purpose coefficient (2,0 for production activities) and the point value (1,80) which amount 0,10€ /m2.Incentives  of utility fee payment to the entrepreneurs:100% reduced utility fee in the first year of  performing the activities75% in the second year of performing the activities50% in third year of performing the activities25% in fourth year of performing the activitiesPublic contributionThe public contribution decision on the area of Koprivni?kiIvanec Municipality (KoprivnicaKri?evcy County Official Gazzete 14/07 )Unit value of the public contribution in the zone Koprivni?kiIvanec is 30 kn/m3 , and it is multiplied with purpose coefficient (0,60 for producing facilities over10000 m3 , ) and with volume which is 2,43€ /m3.
BUSINESS ZONE GORNJI ?RET, KRI?EVCIAREA TOTAL OF THE ZONE: 45 ha OWNERSHIP: the town of Kri?evciDISPOSAL  OF BUILDING LAND:1) Sale throughpublictenders: price oftheland for sale is 16,4 EUR/m2 2) Grantingconstructionrights through public tenders: price of theland with construction rights is 0,07 EUR/m2 permonthCONTACT: financije@krizevci.hrDISTANCE:                                center of Kri?evci ¨C 2 km (22.324 inhabitants)
 center of Koprivnica ¨C 33 km (30.944 inhabitants)TRAFFICAL POSITION OF THE COUNTYSTATE ROAD: ZAGREB-KOPRIVNICA                    RAILWAIL: RIJEKA - BUDAPEST                    NEW HIGHWAY: HUNGARIAN BORDER VARA?DINHUNGARIANBORDEROSIJEK
BENEFITS REGARDING PAYMENT OF COMMUNAL COMPENSATION 100% reduction for the first year of business 75% reduction for the second year of business 50% reduction for the third yearofbusiness25% reduction for thefourthyearofbusinessBENEFITS FOR ENTREPRENEURSPARTIAL EXEMPTION FROM THE COMMUNAL CONTRIBUTIONEntrepreneursinbusinesszones are exemptfromthecontriution as it folllows:For the business objects of the volume of 1000 m3 to 5000 m3 the communal contribution is reduced by 35%For the business objects of the volume over 5000 m3 the contribution is reduced by 60%KRI?EVCI CITY IS READY TO OFFER CONSULTING AND TEHNICAL ASSISTANCE IN THE REALIZATION OF INVESTMENTSCOMPANY TAX BENEFITS:The entrepreneurs ¨C beginners (legal and physical entities) will be exempt to the Company tax, as follows :In 1st year of business 100% In 2nd year of business 75% (tax: 70€)In 3rd year of business 50% (tax: 140€)The existing entrepreneurs that employwith notime limit contracts :up to 10 employees - exempt of the Company tax by 25% (tax: 210€)
up to 25 employees - exempt of the Company tax by 50% (tax: 140€)
more than 25 employees - exempt of the Company tax by 100% BUSINESS ZONE KUTNJAK, LEGRADLOCATION OF THE GEOTHERMAL PROGRAMME ECONOMY ZONE OVERVIEW OF PURCHASED PARCELS AND PREPARED PURCHASE CONTRACTSBENEFITS REGARDING THE DEVELOPMENT OF EXISTING AND OPENING NEW ENTREPRENEURIAL ACTIVITIES AND EMPLOYMENTCOMMUNAL COMPENSATIONphysicaland legal entitiesengagedinbusiness are partially exempted from the communal compensation:	- 50% of total yearsdebit ¨C companyheadquartersoutsidetheLegradmunicipalityareaandemployingworkersfromLegradmunicipalityarea	- 75% of total yearsdebit ¨C companyheadquartersinsidetheLegradmunicipalityareaandemployingworkersfromLegradmunicipalityareaCOMMUNAL CONTRIBUTIONEntrepreneurs who build or rebuild business facilities for performing manufacturing or other business activities, in order to increase the number of employees, withconditionthat the headquarterof activities is situatedin the Legrad Municipality.Economy zone size is 142,5 ha with 720 plotsLand repurchase is in the progress; until October 2010 85 ha was repurchased. Legrad municipality was the repurchase bearer.Endofrepurchase :  year 2011KONTAKT: opcina-legrad@kc.t-com.hrWith land transfer (a donationfromtheLegradmunicipalityandtheFund) Geopodravina Ltd. will become the landowner.
PROJECTS INCLUDED IN THE GEOTHERMAL PROGRAMME

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Investors guide (fdi)

  • 1. KOPRIVNICA KRIZEVCI COUNTYINVESTORS GUIDE(FDI)Koprivnica, June 2011
  • 2. CONTENTGEOGRAPHICAL POSITIONTRAFFIC CONNECTIONSLOCATION OF BUSINESS ZONES IN KOPRIVNICA-KRI?EVCI COUNTYTAX POLICYCONSTRUCTIONBUSINESS PERMITSCOMPANY ESTABLISHMENTSUPPORT INSTITUTIONS
  • 3. I. GEOGRAPHICAL POSITION OF THE REPUBLIC OF CROATIA TheRepublicof Croatia (RH) is a europeancountry, geographicallysituated at thecrossingfrom Central to Southeast Europe. Croatia borderswithSloveniaandHungary on north, withSrbia on east, on thesouthand east withBosniaandHerzegovinaandMontenegro. Croatia has a seaborderwith Italy at Adriatiacsea. Area total oftheRepublicof Croatia: 56.538 km2 Numberofinhabitants: 4.437.460GDP(Grossdomesticproduct) RH (2009): 10.246 €Teritorialorganization: 20 counties + The City of ZagrebArea total of Koprivnica Kri?evci County: 1.748 km2Numberofinhabitants: 124.467 GDP KK?: 8.560,00 €
  • 4. INTERNATIONAL INTEGRATIONS OF THE REPUBLIC OF CROATIA3. EU Croatia will become a 28th fullmember of EU(European Union) until the year 2012UNOn May 22nd 1992 Croatia became a full memberof theUN (United Nations)INTERNATIONAL AGREEMENTS WITH THE PEOPLE'S REPUBLIC OF CHINA AND THE REPUBLIC OF CROATIA1. Agreement between the Government of the Republic of Croatia and the Government of the People¡®s Republic of China for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income2. Agreement between the Government of the Republic of Croatia and the Government of the People¡®s Republic of China Concerning the Encouragement and Reciprocal Protection of Investments4. CEFTA (Central European Free TradAgreement) members are Albania, Bosnia and Herzegovina, Montenegro, Croatia,Macedonia, Moldova,SerbiaandUNMIK / Kosovo2. NATO On April 1st 2009Croatia became a full memberof NATO(North Atlantic TreatyOrganisation)
  • 5. II. TRAFFIC CONNECTIONS ¨C AIR TRAFFIC9 airports(7 international- Zagreb, Osijek, Pula, Rijeka, Zadar, Split, Dubrovnik, 2 local- Bra?, Mali Lo?inj)Air distance:Be? - 360 kmPariz - 1410 kmBruxelles - 1355 kmPrag - 620 kmBudimpe?ta - 350 km Rim - 880 km
  • 6. TRAFFIC CONNECTIONS - RAILWAY Distance from Koprivnica to major cities RAILWAY(KM) Zagreb (airport) 87Koprivnica ¨C Rijeka (seaport) 316Koprivnica ¨C Wiena 387Koprivnica ¨C Budapest 307Inthe plan is constructionofthesecond railway trackline from Rijeka to theHungarianborder, withpossibilityofEuropean R-65 corridorinthedirectionofport Rijeka to theBalticdetermination.
  • 7. TRAFFIC CONNECTION PANEUROPEAN RAILWAY CORRIDOR VBBOTOVO-ZAGREB-RIJEKAMaximumspeedplannedpersections:Botovo ¨C Dugo Selo 160 km/h
  • 9. Horvati ¨C Krasica 160 km/h
  • 10. railway junction 80 km/hApproximate distance:Botovo ¨C Koprivnica ¨C Zagreb ¨C Rijeka 242 kmApproximateinvestmentcostsUpgrade of the existing tracks and construction of new tracks on the section Botovo¨CZagreb¨CRijeka per sectors I.Botovo¨C DugoSelo 0,47 billion€II. Zagreb Junction 0,49 billion€III. Horvati¨C Krasica 2,47 billion€IV. Rijeka Junction** 0,22 billion€ Total 3,65 billion€
  • 11. TRAFFIC CONNECTIONUPGRADE AND MODERNIZATION OF RAILWAY LINE DIRECTION BOTOVO¨C ZAGREB¨CRIJEKAImportance for the RoC:connects central and maritime part of the country,
  • 13. connects industrial potential of the country with port capacities in the Rijeka basin, SIGNIFICANT DEVELOPMENT OF THE RIJEKA PORT ON THE ADRIATICPort of RijekaRijeka Gateway Project:
  • 14. Construction of container, passanger and Ro-Ro terminal
  • 15. EUR 190 million (IBRD loan EUR 160 million)
  • 16. Porto Baross - Urban port interfaceImportance for the RoC and the EU: the shortest railway connection between Hungary, other Central European countries and Mediterranean,
  • 17. encourages the development of the Rijeka Port and transit railway traffic between Croatia and Central European countries,
  • 18. provides opportunity for subsequent development of transit railway traffic between Western Europe and the Balkan via Croatia,
  • 19. has significant influence on environmental protection due to redirection of large volumes of freight from road to railway.TRAFFIC CONNECTIONS ¨C ROADPAN EUROPEAN CORRIDORSPan-European transport corridors in the Republic of Croatia:Vb ¨C Budapest-Vara?din-Zagreb-RijekaVc ¨C Budapest-Osijek-Sarajevo- Plo?eVII ¨C Danube riverX ¨C Salzburg-Villach-Ljubljana-Zagreb-Beograd-Skopje-ThessalonikiXa ¨C Graz-Maribor-Zagreb
  • 20. TRAFFIC CONNECTIONS ¨C ROADDistance from Koprivnica to major cities ROAD(KM)ZAGREB (airport) 101RIJEKA (seaport) 288WIENA 370BUDAPEST 315PRAGUE 740WARSZAW 1110BERLIN 1120PARIS 1460ISTAMBUL 1450MADRID 2310TRANSPORT CORRIDORS ESTABLISHED IN CHAPTER 21PLANNED HIGHWAY CONSTRUCTION 2.720 km railways 29.547 km roads (public)
  • 21. IV. BUSINESS ZONEDIVISION OF THE REPUBLIC OF CROATIA BY COUNTIES AND STATISTICAL REGIONSIn Koprivnica Kri?evci County is total of 38.000 inhabitantsemployed, fromwhich 5.000 is employedat theareaofthebusinesszonesin 116 companiesDanica-thebiggestbusiness zone in Koprivnica Kri?evci Countyemployes2.000 people. Belupo, Podravka, CarlsbergMore informationsaboutthezones: www.pora.com.hr
  • 22. Businesszonesin Koprivnica-Kri?evci CountyMore informationsaboutthezones: www.pora.com.hr
  • 23. PRIORITY BUSINESS ZONEBUSINESS ZONE KOPRIVNI?KI IVANEC, KOPRIVNI?KI IVANEC?Useandpurposeofthe zone Locationoftheareacoverage UPU ?Business zone Koprivni?ki Ivanec related to broaderarea¡°?AREA TOTAL OF THE ZONE: 241 ha 1. phase: 30 ha, fromwhich is approximately 26,6 ha for sale Ownership: Koprivni?ki Ivanec MunicipalityPrice: 12-15 Eur/m2Wayofselling: publictendersContact: opcina.kop.ivanec@kc.t-com.hr
  • 24. INCENTIVES TO ENTREPRENEURSLOCAL INCENTIVES TO ENTREPRENEURS IN THE ZONE KOPRIVNI?KI IVANECUtility fee payment incentivesThe utility fee decision on the area of Koprivni?kiIvanec Municipality (KoprivnicaKri?evcy County Official Gazzete 14/07 i 14/08) The utility fee height is determinated with zone coefficient multiplication (0,2) with purpose coefficient (2,0 for production activities) and the point value (1,80) which amount 0,10€ /m2.Incentives of utility fee payment to the entrepreneurs:100% reduced utility fee in the first year of performing the activities75% in the second year of performing the activities50% in third year of performing the activities25% in fourth year of performing the activitiesPublic contributionThe public contribution decision on the area of Koprivni?kiIvanec Municipality (KoprivnicaKri?evcy County Official Gazzete 14/07 )Unit value of the public contribution in the zone Koprivni?kiIvanec is 30 kn/m3 , and it is multiplied with purpose coefficient (0,60 for producing facilities over10000 m3 , ) and with volume which is 2,43€ /m3.
  • 25. BUSINESS ZONE GORNJI ?RET, KRI?EVCIAREA TOTAL OF THE ZONE: 45 ha OWNERSHIP: the town of Kri?evciDISPOSAL OF BUILDING LAND:1) Sale throughpublictenders: price oftheland for sale is 16,4 EUR/m2 2) Grantingconstructionrights through public tenders: price of theland with construction rights is 0,07 EUR/m2 permonthCONTACT: financije@krizevci.hrDISTANCE: center of Kri?evci ¨C 2 km (22.324 inhabitants)
  • 26. center of Koprivnica ¨C 33 km (30.944 inhabitants)TRAFFICAL POSITION OF THE COUNTYSTATE ROAD: ZAGREB-KOPRIVNICA RAILWAIL: RIJEKA - BUDAPEST NEW HIGHWAY: HUNGARIAN BORDER VARA?DINHUNGARIANBORDEROSIJEK
  • 27. BENEFITS REGARDING PAYMENT OF COMMUNAL COMPENSATION 100% reduction for the first year of business 75% reduction for the second year of business 50% reduction for the third yearofbusiness25% reduction for thefourthyearofbusinessBENEFITS FOR ENTREPRENEURSPARTIAL EXEMPTION FROM THE COMMUNAL CONTRIBUTIONEntrepreneursinbusinesszones are exemptfromthecontriution as it folllows:For the business objects of the volume of 1000 m3 to 5000 m3 the communal contribution is reduced by 35%For the business objects of the volume over 5000 m3 the contribution is reduced by 60%KRI?EVCI CITY IS READY TO OFFER CONSULTING AND TEHNICAL ASSISTANCE IN THE REALIZATION OF INVESTMENTSCOMPANY TAX BENEFITS:The entrepreneurs ¨C beginners (legal and physical entities) will be exempt to the Company tax, as follows :In 1st year of business 100% In 2nd year of business 75% (tax: 70€)In 3rd year of business 50% (tax: 140€)The existing entrepreneurs that employwith notime limit contracts :up to 10 employees - exempt of the Company tax by 25% (tax: 210€)
  • 28. up to 25 employees - exempt of the Company tax by 50% (tax: 140€)
  • 29. more than 25 employees - exempt of the Company tax by 100% BUSINESS ZONE KUTNJAK, LEGRADLOCATION OF THE GEOTHERMAL PROGRAMME ECONOMY ZONE OVERVIEW OF PURCHASED PARCELS AND PREPARED PURCHASE CONTRACTSBENEFITS REGARDING THE DEVELOPMENT OF EXISTING AND OPENING NEW ENTREPRENEURIAL ACTIVITIES AND EMPLOYMENTCOMMUNAL COMPENSATIONphysicaland legal entitiesengagedinbusiness are partially exempted from the communal compensation: - 50% of total yearsdebit ¨C companyheadquartersoutsidetheLegradmunicipalityareaandemployingworkersfromLegradmunicipalityarea - 75% of total yearsdebit ¨C companyheadquartersinsidetheLegradmunicipalityareaandemployingworkersfromLegradmunicipalityareaCOMMUNAL CONTRIBUTIONEntrepreneurs who build or rebuild business facilities for performing manufacturing or other business activities, in order to increase the number of employees, withconditionthat the headquarterof activities is situatedin the Legrad Municipality.Economy zone size is 142,5 ha with 720 plotsLand repurchase is in the progress; until October 2010 85 ha was repurchased. Legrad municipality was the repurchase bearer.Endofrepurchase : year 2011KONTAKT: opcina-legrad@kc.t-com.hrWith land transfer (a donationfromtheLegradmunicipalityandtheFund) Geopodravina Ltd. will become the landowner.
  • 30. PROJECTS INCLUDED IN THE GEOTHERMAL PROGRAMME
  • 31. ENERGETICPROJECTS Geothermal power plant ¨C heatingplantGeothermal power plant ¨C heating plant first phase visualizationUSER PROJECTSSPA - Externalpools for excursiontourism ¨C exampleHealth resorts
  • 32. Business zone RADNI?KATotal sizeofthe zone:?38,3 ha Sizeofthelandavailable for sale: 24,2 ha Price oftheland: - 350,00 kn/m2 for tradeactivities - 200,00 kn/m2 for productionactivitiesContact: gospodarstvo.financija@koprivnica.hrIncentivesfromthe City ofKoprivnicaThe gas connectionfee- free of charge except for those who build commercial and catering services - depending on the capacity of planned annual spending: for up to 1.200 m3 ofanticipated annual consumption should be paid thecompensation of 100% of average gross monthly salary in Croatia in the previous year; for 1.201 m3 to 6.000 m3of anticipated annual consumption should be paid thecompensation in the amount of 200% of average gross monthly salary in Croatia in the previous year, for each additional 5.000 m3 ofanticipated annual consumption should be paid thecompensation of 100% of average gross monthly salary in Croatia in previous year.The water connectionfee- free of charge except for those who build commercial and catering services - depending on the capacity of planned annual spending: for up to 1.200 m3 ofanticipated annual consumption should be paid thecompensation of 100% of average gross monthly salary in Croatia in the previous year; for 1.201 m3 to 6.000 m3of anticipated annual consumption should be paid thecompensation in the amount of 200% of average gross monthly salary in Croatia in the previous year, for each additional 5.000 m3 ofanticipated annual consumption should be paid thecompensation of 100% of average gross monthly salary in Croatia in the previous year.Thesewerconnectionfee-? free of charge except for those who build commercial and catering services - depending on the capacity of planned annual spending: for up to 1.200 m3 ofanticipated annual consumption should be paid thecompensation of 100% of average gross monthly salary in Croatia in the previous year; for 1.201 m3 to 6.000 m3of anticipated annual consumption should be paid thecompensation in the amount of 200% of average gross monthly salary in Croatia in the previous year, for each additional 5.000 m3 ofanticipated annual consumption should be paid thecompensation of 100% of average gross monthly salary in Croatia in previous year.Communal contribution - the entrepreneurs who built business buildings in thebusiness zone equipedby the City of Koprivnica , are exempt from communalcipal contributions by 50%, except for non-productive activities (commerce and catering) - 80 kn/m3.Communalcompensation- from 1.36 kn/m3 to 3.40 kn/m3 with benefits - 100% deduction in the first year, 75% in the second, 50% in the third and 25% in the fourth. Entrepreneurs who carry out their activities in business zonesequipedbytheCityofKoprivnica utility fee will be reduced by another 50%.
  • 33. BUSINESS INDUSTRIAL ZONE A, ?UR?EVACTotal sizeofthe zone: 103 haSizeofthelandavailable for sale:?15,52 haPrice oftheland: for entrepreneurialactivity ¨C smalltradesandmanufacturingactivities 12,00 kn/m2,?for commerceandcateringactivities 250,00 kn/m2. Incentivesfromthe City of ?ur?evacCommunal contribution: Investors who build theobjects intended for entrepreneurial activity are partially exempted from paying thecommunal contribution for 50%. For greater investments in entrepreneurial activities, and in the case that the investor undertakes to hire new workers, investormay also be partially or completely relieved frompayingcommunal contributions, and each applicationwill be evaluated by the City Council ofthe City of ?ur?evac.Communalcompensation: legal or physical person, in case of opening a new plant to expand production or hiring new employees , shall be exempt from paying communalcpmpensationas it follows: 100% inthe first year, 50%inthesecondyearand25%inthe third year. Tax on companyor title do not pay thecontractors who are opening a new plant or for new employment, and in the amount of 100%inthe first year, 50% inthesecond yearand 25% inthe third year.
  • 34. INCENTIVES TO THE ENTREPRENEURSInvestment Promotion ActSectors:the manufacturing sector activities;technology centers;strategic business support services.Thelawaboutinvestmentencouragement(OfficialGazette 138/06)Theincentivemeasures are:Taxbenefit
  • 36. Support for thereasonablecostofthe new work placesopeningconnectedwiththeinvestment
  • 39. Incentives for big investment project ¨C investmentprojectofsignificanteconomicinterestTaxincentives*for the period of 10 yearsEmploymentIncentiveshttp://www.mingorp.hr/default.aspx?id=26
  • 40. IV. TAX REGIMEReal estate transfer tax (The Real Estaste Transfer TaxLaw, OfficialGazette 69/97, 26/02, 117/00, 153/02)Tax rate is 5%. Real estate transfer tax is regulatedbyThe Real Estate Transfer TaxLaw.Real estate are : lands (agricultural, constructionalandotherlands)buildings (residential, businessand all otherbuildingsandtheirparts). Corporateincometax (The Profit TaxAct, OfficialGazette NN 177/04, 90/05, 57/06, 146/08, 80/10))Thetaxpayers are all companiesin Croatia which are dealingwitheconomicactivities, performingtheeconomicactivityinorder to achieve a profit. Thetax base is a profit which is determinateaccording to theaccountingrulesand it is determinate for thetax period which is generallythecalendaryear.Corporateincometax rate is 20% on determinatetax baseTaxbenefit: for entrepreneurs are 0% in first 10 years, ifinvestmentamount is over 8 mil € andnumberof new open work places at least 75.. TheValueaddedtax (ValueAddedTaxAct, OfficialGazette 47/95, 106/96, 164/98, 105/99, 54/00, 73/00, 127/00, 86/01, 48/04, 82/04, 90/05, 76/07, 87/09, 94/09)Thevalueaddedtax is payable on thedeliveryof all typesofgoodsandallprovidedservicesinthecountry, tax rate is 23%. Incometax (TheIncomeTaxAct, OfficialGazette 177/04, 73/08, 80/10)Thetaxpayer is a personresidentofnon-resident, who acquiresanincomefromdifferentsources: receiptsgeneratedformpaid work, self-employment, propertyandpropertyrights, capital, insurance andotherreceipts. Amountofbasic personal deduction is1.800,00 kuna.Theincometax is payable at the rate of:12% (over 3600 kn monthly) 25% (from3.600,00 to 10.750,00 kn monthly)40% (over 10.750 kn monthly)
  • 41. TradenametaxTaxpayer is legal entityregistered for perfomanceeconomicactivity. Amountoftax is up to 280€ for eachtradenameperyear, it canbelessaccording to thedecisionofthe city or community.PAYROLL TAXESa) Paid vacation, warm meal, expenditure of travelling to work, Christmas bonus (per business)b) Pension and disability contribution ¨C 1st pillar 15%, 2nd pillar 5%c) Health insurance contribution ¨C 15%d)Paid vacation minimum 18 days, everything else depends on the employment contracte) Employment contribution ¨C 1,7%f) Employment of persons with disabilities ¨C 0,2%g) Work related injuries ¨C 0,5%IntheRepublicof Croatia workingweeklasts 40 hours..Minimum wagein Croatia is 266,09 Eur (net).http://www.porezna-uprava.hr/
  • 42. V. CONSTRUCTIONDirections for facility construction:Development of Project: 1. Technological Project documantation2. Development of Preliminary Project Design (PPD)3. Analysis of the PPDApprovalofLocationpermit:4. Opinionregarding PPD5. Environmentalimpactassessment6. IssuingofLocationpermitI. II. ApprovalofWorkpermit:10. Executingthe project11. TechnicalreviewandissuingofWorkpermitApprovalof Building permit:7. DesigningofMain project8. Issuingof Building permit9. DesigningofFinal projectIV.III.Governmentbodiesinvolved3. Analysisofthe PPD ¨C MinistryofEnvironmentalprotection, PhysicalPlanningandConstruction4. Opinionregarding PPD ¨C MinistryofEnvironmentalprotection, PhysicalPlanningandConstruction6. IssuingofLocationpermit ¨C MinistryofEnvironmentalprotection, PhysicalPlanningandConstruction7. Issuingof Building permit ¨C MinistryofEnvironmentalprotection, PhysicalPlanningandConstruction11. TechnicalreviewandissuingofWorkpermit ¨C MinistryofEnvironmentalprotection, PhysicalPlanningandConstruction, Ministryof Health andSocialWelfare, MinistryofEconomy, LabourandEntrepreneurshipTechnicalassistance: Department for physicalplanning, constructionandenvironmentalprotection Antuna Nemcica 5, 48 000 KOPRIVNICATel: 385 48 220-155E-mail: drazen.kozjak@kckzz.hr
  • 43. VI. BUSINESS PERMITSWork permit instructionsThe foreigner can work on the basis of work or business permit.The foreigner can work without work or business permit in the cases determined by Law on Foreigners. (OficialGazzette 79/07, 36/09)Work permit:Request for the work permit issuing should be submitted by legal or physical person who employs a foreigner (employer) to the competent Police Administration, which makes a decision and deliver it to the employer. Work permit shouls be issued for a limited time which is equal to the time on which employment is established, longest up to one year.Business permit:Business permit refers only on work permit in the Republic of Croatia, and foreigner is obligated, before work beginning, to have a temporary stay approval in work purpose, together with issued business permit.Business permit should be issued:To the own company founder in the Republic of Croatia ¨C request should be submitted to the Police Administration according to the company or craft headquarter, with Croatian Chamber of Commerce agreement through the competent County Chamber of Commerce(www.hgk.hr)
  • 44. To the craft owner
  • 45. To the foreigner who is dealing with free profession
  • 46. To the foreigner who provide services on foreign employer behalfMore informations : www.hgk.hr
  • 47. VII. HUMAN RESOURCESAbout 3.000 unemployedpeopelshassecondary professional qualificationMore informations: www.hzz.hr
  • 48. VIII. COMPANY ESTABLISHMENTESTABLISHING A COMPANY IN CROATIA IN 4 STEPS IN 15 DAYSTYPES OF COMPANIES: defined by the Companies ActLIMITED LIABILITY COMPANY - the lowest amount for base capital min. 2.800 eurJOINT STOCK COMPANY - the lowest amount for base capital min.28.000 eurSELECTING NAME OF THE COMPANY - check the register; website of theMinistry of Justice: http://sudreg.pravosudje. to find out whether a company by the chosen name already existsSTEP ONE: HITRO.HR SERVICE AT THE FINANCIAL AGENCY (FINA)you can find all the information you need about procedures for establishing a company; forms for foundingcompany, payment slip, list of the banks¡­STEP TWO: NOTARY PUBLICApplications for Entry in the Court Register (PO form),Articles of Association-a Social Contract or Declaration of Establishment of a Company with certain enclosed documents must be verified by notary publicSTEP THREE: HITRO.HRSERVICE AT THE FINANCIAL AGENCY (FINA)The Decision on Entry in the Court Register and the Notification of Classification of Activities with business identification number are collected at the HITRO.HR counterYou can arrange the making of an official company stamp and opening of your account at the HITRO.HRRegistrations of the company, owner/s and employees, will be executed electronically with Croatian Pension Insurance (HZMO) and the Croatian Health Insurance (HZZO) at the HITRO.HR counter
  • 49. STEP FOUR: HITRO.HRSERVICE AT THE FINANCIAL AGENCY (FINA)Documentation required must be submitted to the Commercial court, which shall issue a resolution regarding establishing a companyAfter your company has been entered in the Court Register and the Register of the Central Bureau of Statistics you must:Register your company with Tax Authority for the purpose:1.entering the company into the Register of Income Tax and VAT PayersDocuments: the Decision on Entry in the Court Register, the Notification of Classification, and the Signature CardCost of the application process:Cost of public notary: cca700 EURCost of publishing the court register entry in the Official Gazette: cca 130 EURCommercial court fee: 55 EURCentral Bureau of Statistics fee: 8 EURContacts: Freeinfo line: 0800 0800desk counters at the Financial Agency - FINAinfo@hitro.hrwww.hitro.hr
  • 50. IX. SUPPORT INSTITUTIONSKOPRIVNICA-KRI?EVCI COUNTYAntuna Nem?i?a 548000 KOPRIVNICATel: +385 48 658 111 (central)Info e-mail: info@kckzz.hrCROATIAN CHAMBER OF ECONOMY COUNTY CHAMBER KOPRIVNICAJosipa Vargovi?a 448000 KOPRIVNICATel: + 385 48 674 560E-mail: hgkkc@hgk.hrPORARegionalDevelopmentAgencyofPodravina and PrigorjeBra?e Radi? 2/148000 KOPRIVNICATel: +385 48 621 978E-mail: info@pora.com.hrDepartment for EconmicsandCommunalAffairs48000 KOPRIVNICATel: +385 48 658 231, +385 48 658 235E-mail:marijan.stimac@kckzz.hrMINISTRY OF ECONOMY, LABOUR & ENTREPRENEURSHIPDIRECTORATE FOR ECONOMIC DIPLOMACY,EXPORT & INVESTMENTSUlica grada Vukovara 7810 000 Zagrebtel: +385 1 6106 114fax: +385 1 6109 114CROATIAN EMPLOYMENT SERVICERegional office Kri?evciKralja Tomislava 2048260 KRI?EVCITEL: +385 48 681 904HZZ.Krizevci@hzz.hrRegional office Kri?evci, Local office ?ur?evacTrg Svetog Jurja 148350 ?ur?evacTel: +385 48 812 057HZZ.Krizevci@hzz.hr?Regional office Kri?evci, Local office KoprivnicaIvana Me?trovi?a 2548000 KoprivnicaTel: +385 48 622 516HZZ.Krizevci@hzz.hr?Department for physicalplanning, constructionandenvironmentalprotection48000 KOPRIVNICATel: +385 48 220 155E-mail: drazen.kozjak@kckzz.hrTOURIST BOARDof Koprivnica-Kri?evci CountyAntuna Nem?i?a 548000 KOPRIVNICATel: +385 48 624-408E-mail: ured@tz-kckz.comMINISTRY OF FINANCETAX ADMINISTRATIONREGIONAL OFFICE KOPRIVNICAHrvatske dr?avnosti 748000 KoprivnicaTel. 385 48-289-555Fax. 385 48-622-868?INSTITUTE FOR PHYSICAL PLANNING of Koprivnica-Kri?evci CountyTrg bana Josipa Jela?i?a 15/II48000 KOPRIVNICATel: +385 48 624 406E-mail: prostorno-uredjenje@kckzz.htnet.hr