April, 2013 Agency for Investments and Competitiveness.

April, 2013Agency for Investments and Competitiveness

ABOUT US

The Agency for Investments and Competitiveness (AIK) was established by the Croatian Government on April 29, 2012 (Official Gazette, 53/12)

Objective:• Implementation of policies and measures for increasing competitiveness of the Croatian economy

with special emphasis on promoting investments

The AIK’s activities started in September 2012

Currently, there are 25 people employed and it is planned to increase this number up to 40 people in the course of 2013

The AIK’s Supervisory Board (SB) is comprised of 15 members, representatives of relevant ministries (for economy, finance, regional development and EU funds, entrepreneurship and crafts etc.).

AIK focus are investors (companies) that meet EU criteria for large companies (250 employees, turnover of 50 mil Eur and assets 43 mil Eur). The companies that qualify as SME enterprises are subject to the Croatian Agency for Small and Medium Enterprises (HAMAG Invest)

Implementation of policies and measures for increasing competitiveness of Croatian economy with special emphasis on promoting investments, improving efficiency in application of innovation and promoting use of financial mechanisms in order to support economy

ABOUT US

Investments Competitiveness

Providing active support to investors

Promoting Croatia as investment destination

Improving investment environment

Reducing red tape

WHAT WE CAN DO FOR INVESTORS

WE PROVIDE INVESTOR WITH:

Business intelligence

Site selection

Operation costs

analysis

WE CONNECT INVESTOR WITH:

Government bodies

Local and regional

institutions

Utility companies

WE ASSIST INVESTOR WITH:

Organizing site visits

Assistance with gaining all necessary

permits

Assistance with gaining

state incentives

ACTIVE SUPPORT TO INVESTOR

REDUCING RED TAPE

IMPROVING INVESTMENT

ENVIRONMENT

SUPPORTING DEVELOPMENT OF COMPETITIVENESS

CLUSTERS

LINKING NEEDS OF BUSINESS SECTOR WITH

LABOR MARKET

SUPPORTING SPECIALIZATION

OF REGIONS

INCREASING COMPETITIVENESS

HOW CAN WE EFFECT COMPETITIVENESS

CURRENT RESULTS

More than 60 PROJECTS

in Agency's portfolio

eCatalog of Investment projects

- IN DEVELOPMENT

(Agency gather, update and publish list of projects ready to

invest)

3 COMPETITIVENESS CLUSTERSAutomotive,

Wood processing and Food processing clusters

(in plan is 9 more clusters)

WORKING GROUP FOR BUSINESS CLIMATE AND PRIVATE INVESTMENTSas a part of Government Coordination of economy, investments and EU funds

WORKING GROUP FOR BUSINESS CLIMATE AND PRIVATE INVESTMENTS

Agency for Investments and Competitiveness - main expert operational body

Agency will focus on reducing barriers in realization of major private investment projects and removing obstacles

Analyzing and identifying key segments and priorities for improving business and investment climate in Croatia

Proposals of legislative and other solutions to the Government, to enable the improvement of business and investment climate in Croatia

Systematically following preparation and realization of private investment projects

Agency is providing operational platform for realization of working group aims

MAIN AIMS

Regulatory framework already in place:

IMPROVING INVESTMENT ENVIRONMENT AND ENCOURAGING INVESTMENT INCENTIVES

Agency for Investments and Competitiveness supporting investors

INVEST IN CROATIA – EASIER THAN 6 MONTHS AGO

Act on Investment Promotion and Enhancement of Investment Environment

• Manufacturing activities• Technology centeres• Strategic business support services• Tourism (4 plus star hotels and resorts, sports and health centers,

etc)

Sectors

• Tax incentives• Customs preferences• Employment and education grants• Incentives for modernization of technology and R&D activities• Incentives for initial and capital expenses of the investment project• Incentives for labor intensive investment projects

Incentives

• Equipment and machinery and intangible assets: patent rights, licenses, know-how, or

• 2 year-gross salaries

Eligible investment costs

INVESTMENT INCENTIVESELIGIBLE SECTORS AND COSTS

Incentives

Tax incentives 0% - 10% profit tax rate

Employment incentives €3,000 – €18,000 per employee

Incentives for Innovation and Development

20% of the eligible cost of buying the equipment/machinery (up to € 0.5 million)

Incentives for Initial and Capital Expenses of the Investment Project

Cash grant in amount of 10% of the eligible costs (up to € 1.0 million)

Respective investment incentives are calculated on an individual basis.

Minimum investment: 150.000 € - SME’s and large size companies

INVESTMENT INCENTIVES

INVESTMENT INCENTIVESCALCULATOR

You can calculate your investment incentives in Croatia by Investment Incentives Calculator available at AIK web pages

www.aik-invest.hr

Next steps:

Lex Specialis on investment projects of special interest to the Republic of Croatia

Development of Investment Promotion Strategy – middle of 2013

IMPROVING INVESTMENT ENVIRONMENT

Ministry of Economy

THANK YOU!

We are standing at your disposal for any additional questions:

www.aik-invest.hr