DEVELOPMENT PROJECT: „BUSINESS ZONE KAMENICA“ jezik... · DEVELOPMENT PROJECT: BUSINESS ZONE “KAMENICA” 3 KEY INDICATORS fOR BUSINESS ZONE “KAMENICA The business zone “Kamenica”

CIT Y OF BIHAĆ

DEVELOPMENT PROJECT:„BUSINESS ZONE

KAMENICA“

C O N T E N T S

Key indicators for business zone “Kamenica” .................................................... 3

Selling – auctioning urban construction land .................................................... 5

The procedure ......................................................................................................... 5

State of equipment ................................................................................................. 6

Costs of preparations for construction ............................................................... 7

a) Purchase price ......................................................................................................7

b) Rent .........................................................................................................................7

c) Fee for regulation of urban construction land ............................................. 8

d) Overview of the total costs .............................................................................. 9

e) An example of calculation of the total costs preceding construction ........10

Investor incentives ............................................................................................... 12

a) Tax benefits ..........................................................................................................12

b) Rent discounts ....................................................................................................13

c) Customs benefits ...............................................................................................13

d) Other incentives .................................................................................................13

Contacts ................................................................................................................. 16

3DEVELOPMENT PROJECT: BUSINESS ZONE “KAMENICA”

K E Y I N D I C A T O R S

f O R B U S I N E S S Z O N E “ K A M E N I C A

The business zone “Kamenica” is located in the North-West part of the Bihac city area, at the highway M.5 connecting Bihac and Izacic border crossing and thus facilitating further connections with other European Union member states through the Republic of Croatia. The zone is approximately 4 km away from the city and 8 km away from the Izacic border crossing.

Pokoj

BIHAĆ

Pritoka

UN

A

RipačLohovo

GP Užljebić

GP Izačić

ZAGREBPLITVIČKA JEZERA

SARAJEVO

BANJA LUKA

SPLIT

Kamenica

M5

M5

DEVELOPMENT PROJECT: BUSINESS ZONE “KAMENICA”4

The distance to Zagreb is 150 km, Karlovac 100 km, Rijeka and its international seaport 170 km. There are 112 km to the border with Slovenia, 270 km to Austria, and 242 km to Hungary. In terms of other BiH cities, the zone is 310 km away from Sarajevo and 149 km away from Banja Luka, by road.

According to the “Kamenica” Regulatory Plan (“Bihac Muni-cipality Official Gazette,” No. 03/03), the business zone covers 392,000 m² and includes 71 lot ranging from 2090 to 7800 m² in size and intended for small and medium enterprises, a 35,810 m² fairs and exhibitions lot, a 10,380 m² motel, 9000 m² for administration premises and an info centre, along with 10,100 m² of parking space. In terms of ownership structure, 24 lots or approximately 133,070 m² are owned by the Municipality of Bihac, 12 lots or approximately 45,180 m² by the Socialist Union, while 39 lots or approximately 213,750 m² are private property.

The spatial planning and project documentation are completed in their entirety and at the moment investments are made for building and paving the roads.

Present situation in the business zone: Ten commercial buil-dings have been constructed already, housing 13 active busine-sses. The construction of another commercial building is under way, while premises for 7 more businesses are at different stages of preparation. The “Kamenica” Regulatory Plan includes 5 Bihac city-owned construction lots that were not built on and remain available for potential investors.

Municipality Business zone Size (ha)No. of active businesses

inside the zone

Total land built on (m²)

Bihać Kamenica 39,213

(in 10 buildings)11.802

Table 1. Business zones in the Bihac area


S E L L I N G – A U C T I O N I N G

U R B A N C O N S T R U C T I O N L A N D

The procedure

f Expression of interest by investors;

f City Council decision on the sale of land;

f Tender publication in daily and weekly newspapers and at the City’s home page;

f Tender Panel conclusions on the selection of the best bidder;

f Signing a Sale and Purchase Contract;

f Payment by the investor;

f Entering the lot in the Cadastre and Land Registry records.

The described procedure takes approximately three (3) months.

The urban-planning and building permit/location approval are issued within approximately two (2) months.

Detailed information on the procedure for obtaining the urban-planning and the building permit are available at: www.bihac.org.


The city applies the public tender procedure to sell its construc-tion land to:

f Natural persons, for construction of family residences;

f Natural persons and legal entities for construction of business, commercial, combined commercial and residential, and other types of premises they are either to own or place on the market.

State of equipment

Pending on the level of preparedness in terms of available utili-ties and infrastructure, as well as whether there is a Programme of Regulation of Urban Construction Land in place, urban con-struction land can be:

f Fully equipped;

f Equipped with the basic utilities;

f Partially equipped; and

f Unequipped


C O S T S O f P R E P A R A T I O N S

f O R C O N S T R U C T I O N

a) Purchase price

Purchase price determined based on the market value of the land, i.e. the technical findings and assessment by an expert with background in construction, in line with the Law on Expropriationi.

b) Rent

Rent – based on the natural advantages of the given urban con-struction land and the advantages of available utilities and infra-structure that may arise from the use of the land and that are not the results of investments by the party owning or using the real estate.

The costs of rent shall be calculated on the basis of average final construction price for a m² of usable residential area in the city zone for the previous year as determined by the City Council no later than by March 31 of the current year and valorised every three (3) months in the course of the year.


The usable structure surface shall be the sum of floor surfaces of all the premises at all the levels of the buildings as calculated according to the JUS-u-c2-100 standard and expressed in m².

The costs of rent for a m² of usable surface of a structure to be built on urban construction land, be it state or privately owned, shall be determined as a percentage of the average final con-struction price for a m² of usable residential area reached in the course of the previous year with regard to construction of apar-tments in the municipality zone, as follows:

f Zone I 6 %

f Zone II 5 %

f Zone III 4 %

f Zone IV 3 %

f Zone V 2 %

f Zone VI 1 %.

c) Fee for regulation of urban construction land

The amount of fee for regulation of urban construction land per a m² of usable structure surface at a given location shall be de-termined by dividing the total real or the costs as assessed by the valid Programme of Regulation of Urban Construction Land by the total size of usable surface of the structure for the con-struction of which the given urban land lot has been or shall be regulated over a set deadline.


d) Overview of the total costs

Costs related to location approvals and preparatory works

Fee with the urban-planning consent application 33 EUR

Geodetic survey outsourcing

Development of preliminary design outsourcing

Preparation of the studies required to obtain the necessary consents/permits

outsourcing

Fee for regulation of urban construction land (in accordance with the Decision on the Construction Land and the Decision Determining the Starting Price of the Costs of Regulation of Urban Construction Land for the Year 2010)

0.6058 x 45.0 = 27.5 EUR/m2 of usable structure surface(for

prepared and equipped locations)

Change of designation of agricultural into construction land

outsourcing

Costs related to building permits and preparatory works

Fee for obtaining the building permit 5 - 75 EUR

Development of the main project design outsourcing

Geo-mechanical testing outsourcing

Fee arising from the natural advantages of the urban construction land – rent (pursuant to the Law on Construction Land and the Decision on the Construction Land)

KAMENICA (Zone VI): 4.5 EUR/m2 of usable structure surface

RIPAČ: 0 EUR

Fee for construction of shelters (Should the investor build a shelter as part of the structure, this fee shall not be charged.)

1% of investment value of the structure

Supervision of construction works outsourcing


Costs related to certificates of occupancy

Fee for obtaining the certificate of occupancy 5 - 75 EUR

Costs of technical handover (based on the Pricelist on the Manner of Cal-culating and Collecting the Costs of Technical Structure Inspection)

max. 15,000 EUR (0.5 – 0.45 – 0.35 % of investment value of the structure – the greater the investment value the lower the

costs)

e) An example of calculation of the total costs preceding constructionExample for a building of approximately 1000 m2

Amount in BAM for approx. 1000 m2

Fee with the urban-planning consent application

65.0 65.0

Geodetic survey outsourcing outsourcing

Development of preliminary design outsourcing outsourcing

Preparation of the studies required to obtain the necessary consents/permits

outsourcing outsourcing

Fee for regulation of urban construction land (in accordance with the Decision on the Construction Land and the Decision Determining the Starting Price of the Costs of Regulation of Urban Construction Land for the Year 2010)

(coefficient)determined

pending on the state of equipment

of the location x (starting price) 90.0

= 55.0 BAM / m² of usable structure

surface

Determined based on the state of

equipment of the location

Change of designation of agricultural into construction land

outsourcing outsourcing

Fee accompanying the building permit application

15.0 15.0

Development of the main project design outsourcing outsourcing

Geo-mechanical testing outsourcing outsourcing


Fee for the permit drafting approx. 150.0 approx. 150.0

Fee arising from the natural advantages of the urban construction land – rent (pursuant to the Law on Construction Land and the Decision on the Construction Land)

KAMENICA (Zone VI):9.0 BAM / m²

of usable structure surface

9.000,0

Fee for construction of shelters(Should the investor build a shelter as part of the construction, this fee shall not be charged.)

1% of investment value of the

structure

1% of investment value of the

structure

Supervision of construction works outsourcing outsourcing

Fee with the certificate of occupancy application

15.0 15.0

Fee for the certificate drafting approx. 150.0 150.0

Costs of technical handover(based on the Pricelist on the Manner of Calculating and Collecting the Costs of Technical Structure)

max. 30,000(0.5 – 0.45 – 0.35 % of

investment value of the structure)

max. 30,000(0.5 – 0.45 – 0.35 % of

investment value of the structure)

TOTAL (not including the costs of outsourced services and the fee for regulation of urban construction land)

39.395,00 BAM

UKUPNO (bez troškova eksternih usluga i naknade za uređenje gradskog građevinskog zemljišta)

39.395,00 KM

Notice: The investment value of a structure shall be determi-ned by the main project design and shall depend on the ma-terials, internal structures and technology used. The above are the approximate costs in the cases when all property and legal issues concerning the given lot are regulated and the location itself is prepared and equipped.


I N V E S T O R I N C E N T I V E S

a) Tax benefits

Corporate income tax shall be paid at the rate of only 10 % to the tax base defined by the tax return.

Corporate income tax exemptions shall be granted as follows:

f All taxpayers with over 30 % export share in the total annual income for the given tax year shall be exempt from paying corporate income tax for the year;

f All taxpayers with a minimum of 20 million BAM invested into the production in the FBiH territory over five consecutive years, at least 4 million BAM of which invested already during the course of the initial year, shall be exempt from paying corporate income tax for the five-year period;

f All taxpayers having persons with disabilities or persons with special needs as more than 50 % of their staff, each hired for over one year, shall be exempt from paying corporate income tax for the year.


b) Rent discounts

The costs of rent related to construction of production facilities shall be reduced:

f By 10 %, if the facility should employ up to 5 workers

f By 20 % if the facility should employ 6-10 workers



f By 50 % if the facility should employ 31 or more workers.

c) Customs benefits

Foreign investments shall be exempt from all customs duties except the fee for customs registration, unless defined otherwi-se by the BiH Law on Customs Policy (Law on the Policy on Direct Foreign Investments in B&H).

d) Other incentives

f Low costs of starting up a business

Type of cost EUR

Start-up capital 1000

Costs of notarisation 500

Court fee for registration of business 108

Costs of publication in the official gazette (approximately)

75

TOTAL 1683


f Competitive workforce compared to the rest of the region

TerritoryNet Wages

(EUR)

Gross Wages (EUR) (incl. paid contributions to the pension

funds and health insurance)

Bihać 460 706

Republic of Croatia average

716 1030

Bosnia H. average 419 650

Republic of Serbia average 355 489

f The lowest VAT rate in the region

CountriesValue Added Tax Rate

(VAT) in %Income Tax Rate

(legal entities) in %

Bosnia and Herzegovina 17 10

Croatia 25 20

Serbia 20 15

Montenegro 19 9

Macedonia 18 10

Albania 20 10

Turkey 18 20

Slovenia 20 21

Hungary 27 19

Bulgaria 20 10

Romania 24 16

f Liberal and stimulating regulations in line with the policy on direct foreign investments

f High quality and efficient local administrative services


Present state of affairs in the “Kamenica” business zone

C O N T A C T S

Contact person: Mayor Emdžad Galijašević

Address: Bosanska 4, 77 000 Bihac, Bosnia and Herzegovina Phone: + 387 (0) 37 22 42 22 (OP); + 387 (0) 37 22 96 05

(Cabinet of the Mayor)Fax:+ 387 (0) 37 22 22 20

E-mail: [email protected], [email protected] Web: www.bihac.org

Service for General Administration, Economic and Social Affairs Phone: +387 (0) 37 22 96 19; Fax: +387 (0) 37 22 96 29

E-mail: [email protected]

INVEST IN BIHAĆBOSNIA AND HERCEGOVINA

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DEVELOPMENT PROJECT: „BUSINESS ZONE KAMENICA“ jezik... · DEVELOPMENT PROJECT: BUSINESS ZONE “KAMENICA” 3 KEY INDICATORS fOR BUSINESS ZONE “KAMENICA The business zone “Kamenica”

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