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Zabljak- Investment Development Potential

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Zabljak- Investment Development Potential MONTENEGRO Zabljak …investment development potential of the tourist centre and mountain jewel of nature… Austria Hungary Romania Slovenia Croatia BiH Serbia Bulgaria Žabljak Italy MN Kosovo Macedonia Albania MONTENEGRO Greece Turkey Montenegro is a country located in and northern part of Montenegro has The major mineral resources are negro has had hundreds of millions of southeastern Europe on the Balkan characteristics of a mountain climate bauxite ore, iron ore and coal. The Euros in direct investment in the last Peninsula and it lies on the shores of but also a strong infl uence of the Med- most important industrial activities are few years. At the moment, Montene- the Adriatic Sea. The biggest city and iterranean Sea. This is evident in pre- that of processing iron, aluminum and gro represents an extremely attractive also the capital is Podgorica. Cetinje cipitation and also in the average high tobacco. In the last few years, there place for foreign investment. has the status of royal capital. temperature of the coldest month. The has been evident investment in natu- There is a mountain climate in the The population of Montenegro is most northern point of the country ral sources of energy, especially hydro central and northern part of Monte- 620.029, is a civil state and the ma- has a continental type climate, which potential. Montenegro is a maritime negro and the most northern part of jor ethnic groups are Montenegrin, is characterized by a low amount of country with a long maritime tradition. the country has a continental climate, Serbian, Bosnian, Albanian, Muslim annual precipitation. Montenegro has fi ve national parks. which besides having big daily and and Croatians. The Orthodox religion Montenegro has a total land area of Tourism is very important to Mon- yearly amplitudes in temperature also makes up 72.07% of the population, 13.812 km², of which 37, 40% is agri- tenegro’s economy. Almost all of has a small amount of annual precipi- Muslim 19.11%, Catholic 3.44% and cultural land. The total area of arable Montenegro’s economic activities are tation, evenly spread out through the other 5.38%. land is 13, 75%. Wheat, potato, to- directed towards the development of months. In the northern mountain ar- The southern part of Montenegro bacco, grapevine, citrus fruits, olives tourism. The government of Monte- eas, the summers are cold and humid has a Mediterranean climate of long, and fi gs are grown in Montenegro. The negro has set itself the goal to turn and the winters long and harsh, with hot and dry summers and relatively o cial currency in Montenegro is the Montenegro into an elite tourist des- freezing and low temperatures, which light and rainy winters. The central EURO. tination. In reaching this goal, Monte- steeply decline as we go up in altitude. BiH Serbia Sarajevo Belgrade 170km 400km Croatia Kosovo Zagreb MN 535km Pristina 210km Dubrovnik 260km 120km Albania 270km Tirana 270km Bar 197km The municipality of Zabljak is located in northwestern Montenegro in the heart of the mountain area Durmitora. It has a surface of 445 km2. Coordinates 43°09N 19°07E 3 A word from the Mayor Dear investors, place suitable for your investments and where your business ideas Zabljak is a small town, but a town which thanks to its potential will be successfully and e ectively realized. o ers great possibilities. This brochure is Za¬bljak’s identity card, I invite you to come and see for yourself that Zabljak is an ideal with which we wish to present Zabljak and also inform you about place for investment. We are here to provide you with maximum the development possibilities which you cannot miss. I think that cooperation and support. this easy to use and simple manual will provide you with informa- Welcome to Zabljak! We wish you great success in your future tion important for business on a local level. business and partnership! I sincerely hope that by reading this you will identify Zabljak as a Sincerely, Veselin Vukievi, Mayor of Zabljak Zabljak represents the “geographical roof” of Montenegro, because 30% of its territory is found 1500m above sea level. The town of Zabljak, with its location at 1456 meters above sea level, repre sents the high- est urban settlement in southeastern Europe. 1456m ZabljakCrno is located in the foothills jezeroof Mount Durmitor and is surrounded by 23 mountain peaks of 2200 meters above sea 18 23 level, 18 mountain lakes, one of them being the famous Black lakes Mountain Lake and the Tara Canyon, which is the deepest in Europe. peaks 5 In 1991, in Zabljaku, Montenegro was proclaimed as an ecological country, and Zabljak was chosen as its capital. Since 1991, it is an ecological country The National Park Durmitor was founded in 1952 and since 1980 is in the registry of the World Cultural and Natural Heritage Site (UNESCO). Development investment potentials Production of Winter Summer Wood organic food tourism tourism processing Agriculture Livestock Ethno tourism breeding Ra ing Health Hiking SPA&Wellness tourism Invest in: Hospitality Paragliding Bottling Exploitation high quality of mineral Bicycling Hunting mountain water resources… and fi shing 7 The plan for 2015-2019 by the local government is to Why invest in Montenegro and Zabljak? pay careful attention to the By an analysis done in Slovenia a year ago, on poten- further revitalization of tial places to invest in Montenegro, Zabljak was at the communal, road and social top of the pyramid! That o cial recommendation, which was given to Slovenian companies, has already launched infrastructure. three Slovenian projects in Zabljak and negotiations are underway for another ten. The government of Slovenia Five potential business zones in is giving a special contribution to Zabljak’s development. the municipality of Zabljak have Keeping in mind the valuable natural resources we have, been determined through urban Montenegro has with the help of Italy’s ministry of en- spatial planning: vironmental protection of land and sea, identifi ed the 1. Njegovudja and Sawmill – municipality of Zabljak as one of the pilot areas for the total surface is about 10ha, total realization of the Master Plan for the development of construction 60%, existing vital sustainable tourism. According to the analysis of the Investment-develop- infrastructure (electricity, water), ment fund ( which at this moment is in the process of accessible road; investing from 3 million Euros into Zabljak), Montenegro 2. Njegovudja II – total surface as a small and extremely open economic system has the 4ha, undeveloped, non-existing possibility of easily fi tting into the world trends of the vital infrastructure, fl ow of direct foreign investment. Therefore, the invest- accessible road; ment ambient as a whole is improved. 3. Vruljci – gravel terrain, surface 10ha, non-existing vital infra- Montenegro has determined a development strategy structure, no accessible road; paying close attention to the municipality of Zabljak and its enormous potential. Montenegro has, through 4. Zabljak work zone – surface its Investment development fund, designated signifi - 32ha, land predicted for cant capital for the development of Zabljak’s potential economic development; and some projects are already underway. Besides local 5. Service zone – surface 8ha. projects taking already place in Zabljak, there are also projects under way from foreign investors such as Slo- venia, Russia, Italy... Advantages for foreign investors which • Is taxed the same as domestic investors. Through the decision on real estate tax, the mu- Montenegro o ers: The investment of the foreign investor can be nicipality of Zabljak has determined the lowest monetary, items, services, property rights and se- rate predicted by the Tax Law on real estate, for • Political, monetary and macroeconomic stability curities. catering facilities of the following categories: • Simple START UP Taxes • For catering facilities category 3 *** • Liberal economic regime for foreign trade, - 2% of market value, • Favorable tax policies: 9% income tax, • Tax rate on earnings - 9% and 15% • For catering facilities category 2 ** 7/19% vat, tax on profi ts 9% i 15% • Tax rate on the company’s profi t - 9% - 3% of market value, • International accounting standards • Tax rate on value added - 19% and 7% • For catering facilities category 1 * • Rise in economic freedom • The tax rate on real estate is proportional and - 4% of market value, • Geographic location and climate conditions can be from 0, 10 % to 1, 00% of the market • Catering facilities which are not categorized Montenegro is a member of the World Trade or- value of real estate. - 5% of market value. ganization and signatory to multilateral and bilat- • Taxes and contributions on personal earnings In accordance to the Tax Law on real estate, ca- eral agreements – Agreement on stabilization and • Tax on earnings 9% tering facilities category 4 **** and 5***** are taxed association with the European Union, CEFTA 2006, • Total contributions which the employer pays 9.8% on 0, 4% of market value. € EFTA, Russia, Belarus and Turkey, which enables it • Total contributions which the employees pay 24.0% the cumulation of origin and duty free trade with • Total contributions for mandatory pension facturing activities, are relieved from paying taxes about 800 million consumers. insurance 20.5% on earnings for the fi rst eight years. This tax relief, or A foreign investor can be a foreign legal entity or • Total contributions for mandatory health incentive, does not include entities which operate in physical person residing abroad, a company whose insurance 12.3% the sector of primary production agriculture, trans- foreign investment contribution is more than 25%, • Total contributions for unemployment port and shipyard, fi shing and steel sector. Montenegrin citizen who is residing abroad for lon- insurance 1.0% 2. Personal income tax ger than a year or a company who has founded a Montenegro’s support to foreign investors Taxpayers who start production activities in eco- legal entity in Montenegro.
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