INVESTMENT GUIDE
THE TOWN OF ČAKOVEC
Version 4.0
November, 2014. Investment guide V 4.0
A word by the Mayor
Respected invertors,
The town of Čakovec is a place of many developmental possibilities with all necessary prerequisites for major investments.
Positioned in the middle of Međimurje county, the northernmost part od Croatia, Čakovec is an important trade hub crossing, most importantly the trade corridor connecting Budapest with the Adriatic sea and the Mediterranean. The second most prominent trade corridor is the one connecting Čakovec with Slovenia and Western Europe.
A good education system, hard working people, specific artisan skills and knowledge are amongst the prominent characteristics of Čakovec residents making Čakovec an advantage in comparison to other regions. We are known as the region most prone to investments, having removed buirocratic obstacles as well as bringing red tape down to a minimum. We have also lowered the municipal contributions, prepared 3 investment zones and eased the way for investors to acquire all relevant and necessary permits.
We are ready to become your investment partners in developing new business plans, providing new employment possibilities, contributing to the development of all economy branches, introducing new and innovative technologies and creating new values.
Welcome to Čakovec!
Mayor of Čakovec, 2 Stjepan Kovač
The Town of Čakovec
Investment guide V 4.0
CONTENT
1. REGIONAL CAPACITY FOR ECONOMICAL DEVELOPMENT 4
FLOWCHART, CYCLE FROM IDEA FOR THE BUILDINGS CONSTRUCTION TO COMMISSIONING THE CONSTRUCTED OBJECT 18
2. THE TOWN OF ČAKOVEC SUMMARY 20
3. TAX SYSTEM OF CROATIAN 23
TABLES OF SUMMARY COSTS 35
4. PROJECTS OF THE TOWN OF ČAKOVEC IN AN ADVANCED STAGE OF PREPARATION FOR CONSTRUCTION 37
5. ECONOMY OF THE TOWN OF ČAKOVEC 40
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The Town of Čakovec
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1. REGIONAL CAPACITY FOR ECONOMICAL DEVELOPMENT
Table 1.1. AREAL CAPACITY OF WORK ZONES
AREA NAME OF WORK ZONE TOTAL AREA (unbilt building plot)
INDUSTRIAL ZONE WEST 31,0 ha 9,1 ha
WORK ZONE MARTANE ČAKOVEC 7,2 ha 5,1 ha
INDUSTRIAL ZONE EAST ČAKOVEC 42,4 ha 15,5 ha
Č A K O V E Č C KE V AO PART OF BUSINESS PARK MEĐIMURJE 15,3 ha 13,1 ha "Economic Zone East - North part in Čakovec"
ECONOMY ZONE EAST PUSTAKOVEC 53,7 ha 53,7 ha
ECONOMY ZONE IVANOVEC 14,0 ha 10,0 ha
TOTAL 163,6 ha 106,5 ha
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Picture 1.1. The Town of Čakovec – distribution of economic zones
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The Town of Čakovec
Investment guide V 4.0
Table 1.2. INDUSTRIAL ZONE WEST – unconstructed building plot
MARK AREA / m² / PURPOSE OWNER
1 5.140 K private property
2 29.329 K private property
3 13.545 I private property private property 4 4.000 K private property 5 5.000 K private property 6 5.300 I private property 7 3.434 I private property 8 6.227 I private property 9 4.811 I private property 10 7.284 K
11 4.179 K private property private property 12 2.397 K
TOTAL: 90.646 K - service I - production 6
The Town of Čakovec
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Picture 1.2. Industrial zone West
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The Town of Čakovec
Investment guide V 4.0
Table 1.3. WORK ZONE MARTANE ČAKOVEC – unbuilt building plot
MARK AREA / m² / PURPOSE OWNER
3 3.923 I2 Town of Čakovec 4 4.120 I2 Town of Čakovec 5 4.310 I2 private property 6 2.724 I2 private property 7 2.792 I2 Town of Čakovec 8 2.861 I2 Town of Čakovec 9 2.928 I2 private property 11 2.995 I2 private property 12 5.516 I2 private property 13 5.751 I2 private property 14 5.550 I2 private property 15 8.018 K2 Town of Čakovec TOTAL: 51.488 K2 – trade I2 - production
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Picture 1.3. Work zone Martane Čakovec
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Table 1.4. INDUSTRIAL ZONE EAST ČAKOVEC – unconstructed building plot
For the activation of zone (mark area 1 and 2) it is necessary to:
- equip the zone with infrastructure - possible construction on plot 3
MARK AREA / ha / PURPOSE OWNER
1 13,1 I Međimurje County 2 12,9 I Municipality Čakovec
3 2,5 I private property
TOTAL: 28,5 ha I - production
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Picture 1.4. Industrial zone East Čakovec
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Tabel 1.4.1. PART OF THE BUSINESS PARK MEĐIMURJE „ECONOMY ZONE EAST – NORTH PART IN ČAKOVEC“ - unbuilt building plot
MARK AREA / m² / PURPOSE OWNER 1 10.235 l Međimurje county 2 9.640 l Međimurje county 3 9.060 l Međimurje county 4 10.359 l Međimurje county 5 9.005 l Međimurje county 6 8.868 l Međimurje county 7 9.721 l Međimurje county 8 9.613 l Međimurje county 9 9.003 l Međimurje county 10 9.007 l Međimurje county 11 10.479 l Međimurje county 12 8.729 l Međimurje county 13 10.393 l Međimurje county 15 7.253 l Međimurje county TOTAL 131.365 m² l - production
Picture 1.4.1. PART OF THE BUSINESS PARK MEĐIMURJE „ECONOMY ZONE EAST – NORTH PART IN ČAKOVEC“
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Table 1.5. ECONOMY ZONE EAST PUSTAKOVEC – unconstructed building plot
For the activation of zone it is necessary to: - prepare a detailed urban plan of development - equip the zone with infrastructure
MARK AREA / ha / PURPOSE OWNER
mainly national 1 14,5 I property
MUNICIPALITY 5 2 4,2 I ČAKOVEC
private property 3 3,7 I
4 15,3 I nacional property 4
mainly private 5 11,2 I property
mainly private 14 6 4,8 K property
K – service TOTAL 53,7 ha I - production The Town of Čakovec
Investment guide V 4.0
Picture 1.5. Economy zone East Pustakovec
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Table 1.6. ECONOMY ZONE IVANOVEC – unconstructed building plot
For expansion existing part of zone it is necessary to: - prepare a detailed urban plan of development - equip the zone with infrastructure
MARK AREA/ha/ PURPOSE OWNER
1 cca 4,0 ha "I" ( production ) private property existing part 2 cca 10,0 ha " I" ( production ) private property unexisting part
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The Town of Čakovec
Investment guide V 4.0 Picture 1.6. Economy zone Ivanovec
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LEGEND
LABEL-NUMBER INSTITUTION RESPONSIBLE FOR THE ACTIVITY
1 INVESTOR 2 INVESTOR 3 INVESTOR 4 THE TOWN OF ČAKOVEC, ADMINISTRATIVE DEPARTMENT FOR IMPLEMENTATION OF LOCAL PLANNING DOCUMENTS 5 THE TOWN OF ČAKOVEC, DEPARTEMT FOR MUNICIPAL ECONOMY 6 INVESTOR, AUTHORIZED CONSULTANT 7 AUTHORIZED CONSULTANT 8 PUBLIC LAW BODIES, DETERMINED BY SPECIAL REGULATIONS 9 AUTHORIZED MAKERS OF STUDIES – TRUSTEES, MINISTRY OF ENVIRONMENTAL AND NATURE PROTECTION (only for buildings determined by special regulations) 10 AUTHORIZED AUDITORS (only for certain types of buildings) 11 SUBMITTED BY INVESTOR TO GOVERNING BODY FROM ITEM 4 12 THE TOWN OF ČAKOVEC, ADMINISTRATIVE DEPARTMENT FOR IMPLEMENTATION OF LOCAL PLANNING DOCUMENTS 13 THE TOWN OF ČAKOVEC, WATER OF CROATIA, OFFICE OF STATE ADMINISTRATION IN MEĐIMURJE COUNTY 14 SELECTION OF SUPERVISING ENGINEER AND CONTRACTOR BY INVESTOR 15 INVESTOR IS SUBMITTING APLICATION TO GOVERNING BODY FROM ITEM 4 16 CONTRACTORS 17 INVESTOR IS SUBMITTING REQUEST TO GOVERNING BODY FROM ITEM 4 18 THE TOWN OF ČAKOVEC, ADMINISTRATIVE DEPARTMENT FOR 19 IMPLEMENTATION OF LOCAL PLANNING DOCUMENTS 19 THE TOWN OF ČAKOVEC, ADMINISTRATIVE DEPARTMENT FOR IMPLEMENTATION OF LOCAL PLANNING DOCUMENTS 20 OFFICE OF STATE ADMINISTRATION IN MEĐIMURJE COUNTY, INVESTOR
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The Town of Čakovec
Investment guide V 4.0 2. THE TOWN OF ČAKOVEC SUMMARY
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The Town of Čakovec is the center of Međimurje County - the northernmost county of the Republic of Croatia. It stretches over 72.80 km ², being the largest area among 25 local governments in Međimurje County, comprising 10% of the total area of Međimurje.The town of Čakovec includes 14 settlements: Čakovec, Ivanovec, Krištanovec, Kuršanec, Mačkovec, Mihovljan, Novo Selo na Dravi, Novo Selo Rok, Savska Ves, Slemenice, Šandorovec, Štefanec, Totovec and Žiškovec. According to the population census of 2011. this area had 27820 permanent inhabitants averaging the population density of 357,86 inhabitants / km ².
Čakovec is located on the central plateau area – an elevated terrace 165 meters above sea level, the contact area of the Drava – Međimurje lowlands and southeast branches of Međimurje vineyard hills. The settlement area is entirely lowland (Lower Međimurje lowlands). General climate characteristics are determined by belonging to a wider climatic region - the Pannonian plain. Climate characteristics include hot summers and cold winters, typical for a fresh, moderate continental climate with perialpic and pannonian climate influences. The mean annual temperature is 9.9 ⁰C. The most frequent winds are diametrically opposed: north and south.
A favorable traffic - geographical location makes Čakovec a crossroads of significant European transport corridors. The most important is the traffic corridor through Budapest from north and northeast across Čakovec leading to the Adriatic Sea and the Mediterranean. Another significant corridor is the one branching in Čakovec heading to Slovenia and Western Europe.
The most important town monument is The old city of Zrinski. The originally wooden Čakovec fort was created in the middle of the woody marshland area of Međimurje County during the middle 13th century. It's name - Čakov Turen – Chakathurn – Csaktornya , Čakovec owes to count Dimitri Čak, the supreme magistrate and palatine of king Bela IV. First historical mentioning of Čakovec as a fortified town was in 1330. in a document by king Charles I of Hungary.
In 1546. Čakovec falls into possession of the Zrinski family, who remained the rulers of this area for five generations (1546. to 1691.). They left a huge mark on the town's history. They gradually turned the castrum Zrinski with the help of Italian architects into a strong lowland renaissance fortress.
In 1738. a devastating earthquake heavily damaged the Old Town. The owners of the entire complex had done significant remodeling adaptating the style typical of 18th century Austrian baroque.
At the turn of the 18th century the sudden increase in population resulted in the construction of a new urban core of Čakovec with houses being built in the 21 spirit of the late baroque.
The Town of Čakovec
Investment guide V 4.0
In 1900., Čakovec had 4860 inhabitants. Interestingly, 3277 inhabitants were literate. Such a large number of literate people was the result of many years of systematic and well-organized primary education in Čakovec.
Without a doubt the most important event in the economic development of Čakovec happened in 1932. when the city, through the transmission line, recieved a cheap and safe supply of electricity from the Fala hydroelectric power station in today's Slovenia. From a crafts and trade center, Čakovec turned over night into an industrial town dominated by production of textile and food industries.
Holders of textile industry development were Međimurska trikotaža Čakovec (MTČ), and Čateks. Food industry consisted of Čakovečki mlinovi, a milling company and Vajda meat industry. With the early sixties intensive development of the construction conglomerate Međimurje began, which, during the eighties, had more than 8 000 employees. The quality of their construction work was regarded as one of the best in the former state.
Nowadays, the Town of Čakovec has a developed economy. Utilizing the experience and tradition regarding economic activities as well as applying novelty crafts and technologies, the Town of Čakovec ensures a steady and coordinated development of present economical activities. With new connective means and intensive development of new technologies, Čakovec ensues the competitivness of local trade.
Enterpreneurs in Čakovec provide work for 11.565 people. Most employees work in manufacturing (5.971) and commerce (1.761) as well as construction (1.289).
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3. TAX SYSTEM OF CROATIAN
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The tax system in Croatia is regulated by several laws and regulations, most importantly: The General Tax Law Law on Income Tax Law on Profit Tax Law on the Value Added Tax Regulations on Income Tax Regulations on Income Tax Regulations on Value Added Tax Law on Special Tax Law on Accounting
CLASSIFICATION OF TAXES IN CROATIAN TAX SYSTEM Taxes in Croatia are divided into state tax, local tax and others.
The state taxes include all taxes regulated at the state level and that are wholly or mainly of its revenues, which are: Income Tax Profit Tax Value-added Tax Special Taxes
Local taxes are classified according to the same criteria, one is municipal and the other is the city tax, because these taxes are regulated at that level of government and serve to cover their public expenditure.
The other taxes include taxes on real estate and gambling taxes.
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The Town of Čakovec
Investment guide V 4.0
INCOME TAX The taxpayer is a physical person who earns income. Sources of income are receipts realized from employment, self-employment, property and property rights, capital and insurance or other receipts. Income tax basis of a resident is comprised of total income from employment, income from self-employment, income from property and property rights, income from capital, income from insurance and other income, that resident realises in the country and abroad (principle of world income), reduced by the personal allowance. The income tax is determined and paid for the calendar year (tax time). Income tax is paid at the rate of 12% of the tax basis up to twice the amount of the basic personal allowance, at the rate of 25% on the difference the tax basis between double and six times amount of the basic personal allowance and at the rate of 40% on tax basis over six times amount of the basic personal allowance. Legal basis: Law on the Income Tax ("Official Gazette" No. 177/04, 73/08, 80/10, 114/11, 22/12, 144/12, 43/13, 120/13, 125/13, 148/13 and 83/14).
SURTAX ON INCOME TAX Surtax on income tax is paid on the income tax, which is the basis for the calculation. Taxpayer surtax on income is a person who earns income in Croatia, and it's also taxpayer on income tax toward the Law on the Income Tax ("Official Gazette" No. 177/04, 73/08, 80/10, 114/11, 22/12, 144/12, 43/13, 120/13, 125/13, 148/13, 83/14). Surtax on income tax is paid at the rate of 10%. Surtax on income it's entirety the revenue budget of the Town of Čakovec. Legal basis: Decision on taxes the Town of Čakovec (OG, The Town of Čakovec, No. 7/14).
COMMUNAL CONTRIBUTION Communal contribution is revenue of the budget of the Town of Čakovec. The funds of municipal contribution are intended for financing the construction of public spaces, unclassified roads, cemeteries and public lighting. Communal contribution is paid by the owner of a building plot on which a building is on, or the investor. Communal contribution is calculated according to the volume, per m³ (cubic meter) of building, which is built on the parcel. By the building which will be removed due to construction of new building or when the existing building was added or upgraded, the communal contribution is calculated on the difference in volume compared to the previous structure. In Town there are specific areas in regards to communal contribution payment: ZONE I – Čakovec ZONE II – Mihovljan, Mačkovec, Ivanovec, Savska Ves, Novo Selo Rok ZONE III – Žiškovec, Slemenice, Krištanovec, Totovec, Kuršanec, Šandorovec, Novo Selo na Dravi and Štefanec 25 ZONE IV – Zones that have been identified in spatial plans as work (economic) zones ZONE V – Kuršanečki lug
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Investment guide V 4.0
Legal basis: Decision on Municipal Contribution of the The Town of Čakovec (OG,Town of Čakovec 7/01, 6/02, 8/04, 10/04, 5/05, 14/09 and 06/10 – consolidated text, 5 / 12, 6/12, 7/12, 1/13, - consolidated text 2/13, 4/13, 4/14 ). Table 3.1. Unit value of communal contributions in Town
ZONE I II III IV V
Unit value kn/m³ 40,- 36,- 30,- 24,- 11,50
Source: Decision on Communal Contribution of the The Town of Čakovec (OG,Town of Čakovec 7/01, 6/02, 8/04, 10/04, 5/05, 14/09 and 06/10 – consolidated text, 5 / 12, 6/12, 7/12, 1/13, - consolidated text 2/13, 4/13, 4/14 ).
Communal contribution taxpayer will pay once to the business account of the Town of Čakovec based on the decision made by the Department of Communal Economy within 15 days from the finality of the decision on communal contributions. It can be paid in 24 monthly installments within a period of two years from the date after the decision becomes final, under the condition that first installment can not be lower than 30% of total communal contribution. As security for payments, in case of a periodical payment of communal contributions, legal persons and tradesmen are obliged to provide the remaining amount certified bill in the amount of outstanding debt with the installment statutory default interest. In case of a legal person failing to pay two repeated installments, payment debentures is realized in full amount due. In case of installment payment of communal contributions individuals, as security for payment, shall provide administrative prohibition of debtors, co-borrower or guarantor in the amount seized 1/3 of monthly salary, certified by a notary public. In case of an individual failing to pay two repeatedly installments, payment of administrative prohibition is realized in full outstanding amount of the remaining debt, and in case of further non-payment an execution proceedings will be carried out, according to a final decision on the communal contribution. The Mayor can extremely in individual administrative matters, at the request of the investor, decide to postpone the repayment term of the remaining 70% of the communal contribution in the following cases: - to encourage entrepreneurship in case of an economic investment that will provide employment for more than 20 people in objects for which the calculation of the communal contribution is higher then 300.000,00 kn; - when the obligation to pay contributions for facilities from article 8 of Decisions on municipal contribution is determined; - when the taxpayers are people with more than a 50% established disability, or objects that will be used by at least 10 people with identified disabilities; - when the taxpayers are holders of a rare type of activity of local importance, determined by the mayor in each seperate case with the prior consultation with the Chamber of Crafts. 26 Town Council on a proposal from the Mayor and the Mayor can fully or partially relieve municipal contribution payment when investors are: - The Town of Čakovec, Međimurje County or Republic of Croatia,
The Town of Čakovec
Investment guide V 4.0
- when investors are public institutions or companies owned (or partially owned) by The Town of Čakovec, Međimurje County or Republic of Croatia and when they build facilities of public interest (sports, culture, education, health, social welfare or humanitarian activities), - when investors are trading enterprise and physical persons who build objects of public interest (sports, culture, education, health, social welfare or humanitarian activities), - investors who build economic structures outside the of the construction area, which can provide a connection to the public transport area and finance that construction of communal and other infrastructure to its facility, with the approval of the Town of Čakovec. The amount of communal contribution is reduced for 30% for investors who will employ more than 10 new people for an indefinite period and within a period of six months from the grant of a use permit, providing proof. The amount of communal contribution is reduced by 50% for investors who upgrade the existing facilities in order to expand production.
In order to stimulate the construction of energy efficient facilities, the following incentives are brought: - investors who build residential house will be exempt from paying communal contributions (refund municipal contributions) at 25% of the unit value for all zones of communal contribution payment if they prove that the building is classified in energy class "A +", and 15% of unit values for all zones paying communal contribution if they prove that the building is classified in energy class "A" - when an investor builds a business economic object which is intended exclusively for production of any kind, it will be exempt of communal contribution payment in the amount of 20% of the unit value for all zones of communal contribution payment - an investor who build a business or other objects, which do not serve for production and for which the amount of communal contribution exceeds the amount of 3.000.000,00 kn will be exempt from paying communal contribution equals to 20% of the payment amount of communal contribution exceeding said amount
THE WATER TAX CONTRIBUTIONS The system of flood and spate control protects primarily the property of citizens and legal persons, and the health and life of humans and animals. Therefore, the functioning of these systems is financed from the assets, precisely from the water contribution (assets in construction) and a water regulation (constructed assets and other current assets). The construction investor is responsible for the water contribution payment, including the Republic of Croatia, it's institutions and associations. Water contribution serves to directly finance regular technical and economic maintenance of watercourses, regulation and protection of water facilities of the first and second order, building regulation and protection of buildings whose construction is due to the detrimental effects of water could not be postponed, the preparation and implementation of plans for flood and ice control, protection against erosion and spate control. The water contribution is paid in three zones: Zone A - Zagreb and protected coastal area Zone B - Other Croatian territory 27 Zone C - Areas of special state concern The water contribution isn't included in the revenue of the Town of Čakovec.
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Legal basis: Law on Financing Water Management ("OG" No. 153/09 and 36/13) and The Regulation on the Amount of Water Contribution ("OG" No. 78/10, 76/11 and 19/12).
Table 3.2. Height of water contribution No. Basis Unit Zone A ZonE B Zone C 1. Commercial buildings m³ 26,25 kn 15,75 kn 7,90 kn 2. Residential buildings for permanent residence a) family houses up to 400 m² m³ 11,25 kn 7,50 kn 2,80 kn b) Other residential buildings for permanent residence m³ 15,75 kn 10,50 kn 3,95 kn 3. Residential buildings for temporary residence m³ 21,00 kn 13,15 kn 6,60 kn Objects of social standards and religious 4. objects m³ 6,55 kn 3,95 kn 1,30 kn 5. Production facilities m³ 4,70 kn 2,80 kn 0,95 kn 6. Traffic building m² 1,85 kn 0,55 kn 0,30 kn 7. Pipelines m 3,95 kn 2,65 kn 1,30 kn 8. Cable ducts m 7,90 kn 5,25 kn 2,65 kn 9. Open business buildings m² 13,15 kn 7,90 kn 2,65 kn 10. Other open buildings m² 6,55 kn 3,95 kn 1,30 kn Source: The Regulation on the Amount of Water Contribution ("OG" , No. 78/10, 76/11 and 19/12).
COMMUNAL CHARGE Communal charge is the revenue of the budget from the Town of Čakovec. Communal charge pays for residential space, office space, garage space, construction land used for business activities, unused land, if all of these properties are located within the construction zone settlements, as well as for residential and commercial spaces outside the construction zone settlements. Funds generated by communal charges are intended to finance communal services such as drainage of atmospheric waters, cleaning in the part relating to the cleaning of public areas, maintenance of public areas, maintenance of unclassified roads, cemeteries, and the maintenance of public lighting. Legal basis: Decision on communal charge (,,OG“,Town of Čakovec 2/10 - consolidated text, 5/12). 28
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Exemption from payment of communal charges Cases of total or partial exemption from communal charge payment are: - a taxpayer who is the holder of an aged household in Town of Čakovec, submitting a request to the Department of Communal Economy (an elderly household is considered a household with one resident or a couple over the age of 65), - elderly household inhabited by a younger person with an invalidity of 80% or more. Decision for temporary exemption from communal charge payment is determined by the Department of Communal Economy, in duration of one calendar year, based on submitted proof on the achievement of rights according to the regulation of the Decision.
Table 3.3. – Height of communal charges in The Town of Čakovec Name Zone Amount Remark 01 0,33 kn/m² Residential space, garage 02 0,26 kn/m² 03 0,19 kn/m² 01 0,627 kn/m² Production and commercial space 02 0,501 kn/m² For objects that possess a valid 03 0,376 kn/m² energy certificate and are sorted in the energy class "A" or higher, 01 1,5180 kn/m² the amount of communal charge Other commercial 1st group spaces 02 1,2144 kn/m² is reduced by 25% 03 0,9108 kn/m² 01 1,122 kn/m² Other commercial 2nd group spaces 02 0,897 kn/m² 03 0,673 kn/m² Building plot that serves the purpose of business 01 0,050 kn/m² activity - 8% of the coefficient of purpose production 02 0,040 kn/m² and commercial space 03 0,030 kn/m² 01 0,016 kn/m² Unbuilt building land 0,05 02 0,013 kn/m² 29 03 0,009 kn/m² Prepared by Borut Križarić, Administrative clerk for communal charges, The Town of Čakovec
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The Town of Čakovec has three communal charge payment zones: ZONE I – Čakovec ZONE II – Mihovljan, Mačkovec, Ivanovec, Savska Ves, Novo Selo Rok ZONE III – Žiškovec, Slemenice, Krištanovec, Totovec, Kuršanec, Šandorovec, Novo Selo na Dravi and Štefanec
CHARGE FOR WATER REGULATION
Charge for water regulation is paid on: - office spaces that are intended for performing economic and other activities, including the activities of non-profit entities, Croatian authorities and units of local government - residential spaces, including vacation houses and garages - built and unbuilt building plots - communal facilities infrastructures, sports facilities and other property in public use - land under roads and under transmission lines and pipelines - forests and woodlands - land that belongs to the maritime domain, granted a concession
The charge for water regulation is paid by owners or other authorithies for using or holding real estate at water areas on which it is realized. The funds from water regulation charges are used to finance professional, administrative and other activities of the water managment system, which have characteristics of a public service. It is also used for funding the preparation of flooding plans and ice control, plans for protection from erosion and spate, regular technical and economic maintenance of watercourses, regulation and protection of buildings, technical and economic maintenance of melioration systems for drainage and irrigation as well as management of melioration systems. The Croatian Waters have concluded a contract with the Town of Čakovec on covering the material costs incurred in the calculation and payment of charge for water regulation for Čakovec, Class: 940-01/06-01/11, Reg.No. 2109/02-05-06-04.
Charge for water regulation is not paid on constructed building land outside the layout area of the building where the offices of the tariff class 1 to 6, according to Table 3.4. Charge for water regulation are not payed by taxpayers whose total amount of charge does not exceed 40 kn annually. At the request of the taxpayer, the charge for water regulation will not be charged to real property which can not be used because of contamination, to property that has a final decision of prohibiting the use or the final decision about destruction, for the period until the property can not be used. The Croatian Waters are authorized to exempt from paying charge for water regulation real estate of the tariff class 1 to 4, according to Table 3.4., in case of natural disaster (fire, flood, etc.) or as long it takes for repair caused by natural disasters. The exemption is provided on the taxpayers' request or ex officio. 30
Legal basis: Regulation of Charge Level for Water Regulation ("OG" No. 82/10)
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Table 3.4. Charge for water regulation No. Tariff form Tariff/ m² 1. Business facilities of trade and services 1,05 kn monthly
2. Business facilities of manufacturing 0,30 kn monthly activities and services
3. Business facilities of management, social 0,20 kn monthly activities and other public services 4. Residential space 0,20 kn monthly 5. Open business facilities of trade and services 0,20 kn annual 6. Other open business facilities 0,10 kn annual 7. Other lands - 7.1. Unbuilt building land 0,50 kn annual 7.2. Under the highway and other unclassified roads - Under the pavement 0,10 kn annual - road zone 0,05 kn annual 7.3. Under the railway - under the planum of streaks 0,10 kn annual - in the lane zone 0,05 kn annual 7.4. Under airport and heliodrom airport , open commercial space of agricultural and sports airfield - under airstrip 0,15 kn annual - rural routes, zone of airstrip, under open commercial space of agricultural and sports airfield 0,10 kn annual 7.5. In the zone under the transmission line, oil pipeline and main pipeline 0,10 kn annual 7.6. Forest land 0,0015 kn annual 7.7.Land within the borders of a national park 0,0005 kn annual 7.8. Land within the borders of a nature park 0,001 kn annual Source: Regulation of Charge Level for Water Regulation ("OG" No. 82/10) 31
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TAX ON BUSINESS OR ON A NAME Tax on business (name) is the name under which a legal or physical person operates. Taxpayers of business or name tax are legal and physical persons who are obliged to profit tax or income tax and they are registered for the activity, whose headquarters or domicile or habitual residence is within the area of the Town of Čakovec. The tax period is one calendar year. Legal basis: Decision on Taxes of the Town of Čakovec (,,OG“,Town of Čakovec, No.7/14).
Table 3.5. Tax on business or a name Amount / HRK large enterprise 1.400,00 Legal person medium-sized enterprise 1.000,00 small enterprises 400,00 Physical, self-employmed person 300,00
Legal and physical persons that in their structure have business 300,00 units - for each business unit
Taxpayers in point 1, 2 and 3 who perform non-production 2.000,00 activities on an area over 1,000 m²
Source: Decision on taxes of The Town of Čakovec (,,OG“, The Town of Čakovec, No. 7/14)
CONSUMPTION TAX The consumption tax is based upon the consumption of all alcoholic drinks, natural wines, specialty wines, beers and soft drinks that are sold in restaurants. Consumption tax payer is a legal or physical person that provides catering services in the area of the Town of Čakovec. The base of the consumption tax is the selling price of the drink in restaurants. The tax period is the period of operation. Legal basis: Decision on taxes of the Town of Čakovec („OG“, Town of Čakovec, No. 7/14). 32 Height of the consumption tax is paid at the rate of 3% on the basis of the selling price of drinks in restaurants.
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Investment guide V 4.0
MONUMENTAL ANNUITY Monument annuity is a financial liability of physical and legal persons with the purpose of raising funds for the protection and preservation of cultural assets, or for the exercise of national programs for protection of cultural property, and is determined by the decisions of cities and municipalities in Croatia. Monument annuity taxpayers are physical or legal persons who are subject to income tax or profit tax and perform economic activity in the area of cultural and historical units of the Town of Čakovec. Decisions of cities and municipalities in Croatia regulate range monument annuity payments. The Town of Čakovec decided on the monument annuity that the historic core the Town of Čakovec is s 1st level protection area. Legal basis: Decision on the monument annuity the Town of Čakovec (,,OG“, Town of Čakovec, No. 9/03, 10/04, 15/07, 9/10 and 10/10-consolidated text)
Table 3.6. Height of monumental annuity in The Town of Čakovec
AMOUNT OF MONUMENTAL ANUITY TYPE OF ACTIVITY (monthly HRK/ m²) I. zone II. zone 1) Financial intermediation (banks, savings banks, insurance companies, 7,00 6,00 funds, etc.) 2) Business Services (legal, accounting, computing, engineering and other 3,00 2,00 intellectual services) 3) Catering, trade, manufacturing 3,00 2,00 and service activities Source: Decision on the monumental annuity of the Town of Čakovec („OG“, Town of Čakovec, No. 9/03, 10/04, 15/07, 9/10 and 10/10-consolidated text)
Exemption from payment of monumental annuity User concessions on cultural property, physical and legal persons who perform the processing or production activity as main activity inside the historic urban units of the Town are exempt from payment of monumental annuity.
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TAX ON REAL ESTATE TRANSFER Real estate transfer tax is a combined revenue of a state, county, municipality or city budget where the property is located. The subject of taxation is the real estate transfer. Real estate transfer is considered to be any acquisition of real estate in Croatia. Acquisition of real estate is considered to be a sale, trade, inheritance, entry and exemption from real estate company, real estate acquisition in the process of liquidation or bankruptcy, the acquisition based on the decision of the court or other authority and other ways of acquiring the real estate. Real estate includes land and buildings. Taxpayer of real estate transfer is a person who acquires the property. The basis of the tax on real estate transfer is market value of a property at the time of acquisition. The market value of a real estate is the price that is achieved or can be achieved in the market at the time of its acquisition. Real estate transfer tax is paid at the rate of 5%. Legal basis: Law on Real Estate Transfer Tax ("OG" No. 69/97, 153/02 and 22/11).
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TABLES OF SUMMARY COSTS Table 3.7. Cost of investors before obtaining building permits
Tax on real estate 5% of the market value of the property at the time of acquiring
The charge for the conversion of agricultural Article 25, Law on Agricultural Land (OG 152/09, 21/10 and 63/11) land
Fee charged for a building 0.35 ‰ of the amount of investment permit Communal contribution 24,00 kn/m³ 3,16 eur business buildings 15,75 kn/m³ 2,07 eur/m³ Water contribution production facilities 2,8 kn/m³ 0,36 eur/m³
Table 3.8: Connection costs of the building to infrastructure Connection to gas 80,00 kn/kWh apparent power 10,54 eur/kWh apparent power 1350,00 kn/kW + Connect to power supply 177,94 eur/kW +VAT VAT Connection to the water production facilities 2.362,50 kn 311,40 eur system business buildings up to 7.875,00 kn 1.038,01 eur 500 m² business buildings over 15.750,00 kn 2.076,03 eur 500 m² Connection to the sewage production facilities 2.362,50 kn 311,40 eur system business buildings up to 7.875,00 kn 1.038,01 eur 500 m² 35 business buildings over 15.750,00 kn 2.076,03 eur 500 m²
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Investment guide V 4.0
Table 3.9: Costs of business activity Production – business 0,376 - 0,627 kn/m² , 0,0495 - 0,0826 eur/m³, premises depending on the zone depending on the zone business premises 1st 0,9108 - 1,5180 kn/m², 0,12 - 0,20 eur/m³, Communal charge group depending on the zone depending on the zone business premises 2nd 0,673 - 1,122 kn/m² , 0,0887 - 0,1478 eur/m³, group depending on the zone depending on the zone premises of trade and 1,05 kn/m² (monthly) 0,1384 eur/m² (monthly) services Charge for water regulation premises of manufacturing activities 0,30 kn/m² (monthly) 0,0395 eur/m² (monthly) and services Gas 2,81 kn/m² 0,37 eur/m² Electricity investor enters into a contract with a supplier Water 17,2974 kn/m³ 2,28 eur/m³ Sewerage system volume of vessels 91,75 kn 12,09 eur 120 l volume of vessels 139,25 kn 18,35 eur 240 l Waste removal volume of vessels 186,75 kn 24,61 eur 360 l volumen posude 471,75 kn 62,18 eur 1100 l
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Investment guide V 4.0 4. PROJECTS OF THE TOWN OF ČAKOVEC IN AN ADVANCED STAGE OF PREPARATION FOR CONSTRUCTION
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Education Center New School Center for Education will be built in Čakovec, with it's affordable socio-economic and cultural conditions due to a developed level of urbanization, satisfies the needs of a school aimed at children with serious development difficulties. Construction of the school is planned on building lots, on the cadastral plot no. 3274/104, cadastral municipality of Čakovec in town of Čakovec. In preparation of construction a Location permit has been acquired and a Main design has been made. Construction will be possible when the Town provides necessary funds for construction.
City pools Čakovec , Phase II - external swimming pools Construction of the external pool complex will round off the whole project and therefore significantly increase the sport - tourist offer the Town of Čakovec. The planned project is to build a swimming pool for swimmers, a circular pool for nonswimmers, a pool for children, a whirlpool, pool for nonswimmers of an irregular shape and the facility stands. The project has obtained the Location and Construction permissions. Construction can start when the Town provides necessary funds.
Construction of the Drava Novo Selo drainage system (fecal and stormwater drainage) The project foresees the construction of fecal drainage system in length of 18.15 km and the stormwater drainage system in length of 14.14 km. It is a common drain system that includes settlements Kuršanec, Novo Selo na Dravi, Šandorovec and Totovec. The construction of one unit for wastewater treatment is also planned. Technical documentation for project construction is prepared. Construction has started.
Construction of the drainage system and wastewater treatment of agglomeration Čakovec The project includes the reconstruction of the sewerage network and reconstruction of collectors in the areas of local government, the Town of Čakovec and municipalities Nedelišće, Šenkovec, Sveti Juraj na Bregu, Strahoninec and Pribislavec. The project is divided into 19 separate smaller projects of which 15 projects are related to the area of The Town. One of these projects is the expansion and modernization of refiners from second to third degree which will enable the separation of phosphorus and nitrogen from wastewater. Project is co-financed from EU funds 73%, 10% by Croatian Waters, the concerned ministry 10%, while local governments finances the remaining 7%.
Construction of fecal drainage system of Zasadbreg (Žiškovec, Slemenice) The project foresees the construction of a fecal drainage system in length of 6.28 km in the settlement of Žiškovec and 3.46 km in the settlement of Slemenice. It is a common fecal drain system of Zasadbreg which includes settlements Žiškovec and Slemenice from area the Town of Čakovec and part of settlement Zasadbreg from the area of the municipality of Sveti Juraj na Bregu. Construction has started. 38
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Northeastern Bypass construction With the construction of the Northeast Bypass intercity traffic from inhabited areas would have been pulled out of Čakovec center. This project encompasses part junction of the state road D209 with the northern bypass to the junction with the southern bypass of Čakovec, between Ivanovec and Štefanec. The total length of Northeast Bypass is 5750 m.
The construction of the school gym - Elementary School of Kuršanec The project predicted the construction of a dual school sports hall with an area of 1,200 m². With the construction of the sports hall, the Town of Čakovec wants to provide better conditions for curriculum and out-of curriculum sports activities. Sports hall construction project is also consistent with the National Programme for the Roma, considering that 58% of children in school are Roma. These children have limited involvement in other out-of curriculum activities and have an affinity for sport content.
Ivanovec Sports Hall Construction of the sports hall allows holding of physical education for school needs, as well as training of athletes, holding of sports events, recreational activities, and can be used for all forms of public meetings and competitions. The basic layout of the sport hall is 38,00x29,60 m, with a total area of 1.252,60 m². The hall is designed as to be divided in two areas for teaching purposes if necessary.
THE TOWN OF ČAKOVEC PROJECTS IN PHASE OF DETERMINING INVESTMENT JUSTIFICATION
• Reconstruction of the city marketplace • Building a IV. Elementary School • Construction of a new office building including underground garage • Economy zone East – north part in Čakovec (part of the business park Međimurje)
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5. ECONOMY OF THE TOWN OF ČAKOVEC
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Extract from the Analysis of the financial results of entrepreneurs in Čakovec in 2013, FINA, Zagreb, November 2014
The Town of Čakovec has a significant role in business of Međimurje County. 1.021 entrepreneurs who provide work places for 11.565 employees operate in The Town of Čakovec. The share of entrepreneurs of The Town of Čakovec in the number of entrepreneurs of Međimurje County is 42.0%, and 1% compared to the total number of entrepreneurs in the Republic of Croatia. The share of employees of The Town of Čakovec compared to Međimurje County is somewhat higher and amounts to 48%.
Table 5.1. Basic financial indicators of The Town of Čakovec in 2013 amounts in thousands of HRK, indexes 2012 = 100.0 Share of the Share of the town in Description 2012 2013 Index town in the The Republic of county (%) Croatia (%) Number of entrepreneurs 1.021 42,2 1,0 Number of employees 11.217 11.565 103,1 48,0 1,4 Total income 5.278.071 5.469.141 103,6 50,5 0,9 Total expenditures 5.053.309 5.255.128 104,0 50,3 0,9 Profit before tax 305.116 292.709 95,9 50,6 0,8 Loss before tax 80.354 78.696 97,9 42,3 0,3 Income tax 27.021 32.597 120,6 54,4 0,8 Profit for the period 278.040 260.098 93,5 50,2 0,9 Loss for the period 80.299 78.683 98,0 42,2 0,3 Profit for the period (+) or Loss for the period (-) 197.741 181.416 91,7 54,6 5,1 Export 960.484 967.908 100,8 31,3 1,0 Import 674.717 742.218 110,0 43,1 0,8 The trade balance (exports minus imports) 285.767 225.690 79,0 16,4 2,7 Investments in fixed assets 235.098 326.577 138,9 54,9 0,9 41 The average monthly net salary (in HRK) 3.947 3.931 99,6 102,5 82,3 Source: FINA, Registry of Annual financial statements
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Investment guide V 4.0
According to the processed data of annual financial statements registered in the Registry of annual financial statements, annual financial statements for the year 2013 gave a total of 1.021 entrepreneurs, subject to income tax, of which 4 are big, 25 medium and 992 small business owners. From a total of 1021 entrepreneurs, 70.8% of them or 723 operated with profit for the period, and 29.2% or 298 of them reported losses. 11.565 workers were employed by entrepreneurs in The Town of Čakovec in 2013 have earned a total revenue of 5.5 billion HRK, total expenditures of 5.3 billion HRK, profit for the period in the amount of 260.1 million HRK, loss in the period of 78.7 million HRK and a net profit of 181.4 million HRK. The average monthly net salary was 3.931 HRK and it was 0.4% lower than 2012. Investments increased by 38.9% and achieved a trade surplus because the amount of exports exceeded imports by 225.7 million HRK. Compared to 2012, the number of employees rose by 3.1%, total revenues by 3.6%, total expenditures by 4%, profit for the period decreased by 6.5%, loss for the period by 2% and the net profit which was 8.3% lower compared to the previous year. The most important role in the structure of The Town of Čakovec in 2013 had entrepreneurs from the manufacturing industry. Most employees were employed by this industry, 5971 or 4.5% more than in 2012. Entrepreneur business analysis of The Town of Čakovec in 2013, by sector, shows that the largest positive contribution to the overall results were given by entrepreneurs in the manufacturing industry and trade, but also entrepreneurs in manufacturing industry have expressed the greatest loss. Right behind entrepreneurs in manufacturing industry by size indicated loss periods were entrepreneurs from the construction industry.
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CRAFTS
The total number of active craftsmen in Town on 31st of December 2014: 379 craftsmen Table 5.2. Structure of the craftsmenin Čakovec according to submitted activities
No. ACTIVITY THE TOWN OF ČAKOVEC 1. MANUFACTURING AND CRAFTS 94 - manufacture of textiles 24 - production of wood 10 - manufacture of metal products 22 - manufacture of electrical equipment 9 - manufacture of rubber and plastic 4 - production of food and drink 10 - manufacture of other non-metallic mineral products 9 - other manufacturing activities 6 2. CONSTRUCTION 61 3. RETAIL TRADE 90
4. CATERING 38
5. TRAFFIC 26
6. REPAIR OF MOTOR VEHICLES 6
7. REPAIR OF PERSONAL AND HOUSEHOLD GOODS 31
8. OTHER SERVICE ACTIVITIES (hairdressers, florists) 56 9. AGRICULTURE 17 Total of active: 379 The temporary suspension: 6 TOTAL CRAFT: 385
st Source: Croatian Chamber of Trades and Crafts, Chamber of Trades and Crafts of Međimurje County, 31 December, 2014 43
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The Town of Čakovec Kralja Tomislava 15, 40000 Čakovec tel: +385/(0)40/314-920 fax: +385/(0)40/311-724 www.cakovec.hr [email protected]
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