Full speed ahead

invest in split- COUNTY,

Photo: Ivo Biočina, Croatian Tourist Board LOCATION

Vrlika

Sinj Kaštela

Trogir Split Omiš

BASIC INFORMATION railway port railway The Split-Dalmatia County is the largest Croatian county with a total area of 14,045 km2, of which the sea amounts to

2 9,505 km (or 30.8% of the whole Croatian sea area). airport highway

Situated in the southern part of Croatia, bordering Bosnia and on the north, the County meets all of the key preconditions for the development of , as well as logistics and transport services. In addition, there are sea port local road business zones specialized for industry, warehousing and distribution.

Land area 4,540 km2 Regional highlights Excellent transport network

County seat The County has excellent predispositions for the development of all kinds of transport services due to being Split INDUSTRIAL, AGRICULTURAL AND situated at the intersection of road, rail, and sea routes of national and international importance. CONSTRUCTION TRADITION Administration 16 towns and 39 municipalities INTERNATIONAL AIRPORTS in the County: SPLIT (third biggest airport in Croatia according to a number UNIVERSITY of passengers with 2.53 million passengers in 2017); BRAČ CENTER Population (2016 est.) INTERNATIONAL AIRPORTS in vicinity: (150 km from Split); (250 km from Split) 452,035 EXCELLENT TRAFFIC CONNECTIONS – EUROPEAN ROUTE E65 (Zagreb – Split – Dubrovnik) Climate AIR, RAILWAY, ROADS, SEA Main Croatian motorway Mediterranean SPLIT FERRY PORT – the biggest Croatian passenger port (and the third ferry port in the Mediterranean) MODERN GDP per capita (2015) is one of the most important centres for local and international maritime traffic. It has 34 berths, INFRASTRUCTURE € 8,186 including berths for the biggest passenger vessels of greatest length. In 2017 the Port recorded 4.9 million passengers and 650,000 vehicles, as well as 230 cruiser visits with more than 202,000 tourists. Unemployment rate (2016) COST 24.1 % COMPETITIVE INDUSTRIAL PORT SJEVERNA LUKA covers approximately 20 hectares and has terminals for general and bulk cargo, as well as container terminals and RO-RO terminals. There are 6 berths with a total Average gross salary (2015) length of 871 m, accompanied by 40,000 m² of indoor and 80,000 m² outdoor warehousing space. STRONG DEVELOPMENT OF TOURISM € 956 AND ICT SECTOR RAILWAY Zagreb – Split, European Corridor Vb (branch B1)

2 3 ELECTRICITY PRICES FOR INDUSTRIAL CONSUMERs COST (€ per khw), 2017 s1 Croatia COMPETITIVENESS Slovakia

Bulgaria

Poland

EU 28

Czech Republic Initial investment costs Hungary 0,00 0,01 0,02 0,03 0,04 0,05 0,06

33% lower than Source: Eurostat 2018, the latest available data (70 000 MWh < Consumption < 150 000 MWh EU28 average

AVERAGE GROSS EARNINGS per hour (€), 2015

split- dalmatia Cost competitiveness, in terms of initial EDUCATION INSTITUTIONS HUMAN CAPITAL County investment costs, utility prices, and salaries provides a significant advantage that singles The University of Split, established in 1974, comprises In addition to the skilled workforce employed in Croatia 11 faculties, 4 departments, and Arts Academy, offering shipbuilding, processing industry, production out both Croatia and the Split-Dalmatia County more than 180 study programmes in all areas of science of parts for automotive industry and the ICT as excellent destinations for expanding European and arts: sector, there are 22,000 students as well as business activities, increasing the market Union (28 countries) • Faculties: Economy, Electrical Engineering, Mechanical 1,100 teachers, scientists and researchers at share, and improving profitability. Engineering and Naval Architecture, Humanities and the University of Split. 0 5 10 15 20 25

Social Sciences, Civil Engineering, Architecture and Source: Eurostat Total Labour Costs, 2018; Croatian Bureau of Statistics, Geodesy, Chemistry and Technology, Kinesiology, 2018 (the latest available data) Age structure - majority of School of Medicine, Maritime Studies, Law, Science, active working population among The lowest and Catholic Faculty of Theology electricity prices • University departments: Maritime Studies, Professional for industrial users Studies, Forensic Sciences, and Mediterranean PRICE LEVEL INDICES FOR INVESTMENT 2016 Agriculture 15 % • Arts Academy COMPETITIVE The following studies are also available in the County: 19 % Croatia 67 % 66 % Natural gas • ASPIRA, University College of Management and prices Design, offering Sports Management, International Hospitality and Tourism Management, and Computer European Engineering studies Union (28 100 % • TV Academy, offering Multimedia Technology Studies, countries) 0-15 16-64 65 and more 4 x LOWER AVERAGE Multimedia Creativity Studies and Multimedia MONTHLY GROSS SALARY Production Studies 0 20 40 60 80 Source: Croatian Bureau for Statistics, Population Estimate THAN IN THE EU • College of Occupational Safety and Health. 2016 (the latest available data in 2018) Source: Eurostat 2018

4 5 ECONOMY AND BUSINESS CHARACTERISTICS The Business Environment

The exceptional position at the natural crossroads and the well-developed coastline made a solid foundation for the Automotive industry development of the shipbuilding industry, which has traditionally been one of the most significant local industries, with two of the large shipyards situated in the cities of Split and . At the same time, the rich sea resources AD PLASTIK stimulated the development of both fishery and food processing industry (mostly fish processing and processing of AD PLASTIK is a multinational company based in Solin, with over 30 years of experience Mediterranean agricultural products, such as oil, jams, spreads, honey, traditional cakes, and liquors). Paralleling in the automotive industry. It has seven production sites in four countries and more the County’s strong development as a tourist destination is the industrial development, most prominently in the than 2,400 employees. As one of the leading companies in Eastern for both the business zones located throughout the County, and including the production of car parts, as well as metal and electric development and production of car interior and exterior components, its business is components production. based on tradition, knowledge, exceptional expertise and dedication of each employee. The company focuses on customer needs, maintenance of high quality, competitiveness of products and services, as well as the continuous investments in technology – development and advancement are the keys of its success and growth. The company is a world-renowned manufacturer, with long-standing cooperation with Renault Group, Key economy sectors in the county (2016) manufacturing industries (2016) PSA Group, FCA Group, Ford, VW, Nissan, Opel, Dacia, Daimler, Mitsubishi and similar companies.

17.4% 23.9% 28.3% Shipbuilding 4.7% 36.9% Brodosplit 7.7% 7.8% Brodosplit is the biggest Croatian shipyard and is located in Split. We have more than 16.4% 2,200 employees, 150 of which are engineers, 1,400 are production workers with ability 12.2% 10.6% 21.1% 13% to process up to 150,000t of steel per year. Based on the knowledge and experience of our people we are building sophisticated cruise ships, mega yachts, ferries, offshore supply and navy vessels, from the design to commissioning as turnkey projects. Our

Wholesale and retail Food manufacturing industry biggest advantage is the ability to build tailor-made, one-of-a-kind ships. We are also Manufacturing industry Manufacture of other transport equipment producing steel constructions for bridges, offshore, and renewable energy markets. Construction Manufacture of other non-metallic mineral products Recent references include RoPax Piana, Mega Yacht Katina, Flying Clipper sailing ship, Tourism and hospitality industry Manufacture of motor vehicles, trailers and semi-trailers Floodgates, Hondius expedition vessel. Transport and storage Manufacture of fabricated metal products Other Other

Source: Financial Agency of the Republic of Croatia, Source: Financial Agency of the Republic of Croatia, Textile industry Croatian Chamber of Economy (the latest available data, 2018) Croatian Chamber of Economy (the latest available data, 2018) galeb

The Croatian T&C company Galeb founded in 1951 has been a synonym for high quality underwear for decades. Galeb gained position of the regional leader in T&C manufacturing as well as the clothing retailer. In the transition years Galeb has been The development of entrepreneurship is supported by a number of institutions: investing in branding (3 brands - Galeb, Adiatic, GLB) and retail (over 40 retail stores in • 16 entrepreneurial support institutions (Split-Dalmatia County Development Agency PI RERA S.D. and two other Croatia - Galeb shops). The main export markets are B2B costumers in the EU (, development agencies in addition to 5 entrepreneurial centres, 7 business incubators and one entrepreneurial Austria, Slovenia) and in the Balkan area (, , accelerator) Macedonia, Serbia). The company’s latest manufacturing segment are the new and • CEKOM – Centre of the Agro-Entrepreneurship Trilj (innovations in agribusiness), located in the Business zone innovative performance fabrics in the Functional Underwear line, developed under the Čaporice, Trilj FP7 EUREKA FLAMEBLEND project. The entire production process is performed in the • IRI Cluster – science and technology platform for coherent technology transfer, exchange of experiences, and company’s own manufacturing facility, 100 circular knitting machines have an installed resource sharing between the scientific institutions and the industry annual capacity of 800 tonnes, with the recently introduced open fabric technology • European Network of Regional Culinary Heritage in Split-Dalmatia County with 45 regions and 1491 members production line.

6 7 Food industry STRONG DEVELOPMENT OF TOURISM

MEAT INDUSTRY “Braća Pivac” Over the last several years, the Split-Dalmatia County has been recording strong growth in tourism traffic. The motorway connecting Split with both the continental part of Croatia (and its capital Zagreb) and the south of the country (the city The Pivac Meat Industry, located in the town of Vrgorac, is a company with over 65 years of tradition. It started as a small family craft, based on the old tradition of meat of Dubrovnik), as well as the development of air traffic, accompanied by newly-introduced, numerous low-cost flights, processing and drying. By keeping the traditional recipes and quality, listening to the resulted in an expansion of a number of (mostly foreign) tourists. This growth was followed by both the construction needs of the market and using new technologies, the company has grown into one of and renovation of many hotels and other types of accommodation facilities, both on the coastline, as well as on many the leading meat industries in Croatia. After the acquisition of PPK , Dalmesso islands in Split archipelago, most notable of which are the islands of Brač, Šolta, Hvar, and Čiovo. The music festivals, and Vajda, the Pivac Meat Industry has become the Pivac Group and can be recognized the most popular of which is ULTRA, bring thousands of tourists every year. today as one of the largest and most respectable meat industries in this part of Europe. Some of the world famous international hotel brands, such as Le Meridien Lav, Radisson Blu, BlueSun Hotels and Resorts, Small Luxury Hotels of the World, Stories – Croatian Unique Hotels, and Sunčani Hvar Hotels, are already present in the County. Sardina

With a 100-year tradition of conducting business, Sardina is one of the leading Croatian 20,000,000 companies in the fisheries and fish-processing sector and a strong emphasis on the export of their products. The company uses the latest technology in fish production, while also taking care of the environment and natural resources. It has a diverse product 15,000,000 range, which includes canned fish, fish pâté, frozen fish, and fresh aquaculture products, as well as fishmeal and fish oil. The manufacturing process is based on sardines and other varieties of small and large oily fish caught with the company’s own fishing fleet. 10,000,000

5,000,000

Stella Mediterranea

Stella Mediterranea Ltd. is recognised as a producer of traditional Dalmatian hand- 0 2013 2014 2015 2016 2017 made delicacies. The top-quality olive oil, the desserts made with figs, walnuts, orange, and lemon, the jams and spreads are all a part of our unique offer. tourist arivals Overnight stays accommodation units All of our products are still prepared by using the old-fashioned way – manually – and Source: Croatian Tourist Board, 2018 by complying with all of the food regulations and standards. We believe that our way of production and our commitment to the development of the top-quality delicacies bring Hotel Amfora, Sunčani Hvar Hotels you closer to all of the rich flavours and scents of Dalmatia.

Trenton

Trenton produces delicacies characteristic of the local region – fish spreads (cod, salmon, prawn, in addition to the vegetarian spreads such as chick-peas and olive paste) and delicious Adriatic salted anchovies. It also produces a range of honeys with new, uncommon flavours, such as lemon, rosemary, thyme, and lavender, which join the already recognized flavours of acacia, chestnut, and the Dalmatian floral honey. The company’s products are available in all of the major retail chains in Croatia and are also exported to EU and non-EU countries.

8 9 LIVELY ICT COMMUNITY RAPID GROWTH OF ICT IT Sistemi - Nove Tehnologije LTD.

The Split-Dalmatia County has also been recognized as an important ICT hub. The rapid development of ICT projects IT Sistemi - Nove Tehnologije Ltd. belongs to the group of the most successful regional and companies (currently: more than 300 business entities) was followed by the ICT COUNTY project which aims to suppliers of IT solutions for digital business transformation. The Company’s products further strengthen the sector through the following activities: and solutions are improving customer experience and digital efficiency in different industries, with more than 300 satisfied customers: fin-tech, public sector, economy, • The Educational Centre EDIT COUNTY popularizes the programming activities in primary and secondary schools, hotels and production. It employs 70 highly skilled employees specialized for solutions continuously educates programmers in its PICS Training Centre, and offers lectures and workshops about the related to document handling, advanced OCR, electronic signatures, processing, new technologies. archiving, reporting. • The Pre-Incubational IT Center supports the student projects and students entrepreneurship and has established a PICS@FESB Student Coworking and Training Center of local IT companies for the students. • The County IT Center has an IT Incubator and coworking space for the local IT community with 12 offices, Tech Resources conference hall and all necessary equipment available. Software development company / consulting agency specialized for solving technical problems for its clients. The ICT County plans to extend its activities in financing and supporting the IT programs and activities, as well as conferences, R&D activities and innovations. Special attention will be given to the synergy between the IT and the tourism sector through the development of IT tourism and encouraging the local IT solutions for tourism. Lama Ltd.

Lama Ltd. has been a leading system integrator in Dalmatia for more than 26 years. Its core activities are system integration and network services, virtualization, as well as service, maintenance and sales of ICT equipment. The company is an authorized partner of Microsoft, VMware, Veeam, Cisco, HP Enterprise, HP Inc., Lenovo and IBM, but also develops its own solutions, based on modern web technologies (Angular and NodeJS) and specific applications developed on demand. Lama Ltd. is able to provide the high quality, integrated system and software solutions, including consultancy services for the design, implementing and maintenance of ICT systems of all sizes.

Uber Ltd.

SeekandHit (Uber Ltd.) is an agency specializing in digital marketing, analytics, and big data. It started operating in 2007 and currently employs 35 people. In its portfolio, SeekandHit has over 1000 successful ad campaigns and ad tools developed and delivered for its clients across the globe.

Enel Split Ltd.

Enel Split Ltd. was founded in 1991 and its core business is the design, development and maintenance of information systems. As a leader in the domestic market, in 1996, it began to work on the modelling and management of business processes. Today the company provides its clients with a complete IT support service: from its own business solution SUSTAV™ for Business Process Management and Enterprise Resource Management, to business modelling and analysis, consulting and implementation of the optimized integrated information systems, as well as consulting services for partner business solutions from SAP, Microsoft and Software AG. It employs 45 highly qualified experts in its offices in Zagreb and Split.

10 11 NUMEROUS BUSINESS OPPORTUNITIES AND EXCELLENT INFRASTRUCTURE

• 11 ready-made investment zones • 21 ports of nautical tourism (9 marinas, 7 anchorages and 5 dry marinas), with a total of 1,530 sea berths and 655 dry berths. • 4 tourism zones • renewable energy sources: 43 wind and solar plants with 173.46 MW of installed power. There are plans to install additional 34 wind and 24 solar parks. • 6 hydropower plants with 881.9 MW of installed power, producing approximately 21.2% of electrical energy in Croatia; there are three more plants planned, with the installed power of 1850 MW. Business zone Podi Zapad

ACI marina Palmižana, island of Hvar

12 13 Business Zone Kukuzovac, Business Zone Podi Zapad, BUSINESS ZONES OF THE SPLIT - DALMATIA COUNTY

General information General information 7 Location Location (city/municipality) Sinj Location (city/municipality) Dugopolje Business zone (town/ Available municipality) area (ha) Size of the zone (m²) 1,570,000 Size of the zone (m²) 943,793 1. Podi Zapad Dugopolje 53 5 2. 2 Dicmo 22 Available land size (m²) 664,505 Available land size (m²) 141,509

2 Sinj 3. Prisike 1 Muć 10 Manufacturing Manufacturing 8 4 Trilj Construction purpose and services Construction purpose and services 3 4. Kukuzovac Sinj 67 Solin 1 6 Allowed construction density 0.4 Allowed construction density 0.4 Kaštela 5. Vukove stine 16

Construction efficiency coefficient allowed 0.8-1.6 Construction efficiency coefficient allowed 1.2 Trogir Split Omiš 6. Čaporice 1. i 2. Trilj 25

9 7. Kosore Vrlika 13 Allowed construction height (m) 15 Allowed construction height (m) 12

Supetar 8. Bristovača Primorski 30 Dolac electricity, water, gas, electricity, Available infrastructure sewage Available infrastructure water, sewage, water purifier 11 9. Zadvarje 7 Makarska 10 10. Ravča Vrgorac 37 Vrgorac Hvar 11. Vrpovje Nerežišće 10 Vis Vrlika

Sinj zone kukuzovac Trilj

11 ready-made ≈ 3 million cost of land Solin zone podi zapad, Dugopolje Kaštela business zones square meters starts and additional 7 available for from Trogir Split Omiš in development investments 2 €/m2 Supetar

Makarska SELECTED BUSINESS ZONES Vrgorac Hvar Vis Business Zone Kukuzovac, Sinj Business Zone Ravča, Vrgorac Business Zone Podi Zapad, Dugopolje Business Zone Čaporice 1. i 2, Trilj

14 15 Business Zone Ravča, Business Zone Čaporice 1. and 2., Vrgorac Trilj TAX ATTRACTIVE INVESTMENT INCENTIVES

INVESTMENT PROMOTION ACT General information General information up to

Location (city/municipality) Vrgorac Location (city/municipality) Trilj 0% Up to 45% of the investment cost profit tax rate return through various incentives Size of the zone (m²) 678,216 Size of the zone (m²) 490,000

Up to € 1 million cash grant for capital costs of the investment project Available land size (m²) 14,875 Available land size (m²) 230,000 0% corporate profit tax for 10 years Construction purpose Manufacturing Construction purpose Manufacturing and services and services Up to € 18,000 for each worker employed in the Split-Dalmatia County

Allowed construction density 0.4 Allowed construction density 0.4 Up to € 0.5 million cash grant for investment in development and innovation activities Construction efficiency coefficient allowed 1.2 Construction efficiency coefficient allowed 1.2 EU funds available

Allowed construction height (m) 13 Allowed construction height (m) 15 Guarantee scheme, up to 80% of investments, provided by Croatian up to Agency for SMEs, Innovations and Investments (HAMAG-BICRO) Available infrastructure electricity, water, Available infrastructure electricity, water, sewage sewage €18,000 Business loans programs by Croatian Agency for SMEs, Innovations employment grants and Investments (HAMAG-BICRO) with interest rates starting from 0.5%

Subsidized business loans programs (loan repayment up to 17 years) provided by Croatian Bank for Reconstruction and Development (HBOR)

Vrlika Additional incentives in the Split-Dalmatia County

Sinj 1. Incentives for entrepreneurs with business activities in Split-Dalmatia Trilj up to County : Grants for small entrepreneurs up to € 6,667 Solin zone čaporice, Trilj €1M Subsidized loans for SMEs with max. 2% interest rate for loans of Kaštela grants for capital costs up to € 0.7 million Trogir Split Omiš Grants for strengthening business competencies for support institutions, vocational and other associations, colleges, scientific Supetar institutes, and organizations for expert meetings on contemporary technology up to € 8,000 for employees (per institution); € 13,333 zone ravča, Vrgorac for project implementation and € 6,667 for the organisation of Makarska international conferences and expert meetings Vrgorac Incentives for development of business zones, up to € 0.27 million Hvar Vis 2. Attractive prices of development property (2-50 €/m2) up to 3. Low communal tax (4-15 €/m3) €0.5M 4. Exemption from payment of the communal rates during the first 3 for R&D years (25-100%)

16 17 After the 2004 Olympic Games in Atena, Split became Agency for Investments and Competitiveness DID YOU a city with the highest number of Olympic medals per THE GOVERNMENT AGENCY inhabitants KNOW? · Professional service for investors, free of charge · Highly motivated team of experienced professionals · Provides information, contacts and investment management support to potential investors as well as pre- and post- investment care The oldest theatre open for public anywhere in the world started working in 1620 in Hvar. Zdenko Lucić, Managing Director Marko Marulić, “the father of Croatian literature”, lived in the 15th century and was so popular in his E: [email protected] lifetime that one of his works was printed 60 times and was even translated into the Japanese language. A: Prilaz Gjure Deželića 7, HR-10000 Zagreb, Croatia T: +385 (0)1 6286 800 E: [email protected] W: www.aik.invest.hr

split-dalmatia COUNTY

Blaženko Boban, County Prefect E: [email protected]

A: Domovinskog rata 2, HR-21000 Split, Croatia T: +385 (0)21 400 200 W: www.dalmacija.hr

Public institution RERA S.D. for coordination and development of Split-Dalmatia County (JU RERA S.D.)

· Support for the development of investment environment and assistance in the creation of a support system for investors; · Assistance to foreign investors through the One-Stop-Service-Center; · A team of highly educated experts dealing with all stages of investment management The City of Split is over 1,700 years old! It was built There is a centuries-old tradition of processing the around the , which is recognized precious white stone from the island of Brač – it A: Domovinskog rata 2, HR-21000 Split, Croatia today as one of the best-preserved monuments of the was used for the construction of the White House E: [email protected] Roman architecture in the world. The Palace is now a in Washington, Reichstag in Berlin, the Hungarian T: +385 (0)21 599 991 part of the Split Old Town, with numerous shops, cafés, Parliament in Budapest, the Austrian Parliament in F: +385 (0)21 599 990 restaurants, as well as apartments nested in the old Vienna, the Šibenik Cathedral, and many more marvels. W: www.rera.hr buildings on narrow streets of this palace/fortress. The The assumed mining reserves of this stone are cca 9.7 number of people inhabiting the territory of Diocletian’s million m3. Palace nowadays is estimated at 3,000.

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