eurofast: regional investment incentives 2015
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Regional Investment Incentives
Eurofast, 28 Jan 2015
AGENDA – Investment incentives available in:
Albania Bosnia & Herzegovina Bulgaria Croatia Cyprus Egypt FYR Macedonia
Georgia Greece Montenegro Romania Serbia Ukraine
INCENTIVE TYPE AVAILABLE TO
100% VAT CREDIT Importers of machinery or equipment which serves towards primary activity.
TOURISM DEVELOPMENTINCENTIVES
Tourism sector investors. Customs & excise exemptions, 5yr CIT break.
EU GRANTS Various grants and loans provided by the EC, EBRD, WB, CEDB, EIB
OTHER INCENTIVES • Initial capital to setup a new company is EUR 1• Special state protection” for Foreign Investments on
projects exceeding EUR 10 million.• Leasing agreement against the symbolic amount for 1 Euro
for investments exceeding EUR 10 Million and for the Fasonindustry (some other conditions apply)
ALBANIA
INCENTIVE TYPE AVAILABLE TO
5YR CIT BREAK Manufacturing investments of over KM 20M in the Federation of BiH
ANNUAL TAX EXEMPTION Companies deriving at least 30% of annual revenue from exports.
VAT AND IMPORT CUSTOMS EXEMPTION
Companies investing in Free Zones. Transfer of profit and investments in the zones is free.
FOREIGN INVESTOR SUPPORT
Foreign investments in Production and R&D. Annual Fund budget about EUR 1M.
EU GRANTS Various grants and loans provided by the EC, EBRD, WB, CEDB, EIB
BOSNIA & HERZEGOVINA
INCENTIVE TYPE AVAILABLE TO
0% TAX Investors with assets in high unemployment municipalities.
IMPORT VAT EXEMPTION
VAT-registered investors importing eligible investment-related equipment.
GRANTS, TAX EXEMPTIONS, LOWER RE PRICES
Priority investment projects provided by the Investment Promotion ACT (IPA). Grants up to 50% for education and R&D; 10% for manufacturing.
OTHER INCENTIVES : • R&D expenditures write-off• Accelerated depreciation for new manufacturing equipment• 5% WHT on dividends and liquidation quotas (0% for EU)• No restrictions on capital repatriation• EU Funds available• Investor residence/citizenship
BULGARIA
CROATIA
INCENTIVE TYPE AVAILABLE TO
CIT EXEMPTIONS/ REDUCTIONS
Various categories: micro entrepreneurs; technology modernization (up to 100% reduction for 10yrs); R&D (up to 100% of costs)
CUSTOMS FREE IMPORT Imports of investment equipment. Also no tax or customs for goods within free zones.
VARIOUS EMPLOYMENT SUBSIDIES
Various categories: new jobs, training costs, work-intensiveinvestments (100+ new jobs), first employment
UP TO EUR 1M GRANT Capital investments of EUR 5M+ with 50 new jobs in 3 yrs.
UP TO 75% CITREDUCTION
Entrepreneurs within areas of special state care and city of Vukovar; employing 5+ employees (to be phased out 2014-2017)
EU GRANTS Various grants and loans provided by the EC, EBRD, WB, CEDB, EIB
CYPRUS
INCENTIVE TYPE AVAILABLE TO
0% CAPITAL GAINS All companies (except flat 20% on disposal of property in CY)
NO TAX ON INBOUND DIVIDENDS
All companies, regardless of participation
OTHER INCENTIVES : • One of the lowest CIT rate in EU (12.5%)• No inheritance, gift, wealth or estate duty taxes• 80% of profits from Royalties are exempt from CIT
EGYPT
INCENTIVE TYPE AVAILABLE TO
REDUCED CUSTOMS (5%) & UP TO 100% CREDIT ON
SALES TAX
Imported machinery and equipment used for production
0% SALES TAX All exported goods
10% INCOME TAX, 5% SALARIES TAX
Companies operating in economic zones.
FYR MACEDONIA
INCENTIVE TYPE AVAILABLE TO
EXEMPTIONS AND TAX BREAKS
Investors in one of the development zones. 0% VAT and customs for export, 0% excise, 10yr CIT break; 10yr property tax break; 10yr PIT break.
UP TO EUR 500K STATE FUNDING
Foreign multinational investors transferring a portion or all of their production to an industrial zone
EU GRANTS Various grants and loans provided by the EC, EBRD, WB, CEDB, EIB
GEORGIA
INCENTIVE TYPE AVAILABLE TO
VARIOUS CORPORATE TAX INCENTIVES
International Financial Companies and Special Trade Companies (as regulated by the state)
4% INCOME TAX Free Industrial Zone companies; granted by fiscal authorities
SPECIAL TAX REGIME Tourist Zone Entrepreneurs building a hotel and ensuring its operations per Law.
GREECE
INCENTIVE TYPE AVAILABLE TO
GRANTS UP TO EUR500K & LEASING SUBSIDY UP TO EUR 1M
Young (18-40) entrepreneurs’ projects with investment minimum of EUR 100,000
VARIOUS STATE AID SCHEMES (conditions applicable)
• Investments of EUR 50M+• Multiannual business plans of EUR 2M+ for companies
existing for 5+ yrs.• JV synergies for 5+ companies operating as a consortium
MONTENEGRO
INCENTIVE TYPE AVAILABLE TO
8YR CIT BREAK New companies performing production activities in underdeveloped areas (Northern MN)
PROPERTY TRANSFER TAX BREAK
Property included in the company capital as contribution in kind.
CIT EXEMPTION Companies investing in Free Zones
EU GRANTS Various grants and loans provided by the EC, EBRD, WB, CEDB, EIB
OTHER INCENTIVES Lowest CIT rate in Europe at 9%
ROMANIA
INCENTIVE TYPE AVAILABLE TO
STATE AID Investments of EUR 100m+, creating at least 500 new jobs
BUILDING AND LAND TAX EXEMPTIONS
Companies investing in industrial parks, able to cover at least 25% of the investment expenditures
UP TO 50% INVESTMENT GRANTS
Investors with a registered R&D activity with eligible R&D/Innovation projects, able to cover at least 30% from non-public funds
OTHER INCENTIVES : • EU Funds available
SERBIA
INCENTIVE TYPE AVAILABLE TO
5YR CIT BREAK Investors contracting a concession with the state for the full value of a concession project.
10YR CIT BREAK New investments of EUR 8M+; creating 100+ jobs.
3YR SOCIALCONTRIBUTION EXEMPTION
Companies maintaining steady personnel counts; hiring those aged 30-45.
UP TO 20% GRANTS FOR NEW JOB CREATION
Companies investing EUR 50M+; creating at least 150 new jobs.
INCOME VAT EXEMPTION Companies operating in one of the Free Zones
EU GRANTS Various grants and loans provided by the EC, EBRD, WB, CEDB, EIB
UKRAINE
INCENTIVE TYPE AVAILABLE TO
UNIFIED TAX REGIME 2% from revenue per month (if VAT payer);4% from revenue per month (if not VAT payer).
Individual entrepreneurs and companies with the following turnover: • Individual entrepreneurs – up to UAH 20.000.000• Companies – up to UAH 5.000.000
0% CORPORATE INCOME TAX
Companies with annual turnover below UAH 3 million (average salary conditions apply). Incentive is available until end of 2015.
50-80% DEDUCTION ON CORPORATE INCOME TAX RATE
Companies active in manufacturing and sale of energy-saving equipment or developing and implementation of energy-saving projects.
