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A free zone is part of the territory of the
Republic of Croatia, specially segregated and designated for
commercial activities conducted under certain conditions. The
zone may consist of a number of separate areas.
The Free Zone Act is compliant with the laws
in developed countries, with business characterised by
flexibility – without administrative barriers.
A zone may be established in areas such as:
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Reasons for establishing free zones
are:
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Activities conducted in the free zones
include:
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manufacturing
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warehousing
and processing goods
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port
activities
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wholesaling
and agency services in commercial trading
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banking and
other financial services
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insurance
services
Taxes: |
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zone users pay tax on profit
at 50% of the prescribed rate
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zone users who build/participate in the
construction of infrastructure utilities in
the zone to a value exceeding 1,000,000 kn
shall in the first five years of business of
operations in the zone be exempt from paying
tax on profit
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Goods are stored in the zone free-of-charge
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for goods stored, used or consumed in the free-trade
zone, there is no tariffs or value-added taxes
(VAT) nor are any other economic policy measures
applied
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-- for
goods produced in the free-trade zone which are
imported into the Republic of Croatia, tariffs and
value-added taxes (VAT) are paid according to the
value and tariff rates for the built-in components
of the imported material, and not according to the
value and tariff rate for the finished product.
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