Local Incentives
Fee for public construction land arrangement
The construction land is classified into seven areas (IA-VI).
A fee for arrangement of construction land of the IIIrd, IVth, Vth and VIth area shall be reduced by 99.99% to the benefit of an office building investor – company, who at the moment of exercising the right to such reduction submits credible proof of being continuously operational for at least one year, accepts within 3 years from the building permit issue obligation to employ manpower from the labour market for not less than five years with no possibility of reducing the number of employees in that period, whereas:
- for construction of an office building up to 300sqm such employer undertakes to engage at least one worker from the labour market for each commenced 100sqm of business space;
- for construction of an office building above 300sqm such employer undertakes to engage at least one worker from the labour market for each commenced 200sqm of business space.
for arrangement of construction land shall also be reduced by 99.99% for:
- erection of production – business premises on the territory of Free zone Uzice;
- erection of production – business premises intended for agricultural production, storing and processing – such as slaughterhouses, drying and refrigerating plants for meat, fruit and vegetables, dairies and other facilities from the agriculture field where activities are performed within the registered family agricultural farms.
Further benefits for investors are as follows:
Any person who obtains the land on lease, who has title for land use or building on it, who is adapting, reconstructing, extending or changing purpose of buildings as well as owners of buildings erected without a building permit is liable to pay the fee for construction land arrangement.
However, in case of the one-time-payment of such a fee, i.e. downpayment on the day of agreement execution, the fee will be declined by 30%.
If investor undertakes to pay the fee in installments, over the period of 12 months, he will be provided with 15% discount to the calculated fee amount.
this case payment shall be scheduled as follows:
- first installment amounting to 10% of the total fee sum is due at the date of the agreement;
- the remaining fee amount is payable in 11 equal monthly installments to be adjusted in accordance with official data on the retail prices growth.
Construction land rental
The rent for public and other state owned construction land is determined depending on specific areas and building or space purpose, namely:
Rent is determined as net amount on a monthly basis, by square meter of the useful area of the facility to be constructed in such specific area, increased for any value of sqm of the land occupied by such facility. The rent shall be invoiced once a year (for the current year period) and paid by the tenant within 15 days from the invoice date.
- The rent can be paid at once, for the entire lease duration, for which discount of 30% is granted;
- Should rent be paid over the period of 12 months, discount of 15% applies. The first installment in this case amounts to 10% of the total rent amount while the rest shall be paid in 11 equal monthly installments which will be adjusted in accordance with official data on retail prices growth.