investment guide - Čakovec · 2013. 7. 12. · flowchart, cycle from idea for the buildings...

INVESTMENT GUIDE FOR INVESTORS

THE TOWN OF ČAKOVEC

Version 2.0

March, 2013.

Investment guide V 2.0

The Town of Čakovec | Administrative Department of Planning and the Economy

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The Town of Čakovec has developed economy and it's a leader in that regard in the Međimurje County. Each branch of activities has its own specific development problems and development programs and the Town of Čakovec is ready, within its capabilities, to be an active participant and promote the development of each branch of activity and to initiate and support the introduction of innovative technologies and production of high value added bassed on knowledge and IT development. Through a model of public-private partnerships the Town of Čakovec , is also ready to initiate the development of new activities and incubation of these activities through the Technology Park. The strategic plan for economic development of the Town of Čakovec, Priority 1.1., page 18, is available at the Internet address www. cakovec.hr, section Local government / Documents



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CONTENT

1. REGIONAL CAPACITY FOR DEVELOPMENT OF ECONOMY

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FLOWCHART, CYCLE FROM IDEA FOR THE BUILDINGS CONSTRUCTION TO COMMISSIONING THE CONSTRUCTED OBJECT

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2. SUMMARY OF THE TOWN OF ČAKOVEC

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3. TAX SYSTEM OF CROATIAN

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TABLES OF SUMMARY COSTS

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4. PROJECTS OF THE TOWN OF ČAKOVEC IN AN ADVANCED STAGE OF PREPARATION FOR THE CONSTRUCTION

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5. ECONOMY OF THE TOWN OF ČAKOVEC

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1. REGIONAL CAPACITY FOR DEVELOPMENT OF ECONOMY

Table 1.1: AREAL CAPACITY OF WORK ZONES

NAME OF WORK ZONE AREA

Č A

K O

V E

C INDUSTRIAL ZONE WEST 9,0 ha

WORK ZONE MARTANE ČAKOVEC 5,6 ha

INDUSTRIAL ZONE EAST ČAKOVEC 32,6 ha

ECONOMY ZONE EAST PUSTAKOVEC 53,7 ha

ECONOMY ZONE IVANOVEC 10,0 ha

TOTAL: 110,9 ha



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Picture 1.1. The Town of Čakovec – areal of distribution work zones



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Table 1.2: INDUSTRIAL ZONE WEST (unconstructed building plot )

MARK AREA / m² / PURPOSE OWNER

1 5.140 K private property


3 13.545 I private property










TOTAL: 90.646 K - service I - production



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Picture 1.2: Industrial zone West



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Table 1.3. WORK ZONE MARTANE ČAKOVEC (unbuilt building plot)

MARK AREA/m² PURPOSE OWNER

1 3.923 I2 TOWN OF ČAKOVEC






7 8.071 K2 TOWN OF ČAKOVEC

8 2.724 I2 private property



11 6.387 I2 private property 12 5.516 I2 private property


TOTAL: 55.722 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 : - preparation of detailed urban plan of development - infrastructure equipment of zone - on the plot 3 it's possible construction

MARK AREA / ha / PURPOSE OWNER

1 17,2 I MEĐIMURJE COUNTY

2 12,9 I MUNICIPALITY ČAKOVEC

3 2,5 I private property

TOTAL: 32,6 ha I - production



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Picture 1.4: Industrial zone East Čakovec



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Table 1.5: ECONOMY ZONE EAST PUSTAKOVEC (unconstructed building plot ) For the activation of zone it is necessary to : - preparation of detailed urban plan of development - infrastructure equipment of zone

MARK AREA / ha / PURPOSE OWNER

1 14,5 I mainly private property

2 4,2 I mainly private

property


property

4 15,3 I nacional property


property

6 4,8 K mainly private

property

TOTAL: 53,7 ha K - service I - production

4

5



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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 : - preparation of detailed urban plan of development - infrastructure equipment of zone

MARK AREA/ha/ PURPOSE OWNER

1 existing part cca 4,0 ha "I" ( production ) private property

2 unexisting part cca 10,0 ha " I" ( production ) private property



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Picture 1.6: Economy zone Ivanovec



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2. SUMMARY OF THE TOWN OF ČAKOVEC



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The Town of Čakovec is the center of Međimurje County - the most northern county of the Republic of Croatia. It stretches over 72.80 km ², so it is the biggest place among the 25 local governments in Međimurje County and comprises 10% of the total area of Međimurje. Includes 13 settlements: Čakovec Ivanovec, Krištanovec, Kuršanec, Mačkovec, Mihovljan, Novo Selo na Dravi, Novo Selo Rok, Sava Ves, Slemenice, Šandorovec, Totovec and Žiškovec. According the population census of 2011 here lived 27104 permanent inhabitants so the average population density is 372.31 inhabitants / km ².

Čakovec is located in the central plateau area - elevated terrace 165 m above sea level, the contact area of the Drava – Međimurje's lowlands and southeast branches Međimurjes' vineyard. The area of the settlements is entirely lowland (lowlands Lower Međimurje). General climate characteristics are determined by belonging this region to wider climatic region - the Pannonian plain. In this area, the climate is fresh temperate continental with fresh features subalpine and continental Pannonian climate effects, hot summers and cold winters. The mean annual temperature is 9.9 ⁰ C. The most frequent winds are diametrically opposed directions: north and south.

Favorable traffic - geographic 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 and it leads to the Adriatic Sea - Mediterranean. Another significant corridor is corridor that splits at Čakovec to Slovenia - West Europe.

The most important monument is The old city of Zrinski. Wooden fort Čakovec was created in the middle of woods and wetlands part of Međimurje County in the middle of 13th century, and its name - Čakov Turen – Chakathurn – Csaktornya , Čakovec owes count Dimitri Čak, the supreme magistrate and palatine of king Bela IV. For the first time, Čakovec as fortified town, was mentioned in 1330 in a document of king Karlo Robert.

In 1546 Čakovec comes into possession of family Zrinski, who ruled this area for five generations (1546 to 1691) and left a huge dent in the town's history. They turned castrum Zrinski gradually and with the help of Italian architects in a strong lowland renaissance fortress.

In 1738 the devastating earthquake heavily damaged Old Town. The former owners of the entire complex done significant remodeling and adaptation with style characteristics of Austrian baroque from 18 century.

At the turn of the 18th in 19th century the increase in population resulted in the construction of a new urban fabric of Čakovec. Urban houses were built in the spirit of the late baroque.



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Basis of the the economic life of 18th and 19th century consisting of Čakovec's tradesmen, who were organized into bootmaking, shoemaker, tailor, pottery and a large guild, where there are associated butchers, blacksmiths, locksmiths, weavers and tanners. Jews are particularly engaged in trade, mostly local trade.

In 1900,in Čakovec lived 4860 people. It is interesting that even 3277 inhabitants were literate. Such a large number of literate people is 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, trough the transmission line, got a cheap and safe supply of electricity from hydro Fala in today's Slovenia. From crafts and trade center, Čakovec turned over night into an industrial town in which dominated the production of textile and food industries.

In economic terms for many years after World war II., Čakovec was neglected. However, special attention has been focused on the further development of the textile industry. It is a low-accumulative, but requires numerous labor force that Čakovec always had. Holders of development of the textile industry were companies Međimurska trikotaža Čakovec (MTČ), , wich was composed of nationalization and confiscation of the company (Brothers Graner) and Čateks, wich is also the result of the former textile firms (Samuel Neumann nasljednici and Prva međimurska tkaonica). Basis of food industry after World War II. was consisted of enterprises (Čakovečki mlinovi) and the meat industry (Vajda). Early sixties began intensive development of the construction conglomerate Međimurje, wich in the middle eighties had more than 8 000 employees. With the quality of conducted activities is regarded as one of the best construction firms in the former state.



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3. TAX SYSTEM OF REPUBLIC OF CROATIA



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The tax system in Croatia is regulated by more laws and regulations, and the most important are: 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 TAX IN TAX SYSTEM IN CROATIA Taxes in Croatia are divided into state, local and other. 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 on the county, municipality and city taxes because at that level of government are regulated and serve to cover their public expenditure. The other taxes include taxes on real estate and taxes from gambling.



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INCOME TAX The taxpayer is a physical person who earns income. Sources of income receipts are realized from employment, self-employment, property and property rights, capital, insurance and other receipts. Income tax basis of a resident is 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 and 144/12). 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 and 144/12). 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. 14/09 - consolidated text). COMMUNAL CONTRIBUTION Communal contributions is revenue of budget 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 contributions is paid by the owner of a building plot on which a building is, 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 are specific areas for paying communal contribution: ZONE I – Čakovec ZONE II – Mihovljan, Mačkovec, Ivanovec, Savska Ves, Novo Selo Rok ZONE III – Žiškovec, Slemenice, Krištanovec, Totovec, Kuršanec, Šandorovec i Novo Selo na Dravi ZONE IV – Zones that have been identified in spatial plans as work (economic) zones ZONE V – Kuršanečki lug



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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, 2/13- consolidated text ). 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, 2/13- consolidated text ). Communal contribution taxpayer will pay once to the business account of the Town of Čakovec based on decision that brings the Department of Communal Economy within 15 days from the finality of the decision on the communal contributions. It can be paid in 24 monthly installments within a period of two years from the date 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 that a legal person fails to pay two repeatedly 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 that an individual does not pay two repeatedly installments, payment of administrative prohibition is realized in full the outstanding amount of remaining debt, and in case of further non-payment will be carried out execution proceedings, according to a final decision on the communal contribution. The Mayor can in extremely individual administrative matters, at the request of the investor, with separate decision to postpone the repayment term of the remaining 70% of the communal contribution in the following cases:

- to encourage entrepreneurship in the case of economic investment that will provide employment for more than 20 people in the objects for which the calculation of the communal contribution is higher then 300.000,00 kn;

- when is determine the obligation to pay contributions for facilities from article 8 of Decisions on municipal contribution; - when the taxpayers are people with disabilities established more than 50%, or objects that will be used at least 10 people with identified

disabilities; - when the taxpayers are holders of a rare type of activity of local importance, that will mayor establish in each case with the prior opinion of the

Chamber of Crafts. Town Council on a proposal from the Mayor and the Mayor can relieve fully or partially paying municipal contribution when investors are:

- The Town of Čakovec, Međimurje County or Republic of Croatia,



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- 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 and build objects of public interest (sports, culture, education, health, social welfare or humanitarian activities),

- investors who build economic structures outside 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 in Zone IV is reduced for 30% for investors who employ more than 50 people, which must submit a written statement. Communal contributions does not need to be paid for:

- auxiliary building (garage, storage, storage, etc.) developed gross area up to 50 m², which is built on the parcel on which it is built residential or business building for which is paid communal contribution;

- economic building developed gross area up to 100 m² intended exclusively for agricultural activity which is being built on the parcel family house for which is paid communal contribution;

- setting up newsstand or other building with finished construction up to 12 m². 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 contribution (refund municipal contributions) at 25% of the unit value for all zones of paying communal contribution when they prove that the building is classified in energy class "A +", and 15% of unit values for all zones paying communal contribution when 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'll be exempt of paying communal contribution in the amount of 20% of the unit value for all zones of paying communal contribution

- an investor who build a business and other objects, which do not serve for production and for which the amount of paying communal contribution will crossed the amount of 3.000000,00 will be exempt from paying communal contribution in amount of 20% of the payment amount of communal contribution that exceeds this amount THE CONTRIBUTION OF WATER The system of flood and spate control protect primarily property of citizens and legal persons, and the health and life of humans and animals. Therefore, from the assets is financed the functioning of these systems, precisely from the water contribution (assets in construction) and a water regulation (constructed assets and other current assets). The water contribution pay the investor of construction, including the Republic of Croatia, its institutions and society. By water contributions is financed a regular technical and economic maintenance of watercourses, regulation and protection of water facilities for first order 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



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Zone B - Other Croatian territory Zone C - Areas of special state concern The water contribution isn't revenue of the Town of Čakovec. Legal basis: Law on Financing Water Management ("OG" No. 153/09) 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

4. Objects of social standards and religious 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: („OG“ broj 78/10, 76/11 i 19/12) The Regulation on the Amount of Water Contribution ("OG" , No. 78/10, 76/11 and 19/12). COMMUNAL CHARGE Communal charge is 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 space outside the construction zone settlements. Funds generated by communal charges are intended for financing 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).



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Exemption from payment of communal charges Cases of total or partial exemption from the payment of communal charge are: - The taxpayer who is the holder of aged household in Town of Čakovec , at the request submitted by the Department of Communal Economy (the elderly households is considered a household where lived the couple, or single older than 65 years), - Elderly household in which lives younger person whose invalidity is 80% or more. Decision on temporary exemption from the payment of communal charges brings the Department of Communal Economy based on submitted proof on the achieve of this right according to regulation of the Decision. Table 3.3. – Height of communal charges in The Town of Čakovec

Name Zone Amount

Residential space, garage 01 0,33 kn/m² 02 0,26 kn/m² 03 0,19 kn/m²

Production and commercial space 01 0,627 kn/m² 02 0,501 kn/m² 03 0,376 kn/m²

Other commercial spaces of 1st group 01 1,5180 kn/m² 02 1,2144 kn/m² 03 0,9108 kn/m²

Other commercial spaces of 2nd group 01 1,122 kn/m² 02 0,897 kn/m² 03 0,673 kn/m²

Building land that serves the purpose of business activity - 8% of the coefficient of purpose production and commercial space

01 0,050 kn/m² 02 0,040 kn/m² 03 0,030 kn/m²

Unbuilt building land 0,05 01 0,016 kn/m² 02 0,013 kn/m²



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03 0,009 kn/m² Prepared by Borut Križarić, Administrative clerk for communal charges, The Town of Čakovec In The Town of Čakovec exists three zones for paying communal charge: ZONE I – Čakovec ZONE II – Mihovljan, Mačkovec, Ivanovec, Savska Ves, Novo Selo Rok ZONE III – Žiškovec, Slemenice, Krištanovec, Totovec, Kuršanec, Šandorovec and Novo Selo na Dravi CHARGE FOR WATER REGULATION Charge for water regulation is paid to: - office space that is intended to perform economic and other activities, including the activities of non-profit entities, Croatian authorities and units of local government - residential space, including vacation houses and a garage - built and unbuilt building land - communal facilities infrastructure, 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, on which is granted the concession The charge for water regulation is paid by owners or other authorithys who uses or holdes of real estate at water area where is realized. The funds of the charge for water regulation are used to finance professional, administrative and other activities of the water managment system, which have characteristics of public service. From this charge is funded preparation of plans for flood and ice control, plans for protection from erosion and state, regular technical and economic maintenance of watercourses, regulation and protection of buildings, technical and economic maintenance of melioration systems for drainage and irrigation and 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 do not pay 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 finally decision of prohibiting the use or the final decision about the 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 to repair on them what is caused by natural disasters. The exemption is provided on the taxpayers' request or ex officio. 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 activities and services

0,30 kn monthly

3. Business facilities of management, social activities and other public services

0,20 kn monthly

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 - road zone

0,10 kn annual 0,05 kn annual

7.3. Under the railway - under the planum of streaks - in the lane zone


7.4. Under airport and heliodrom airport , open commercial space of agricultural and sports airfield - under airstrip - rural routes, zone of airstrip, under open commercial space of agricultural and sports airfield


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.The land within the borders of the national park 0,0005 kn annual 7.8. land within the borders of the nature park 0,001 kn annual

Source: Regulation of Charge Level for Water Regulation ("OG" No. 82/10)



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TAX ON BUSINESS OR ON A NAME Tax on business (name) is the name under which the legal or physical person operates. Taxpayers the tax on business are the 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 area of Town of Čakovec. The tax period is the calendar year. Legal basis: Decision on Taxes of the Town of Čakovec (,,OG“,Town of Čakovec, No.12/09 - consolidated text, 14/09). Table 3.5.:Tax on business or a name

Amount / HRK

Legal person large enterprise 1.400,00 medium-sized enterprise 1.000,00 small enterprises 400,00

Physical, self-employment person 300,00

Legal and physical persons that in their structure have business unit - for each business unit 300,00

Taxpayers in point 1, 2 and 3 who perform non-production activities in the area more than 1,000 m² 2.000,00

Source: Decision on taxes of The Town of Čakovec (,,OG“, The Town of Čakovec, No. 12/09, 14/09 consolidated text) CONSUMPTION TAX The consumption tax is paid on 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. 12/09, 14/09 - consolidated text, 14/09).



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Height of the consumption tax is paid at the rate of 3% on the basis of the selling price of drinks in restaurants 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, which is determined by the decisions of cities and municipalities in Croatia. Taxpayers monument annuity 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 unit of the Town of Čakovec. Decisions of cities and municipalities in Croatia regulate range monument annuity payments. The Town of Čakovec prescribed with decision on the monument annuity that 1st level of protection area is historic core the Town of Čakovec. 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

TYPE OF ACTIVITY AMOUNT OF MONUMENTAL ANUITY

(monthly HRK/ m²)

I. zone II. zone

1) Financial intermediation (banks, savings banks, insurance companies, funds, etc.)

7,00 6,00

2) Business Services (legal, accounting, computing, engineering and other intellectual services)

3,00 2,00

3) Catering, trade, manufacturing and service activities 3,00 2,00

Source: Decision on the monumental annuity of the Town of Čakovec („OG“, Town of Čakovec, No. 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 common revenue budget of the state, the county , the municipality or city 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 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 of others. Real estate includes land and buildings. Taxpayer of tax on real estate transfer is persone who acquires the property. The basis of tax on real estate transfer is market value property at the time of acquisition. The market value of real estate is understood to be 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 land

Article 25, Law on Agricultural Land (OG 152/09, 21/10 and 63/11)

Fee charged for a building permit 0.35 ‰ of the amount of investment

Communal contribution 24,00 kn/m³ 3,16 eur

Water contribution business buildings 15,75 kn/m³ 2,07 eur/m³ production facilities 2,8 kn/m³ 0,36 eur/m³

Table 3.8: Connection costs of the building to infrastructure

Connection to the gas 80,00 kn/kWh angažirane snage

10,54 eur/kWh angažirane snage

Connect to power supply 1350,00 kn/Kw + PDV 177,94 eur/kW +PDV

Connection to the water production facilities 2.362,50 kn 311,40 eur

business buildings up to 500 m² 7875,00 kn 1038,01 eur

business buildings over 500 m² 15750,00 kn 2076,03 eur

Connection to the sewerage production facilities 2.362,50 kn 311,40 eur

business buildings up to 500 m² 7875,00 kn 1038,01 eur



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business buildings over 500 m² 15750,00 kn 2076,03 eur

Table 3.9: Costs of business activity

Communal charge

Production – business premises

0,376 - 0,627 kn/m² ,

depending on the zone

0,0495 - 0,0826 eur/m³, depending on

the zone

business premises 1st group

0,9108 - 1,5180 kn/m², depending

on the zone

0,12 - 0,20 eur/m³, depending on the

zone

business premises 2nd group

0,673 - 1,122 kn/m² ,

depending on the zone

0,0887 - 0,1478 eur/m³, depending on

the zone

Charge for water regulation

premises of trade and services

1,05 kn/m² (monthly)

0,1384 eur/m² (monthly)

premises of manufacturing activities and services

0,30 kn/m² (monthly)

0,0395 eur/m² (monthly)

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

Waste removal

volume of vessels 120 l 91,75 kn 12,09 eur





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volumen posude 1100 l 471,75 kn 62,18 eur



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4. THE TOWN OF ČAKOVEC PROJECTS IN AN ADVANCED STAGE OF PREPARATION FOR THE CONSTRUCTION



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Center for Education New School Center for Education will be built in Čakovec, that with its affordable socio-economic and cultural conditions, that are the result of developed level of urbanization, satisfies the needs of schools for 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. For the construction of the Center is granted Location permission and made the Main design. The construction of buildings is 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 will significantly increase the sport - tourist offer the Town of Čakovec. The project is planned to build a swimming pool for the swimmers, the pool for people who can't swimm it'll be circular, children's pools - whirlpool pool, pool for not swimmers irregular shape and the facility stands. The project has obtained the Location and Construction permission. Construction can start when the Town provides necessary funds for construction . Construction of drainage system on the Drava Novo Selo (fecal and stormwater drainage) The project foresees the construction of fecal drainage system in the length of 18.15 km and the stormwater drainage system in the 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 was also planned. For the construction of these projects , the technical documentation is prepared . Construction can start when the necessary funds for construction will be provided. Construction of fecal drain system of Zasadbreg (Žiškovec, Slemenice) The project foresees the construction of fecal drain system in the 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 can start when the necessary funds for construction will be provided. Building Northeastern Bypass Construction of the Northeast Bypass will pulled out to intercity traffic from inhabited area (from narrow center Čakovec). This project encompasses part junction of the state road D209 with the northern bypass to the junction with the southern bypass of Čakovec, between Ivanovac and Štefanec. The total length of Northeast Bypass is 5750 m. The construction of the school gym - Elementary School of Kuršanec The project is predicted the construction of the dual school sports hall. Area sports hall is 1,200 m². By the construction of the sports hall, Town of Čakovec wants to provide better conditions in curriculum and out-of curriculum sports activities. Sports hall construction project is also consistent with the National



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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 sports contents .

THE TOWN OF ČAKOVEC PROJECTS IN FAZE OF DETERMINING JUSTIFICATION OF INVESTMENTS

• Reconstruction of the city market • Building IV Elementary School • Multifunctional sports hall • Construction of a new office building with underground garage • Sports Hall of Ivanovec • Industrial zones - Polygon



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5. THE ECONOMY OF THE TOWN OF ČAKOVEC



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Extract from the Analysis of the financial results of entrepreneurs in Čakovec in 2011, FINA, Zagreb, July 2011. In 2011, in Town were 995 entrepreneurs , which is 41.7% active entrepreneurs in Međimurje County and only 1.0% of all croatian entrepreneurs. They are mostly engaged in trade (26.9%), manufacturing (18.9%), followed by professional, scientific and technical activities (14.6%) and construction (12.4%). The share of other activities individually is under 4.1%. Table 5.1. Financial performance in 2011 - according to size of entrepreneurs (amount in thousands, share in%)

Description Total Small Medium Big

The number of entrepreneurs 995 966 22 7 100,0 97,1 2,2 0,7

number of employees 12.034 5.976 3.328 2.730 100,0 49,7 27,7 22,7

Total income 5.569.985 2.405.695 1.766.847 1.397.444 100,0 43,2 31,7 25,1

Total expenditure 5.460.292 2.363.398 1.680.389 1.416.505 100,0 43,3 30,8 25,9

Profit before taxation 254.125 92.228 108.568 53.328 100,0 36,3 42,7 21,0

Loss before taxation 144.432 49.932 22.111 72.389 100,0 34,6 15,13 50,1

Tax on profit 41.493 18.570 19.090 3.833 100,0 44,8 46,0 9,2

Profit after taxation 212.743 73.771 89.478 49.494 100,0 34,7 42,1 23,3

Loss after taxation 144.544 50.044 22.111 72.389 100,0 36,6 15,3 50,1

Consolidated financial result-net profit or loss 68.199 23.726 67.368 -22.895



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Source: Analysis of the financial results of entrepreneurs in Čakovec in 2011, FINA, Zagreb, svibanj 2012.

Entrepreneurs of Čakovec are at the top of Croatian entrepreneurship in their business results. In economic structure of Čakovec in 2011, as in past years, an important role is played by entrepreneurs from the manufacturing industry, construction and trade, which had 77.3% of total employment. The biggest amount of employees had an entrepreneur Perutnina Ptuj Ltd., the largest total income had an entrepreneur Metss Ltd., the largest profit for the period had a entrepreneur Tubla Textile Ltd. and the biggest loss had entrepreneur MTC socks factory Inc.

In an economy of Čakovec in 2011, it was the highest number of small businesses, even the 966. The financial results of small entrepreneurs have realized greater gains than losses, and they made a net profit of 23.7 million HRK. The importance of small enterprises in total output of Čakovec business entrepreneurs in 2011 shows following shares: 97.1% share in the number of all, 49.7% number of employees, the realization of 43.2% of total revenue, 34.7% of the profit period and 34.8% in net profit in 2011.

Analysis of the total incomes in 2011, the dominant are business incomes (sales revenue) with 98.3%, followed by financial incomes from 1.1%. Compared with the previous 2010, business incomes are increased for 3.3%, financial incomes are reduced for 17.8% with an increase in extraordinary income for 12.5%, while incomes from share in profits from associated entrepreneurs are increased for 66.1%.

Higher income growth in 2011 (3.1%) of expenditure growth, contributed to the increased efficiency of business entrepreneurs in Čakovec, measured by the total economics.

The average monthly net salary per person employed at enterprise in Čakovec ,in 2011, was 3864.00 HRK, which is 0.8% more than last 2010. In 2011 the average monthly net salary for person who works in enterprise in Čakovec was higher for 3.5% than the average monthly net salary of all enterprises in Međimurje County and 18.3% lower than the average monthly net salary of all Croatian enterprises.



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CRAFTS The total number of active craftsmen in Town on 31st of December 2012: 442 craftsmen Table 5.4: Structure of the craftsmenin Čakovec according to submitted activities

Note: Summing up activity, it gets a greater number craftsmen then number of all craftsmen, because cfaftsmen also can register more than one activity, so they appear in more activities.

No.

ACTIVITY

THE TOWN OF

ČAKOVEC 1. MANUFACTURING AND CRAFTS 105 - Manufacture of textiles 26 - Production of wood 12 - Manufacture of metal products 28 - Manufacture of electrical equipment 6 - Manufacture of rubber and plastic 5 - Production of food and drink 12 - Manufacture of other non-metallic mineral products 10 - Other manufacturing activities 6

2. CONSTRUCTION 68 3. RETAL TRADE 105 4. CATERING 50 5. TRAFFIC 31 6. REPAIR OF MOTOR VEHICLES 7 7. REPAIR OF PRESONAL AND HOUSEHOLD GOODS 37 8. OTHER SERVICE ACTIVITIES

(hairdressers, florists) 63

9. AGRICULTURE 19 Total of active: 442 The temporary suspension: 7 TOTAL CRAFT: 449



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Source: Croatian Chamber of Trades and Crafts, Chamber of Trades and Crafts of Međimurje County

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]