The bill, which is adjusted to EU legislation, focuses on the manufacturing sector, technology and development and strategic activities.
In the past 12 years Croatia has attracted foreign investments worth more than 12 billion euros and is among leading countries in the region, with investments of 2,500 euros per capita, said Economy Minister Branko Vukelic.
The bill, expected to go into force as of next year, is oriented towards stimulating production, Vukelic said, adding that apart from incentives, the bill contained other important changes, such as a lower value of investment for which incentives can be obtained, higher incentives for businesses which create new jobs, etc.
Domestic and foreign investors would be able to continue to count on tax and customs benefits (customs benefits would be in force until admission to the EU), as well as on benefits for new jobs, funds for training purposes, etc.
The existing law does not envisage restrictions with regard to the economy branch where an investment is made, but the new law would encourage only the manufacturing sector, technology and development and strategic activities (such as customer relations centres, information-communication centres or centres for software development).
The value of incentives for the creation of new jobs would be increased to range from 1,500 to 3,000 euros and it would depend on the unemployment rate in a given county.
Such a range of incentives would apply to the manufacturing sector, while incentives for strategic activities would increase by 25 percent and those for technology and development by 50 percent.
Special incentives would be given for major investment projects, such as the opening of new factories or the purchase of equipment, for investments worth at least 15 million euros and envisaging at least 100 new jobs.