Bosnia & Herzegovina/November 2015
In today’s difficult market businesses are constantly searching for ways to reduce their expenses and utilize existing resources in order to improve or at least maintain capacities.
More and more companies see a viable strategy to do so by investing and moving to a more favorable location and more specifically to specially-designated industrial zones. Companies that choose to do so are mostly those which deal with production and have large utility and transportation costs as well as those that require large areas to carry out their activities.
According to the Law on Free zones in B&H, a Free Zone is part of the customs territory of Bosnia and Herzegovina, which is specially fenced and marked and where business activities are carried out under special conditions in accordance with the Law on Customs Policy of Bosnia and Herzegovina and the Law on Free Zones.
A free zone is typically established in close proximity to a sea or river port or an airport (open for international public traffic) or next to a main road or main railroad. Any industrial, commercial or service activity not endangering the environment, health of people, property or national security can be carried out in a free zone.
The state and municipal authorities in Bosnia and Herzegovina which have decided to establish such zones on their territory have recognized the opportunity and found a way to attract new investments by offering mutually beneficial deals. Industry zones are usually located outside of the main residential areas of a city but have good transportation access (roads, rails, and airports). They offer very affordable or almost free land to the investors, reduced utility costs, rapid administration and as such are suitable for growing businesses which are expanding their production and increasing their number of employees.
Investments located in Free Zones are exempt from payment of VAT and import customs. The imports of equipment that will be used for manufacturing within the free zone are exempt from paying customs, duties and fees.
An additional incentive for such investments is the fact that the transfer of profit and transfer of investment are free of charge.
To find out more about industry zones and their benefits in Bosnia and Herzegovina please contact Eurofast Global office, let us help you make a smart decision which will improve your operations and reduce your expenses. With our know-how we can make your transition safer and easier.
Igor Vujasinovic, Eurofast Global – Bosnia Office
T. + 387 63 757 429
+ 387 63 757 429