Advantages of Investing in BiH

• Stability of the currency;
• Low inflation rate;
• Favourable geographic position;
• Abundant natural resources;
• Existing economy capacities;
• Educated, qualified and comparably inexpensive labour;
• Favourable income tax rate in comparison to the other countries -10%;
• Taxes and contributions due to personal payroll -52%;
• Availability of international transfer of profit, upon fulfilment of legal obligations towards the Republic;
• BiH is a signatory of CEFTA Agreement on Free Trade with West Balkan Countries and Moldova;
• National dealing with international investors:
  • To establish a legal entity fully owned by the international investor (international or national investor);
  • To invest into an existing company;
  • To invest into bank or insurance company;
  • To obtain a concession on use natural resources, goods of common utility, and to perform activities of general interest for the Republic.
• Privatized banking sector.

Advantages of Investing in the City of Bijeljina

• Industrial zones equipped with infrastructure, with favourable conditions of land plot purchase for brownfield investments, extra conveniences provided for construction of a plant for agricultural product processing or buying;
• Educated, qualified and comparably inexpensive labour;
• Efficient city administration;
• Regional centre of economics, culture and healthcare;
• Jurisdictions of Bijeljina Registry Court;
• Registration timeframe 3-5 days.
   

Incentives available in order to start-up small and medium companies

• Incentives to found a company - START-UP;
• Incentives for developing the existing and START-UP companies;
• Incentives for introducing a quality system;
• Incentives for women – entrepreneurs;
• Incentives for returnees – entrepreneurs;
• Incentives for unincorporated craft shops.

Incentive programmes adjusted to each individual investment, based on:

• the scope of investment;
• number of job vacancies;
• values of work positions; and
• classification of the investment as priority or a pod-sector.

An example of incentives:

• Payment for land in industry zones within the period of 60 months, with no interest rate inclusion;
• 70% - 90% of reduction of fees and taxes due to production facilities.
   

RELIEF GIVEN AT THE LEVEL OF BIJELJINA CITY

RELIEF OF COMMUNAL FEE PAYMENT

Bijeljina Municipal Assembly has adopted the Decision on Communal Fee, at a session held on 18th May 2011.

The basis to calculate the communal fee on is a unit of constructed usable surface (m²); with residential, commercial and other premises.

The amount of communal fee is calculated per unit of constructed usable surface of residential, business and other premises, depending on the zone where the structure is located and on the extent of equipment availability in the resided area, as to communal facilities and devices of communal utility; and it equals monthly, as follows:

With commercial premises:

Communal fee for production plants and structures of social significance is paid in the amount of 30% of the fee applicable to certain zone, specified for commercial buildings.

Communal fee for ancillary premises within a commercial facility is paid in the amount of 30% of the fee applicable to certain zone, specified for commercial buildings.

Decision on Communal Fees (''Bijeljina Municipality Official Gazette’' No 10/2011, 24/2011, 9/2012) 
 

RELIEF AND EXEMPTION FROM PAYMENT OF COMMUNAL TAXES

Apart from exemption from payment of communal taxes, stipulated by Law on Communal Fees (''Republic Srpska Official Gazette'', No 4/2012), an entrepreneur who starts up a business or service provision for the first time is exempted from payment of the tax within the first year of business, in the amount of 50% of specified communal tax due to displaying the commercial name. Business entities located outside the area of Bijeljina City shall pay the communal tax reduced by 30% of the principal amount.

Town’s Unincorporated Association receives 1.5% of the amount collected as communal taxes for displaying the trade name of a legal entity or entrepreneur at their business premises.

Amendments to Decision on Communal Taxes resulted from an initiative of business owners dealing at the area of Bijeljina City, who had first made an analysis of the effects to: Department of Economy, Department of Spatial Planning, Department of Housing-Utility and Environment, and Unincorporated Association of Bijeljina as the initiator thereof. Aforementioned Amendments to the Decision were adopted to reduce the communal tax due to displaying trade names of companies and shops, and additionally to exempt business owners starting up a business or service provision for the first time, from payment of the communal tax due to displaying their trade names, in the amount of 50% of due tariff.

Decision on Communal Taxes (''Bijeljina Municipality Official Gazette'', No 6/2012, Bijeljina City Official Gazette'', No 13/2013, 27/2013). 

RELIEF OF FEE PAYMENT DUE TO MANAGEMENT OF TOWN LAND FOR CONSTRUCTION

The fee due to town construction land management and to rent can be paid in instalments within one budget year to be fully paid at the end thereof, with maximum of 12 instalments, provided prior submission of a payment instrument: bank guarantee for legal entities and individuals.

Decision on Spatial Management and Land for Construction (''Bijeljina City Official Gazette'', No 11/2014).