Free Zone Kukuljanovo (a part of the Industry Zone Bakar), is located in the hinterland of the town of Bakar, 17 km away from the port of Rijeka. It is also located on a highly strategic route, representing one of the shortest connections between Central Europe and the Mediterranean. The Zone lies adjacent to the current highway Rijeka-Zagreb, as well to the motorway Rijeka-Split, and to route of the planned motorway from Rijeka to Trieste. The harbour complex of Bakar is only 3 km away, and the railway station of Škrljevo on the Rijeka-Zagreb and Rijeka-Ljubljana railroad, is nearby. Krk, Airport lies only 10 km from the FZ.

In terms of infrastructure, the zone has the following completed facilities-industrial railway sidings, internal roads water supply, sewage system, 110/35 KV transformer station, gas supply, two heating plants and a modern telephone network. An expansion of the plant is planned, as well as building of new infrastructure, including the road on the Rijeka-Zagreb motorway and an access road. There is also planned the construction of a business and service centre for the Zone, accompanied by the bank, telephone exchange, electronic data-processing centre, customs office, police station and first aid station.

In the Free Zone of Kukuljanovo, there is a number of possible business activities, such as production of goods, refinement of goods, wholesale trade and commissioning, agency services, bank and other monetary transactions, insurance and re-insurance of property and persons. Retail trade is not allowed.

Users of the Zone who participated in the construction of infrastructure facilities in the Zone area, with the amount that exceeds 250,000 DM in Croatian currency, are relieved from paying the profit taxes during the first five years of doing business in the Zone. Other users of the Zone pay profit tax amounting to 50% of the due profit tax rate in the Zone, which currently amounts to 17,5%.

 

According to the Free Zones Act (Official Gazette, N.N. 44/96), the Republic of Croatia gave to the Industry Zone of Bakar L.L.C. a concession for building the Free Zone of Kukuljanovo. The users of the Free zone can be domestic and foreign legal entities. Customs duties and taxes are not levied on goods stored in the Zone, which are not intended for sale on the domestic market, i.e. for the goods used for consumption in the Zone, and no other economic obligations are applied, as well.

 

Users of the Zone and companies selling goods to the users of the Zone are relieved from paying the VAT, because the Free Zone is treated as a foreign entity.

Existing incentive measures are presented in the form of attractive land prices and a two- year lasting grace period for payment of municipal charges to the town of Bakar. In case of larger investments, additional incentive measures may be discussed.