1. History

 

The subzone of Special Economic Zone Euro-Park Mielec was established in Lublin in September 2007. At that time the subzone territory covered an area of 70 hectares of greenfields located in the southeastern part of Lublin (in the vicinity of the now-constructed Lublin ring road, Lublin Airport, and near the interchange of S17 route). In June 2009 Lublin Subzone was extended by 10 hectares of private land, the use of which contributes to revitalization of the postindustrial part of the city. (former Daewoo factory territory). On 15th March 2010, the Regulation of Council of Ministers on extending Lublin Subzone by 37 hectares entered into force. The new land is located in the immediate vicinity of the existing Subzone territory in Felin district.

 

2. Incentives

 

Investing in SEZ is really worth it! Entrepreneurs conducting business activity in the Lublin Subzone can obtain public assistance in the form of income tax reliefs. Public assistance, also referred to as regional aid, is granted with regard to new investment expenditure or new jobs creation.

 

Tax reliefs on account of new investment outlays or creation of new jobs amounts to:

 

- 50% of incurred investment expenditures for large enterprises;

- 60% for medium-sized enterprises;

- 70% for small enterprises. The investment expenditures within the Subzone which qualify for aid are as follows: - purchase of lands or perpetual usufruct rights; - purchase or internal generation of fixed assets; - extention and modernization of existing fixed assets; - purchase of intangibles connected with technological transfer through the acquisition of patent rights, licences, know-how or unpatented technical knowledge.

 

How to calculate the amount of public aid on account of:

 

a) Investment outlays (in PLN):

 

1. Land – 1 mln

2. Construction of the production premises – 10 mln

3. Other fixed assets – 3 mln Total: 14 mln x 50% public aid = 7 mln

 

Investors conducting business activity in the Subzone Lublin are granted income tax exemption until 31.12.2026.

 

Conditions for conducting business within the Lublin Subzone are as follows:

 

- investment should amount to at least EUR 100,000;

- the entrepreneur’s own share should be at least 25%;

- investment should be maintained for at least five years from the investment completion date for large enterprises (three years for SME);

- newly created workplaces must be maintained for at least five years from the investment completion date for large enterprises (three years for SME);

- fixed assets should be maintained in the investment location for at least five years from the investment completion date for large enterprises (three years for SME).

 

Real estate tax exemption

 

Real state tax exemption is a form of regional state aid. It was introduced to the Lublin Subzone by means of the City Coucil Resolution no. 188/XIII/2007 as of 25th October 2007.

 

Real estate tax exemption is granted with regard to land, buildings or their parts and constructions or their parts related to the business activity in the Lublin Subzone and located on the Subzone territory. The lands and premises must belong to the entrepreneurs who carried out the new investment and created new jobs on the Lublin Subzone site.

 

As far as the creation of new jobs in the Lublin Subzone is concerned:

 

1. micro- enterprises are obliged to create two new workplaces;

2. small enterprises are obliged to create eight new workplaces;

3. medium-sized enterprises are obliged to create forty new workplaces;

4. large enterprises are obliged to create two hundred new workplaces.

 

The real estate tax exemption is valid for three years and enters in force upon the completion of the investment.

 

In order to apply for the real estate tax exemption, an adequate application form must be submitted to the Department of Tax Execution before the commencement of the investment process.

 

The necessary forms are available below:

 

Declaration regarding the real estate tax on legal persons.

Real estate tax on natural persons.

 

3. Procedures:

 

In order to obtain a permit to conduct business in the Lublin Subzone, applicants must:

- submit an Investor Application Form with a detailed description of the planned investment project;

- enter a tender announced by ARP S.A. (management of SEZ EURO-PARK MIELEC);

- submit an offer in the bidding procedure;

- receive a permit to conduct business in the Lublin Subzone of EURO-PARK MIELEC SEZ.