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Szczecin encourages to build skyscrapers

Wednesday, 16/07/2008

The real estate tax exemption is to encourage investors to build modern skyscrapers in Szczecin. It is another step of Szczecin’s authorities to support the economic development of city.
Mayor of Szczecin has prepared the resolution plan concerning real estate tax exemption as part of regional aid programme. The plan will be discussed over the next City Council session, which will take place on the 28th July 2008.  Councillors of the Development, Promotion and Marine Economy Commission have given a positive opinion on this matter. The aim of the resolution is strengthening economic competitiveness of Szczecin by creating favourable conditions for  companies of high technology, knowledge and development, Business Process Outsourcing sector as well as information technologies.

  1. For this purpose it is important to prepare modern office facilities – justifies Deputy Mayor of Szczecin Krzysztof Nowak.

Increasing office reserves will be an incentive to develop companies which already exist on the IT and BPO  market in Szczecin, for research developing companies, to make new investments and companies belonging to  so called modern services centres working in areas of innovative technologies. It will also have an influence on attracting foreign investments and that will surely contribute to the economic development of Szczecin and will improve lives of the inhabitants.
According to the regulations of the resolution, enterprises building high standard office utilities can apply for the real estate tax exemption. Submitting an application form is the condition to get the aid. It is crucial to designate  the whole office area of high quality for at least one of the following activity defined in the Polish Classification of Activities:

  1. connected with software,  IT consultancy and associated activity;
  2. information service;
  3. supporting financial services , insurances and pension funds;
  4. accountancy and tax consultancy;
  5. covering research and technical analysis;
  6. covering scientific research and development work in the field of natural and technical studies;
  7. connected with seeking out workplaces and recruiting workers;
  8. phone centres.

In order to use the exemption, an entrepreneur is obliged to keep a new investment for at least 5 years and in case of small and medium enterprises, for at least 3 years since the close-down. The expenditure on a new investment must exceed PLN 4 million and the ending should take place within 48 months, counting from the day of receiving a letter of meeting the conditions to get aid from the Mayor of City.
The resolution will be in effect by the end of 2010. Entrepreneurs admitted to get aid will be able to use this aid for 3 years. The plan of the resolution is another element of following supporting enterprise policy. In July 2007 the City Board in Szczecin passed the resolution concerning Regional Investment Aid Programme in real estate tax and the resolution concerning real estate tax exemption in the frame of the De Minimis Aid.

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