ALIENATION OF PUBLICLY OWNED BUILDING LAND

According to the Regulation on the conditions under which publicly owned building land may be alienated or leased at a price lower than the market price or rent, or without compensation, the alienation of building land may be carried out provided that the land is designated for construction, in accordance with the applicable planning document, on the basis of which location requirements and a building permit may be issued for:

  1. A facility serving the purpose of the implementation of an investment project that enhances local economic development
  2. A facility intended for social housing, in accordance with the law governing social housing, or for the construction of facilities required for the performance of activities within the competence of state authorities, authorities of the autonomous province, or local self-government units
  3. A facility serving the purpose of performing a public utility activity

For the alienation of building land owned by a local self-government unit for the purpose of implementing investment projects aimed at fostering local economic development (hereinafter: local economic development projects), whether such alienation is carried out by direct agreement or through a public tender procedure, a local self-government unit is obliged to prepare a report on the economic justification of the alienation of the building land. Such report shall include an economic analysis of the anticipated costs and benefits arising from the implementation of the investment, as well as an assessment of the expected social impacts.

The economic analysis demonstrates the effects of the investment project implementation on employment and public revenue, local economic activity and the overall quality of life within the community concerned. The amount of reduction in the market price of land intended for a local economic development project cannot exceed the anticipated increase in public revenues resulting from the implementation of such project within a period of five years, commencing from the date of entry into force of the contract on the alienation of the building land.

We provide support to local self-government units in analyzing the economic effects of implementing local economic development projects and in preparing reports on the economic justification of the alienation of the building land.

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Companies that have related parties are required to submit a transfer pricing documentation along with the tax balance.

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ALIENATION OF PUBLICLY OWNED BUILDING LAND

We provide support to local self-governments and private investors in implementing local economic development projects.
 
Need assistance in preparing a study on the alienation of publicly owned building land?



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Business and Finance Consulting Agency ALDERMAN CONSULTING

Užice, Mihaila Pupina 2
info@alderman.rs
+381 64 20 46 755

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