Minsk is a city for investments

Минск – город для инвестиций

The investment climate of the city is one of the best in the CIS and favorable on the global background.

In 2016, the capital's attractiveness for foreign investors was highly appreciated by the influential division of the Financial Times magazine - fDi Intelligence. The city of Minsk was the second in a dozen European cities in terms of the cost effectiveness of doing business and closed the top ten cities for the best strategy of attracting foreign direct investment, losing to such major business centers as London, Amsterdam, Vienna and Milan.

Investments are coming to Minsk from more than 80 countries of the world.

Investors are attracted by the financial sector, trade, real estate, and services. It is in Minsk that a large business center will appear in the future, which will become part of the multifunctional complex Minsk-Mir.

Advantages of investing in Minsk: 

  • an advantageous geographical location;
  • a single market for the Eurasian Economic Union;
  • political and economic stability, low crime rate;
  • highly skilled labor force and scientific and technical potential;
  • developed infrastructure;
  • benefits for investors (free economic zone, high technology park, regional technology park, an investment contract);
  • developed international legal framework for regulation of investment activity and protection of investments

In particular, international legal acts regulating the implementation of investments in the territory of the Republic of Belarus include: 

1. Convention on the settlement of investment disputes between states and individuals or legal entities of other states (concluded in Washington on 18.03.1965, the date of signing by the Republic of Belarus - 10.07.1992, the date of entry into force - 09.08.1992);

2. Convention on the Establishment of a Multilateral Investment Guarantee Agency (concluded in Seoul on 11.10.1985, the date of signing by the Republic of Belarus - 13.08.1992, the date of entry into force - 03.12.1992), including: 

  • Agreement between the Government of the Republic of Belarus and the Multilateral Investment Guarantee Agency on the legal protection of guaranteed foreign investments;
  • Agreement between the Government of the Republic of Belarus and the Multilateral Investment Guarantee Agency on the use of local currency;
  • Agreements with 62 countries on avoiding double taxation;
  • Agreements with 51 countries on the promotion and mutual protection of investments.

Минск – город для инвестиций

3. The Convention on the Protection of the Rights of the Investor (concluded in Moscow on 28.03.1997, the date of ratification by the Republic of Belarus - 11.11.1997, the date of entry into force - 21.01.1999).

4. Appendix No. 16 to the Treaty on the Eurasian Economic Union (Signed in Astana on May 29. 05. 2014, the date of ratification by the Republic of Belarus – 09. 10. 2014, the date of entry into force – 01. 01. 2015)

Our initiatives to improve the legislation allowed Belarus to take up in the World Bank's Doing Business ranking – 2018 the 38th place among the 190 countries of the world.

The Republic of Belarus is constantly working to improve the business climate. Of the latest innovations, the most significant are the following.

The main regulatory and legal acts aimed at improving the business and investment climate in the country

1. Decree of the President of the Republic of Belarus No. 10 of 06.08.2009

The decree of the President of the Republic of Belarus No. 10 of 06.08.2009, which provides for the institution of a special investment contract with a number of privileges and preferences for the investor, has become a significant incentive for the coming of investments.

According to the legislation, an investor who has concluded an investment contract has the right to: 

  • parallel design and construction;
  • selection of the general design and construction organization without bidding;
  • provision of a land plot without an auction.

Investors are also exempt from: 

  • fees for the right to conclude a lease contract for a land plot;
  • land tax (or rent) for the land plot provided for the period of project implementation;
  • customs duties and VAT on technological equipment;
  • fee for attracting foreign labor force;
  • compensation of the cost of the removed objects of the plant world, etc.

On November 12, 2015 a new edition of Decree No. 10 was adopted - Decree No. 8 which entered into force on May 12, 2016. This edition contains a number of important innovations for investors, from which it can be noted: 

  • the obligation of the investor to notify the state in writing about the reorganization, change of the owner or the composition of the investor's participants not less than two months prior to their implementation and the right of the state to object to these changes and to unilaterally withdraw from the contract; 
  • the right to complete the construction begun after the termination of the investment contract without an investment contract and benefits (with the provision of a land plot without an auction and making land payments); 
  • granting, without auction, not only the right to lease, but also the right of ownership of land plots;
  • the right to installment or the cancellation of penalties and the cancellation of compensation of benefits and preferences by the investor. 

2. Decree of the President of the Republic of Belarus No. 7 of November 23, 2017

On February 26, 2018, the Decree of the President of the Republic of Belarus No. 7 "On the Development of Entrepreneurship" of November 23, 2017 came into force. It is aimed at improving the business and investment climate in the country.

This Decree establishes the following innovations aimed at liberalization and simplification of entrepreneurial activity:

  • It has established a list of types of economic activity for the beginning of which a notification principle is introduced.
  • It has introduced a moratorium on the increase and introduction of new taxes, dues (duties) until 2020.
  • it has cancelled the coordination with the executive committees of the mode of operation of retail facilities, public catering facilities and consumer services, outdoor advertising and transport advertising.
  • It has allowed to use some types of premises not for the original purpose, and to carry out repairs in rented premises, including without permission from the executive committee.
  • It has released from the requirements set by the legislation on the procurement of goods (works, services) during construction without attracting funds from the republican or local budgets.
  • It has allowed the development of pre-project (pre-investment) documentation without a certificate of compliance for this type of activity.
  • When putting the facility into operation, it allows to get conclusions of state bodies solely for compliance of the specified facilities with permits and other documentation.
  • Business entities have got the right to independently determine the validity period of the technical conditions (changes therein) developed by them for products (works, services); not to agree these technical conditions (changes in them) with government bodies.
  • It has reduced the list of cases of compulsory sanitary and hygienic (excluded for the construction of social, industrial, transport, engineering infrastructure) and environmental expertise.
  • The number of fire safety requirements has been reduced by more than 12 times.
  • A five-year statutory limitation period for the payment of taxes, fees (duties) and other mandatory payments to the budget has been introduced.

3. Decree of the President of the Republic of Belarus No. 8 of 21. 12. 2017

A number of innovations envisaged by Decree of the President of the Republic of Belarus No. 8 of 21. 12. 2017 "Development of the Digital Economy" significantly expand business opportunities in the IT sphere, including:

creation of a legal basis for the circulation of digital currencies and tokens based on blocking technology;

introduction for residents of the High Technology Park of individual institutions of English law (smart contracts, convertible loan, option and option agreement, agreements on non-competition and prohibition of luring, compensation for property losses);

simplification of the procedure for hiring qualified foreign specialists;

new activities of residents of the High Technology Park: development of biotechnologies, medical, aviation and space technologies, e-sports;

simplification of the regime of currency transactions for residents of the High Technology Park.

Preferential investment regimes

High Technology Park

Парк высоких технологий

Since 2005, in Minsk there has successfully functioned the High-Technology Park the residents of which are engaged in the development of software.

The high-tech park is a unique favorable environment for the development of business in the field of information technologies in Minsk where unprecedented tax incentives are combined with the availability of well-trained specialists for the IT industry.

The High Technology Park residents are exempt from all corporate taxes, including value added tax, profit tax, and customs duties. Individual income tax for employees of companies-residents of the Park has a fixed rate of 9%.

The attractiveness of the HTP is not only in tax benefits, but also in knowledge, innovation, and highly qualified specialists. Belarusian specialists participate in IT projects of any complexity, starting with system analysis, consulting, hardware selection and finishing with the design and development of complex systems. They are trained and certified in the training centers of IBM, SAP, Oracle, Microsoft and other world IT leaders.

The legal regime of the HTP is valid throughout the territory of the Republic of Belarus. You can register as a resident and take full advantage of the HTP, regardless of where the office of your Belarusian company is located: from the regional center to a small settlement. This makes it possible to make full use of the educational, scientific, research, professional and infrastructure potential of the whole country.

Today, the residents of the High Technology Park are more than 230 companies employing more than 32 thousand people.

More than 80% of the software produced in the Park is exported to more than 50 countries.

In 2017, the HTP exports amounted to $ 1.25 billion.

www.park.by 

The Free Economic Zone "Minsk"

Свободная экономическая зона Минск

The Free Economic Zone "Minsk" (FEZ "Minsk") was created in 1998. The territory of the FEZ "Minsk" is 2652.48 hectares, out of them in the city of Minsk - 1047.79 hectares.

The main goals and objectives of the creation of the FEZ "Minsk": 

  • attraction of foreign and domestic investments;
  • creation of export-oriented and import-substituting industries, introduction of modern technologies;
  • economic and social development of the FEZ territory, creation of new jobs.

As in the whole world, the regime of the free economic zone gives enterprises the opportunity to work in special preferential conditions.

Enterprises-residents of the FEZ "Minsk" enjoy such privileges as:

  • exemption from income tax for 10 years, then - 50% of the statutory rate;
  • exemption from payment of property tax;
  • obtaining a land plot without an auction;
  • exemption from payment for the right to conclude a lease contract for a land plot and the absence of rent for land for the period of design and construction (no more than 5 years).

A resident of the FEZ "Minsk" can become a legal entity of any form of property registered in accordance with the established procedure.

More than 120 enterprises with Belarusian and foreign investments operate in the free economic zone "Minsk". And this figure is constantly growing.

Since the creation of the FEZ "Minsk" resident enterprises have built more than 30 modern factories.

www.fezminsk.by

Minsk City Technopark

Минский городской технопарк

The Technopark was established in order to provide systematic support to enterprises in Minsk in the implementation of innovative projects.

Residents of the Technopark are granted the following benefits and preferences:

  • Providing for lease on favorable terms areas of various purposes and technological equipment,
  • tax incentives,
  • assistance in the implementation of innovative projects,
  • creating favorable conditions for doing business in the high-tech sphere,
  • Support to innovative start-ups.

The area of ​​the site on which the technopark is located is 5.5 hectares; the total area of ​​buildings and structures for various purposes is about 40,000 square meters. In addition, the technopark has the opportunity to lease other areas necessary to accommodate residents with the right to sublet them.

During the period of activity of the Minsk City Technopark, specialization of the residents' activity in the priority areas of innovative development has developed: 

  • applied optical-electronic and laser technologies, information security systems, recognition of material and non-material objects, electronic control systems of various levels and profiles, security systems;
  • technologies in the field of aircraft building and navigation;
  • chemical-biological, pharmacological and nanotechnologies;
  • manufacturing of medical, rehabilitation equipment and devices;
  • manufacture of electrical distribution equipment and instruments;
  • technologies in the field of industrial environment cleaning;
  • technologies in the field of energy and resource saving.

Within the technopark, there are more than 25 resident enterprises.

www.mgtp.by

Investment proposals

Инвестиционные предложения

More than 60 sites for investors through an auction.

More than 40 sites to be provided to investors under investment contracts.

Other investment proposals requiring an investor search.

For more information on investment proposals, please visit the Minsk City Executive Committee website in the Investment atlas section of Minsk, including:

www.investatlas.minsk.gov.by

Contact Information

AHRAMENKO Nikolai Adamovich

Head of Investment Department 218 00 62

SIDOROV Vadim Georgiyevich

Deputy Head of Investment Department 218 00 46

ZHILINSKY Piotr Andreyevich

Head of the Department of Investment Management Coordination of Investment Management Department 218 02 67