Electronics Production | March 12, 2008
Romania to exempt Nokia from property taxes
The relocation to a Romanian facility will turn out worthwhile for the Finnish mobile phone manufacturer Nokia. The company won’t need to pay property taxes for their new facility during the next 30 years.
Viorel Gavrea, the director of Tetarom said that Nokia would have to pay these taxes retroactively, should they quit the location at Cluj before that. Tetarom is the operator of the industrial park in Cluj, where Nokia’s site will be located at. This agreement will be finalised with the Romanian authorities by the end of May. This offer will also extent to other existing investors. Property taxes can only be levied and determined by the regional municipality. This means - for Cluj - that any investor would need to pay 1% of the properties value in taxes. However, Nokia will need to pay profit taxes (16%), as those are levied centrally from Bucharest. Nokia occupies 90 of the 159 hectare of land. 4 of Nokias supplies also consider a move to Cluj, Romania.