[Business Scene] Dario Zurovec, Mayor of Sveta Nedelja: We Invest in the Development of IT, Creative Industries, and R&D

Sveta Nedelja has been known as an entrepreneurial oasis since the 1990s. This characteristic has not only been maintained after the change of government but has also been improved. The new mayor, Dario Zurovec, introduced a series of business-friendly measures in 2017, the most publicized of which was the abolition of the 6% surtax. Therefore, as part of the presentation of the business scene, we talk to Zurovec, who won his first term as an independent and his second last year as a candidate for the Focus party.

From 2017 to 2021, Sveta Nedelja increased the number of active companies by 21%, while the growth in Croatia was 14%, and in Zagreb, it was 12%. What are the key moves for such development?

– In the City of Sveta Nedelja, according to the latest data, there are 927 active entrepreneurs. The key moves that enabled such rapid progress are significant steps taken in the areas of digitalization, transparency, and decentralization, which greatly contributed to the city’s development. Certainly, one of the most important moves is the largest tax relief implemented in any local government unit.

We are one of the first cities to introduce a publicly accessible register of public procurement through which all citizens can access all contracts, orders, and invoices via the internet. An e-referendum has also been introduced, allowing citizens to express their opinions and vote on new projects and ideas. Additionally, numerous other initiatives have been introduced, such as the possibility of paying utility fees in cryptocurrencies, free public transport, and the abolition of the city surtax.

The abolition of the city surtax is undoubtedly one of the main moves that led to significant development of the City, all aimed at relieving entrepreneurship, attracting new industries, and enabling further development of entrepreneurship in our city. By adopting leading global trends, such as the aforementioned possibility of paying utility fees in cryptocurrencies, we aim to become a sort of entrepreneurial hub and thus provide the best for our entrepreneurs.

With all of the above, we have shown that our goal is to follow leading global innovative ideas and serve as an example to other cities in Croatia and beyond, all for the benefit of our citizens.

Supporting this is certainly a small and agile City Administration that approaches every entrepreneur equally according to their needs, and the staff is at their service every day because we are aware that entrepreneurship is the generator of all positive activities in our city, namely the city of Sveta Nedelja.

How have you compensated for the money lost from the surtax, utility contributions, and other parafiscal levies?

– Given the significant tax relief, the City of Sveta Nedelja did not have to significantly reduce its budget. The reason for this is proper planning and the earlier allocation of funds within the city budget. To fulfill this, planning and such decisions began significantly earlier, and accordingly, the funds were properly allocated in previous years.

With the tax reform, namely the abolition of the surtax, reduction of utility contributions, and other parafiscal levies, the city’s budget in that part was reduced by approximately 6 million kuna, but in less than a year, this so-called deficit has been fully covered. In addition to significantly strengthening other sources of financing, such as the use of EU funds, this tax reform has stimulated significant demographic movements in Sveta Nedelja.

While most of Croatia is experiencing a decline in population, we have recorded a greater increase in the number of residents according to the latest census, and it is precisely the tax reform that has allowed our fellow citizens to keep a larger portion of their money, thus encouraging migration to our city, which has compensated for the funds in the budget that remained with citizens due to the abolition of the surtax.

So, did you have to reduce the budget?

– The budget of the City of Sveta Nedelja has consistently grown after the abolition of the surtax and parafiscal levies, which is certainly proof that it is possible to function and develop without encroaching on the pockets of citizens.

Is there room in the city area for further development of entrepreneurship and attracting new investors?

– One of the significant resources of the Sveta Nedelja economy are the 4 industrial zones defined by spatial and urban planning documents. Sveta Nedelja, Novaki, Rakitje, and Top Kerestinec, while other smaller industrial zones are distributed throughout the settlements. The occupancy of the zones ranges from 70 to 80 percent, which opens up the possibility for the accommodation of many companies in the area of the city of Sveta Nedelja. For these zones, there are urban and spatial plans for the arrangement of space, which allow for the acquisition of the necessary documentation for the quick start of construction of new business premises.

Through the definition of entrepreneurial zones (all information about them is available at https://grad-svetanedelja.hr/poduzetnici/) and a public call to industries we are interested in, we have defined directions for the development of entrepreneurship because we believe that by investing in the businesses of the future that are at our doorstep, we are investing in the proper development of the city itself (e.g., IT sector, creative industries, and R&D). With the budget of the City of Sveta Nedelja, we ensure and invest funds in defining new zones, and until their capacity is filled, we strive to follow the needs of investors to create the conditions for their activities. Investors are attracted by the low utility fee, among the lowest in the region, as well as the excellent geostrategic position of the city itself, and open communication from the City Administration.

What is the response to allowing citizens to pay bills in cryptocurrencies?

– The City of Sveta Nedelja is among the first in the world to introduce the possibility of paying utility fees in cryptocurrencies. The reason for this is the focus on modern technologies and responding to market demands. In this regard, we primarily think of the large number of successful entrepreneurs operating in our city, such as Rimac Automobili, Greyp Bikes, Medical Intertrade, Sancta Domenica, and many others. Additionally, the goal is to create opportunities for further development of the IT industry in Croatia and equally attract companies to keep pace with the times in which the world of cryptocurrencies and blockchain technology is undoubtedly one of the drivers of development.

At this moment, the City of Sveta Nedelja has received a few payments, which is understandable given that cryptocurrencies are viewed through the prism of investment opportunities, but we are also convinced that regardless of the current state of the world of cryptocurrencies, virtual money will certainly be a more frequently used form of payment in the future.

The possibility of paying in cryptocurrencies has been implemented in collaboration with the company Electrocoin through the payment system Paycek. The transaction begins on the City of Sveta Nedelja’s website, where all personal data is filled in, and after filling them out, the payment section is selected, and then the user is connected to the aforementioned payment system Paycek, where the user has the option to choose one of several cryptocurrencies (such as BTC, ETH, XLM, BCH, XRP, DAI, EOS, USDT, USDC, BUSD, SOL, etc.). After selecting the cryptocurrency, we connect to our own so-called wallet (for example, Exodus), select the option to send cryptocurrencies, and enter the wallet address received in the Paycek payment system.