When applying to rent or purchase land or buildings within industrial zones, investors should pay a security deposit amounting to 3% of either the annual rent or the selling price. When the rental or the sale project is approved, the security deposit fund will be withheld at a rate with no interest, from either the rent or the purchase price. If it is not approved, the money will be returned without interest. When making a purchase, the investor also pays a fee to the Industrial Zone development fund (which is 1% of the purchase price).
Refer to the Rents and Land Prices for more details on rent and land prices in industrial parks and zones.
Incentives for renting and purchasing land in industrial zones:
When applying to purchase land in industrial zones, buyers don't need to pay capital gains tax on land value appreciation or land taxes, and can also enjoy a preferential tax rate on industrial land.
Public Auction of Land
The selling prices of land in industrial zones will be determined, according to the cost of the development, by the Land and Building Price Evaluation Committee for Industrial Zones of the Industrial Development Bureau, MOEA. Prices will conform to the general market.
When selling land or buildings, the authorized sales units or management organizations are required to set up installment payment methods and payment periods according to the actual situation.
Under the current plan to expand upon rental incentive schemes in industrial zones, companies renting space in industrial zones are exempt from rental expenses for the first two years. In the third and fourth year of the lease, companies pay only 60%, while in the fifth and sixth year, they pay only 80%. When the company decides to purchase the building during the period of the lease, all the rent paid during the period will be deducted from the amount.
Renewal of the Lease
The term of the lease for a building or land in an industrial zone should not exceed 20 years. Tenants who follow the lease's stipulated agreements in good faith shall be given priority if they wish to renew their lease and therefore shall apply in writing to the authorities three months before the expiry of the original lease.
Deducting the Rent and Guarantee Deposit From the Selling Price
Tenants who have not violated any leasing agreements during the lease period and are interested in purchasing the rented land given the good operating conditions of the company should apply to purchase the land before the lease ends. On approval by the Competent Authority, the company's rent and guarantee deposit during the lease period will be deducted from the purchase price.
Detailed information can be obtained from IDB wbesite.