Special economic zones (SEZs) are specially designated territories in Russia where businesses get access to a unique set of preferences: tax holidays, reduced rental rates, well—developed infrastructure and customs relief. Such conditions have been created to attract investors, stimulate innovation, and support regional development.
Initially, free economic zones (SEZs) operated in the 90s, but since 2005, according to Law 116-FZ, an updated format, SEZ, has been implemented. Today, there are more than fifty such territories in the country, including large sites in Tatarstan, Moscow, the Sverdlovsk Region and other regions.
Companies that have become residents of SEZs can expect to significantly reduce costs: in some zones, the income tax is only 2% in the early years, and the property and land tax is completely reset for a decade. It is also possible to lease land at a rate of 1% of the cadastral value, and purchase it for 15%. All zones have ready-made engineering infrastructure and offer support during registration through the "one-stop shop" principle.
However, SEZs also have limitations: mandatory binding to the territory, strict investment conditions and the need to comply with the specialized specialization of the zone. Some sites are remote from transport hubs, which may increase logistics costs.
There are four main types of SEZs: industrial (for example, Alabuga), technical and innovative (for example, Innopolis), tourist and recreational (Biryuzovaya Katun) and port (Ulyanovsk, Lotos). There are also special zones in Kaliningrad and Magadan, while FEZs with unique conditions continue to operate in the DPR, LPR and Crimea.
To become a resident, it is necessary to register a business on the territory of the SEZ, prepare an investment project, collect a package of documents and apply through a management company. After its approval, an agreement is concluded, and the business is included in the register of residents. The whole process can take from one to two months.
Special economic zones are not just a privileged territory, but a full—fledged tool for scaling a business with minimal costs. With proper site selection and compliance with the conditions, they open the way to new markets, efficient production and sustainable development.
