Serbia has the lowest costs of electricity, gas, other fuels and landline telephony among 37 European states.
Financial Incentives; To offset initial capital investments and ease the start-up of business endeavors, the Government of Serbia offers financial support for projects in the services sector which may be subject to international trade.
Serbia have 14 Free Trade Zones!
Payroll Tax Incentives; Employment of people who were registered with the National Unemployment Agency for more than 6 months entitles employers to a sizable relief of taxes paid on net salary from the moment of employment:
- 1-9 new jobs: 65% reduction
- 10-99 new jobs: 70% reduction
- 100+ new jobs: 75% reduction
Corporate Income Tax Incentives:
A 10 year Corporate Income Tax Holiday is available for investors who hire more than 100 employees and invest more than 8.3 million euros (1 billion RSD). Tax holiday begins once the company starts making a profit.
Free Trade Agreements
Russia - The Free Trade Agreement with Russia, signed in August 2000, makes Serbia particularly attractive toforeign investors in the manufacturing sector.
The Agreement stipulates that goods produced in Serbia, i.e. which have at least 51% value added in the country, are considered of Serbian origin and exported to Russia customs free.
For exports to Russia, the FORM CT2 Certificate is required as a proof of goods origin. The only tariff charged is thecustoms record keeping tariff, amounting to a 1% value.
European Union - Exports to the EU market are free-of-customs according to the Stabilization and AssociationAgreement. For several food products export quantities are limited by annual quotas.
Imports from the EU are performed based on the Interim Trade Agreement, as part of the Stabilization and Association Agreement, providing for the abolishment of import customs duties for industrial, and certain agricultural, products from EU countries.
USA - As of July 29, 2015 Serbian exporters may once again export their goods to the USA customs free, according to the Generalized System of Preferences (GSP).
Around 5,000 goods and products, mainly industrial and agricultural goods, will benefit from the GSP. The following goods are exempt from the customs-free regime: most of textile products, shoes and clothing (including leather clothing), watches, travel accessories, work gloves, steel and steel products, glass and electronic products.
In order to benefit from the GSP the goods need to be produced in Serbia, with at least 35% value added in the country, and exported directly from Serbia.
Award October 2017
The World Bank praised the reform moves of Serbia, especially highlighting the adoption of the Law on Investments.
As stated at the Investment Competitiveness Forum in Vienna, organized by the World Bank Group, Serbia has been designated as the most innovative country in this part of Europe in attracting foreign investment.