Serbia: Investing

FDI in Figures

As a result of the reforms that were established in 2001, Serbia has attracted foreign investments notably in the banking and financial sectors. They have become an important factor in the national economy, up to the point that they have helped to reduce the deficit on foreign trade. Still, the FDI levels remain insufficient (3% of the GDP in annual flows, i.e. EUR 1.3 billion in 2009 and less than EUR 1 bilion in 2010).  Austria, Italy and Norway are among the country's main investors and the European countries represent 70% of the investors in Serbia. 

After a constant increase which began in 2000, the year 2010 marked a decline in the development of investments due to the financial crisis and the European economic climate. The year 2011 would have marked a return of investors, mainly European, namely in the transport sector (development of the airport in Belgrade) and in finance (investment in commercial banks, such as Komerciajalna Banka).

Why You Should Choose to Invest in Serbia

Strong Points

Serbia has the lowest corporate tax rate in Europe (10%). In addition, Serbia is a country whose economy is in full expansion and it is showing a real desire to reform. Serbia's human capital is also interesting for foreign investors because the workforce is very young compared to the rest of Europe. In addition, the workforce is very well trained: Almost half of the Serbian population speak English fluently.

Weak Points

The political risk is still high compared with other countries in the area, which may discourage foreign investors. Moreover, cumbersome procedures for setting up a business in Serbia remain problematic and discouraging. Finally, the deficit of the balance trade remains a problem for the country's economy.

Government Measures to Motivate or Restrict FDI

The Serbian government has established a series of measures aimed to attract foreign capital:
- Between 2,000 to 10,000 Euros are granted to investors creating new jobs in the fields of research and development, production and services;
- Agreements have taken place with different countries to avoid double taxation;
- In certain cases, the government has set up exemptions of social charges;
- A part of imports are not subject to custom duties;
- Fixed charges for companies are relatively low.

Procedures Relative to Foreign Investment

Freedom of Establishment

Anybody can start a business or invest in Serbia.

Acquisition of Holdings

A foreign investor can own 100% of the shares in a Serbian company.

Obligation to Declare

An authorization is necessary to create a company in the following fields : health, pharmacy, veterinary products and services, transport, arms and munitions, insurance, bankruptcy management.

Investment Opportunities

Investment Aid Agency

Serbia Investment and Export Promotion Agency

Tenders, Projects and Public Procurement

Tenders Info, Tenders in Serbia
Globaltenders, Tenders & Projects from Serbia
DgMarket, Tenders Worldwide

Other Useful Resources

Doing business in Serbia

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