Investment Incentives in Serbia

Financial Incentives

Production: from €2,000 up to €5,000 of state grants per new job created.
Services: from €2,000 up to €10,000 of state grants per new job created.
R&D: from €5,000 up to €10,000 of state grants per new job created.

Tax Incentives

A 10-year corporate profit tax holiday for investment over €7.5 million and 100 new employees, 10 percent profit tax thereafter
Corporate profit tax credits up to 80% of the fixed assets investment
Carrying forward of losses over a period up to 10 years
Accelerated depreciation of fixed assets
A 5-year corporate profit tax holiday for concessions
Salary tax base deduction in the fixed amount of €60 a month
Salary tax exemptions for employees under 30 and over 45 years
Annual income tax deductions up to 50% of the taxable income
Social insurance contributions exemptions for employees under 30 and over 45 years
Customs-free imports of equipment based on foreign investment

Income tax is 12 % flatrate.

Serbia is also a member of the Central European Free Trade Agreement (CEFTA) comprising a free trade area of 25 million people. The region has one of the highest rates of growth in Europe.

With a population of 7.5 million people, the Serbian market is amongst the largest in the region. Furthermore, Serbia is the only country outside of the Commonwealth of Independent States that enjoys a Free Trade Agreement with Russia. Moreover, the export of most products and services to the European Union and the United States are duty-free.

Doing business in Serbia means the opportunity of exporting to a 1 billion people market without paying any customs duties.