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Over the past few years, Serbia’s economy has grown steadily and there have been more and more direct investments from outside the country. There has been a clear improvement in the business environment as a whole, which has been helped by keeping the exchange rate and inflation stable. Because of these significant changes, Serbia is now high on a list of countries that investors worldwide look at when deciding where to put their money.

Major reasons to invest in Serbia

The following reasons state why it’s essential to invest in Serbia:

Freedom to invest

Under Serbian law, foreign investors can do whatever they want with their money.

A foreign investor is a company or a person with a registered office or residence outside of Serbia that invests in business in Serbia. It is essential to make it clear that foreign investors in Serbia get the same treatment as local investors. This means that their rights and responsibilities are the same as those of Serbian investors unless the Law on Investments says something different. Foreign investors can transfer their income, such as dividends, fees for using IP rights, and other funds related to their investment in Serbia after they have paid all taxes and met other obligations related to public revenues.

It’s a good place for businesses that do business with the European Union

Serbia is located in Southeast Europe, which is a pretty good place to be. Ten European countries are linked by the Danube, which flows through Serbia. Because Serbia is between Western and Eastern Europe, all the important roads go through it. Also, both road and rail traffic from Northern, Western, and Central Europe pass through Serbia on their way to Southeast Europe and Southwest Asia. Having good traffic connections and a good location is significant for business growth, and market presence, making it easier to connect with business partners and suppliers from all over Europe and the world.

Tax rates and tax breaks that are fair

When deciding whether or not to invest in or start a business in Serbia, one of the most important things you should know about is the country’s tax laws and the tax breaks they offer. If you look at the tax rates in Serbia and compare them to those in other European countries, you’ll be sure to want to invest there. Also, the Company Income Tax is one of the most important taxes for all businesses. Taking into account the quality of life, the other costs of running a business, and all the other good things that happen for business owners in Serbia, Investment Climate Since January 2001, Serbia has shown that it is very serious about creating a modern market economy and getting back into the European and global markets. To reach this goal, big changes have been made, especially to make the country more business-friendly. These include legal and economic reforms in all areas, with the goal of ensuring legal security and making sure that laws and monetary policies are in line with those of the EU.

Foreign investments have been encouraged by this process, and there aren’t many restrictions.

The following organizations are in charge of making rules about foreign investment:

  • The Foreign Affairs Ministry.
  • The International Economic Relations Ministry.
  • The Agency for Promoting Investment and Export in Serbia.
  • The Economic Ministry.
  • The Chamber of Commerce in Serbia.

The free trade zone

Serbia is an attractive place to invest because of its location and the low cost of labor.

With the creation of a Balkan Free Trade Zone, there will be more than 65 million people in this area. In addition to making trade stronger, this integration may also help make the region’s politics more stable. Due to the political and economic integration of the region into Europe at the regional and international levels, the region is expected to keep growing quickly over the next few years. This will help the region catch up economically and make it the most promising market on the European continent, as long as political stability is kept, political problems are solved, economic reforms move quickly, and the legal framework gets better.

The multilateral investment guarantee agency

The Multilateral Investment Guarantee Agency (MIGA), which is part of the World Bank Group, protects investments against risks that are not related to business. These risks include not being able to convert or transfer currency, war and civil unrest, theft of assets, and breaking a contract. Several important economic laws have been passed to make the country more attractive to foreign investors. However, there is still a lot to do. The most important new laws set rules for businesses, bankruptcy, financial markets, securities, capital transfers, etc. The way taxes are set up for foreign investors is an extra boost. The current tax system is seen as very good, with a corporate profit tax of 10%, tax deductions for investing in fixed assets, ten-year tax holidays for investments over 600 million CSD (about 7.1 million EUR) in fixed assets, and the creation of more than 100 new jobs during the investment period, various tax exemptions, and other incentives.