Agriculture and Agricultural Land in Serbia: Legal Framework and Investment Opportunities

Agriculture is a key sector of the Serbian economy, accounting for approximately 20% of the country’s GDP and employing around 25% of the population. With its fertile land and favorable climate, Serbia is well-positioned to become a major agricultural producer and exporter in the region. In this article, we will examine the legal framework governing agriculture and agricultural land in Serbia and explore the investment opportunities available to investors in this sector.

Ownership and Use of Agricultural Land

Agricultural land in Serbia is classified as a special type of property, and its use and ownership are subject to specific regulations. Under Serbian law, only natural persons and legal entities that are registered as farmers are allowed to own agricultural land. This means that foreign investors who wish to invest in agricultural land must first register as farmers in Serbia. Once registered, they can purchase or lease agricultural land subject to certain restrictions.

Foreign investors are not allowed to own agricultural land in Serbia unless they have been registered as farmers for at least 10 years. However, they can lease agricultural land for up to 30 years, subject to the approval of the Serbian government. The government may also require foreign investors to enter into a joint venture with a Serbian farmer or company in order to lease agricultural land.

Investment Opportunities in Agriculture

Serbia offers numerous investment opportunities in the agriculture sector, particularly in the production of fruits and vegetables, cereals, and livestock. The government has identified agriculture as a priority sector for investment, and it has introduced a range of incentives to attract foreign investors.

One of the most significant incentives for foreign investors is the subsidies offered by the Serbian government for the purchase of agricultural equipment, seedlings, and livestock. Additionally, the government provides grants for the construction of irrigation systems and the improvement of soil quality.

Foreign investors who invest in agriculture in Serbia can also benefit from favorable tax treatment. For example, the government provides tax exemptions for agricultural producers who invest in equipment, machinery, and irrigation systems.

Challenges and Risks

While there are many investment opportunities in the agriculture sector in Serbia, there are also several challenges and risks that investors should be aware of. One of the main challenges is the lack of infrastructure, particularly in rural areas. Many areas lack basic amenities such as roads, electricity, and water, which can make it difficult to transport goods and access markets.

Another challenge is the fragmented nature of land ownership in Serbia. Many small farmers own small plots of land, which can make it difficult to assemble large tracts of land for agricultural production. Additionally, land disputes are common in Serbia, and investors should be prepared to undertake thorough due diligence before investing in agricultural land.


Agriculture is a key sector of the Serbian economy, and foreign investors have numerous opportunities to invest in this sector. However, investing in agriculture in Serbia requires a thorough understanding of the legal framework governing agricultural land and a willingness to navigate the challenges and risks associated with investing in a developing country. With the right approach, foreign investors can benefit from the many incentives and opportunities available in this dynamic sector.

For more information on this or any other legal, tax, or business topic, feel free to write to us at [email protected] at any time or call us at phone number +381113281914 every working day from 08:30 to 16:30.

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your AK STATT representative, or other competent legal counsel.

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