What State Aid Incentives for Foreign Investors Are Available in Serbia

Serbia is becoming an increasingly popular destination for foreign investment due to its favorable investment climate, skilled workforce, and strategic location. To encourage foreign investment and support economic growth, the Serbian government offers a range of state aid incentives for foreign investors. These incentives include tax incentives, grants, subsidies, and other forms of financial support.

Tax Incentives

Serbia provides several tax incentives for foreign investors. The standard corporate income tax rate is 15%, but foreign investors can benefit from reduced tax rates depending on the size and location of their investment. For example, investors in underdeveloped regions or investments of more than €8 million can qualify for a reduced tax rate of 10%. Additionally, foreign investors can benefit from tax exemptions on profits generated from exports, certain types of income, such as dividends and interest, and R&D expenses.

Grants and Other Forms of Support

Foreign investors in Serbia can also access various grants and other forms of financial support. The Development Agency of Serbia (RAS) manages many of these incentives. For example, RAS offers investment grants to foreign investors for specific investment projects in priority sectors, such as manufacturing, tourism, and agriculture. The grant covers up to 30% of eligible investment costs and can reach a maximum amount of €3.5 million. RAS also provides subsidies to foreign investors for the purchase of land, the construction of buildings, and the purchase of machinery and equipment.

Additionally, RAS provides support for training and workforce development programs, including subsidies for internships and apprenticeships. This is particularly relevant for foreign investors looking to train and develop their workforce in Serbia.

Infrastructure Development

The Serbian government is also investing heavily in infrastructure development, particularly in transportation and energy. Foreign investors who choose to invest in these sectors may be eligible for additional state aid incentives. For example, the government may provide subsidies for the construction of roads and bridges, or offer tax exemptions for investments in energy infrastructure.

Conclusion

Foreign investors in Serbia have access to a range of state aid incentives, including tax incentives, grants, subsidies, and other forms of financial support. These incentives are designed to encourage foreign investment and support economic growth, and the Serbian government is committed to continually improving and updating these incentives to attract more investment. Foreign investors who are considering investing in Serbia should carefully review the available incentives and consult with legal and tax advisors to ensure they take full advantage of the benefits available to them.