Why Invest In Serbia

The most common inquiries posed by prospective investors and business entities considering entry into the Serbian market pertain to the fundamental advantages of establishing operations in this jurisdiction. The Republic of Serbia presents a compelling investment destination, distinguished by its strategic location, favourable legal and fiscal frameworks, and steadily growing economic indicators.

Strategic Location and Market Access

Serbia occupies a geopolitically advantageous position at the intersection of Central and Southeastern Europe, serving as a pivotal gateway between the East and West. With roughly 7.5 million inhabitants, Serbia ranks as the region’s second-biggest consumer base.
Key transport corridors—Corridor VII (the Danube River) and Corridor X (pan-European highway and railway routes)—traverse Serbian territory, offering seamless multimodal access to major European logistical networks. International airports in Belgrade and Niš provide efficient air connectivity to global business centres.

Stable Macroenconomic Environment and FDI Appeal

Serbia has consistently demonstrated macroeconomic stability, with GDP growth exceeding 3.5% and sustained low inflation. This stability is reinforced by favourable credit ratings assigned by leading global agencies, such as Standard & Poor’s and Fitch (2024–2025).
The country has been recognized as a top-tier destination for Foreign Direct Investment (FDI):

• IBM Global Location Trends Report consistently ranks Serbia as the global leader in FDI job creation per capita.
• Financial Times (FDI Report 2020) placed Serbia first in Europe for Greenfield investments relative to economic size.
• Ernst & Young (EY) identified Serbia among the top 15 European jurisdictions by volume of inbound FDI projects.

Unemployment rates are at historic lows, and for the first time, the Serbian economy is importing low-skilled labour, reflecting robust employment growth.

Customs and Trade Liberalization

Although Serbia is a candidate for European Union membership, it currently benefits from an optimal legal position—leveraging the advantages of operating outside the EU while enjoying preferential trade access:

• Serbia has established bilateral Free Trade Agreements with the European Union, the Eurasian Economic Union (Russia, Belarus, Kazakhstan), Türkiye, Egypt, China, and CEFTA states.
• Under the Open Balkan framework, goods, capital, services, and labour move duty-free across Serbia and its neighbouring states.

This unique trade regime ensures access to a market exceeding 2.7 billion consumers, positioning Serbia as an emerging logistics, manufacturing, and service hub.

Investor-Friendly Legal Framework

The Serbian legal system is harmonized with EU legislation and fully supports international business practices. Key investor protections include:

• Constitutional guarantees on the patriation of profits and capital
• Non-discriminatory treatment of foreign legal and natural persons
• No restrictions on foreign ownership, directorship, or residency
• Expedited incorporation procedures for all legal forms (LLC, branch office, sole proprietorship, JSC, etc.)

The Companies Act and associated tax and customs legislation offer robust protection for creditors and corporate actors, while digital government platforms facilitate online registration, compliance, and communication with state institutions.

Fiscal and Tax Advantages

Serbia offers one of the most competitive tax regimes in Europe:

• Corporate income tax is among the lowest in the region
• EU-compliant VAT framework that delivers transparency and predictability.
• Preferential tax treatment for entrepreneurs and small business entities
• Double Taxation Avoidance Agreements (DTAs) signed with over 60 countries
• Special tax incentives and state subsidies for Greenfield and Brownfield projects, particularly in manufacturing and export-oriented services
  Industrial and Free Trade Zones offer infrastructure-ready sites with exemption from VAT and other levies

Infrastructure and Digital Modernization

Substantial investments have modernized Serbia’s physical and digital infrastructure:

• Competitive utility costs (electricity, gas, water)
• Nationwide broadband and fibre-optic coverage
• E-Government platforms for corporate and real estate registration, tax filings, and licensing
• Integration of blockchain and AI-driven services in the financial, legal, and logistics sectors

Highly Qualified and Cost-Effective Labor Market

Serbia boasts a technically skilled and cost-effective workforce:

• Strong tradition in engineering, IT, and scientific education
• High proficiency in English and other foreign languages
• Low average salaries allow for competitive operating costs
• Strong government backing for ICT growth, from innovation campuses to R&D tax relief.

Serbia is rapidly establishing itself as a leading regional hub for outsourcing, fintech, software development, and AI-based services—with ICT exports exceeding € 4 billion annually.