Serbia entered 2017 with a new Decree on Terms and Conditions for Attracting Direct Investments. During late December, the Government of Serbia amended certain incentives for investors, aiming to create an even more comfortable investment climate, particularly for those planning to invest in the undeveloped parts of Serbia.
Among other incentives, the state support will be evident in the aid related to fixed assets. An investor could receive support amounting to 10-30% of the total value of the investment, provided that at least 25% of the total investment is secured from the investor’s own funds.
Furthermore, according to the new Decree, the investment value threshold for qualifying the investor for support from the state has been decreased from EUR 150,000 to EUR 100,000, along with an obligation of the investor to employ at least 10 employees. The aid to investors will vary between EUR 3,000 and EUR 7,000 per employee, depending on the degree of development of the municipality where the investment will take place.
The Ministry of Economy expects that the additional incentives for investors will positively impact the investment market of Serbia, especially in the undeveloped and devastated areas of the country.