Author: Stefan P

When purchasing an apartment or house in Serbia, potential buyers may encounter situations where the property lacks a usage permit, even if it appears to meet all other conditions. This raises a key question—can such a property be purchased, and what are the potential risks for the buyer?

A usage permit is a crucial document that confirms the property has been built in compliance with all applicable laws and is ready for legal occupancy. Without this document, the property cannot be officially inhabited, which could lead to serious legal and financial consequences for the buyer. Despite this, properties without a usage permit remain available on the market, especially in cases of buildings under construction.

 

 

 

Procedure for Purchasing Property Without a Usage Permit

 

Purchasing a property without a usage permit typically begins with signing a preliminary contract that defines the terms of sale and specifies the subject of the agreement. In this process, the construction permit plays a key role, as it allows the identification of the property, even if it has not yet been completed.

However, without a usage permit, the property cannot be legally utilized. Buyers face legal risks, as the completion of construction and issuance of the permit are not always guaranteed. It is essential for buyers to thoroughly review all available documentation, including the construction permit, construction start notifications, and other relevant papers, before signing any agreements.

 

 

 

Importance of Construction and Usage Permits

 

Construction and usage permits form the foundation of lawful construction, adaptation, and acquisition of property ownership. These permits not only confirm that the property was built in accordance with the law but also provide legal security to the owner.

• A construction permit authorizes the start of construction and confirms that the work complies with technical and legal requirements.
• A usage permit certifies that construction has been completed and that the property can be legally used and registered as ownership.

Without these permits, any construction on the property is considered illegal, and the owner may face serious legal consequences. For instance, a property without a usage permit cannot be officially registered in land registries, denying the owner legal security and complicating future sales or inheritance of the property.

 

 

 

Legal Security and Consequences of Missing Permits

 

Under Serbian real estate laws, valid public documents are required for the registration of ownership rights. Without a construction and usage permit, a buyer risks investing in a property that cannot be legally registered, opening the door to potential legal disputes.

The law stipulates that ownership rights can only be acquired through construction if all work is performed under the proper permits. A lack of these documents exposes the owner to legal challenges, as their ownership could be disputed.

 

 

 

 

Conclusion: The Importance of Legal Security When Purchasing Real Estate

 

Purchasing real estate without a usage permit carries significant risks. Without this crucial document, the property cannot be legally used, registered, or sold. All potential buyers should make extra efforts to verify the documentation to ensure the property complies with all legal requirements.

For property owners, holding valid construction and usage permits not only ensures the legality of the property but also provides legal security, making it easier to manage, sell, or transfer the property. Therefore, consulting with legal and financial professionals is essential before making a decision to purchase such properties.

Serbia has been gaining traction as a favorable destination for crypto businesses for several reasons, especially when the value of cryptocurrencies is on the rise:

 

 

1. Regulatory Framework

 

• Serbia has enacted a legal framework for cryptocurrencies, particularly through the Digital Asset Law implemented in 2021. This law provides clarity and legitimacy to the use and trading of digital assets, making it attractive for businesses.
• The framework regulates crypto trading, mining, issuance, and other related activities, fostering trust and reducing uncertainties for businesses and investors.

 

 

 

2. Tax Benefits

 

• Serbia offers competitive tax rates on cryptocurrency activities:
• Gains from cryptocurrencies are taxed at a lower rate compared to many Western European countries.
• Certain exemptions and deductions may apply for long-term investments in digital assets.
• Businesses dealing with cryptocurrencies may find a more favorable tax environment compared to other jurisdictions.

 

 

 

3. Skilled Workforce

 

• Serbia is home to a growing pool of skilled IT professionals and blockchain developers. The country has a strong tech education system and a thriving startup culture, providing crypto businesses with access to talent for innovation and development.

 

 

 

4. Affordable Costs

 

• Operational costs in Serbia, including salaries, office rentals, and utilities, are significantly lower than in many Western countries. This cost advantage can help crypto businesses scale operations more efficiently.

 

 

 

5. Pro-Crypto Community and Ecosystem

 

• Serbia has an active crypto community with regular meetups, conferences, and hackathons, creating a collaborative environment for innovation.
• The ecosystem supports startups and entrepreneurs, with venture capital and accelerators showing interest in blockchain-based projects.

 

 

 

6. Strategic Location

 

• Situated at the crossroads of Europe, Serbia offers easy access to both EU and non-EU markets. This strategic location can be advantageous for crypto businesses targeting a broad customer base.

 

 

7. Energy for Mining

• While Serbia doesn’t have the cheapest electricity globally, its rates are competitive, particularly for industrial use. This can make crypto mining operations viable, especially during bullish markets when profitability increases.

 

 

 

8. Government Support

 

• The Serbian government has shown an openness to new technologies and innovation. Efforts to promote digital transformation and blockchain adoption align well with the interests of the cryptocurrency sector.

 

 

 

9. Banking and Payment Integration

 

• The introduction of regulations has enabled partnerships between crypto businesses and traditional financial institutions, making it easier to integrate payment systems and facilitate transactions.

 

 

 

10. Rising Interest During Bull Markets

 

• As the value of cryptocurrencies rises, interest in crypto-related activities grows. Serbia’s clear legal framework and cost advantages position it as an attractive hub during these periods of increased activity.

 

 

By combining legal clarity, a tech-savvy workforce, and a cost-effective business environment, Serbia presents a compelling case for crypto businesses, particularly during bullish markets when opportunities for growth and profitability are abundant.

 

Welcome to Serbia team can provide you with the practical know-how to start your Serbian cryptocurrency business or exchange. We are doing it now in compliance with current laws, and we have more than 10 clients who already have their own cryptocurrency business in Serbia. We will help you build a successful cryptocurrency business.

 

Please contact us for more information.

Strategic Partnerships of Serbia: Impact on Economy, Investments, and International Relations

 

Strategic partnerships are formal agreements between two or more countries that establish a special framework for cooperation in areas of mutual interest. These agreements often go beyond traditional trade contracts as they encompass long-term political, economic, investment, and technological aspects of cooperation. The goal is to strengthen mutual ties and create a more favorable environment for investments, trade, and joint project development.

 

Unlike ordinary trade agreements, strategic partnerships focus on long-term benefits. This includes increasing the level of foreign direct investments (FDI), providing access to more favorable import and export conditions, as well as granting fiscal incentives for companies from partner countries. Serbia leverages these partnerships to enhance competitiveness, secure access to new markets, and attract strategic investors from around the world.

 

 

 

Key Differences Between Strategic Partnerships and Free Trade Agreements

 

Although they are often confused, free trade agreements and strategic partnerships have key differences. Free trade agreements focus on eliminating customs and trade barriers between countries, while strategic partnerships have a broader scope. In addition to economic cooperation, strategic partnerships include collaboration in security, energy, technology, and strengthening institutional ties.

 

 

 

Overview of Serbia’s Strategic Partnerships – Key Partners: From Europe to Asia

 

Over the past 15 years, Serbia has concluded a total of nine strategic partnerships with countries from diverse geopolitical and economic backgrounds. European partners include Italy, France, Greece, and Hungary, while global partners include China, Russia, Egypt, Azerbaijan, and the United Arab Emirates (UAE).

 

These agreements are not always identical in nature, as they are tailored to the specifics of cooperation with each partner country. For example, the partnership with Italy is primarily focused on industrial production and the automotive sector, while the partnership with the UAE is more oriented towards infrastructure projects and energy.

 

 

 

Timeline of Strategic Partnerships: From 2009 to Present

 

Serbia established its first strategic partnerships in 2009 with Italy and China. Since then, agreements have been signed with seven more countries, with the most recent partnership being with the UAE, confirmed by the signing of a Comprehensive Economic Partnership Agreement (CEPA) in 2023.

Chronologically, the most intense period for forming these partnerships was between 2010 and 2023, during which Serbia underwent significant changes in its foreign policy and strategy for attracting foreign investments.

 

 

 

Impact of Strategic Partnerships on Serbia’s Economy

 

Strategic partnerships directly influence the fiscal incentives that Serbia provides to foreign companies. These incentives include lower corporate income tax rates, tax exemptions in special free zones, and the possibility of reimbursement for a portion of investments through various subsidies. Tax policy is adjusted to increase Serbia’s attractiveness as an investment destination, which is especially evident in partnerships with Italy, China, and the UAE.

 

For example, companies operating in Serbia’s free zones often enjoy VAT and customs duty exemptions, making them more competitive in the global market. This strategy attracts multinational companies to set up production centers in Serbia.

 

 

 

 

Economic Effects: GDP, Employment, and Fiscal Revenues

 

The impact of strategic partnerships on Serbia’s economy is measured using key indicators such as the growth of gross domestic product (GDP), the creation of new jobs, and the increase in fiscal revenues.

According to data from 2023, there are over 1,200 companies in Serbia with Italian capital, employing more than 50,000 workers and accounting for 5.5% of the country’s total GDP.

Investments from China have also significantly boosted Serbia’s exports, as Chinese companies in the steel production and mining sectors contribute to the country’s export revenue. The expansion of production in factories such as Linglong further strengthens Serbia’s export capacity.

 

 

 

Partnerships with European Countries

 

Italy: The Longest Partnership and the Most Companies

 

The partnership with Italy began in 2009 and is now one of the most significant for Serbia. With more than 1,200 Italian companies operating in Serbia, Italian capital employs over 50,000 workers across various industries.

 

 

France: Investments in Infrastructure and the Energy Sector

 

French companies play an essential role in Serbia’s infrastructure sector, particularly in the construction of the Belgrade metro, and are also actively involved in energy projects, especially those related to green energy.

 

 

 

 

Conclusion: How Strategic Partnerships Shape Serbia’s Future

 

Serbia’s strategic partnerships with key global and regional players provide significant economic and political benefits. These partnerships not only attract foreign direct investments (FDI) but also strengthen Serbia’s role on the international stage. The focus on the development of free zones, the adjustment of tax incentives, and the improvement of immigration policies further increase Serbia’s attractiveness to investors.

 

In the coming years, Serbia is expected to expand its network of strategic partnerships, particularly with countries like Germany, the USA, and African nations. These partnerships have the potential to contribute to the growth of fiscal revenues, reduce unemployment, and increase exports. Serbia has a unique opportunity to position itself as a key economic partner in the region and beyond.

If you want to conduct business while staying protected and ensuring your uniqueness is recognized, we are pleased to offer you our trademark registration services. Our team of experts provides clear guidance and support throughout the process.

 

Why should one register and protect a trademark? This is one of the most common questions we receive from clients.
The advantages of trademark protection and registration are numerous, and we would like to highlight a few key benefits:

 

1. Recognition in the market,
2. Protection for your product or brand,
3. Differentiation from the competition,
4. Preservation of your business’s reputation,
5. A trademark helps you stand out in the market and facilitates communication with potential clients.

 

 

To complete trademark registration in Serbia and beyond, it is necessary to conduct a search in the Intellectual Property Office register before the actual registration. We are here to submit the registry search request on your behalf and recommend the best possible solution based on the report we receive. The entire procedure is conducted electronically.

 

After receiving the report from the Intellectual Property Office, we can proceed with the registration of the preferred trademark.
The registration process involves filling out specific forms and submitting the required information from the client, all of which is done electronically. Please note that administrative fees are not included in the service price and will be paid by the client according to the payment slips we provide. A fee is required for processing the registration request with the Intellectual Property Office, and you will receive a confirmation within 24 hours indicating the request number. The Intellectual Property Office will decide on the fulfillment of the requirements for trademark registration within six months.
Once the trademark registration request is approved, the fee will need to be paid according to the decision received, covering a period of ten years.

Re-export operations from the perspective of foreign trade and foreign exchange operations

 

 

There are various classifications of re-export operations, but three types of re-export are most common:

 

• Direct re-export, where goods are purchased abroad and directly sold abroad without the procedure of importing goods into the country of the re-exporter;
• Indirect re-export, where goods purchased abroad are temporarily imported into the customs territory of Serbia without paying customs duties and VAT, and then delivered further abroad;
• Processing re-export, where goods are purchased abroad, imported into the re-exporter’s country where they undergo the agreed processing procedure, and then exported in a modified state to the foreign supplier or a third country. This is also without the obligation to pay customs duties and VAT.

 

Domestic entities can perform re-export operations as defined in Article 39, Item 1 of the Law on Foreign Trade only based on commercial documentation (contracts, invoices, etc.).

 

 

The Law on Foreign Trade, which defines the operations of import, export, and transit of goods, prescribes the following in Article 17:

 

• Export refers to the removal, dispatch, or delivery of goods from the territory of the Republic of Serbia to another country or customs territory, in accordance with the customs regulations of the Republic of Serbia;
• Import refers to the bringing, delivery, or dispatch of goods from another country or customs territory into the territory of the Republic of Serbia, in accordance with the customs regulations of the Republic of Serbia;
• Transit refers to the passage of goods through the customs territory of the Republic of Serbia, in accordance with the customs regulations of the Republic of Serbia.

 

 

Item 4, Sub-item 7 of the Decision on Reporting Credit Operations with Foreign Countries (Official Gazette of RS, Nos. 56/13 and 4/15) mandates the reporting to the National Bank of Serbia regarding commercial loans and credits as defined in Article 4 of the Law. However, this excludes, among other things, transactions involving the purchase of goods abroad that are directly delivered to another country or customs territory for use in service production processes for a resident’s production process abroad.

 

The Regulation on the Method of Offsetting Debt and Claims from Realized Foreign Trade of Goods and Services (Official Gazette of RS, No. 59/13) cannot be applied to operations from Article 39, Item 1 of the Law on Foreign Trade.

 

Code 312 from the Payment Codebook is used for orders in foreign payment transactions exclusively in cases of payment transactions based on Article 39, Item 1 of the Law on Foreign Trade (direct re-export), i.e., in cases of direct re-export transactions where the goods paid for remain abroad and are directly delivered abroad without entering the customs territory of the Republic of Serbia.

In contrast, for payments related to transactions from Article 39, Item 2 of the Law on Foreign Trade (indirect re-export), code 312 should not be used in foreign payment transaction orders. Instead, other appropriate codes should be used, depending on whether the transaction involves processing, import for export, or other cases.

 

 

 

Re-export operations as subject to VAT taxation

 

According to the general rule, the subject of VAT taxation is the supply of goods and services performed by a taxpayer in the Republic of Serbia for compensation, as well as the import of goods into the Republic. In this regard, it is clear that direct re-export operations are not subject to VAT. This is not considered a transaction exempt from VAT but rather a transaction not subject to taxation. Accordingly, compensation for this transaction is not recorded in tax records, nor is it reported in the tax return, nor is it included in the total turnover of goods and services in accordance with the VAT Law.

 

The VAT exemption from Article 24, Paragraph 1, Item 8 of the VAT Law, for other services related to the transit of goods, can be applied if the taxpayer possesses an invoice or other document serving as an invoice, issued in accordance with the VAT Law.

 

 

 

 

Indirect Re-export

 

According to Article 11, Paragraph 1, Item 1 of the VAT Law, the place of goods supply is the location where the goods are located at the time of dispatch or transport to the recipient, or, at their request, to a third party if the goods are dispatched or transported by the supplier, the recipient, or a third party at their request.

If goods in a customs warehouse are released into free circulation, the customs authority calculates VAT. If goods are sold from the customs warehouse without dispatch to another entity, meaning the goods remain under customs warehousing procedures, the transaction is VAT-exempt in accordance with Article 24, Paragraph 1, Item 6 of the VAT Law, provided the prescribed conditions are met.

 

According to Article 9 of the Rulebook on VAT Exemptions, for transactions involving goods under customs warehousing procedures, the taxpayer performing the transaction or the recipient of goods, who is the VAT debtor, can apply for exemption if they possess:

 

• A customs declaration or a certified copy of the declaration proving that the goods are under customs warehousing procedures, in accordance with customs regulations;
• An invoice for the supply of goods, certified by the competent customs authority (the customs authority certifies the invoice if the goods were under customs warehousing procedures at the time of the transaction).

 

 

 

Processing Re-export

 

One possibility that may arise in practice is the import of goods for processing and their subsequent resale abroad. According to Article 26, Paragraph 1, Item 2 of the VAT Law, this transaction is VAT-exempt, meaning that VAT is neither calculated nor paid on the import of goods into Serbia for processing and re-export.

 

 

 

 

Foreign entity as the owner of goods under customs warehousing procedures

 

The owner of goods imported and re-exported through the indirect re-export procedure may be a foreign legal entity. In this case, under customs regulations, the foreign entity is obliged to appoint an indirect representative. The customs declaration is filled out as prescribed by the Rulebook on Completing the Customs Declaration.

 

From the perspective of VAT regulations, from January 1, 2023, a foreign entity that conducts transactions involving goods under customs warehousing procedures in the Republic of Serbia is not required to appoint a tax representative or register for VAT obligations in the Republic of Serbia.

All You Need to Know About Inheritance and Testament in Serbia as a Foreigner.
In Serbia, inheritance and testamentary matters involving foreign citizens are regulated by both domestic law and international agreements. The Serbian Law on Inheritance and relevant international treaties govern the rights and obligations of foreign citizens when dealing with estates located in Serbia or concerning Serbian citizens abroad.

 

 

Here are key points to consider regarding testament (wills) and inheritance for foreign citizens in Serbia:

 

 

 

 

1. Applicable Law

 

• Lex Domicilii: Serbian inheritance law generally follows the principle of lex domicilii, meaning that the law of the deceased’s country of domicile (residence) at the time of death applies to the inheritance. However, the law applicable to the estate may vary depending on the nature and location of the property.
• Immovable Property: For real estate (immovable property) located in Serbia, Serbian law typically governs its inheritance, regardless of the deceased’s nationality.
• Movable Property: In the case of movable property (e.g., bank accounts, personal belongings), the law of the deceased’s last domicile is usually applied unless there is a valid will specifying otherwise.

 

 

 

2. Testamentary Freedom

 

2. • Foreign citizens have the option to create a will (testament) either under Serbian law or the law of their home country. A will can encompass movable and immovable assets, provided it adheres to legal formalities.
   • Serbian law allows foreign nationals to choose the legal system governing their will (either Serbian law or the law of their home country), as long as this choice is clearly expressed in the testament.
   • The will must comply with formal requirements, such as being in writing and signed, and it can be notarized or registered with the relevant Serbian authorities for added validity.

 

 

 

3. Legal Succession (Intestate Inheritance)

 

2. • In the case of a foreign citizen passing away without a will (intestate) and owning assets in Serbia, Serbian law will govern the inheritance of immovable property situated in Serbia. This means that the estate will be distributed according to Serbian intestate rules, with priority given to the spouse, children, and other close relatives.
   • Foreign relatives of the deceased can inherit property in Serbia under the same conditions as Serbian citizens; however, issues of taxation, recognition of inheritance rights, and cross-border legal cooperation may arise.

 

 

 

4. Reciprocity Principle

 

2. • In some cases, Serbia applies the principle of reciprocity when determining the inheritance rights of foreign citizens. This means that if a Serbian citizen can inherit property in the foreigner’s home country under similar conditions, the foreign citizen can also inherit property in Serbia.
   • Serbia has treaties with some countries, especially within the region or the European Union, to simplify inheritance procedures and ensure mutual recognition of inheritance rights.

 

 

5. Inheritance Tax

 

2. • • Serbia imposes an inheritance tax on property inherited within the country, but the tax rate depends on the relationship between the heir and the deceased. Close relatives (e.g., spouses and children) are generally exempt or face lower rates, while more distant relatives or unrelated heirs may face higher tax rates.
     • Foreign citizens inheriting property in Serbia are subject to the same tax rules as Serbian citizens.

 

6. International Treaties

 

2. • Serbia is a signatory to various international agreements, such as the Hague Convention on the Conflicts of Laws Relating to the Form of Testamentary Dispositions, which ensures that wills drafted in accordance with the legal requirements of one country are recognized in another. Foreign wills may, therefore, be valid in Serbia if they comply with either Serbian law or the law of the deceased’s home country.
   • The European Convention on Human Rights also protects property rights across borders, and EU nationals, in particular, may benefit from simplified procedures under bilateral agreements between Serbia and EU countries.

 

 

7. Recognition of Foreign Court Decisions

 

2. • In cases of inheritance disputes involving foreign citizens or property located abroad, Serbian courts may need to recognize foreign court decisions. For a foreign judgment regarding inheritance to be enforced in Serbia, it must go through a process called exequatur. This process ensures that the foreign judgment aligns with Serbian public policy and legal principles.

 

 

8. Probate Process

 

• • The probate process in Serbia is conducted through local courts, and foreign citizens may need to appoint a legal representative in Serbia to handle the process if they do not reside in the country.
  • If the deceased leaves behind property in both Serbia and another country, there may be parallel probate proceedings in each jurisdiction. Coordination between these legal systems is often necessary to ensure the smooth transfer of assets to the rightful heirs.

 

 

Key Points:

 

• Foreign citizens can inherit both movable and immovable property in Serbia.
• Serbian law generally governs immovable property located in Serbia, even for foreign nationals.
• Foreign citizens may draft wills in accordance with either Serbian law or their home country’s laws.
• Serbia recognizes foreign wills and inheritance rights, subject to certain legal conditions and treaties.
• Inheritance tax applies, and the same tax rules are applied to foreign and domestic heirs.

 

For dealing with inheritance matters in Serbia, foreign citizens may benefit from legal advice to navigate the complexities of cross-border inheritance.

Serbia has become an attractive location for cryptocurrency businesses due to several factors that create a welcoming environment for startups, blockchain developers, and investors. Key reasons why Serbia is considered a good place for crypto businesses include:

 

 

 

Progressive Legal Framework for Cryptocurrencies

 

• Serbia implemented a Digital Assets Law in December 2020 to regulate cryptocurrencies. This law establishes a legal framework for the creation, exchange, and management of digital assets, including cryptocurrencies and tokens. The aim is to provide businesses with a more predictable environment.
• By defining how digital assets are regulated, the law ensures that businesses and investors are aware of the legal and tax implications. Serbia’s decision to regulate the cryptocurrency space has made the country a safer and more appealing destination for legitimate businesses.
• The National Bank of Serbia (NBS) is responsible for overseeing the regulation of virtual currency services, ensuring that businesses comply with anti-money laundering (AML) and counter-terrorist financing (CTF) regulations.

 

 

 

Tax Incentives and Favorable Taxation

 

• Serbia offers competitive tax rates for businesses and individuals involved in cryptocurrency activities. The corporate tax rate is 15%, and capital gains tax rates are also low, making it attractive for crypto entrepreneurs and investors.
• Income from cryptocurrency activities such as trading profits, mining, or business operations is subject to tax, but the tax regime is relatively favorable compared to many other countries, especially within the European Union (EU).
• For individuals, gains from crypto trading are taxed at 15%, while companies involved in crypto may benefit from incentives for employing tech professionals or investing in innovation.

 

 

 

Strong Tech and Blockchain Talent

 

• Serbia is home to a talented pool of IT professionals with expertise in software development and blockchain technology.
• The country’s education system, particularly in technical fields like engineering, mathematics, and computer science, produces graduates with skills highly relevant to the crypto and blockchain sectors. This makes it easier for businesses to find local talent.
• Several successful blockchain development companies have emerged from Serbia, and the country has a growing community of blockchain developers and crypto enthusiasts.

 

 

 

Affordable Costs of Living and Doing Business

 

• The cost of living in Serbia is relatively low compared to Western Europe or North America, which makes it attractive for both startups and established businesses. Office space, employee wages, and general business expenses are more affordable, allowing companies to stretch their budgets further.
• Additionally, the lower cost of living makes Serbia an appealing location for digital nomads and remote workers in the crypto industry. They can enjoy a high quality of life while benefiting from lower operating costs.

 

 

 

Increasing Venture Capital and Investment Opportunities

 

• The growing recognition of Serbia as a technology hub has attracted the attention of international venture capital firms and angel investors. There has been an increase in investment in tech startups, including blockchain and crypto companies.
• With a favorable business environment, crypto startups can attract funding more easily, both locally and internationally, benefiting from lower costs while accessing global markets.

 

 

 

Crypto-Friendly Banking and Payment Solutions

 

• Serbia has a more pragmatic approach to banking services for crypto businesses compared to some other countries. Some banks and financial institutions in Serbia are open to working with crypto companies, making it easier to conduct business.
• The Digital Assets Law provides regulatory clarity, ensuring that crypto businesses can operate within a well-defined legal framework and reducing uncertainty in banking and financial transactions.

 

 

 

Conclusion

 

Serbia’s combination of progressive regulations, a strong tech talent pool, favorable taxation, and a supportive ecosystem makes it an attractive destination for cryptocurrency businesses. The country’s government and crypto community are actively working to foster a pro-innovation environment, positioning Serbia as a growing hub for blockchain and crypto companies.

Serbia offers a range of IT grants, tax credits, and incentive programs to bolster the growth of its technology sector, a key component of the national economy. These initiatives are typically supported by the Serbian government, the European Union, and various organizations dedicated to promoting innovation, startups, and IT development. Notable examples include:

 

 

1. Innovation Fund

 

– Mini-Grants Program: This program supports early-stage companies in developing innovative products, services, or technologies. It provides co-financing for projects, helping startups and small businesses with funding for R&D activities.

– Matching Grants Program: Targets more developed companies, offering co-financing for projects with the potential to create new or significantly improved products, services, or processes.

 

 

 

2. EU Pre-Accession Assistance (IPA)

 

– The EU provides financial support to Serbia through the IPA, which includes grants for various sectors, including IT. These grants often focus on enhancing digital infrastructure, improving IT education, and supporting tech startups.

 

 

 

3. Digital Serbia Initiative

 

– Although not a direct grant program, this initiative collaborates with various stakeholders, including the government, to support Serbia’s digital transformation. It offers resources, mentorship, and occasionally funding opportunities for tech startups and IT projects.

 

 

 

4. Startup Ecosystem Support

 

– Several local and international organizations, such as Startit, ICT Hub, and Impact Hub Belgrade, offer grants, competitions, and accelerator programs for tech startups in Serbia. These programs often provide seed funding, mentorship, and access to investor network.

 

 

 

 

5. R&D Tax Incentives

 

– Although not a direct grant, Serbia offers tax incentives for companies that invest in research and development activities, which can significantly reduce the cost of IT projects.

 

 

 

 

6. Tax credit for startup investments

 

– Companies that invest in the capital of newly founded Serbian companies engaged in innovative activities, including IT, can benefit from a tax credit to reduce their calculated profit tax. The tax credit amounts to 30% of the investment made.

 

 

 

 

7. IP Box

 

–  Companies can exclude income derived from exploitation fee deposited on the author’s work or subject of related rights (author’s work), that is the invention, from their corporate income tax base.

 

 

These grants and programs are vital for supporting the growth of Serbia’s IT sector, offering numerous opportunities for startups, established companies, and innovators to secure funding and resources.

 

Should you require any clarification or have additional questions, please do not hesitate to contact Welcome to Serbia.

 

For foreign citizens planning a longer family stay in Serbia, enrolling children in local schools may seem like a challenging task.
However, through a rich offer of public and private schools, some of which provide education in a foreign language, this country offers many opportunities for acquiring new knowledge.

 

First and foremost, it is important to note that the education of foreign citizens, stateless persons, and citizenship applicants is defined by law, which stipulates that they are educated under the same conditions as Serbian citizens.

What does the education system in Serbia look like and how does it function? What is required for enrollment when it comes to foreign citizens? This guide is here to provide you with all the necessary information to make the process of enrolling in primary or secondary school simple and easy.

 

 

 

Primary Education in Serbia

 

In the Republic of Serbia, primary education is a legal obligation, and children start school at the age of seven (at least 6.5, and no more than 7.5 years old). A school psychologist assesses whether a child is ready to start school. Children aged between 6 and 6.5 years can enroll in the first grade if they show the necessary maturity. Similarly, based on the psychologist’s opinion, enrollment can be postponed for a year.

 

Since 2006, all children are required to attend at least nine months of preschool preparation before enrolling in the first grade. This program can be conducted either in preschool institutions or in primary schools. Entrance exams are required only for primary music and ballet schools, which are considered art schools.

Children enroll in the school located in the area where they live. Parents can also choose a school outside their area if there are available places in the chosen school.

 

 

 

Organization of Classes and Grouping of Students

 

Primary education lasts eight years and is divided into two cycles, each consisting of four grades. From the first to the fourth grade, one teacher is responsible for one class and teaches all subjects except for language and some elective subjects.

From the fifth to the eighth grade, each subject is taught by a different teacher specialized in a particular field. One of the teachers is the main teacher responsible for leading the class.

Students of the same age are divided into smaller groups – classes consisting of up to 30 students. Classes in special schools, attended by children with developmental needs, cannot have more than ten students.

 

 

 

Types of Primary Schools in Serbia

 

Primary schools can follow a national or foreign program and can be public or private. Classes in national schools can be conducted bilingually (in a foreign and Serbian language) or in a foreign language and the language and script of a national minority, with the consent of the Ministry. A foreign program, in a foreign language, is provided by a foreign school on the territory of Serbia.

As defined by law, within the school program, for children and students who do not know the Serbian language, the school can implement an individual program to acquire elementary knowledge of the Serbian language. Typically, such students are in classes where their mother tongue is taught as an additional language.

 

 

 

Organization of the School Year

 

The school year starts on September 1, and the teaching part of the school year consists of two semesters. The first semester begins on the first working day in September and ends one or two working days before December 31. The second semester begins around January 20 and ends in the second week of June. Final year students, eighth-graders, finish the school year two weeks earlier to prepare for the final exam.

Between the two semesters, there is a winter break, and between two school years, there is a summer break. Also, there is a spring break lasting about five working days, and there are several one-day or two-day breaks for national or religious holidays.

 

 

 

Documentation Required for Enrolling a Foreigner in Primary School

 

A parent can submit a request for enrollment in a preschool institution electronically through the eUprava portal. Depending on the parent’s status, it is necessary to scan:

 

For employees in foreign companies:

• Residence registration for all family members;
• Employer’s confirmation translated and certified by a court interpreter.

 

For embassy employees:

• Confirmation of employment status issued by the embassy;
• Photocopy of the diplomatic ID card (for embassy employees, for children and parents).

 

 

For enrollment in the first grade, it is necessary to submit: the child’s birth certificate, a residence certificate, a certificate of completed preschool program, and a doctor’s certificate of completed medical examination.

It is important to note that although proof of residence is required for enrolling foreigners in primary school, children from vulnerable social groups (migrants, refugees, and asylum seekers) can enroll in primary school without proof of residence or necessary documentation, provided they submit proof of the child’s medical examination.

 

If the child has already started school in another country, the foreign citizen or stateless person has the right to request the recognition of a foreign school certificate, which is nostrified by the competent institution in Serbia (ENIC/NARIC center). Also, all necessary documents, such as diplomas and birth certificates, must be translated into Serbian and certified by an authorized court interpreter.

 

 

 

Secondary School in Serbia

 

Unlike primary education, secondary school is not obligatory. Students usually enroll in secondary school at the age of 15, after completing primary school. Depending on the chosen school, education lasts from three to four years.

The criteria for enrolling in secondary school are the final exam taken after completing primary school and the student’s school achievements (grade average) during primary education. Better results on the final exam and a higher grade average increase the likelihood of admission to the desired school.

Enrollment in secondary schools follows the submission of a wish list, and the child will be admitted to the first desired secondary school for which they have enough points. The wish list can include a minimum of 10 and a maximum of 20 schools. After the student allocation, the first enrollment period follows, usually held at the beginning of July, and those who remain unallocated will have another chance in the second enrollment period.

 

 

 

 

Types of Secondary Schools in Serbia

 

Secondary schools in Serbia are mostly public and free, but there are also many private schools. The language of instruction is Serbian, and other languages are available for national minorities where necessary. Students can choose between:

 

• General secondary schools, called gymnasiums, last four years. Since they do not provide specific professional training for a particular occupation, gymnasium graduates usually proceed to university. There are special gymnasiums intended for students with skills and knowledge in a specific area, such as mathematics, physics, IT, etc.
• Vocational secondary schools last three or four years and provide specialized education. Some fields include agriculture, construction, economics, trade, textile industry, transport, mechanical engineering, forestry, and wood processing. After finishing vocational secondary school, a student is ready to enter the labor market or continue their education.
• Art schools, such as music and ballet schools, can be mixed with artistic and general education subjects. Some students attend art school simultaneously with another general or vocational secondary school.
• Secondary schools for special education are for students who cannot attend regular schools.

 

Some schools operate on the principle of dual education, where students spend part of their time in professional practice. It can take place with a single employer or in different companies. During this time, students are entitled to a monthly allowance of at least 70% of the minimum wage in the Republic of Serbia.

 

Secondary school is considered completed after successfully passing the matriculation or final exam at the end of the schooling. Access to further university education is most often granted to students who have completed four-year programs, but some educational institutions also enroll students from three-year secondary schools.

 

 

 

Documentation Required for Enrolling Foreign Citizens in Secondary School

 

If a student is a foreign citizen and wishes to continue their education in Serbia, the parent initiates the process of nostrification of the diploma for the completed grade abroad, as in the case of primary school. The request is submitted to the Qualification Agency.

Refugees and migrants enroll in secondary school in those secondary school profiles where there are places available after the second round of enrollment, while foreign citizens enroll in secondary school beyond the number determined for student enrollment in the current school year.

In Serbia, endowments with private interest, often referred to as “private interest foundations” or “private endowments,” are legal entities established by individuals, families, or private entities to support specific causes or projects that align with their personal interests or values. These endowments blend philanthropic goals with the interests of the founders, allowing for targeted support in various sectors. Here are some key aspects and advantages of such endowments:

 

 

1. Personalized Philanthropy:

 

– Targeted Giving: Private interest endowments allow donors to support specific causes, projects, or institutions that align closely with their personal values and interests, ensuring their contributions have a focused impact.

–  Legacy Building: Donors can create a lasting legacy by establishing an endowment in their name or their family’s name, ensuring their philanthropic vision endures beyond their lifetime.

 

 

 

2. Flexible Funding:

 

–  Customizable Goals: These endowments can be tailored to support a wide range of initiatives, from education and healthcare to cultural preservation and community development.

–  Adaptability: The objectives of private interest endowments can be adjusted over time to reflect changing priorities or new opportunities, offering flexibility in their philanthropic efforts.

 

 

 

3. Tax Advantages:

 

– Tax Deductions: Donors can benefit from tax deductions on their contributions to the endowment, reducing their overall tax liability and providing an incentive for substantial giving.

–  Estate Planning: Establishing a private endowment can be an effective estate planning tool, potentially offering favorable tax treatment for assets transferred to the endowment.

 

 

 

4. Sustained Impact:

 

–  Long-term Support: Endowments provide a sustainable source of funding for ongoing projects or causes, ensuring continuous support without the need for frequent fundraising.

–  Investment Income: The endowment’s principal can be invested, and the income generated can fund programs and initiatives indefinitely, maximizing the impact of the original donation.

 

 

 

5. Operational Control:

 

–  Governance Structure: Donors can set up a governance structure that allows them to retain a degree of control over how the endowment is managed and how funds are allocated, ensuring alignment with their philanthropic goals.

–  Advisory Roles: Founders or their designated representatives can serve on advisory boards or committees, providing input and oversight on the endowment’s activities.

 

 

 

 

Conclusion

 

Private interest endowments in Serbia offer a powerful means for individuals and families to support causes they care about while benefiting from various tax and legacy advantages. By providing sustained and flexible funding, these endowments can drive long-term positive change in numerous sectors, reflecting the personal values and vision of their founders. As such, they represent a significant component of the philanthropic landscape in Serbia, contributing to the country’s social, cultural, and economic development.