Business Opportunities in Serbia During the Pandemic Year

Over the past year, we have encountered many blockages and impossibilities in the world of business and economics. That is why we have made an effort to enable our clients to start a company in Serbia (or a branch), always and with our assistance:

1) being physically present in our office;

2) remotely, from the comfort of their home, from the country they come from.

Life in Serbia currently offers many benefits: normal working hours of banks and state institutions, catering facilities, movement without any restrictions, affordable living costs as well as the offer of several different types of vaccines. Thanks to these, the Henley Passport Index, an organization that evaluates and analyses passports, has published an updated list of currently the most powerful passports in the world, i.e. data on whose citizens have the most benefits when traveling around the world. According to this list, Serbia’s passport is the 36th most valuable in the world, with the possibility of entering 135 countries without a visa.

There are three business activities that have flourished during the pandemic within our borders:

E-commerce: According to the Ministry of Trade, Tourism and Telecommunications, since April this year, the purchase of food over the Internet in Serbia has increased by 200 percent, clothing by 100 percent and technical devices and computer equipment by 50 percent.. As the director of a company told us, “we had so much work from week to week that I personally had to work in the field.”

IT industry: Developers, but also all other employees in the IT sector have officially felt the least consequences of the coronavirus pandemic, according to the combined data of our Chamber of Commerce. Serbia has a surplus of half a billion euros, which means that so much more has been exported than imported.

Home builders and builders state that people were in their houses a lot during the pandemic, so many decided to fix them. Also, the state of emergency introduced due to the coronavirus pandemic did not stop the realization of infrastructure projects in Serbia. According to the Ministry of Construction, Transport and Infrastructure, there were about 63,000 construction sites in Serbia in August 2020,  which is about 16,000 more than at the same time last year.

In order to alleviate the “crisis that no one has ever faced before”, the Government of Serbia has prepared a package of measures related to direct assistance to businessmen and employees.

Cash Grants

To offset initial capital investments and ease the start of business endeavours, the Government of Serbia offers financial support for Greenfield and Brownfield projects in the manufacturing sector and services, which may be subject to international trade.

Construction Land Transfer Subsidy

Government or a local municipality can sell construction land at a price which is lower than the market price in support of an investment project of national importance (if the land is owned by the government), or an investment project that promotes local economic development (if the land is owned by the local municipality.

Corporate Income Tax Relief

A 10-year Corporate Profit Tax Holiday is available for investors who hire more than 100 employees and invest more than 8.5 million euros (1 billion RSD). Tax holiday begins once the company starts making a profit. 

Payroll Tax Incentives

Employment of people who were registered with the National Employment Agency for more than 6 months entitles employers to a sizable relief of taxes paid on net salary from the moment of employment:

• 1-9 new jobs: 65% reduction 
• 10-99 new jobs: 70% reduction 
• 100+ new jobs: 75% reduction 

(payroll tax incentives can’t be combined with Financial Incentives)

Double Taxation Treaties

Serbia has 61 effective double taxation agreements in place that cover income, capital, and property. In addition to having double taxation agreements in place with most European countries, Serbia has double taxation treaties in place with many countries in Asia and Africa.

The registration of a company in our country, including the opening of bank accounts, is a very simple and fast procedure that can be completed in just one week, with the assistance of Welcome to Serbia´s office that is settled in the downtown area of our capital. That is why the number of freelancers, who want and have come to live in Serbia so far, who perform their registered activities from both their home and comfortable and well-equipped hubs in the very centre of Belgrade, has increased.

In any case, our company is available to assist all potential clients in the process of company formation and business development in Serbia.

Please contact us for more information:

Email: dd@welcometoserbia.org, Mob: +381646594849 (WhatsApp, Viber, Telegram)