Invest in Serbia!

Excellent Location

• South East Europe, central Balkans; Time zone GMT+1.
• Geo-strategic position at the crossroads of Pan-European Corridors 7 and 10, a major link between Europe and Asia.
• 8 neighboring countries: Hungary, Bulgaria, Romania, FYR Macedonia, Albania, Bosnia-Herzegovina, Croatia, and Montenegro.
• 88,361 km² of territory – rich fertile plains in the north, ancient mountains and hills to the south.
• Moderate continental climate, average temperature -1°C in January and 22°C in June, well distributed rainfall.

Market Potentials

• 7.5 mn consumers in Serbia, 2nd largest market in the region.
• 30 mn consumers in South East Europe with duty-free access.
• 150 mn consumers in the Russian Federation with customs-free access.  
• Preferential trade status with USA and the EU.
• Overall duty-free exporting potential: 1 bn consumers.

Growing Economy

• Serbia – number 1 business reformer in the world (World Bank 2006 report).
• Currency – Serbian Dinar (RSD); 1 EUR = 80. 12 RSD during 2007.
• 7.5 % GDP growth rate, GDP per capita $5,764 in 2007.
• Reduced inflation – 10 % in 2007.
• €1.7  bn National Investment Plan funds from state budget surplus.
• $14 bn foreign currency reserves, and growing.
• Exports $9 bn in 2007 (37 % growth) most to Italy, CEFTA, Germany, Russia.

Taxes & Incentives

• State grants from €2,000 to €10,000 per new job created for greenfield/brownfield projects.
• 10 % corporate profit tax rate – among the lowest in Europe.
• 8 to 18 % VAT rate – among the lowest in CEE.
• 10-year corporate profit tax holiday for large investments.
• Tax credits up to 80 % of the amount invested in fixed assets.
• 5-year corporate profit tax holiday for concessions.
• Duty-free import of raw materials, semi-products, components, and equipment.

Investment Magnet

• $13.5 bn total inward FDI inflow since 2001, 90 % average annual FDI growth rate. 
• Serbia – The place of largest greenfield investments in SEE 2004-2006 (OECD).
• Belgrade – The City of the Future and top FDI location in South Europe 2006/07  (Financial Times).
• Major investors: Telenor, Philip Morris, Mobilkom, Banca Intesa, Coca-Cola, Microsoft, Stada, InBev, Lukoil, U.S. Steel and many others.

Human Resources

• Labor force (age 15-64) exceeds 5 mn, 52 % with secondary or higher education.
• Vast labor pool – unemployment rate 21.6 % (2006).
• Competitive labor costs – €484 per month, gross (2007).
• 11. 7 % average growth of industrial productivity in the past 5 years. 
• 700,000 university or college graduates,  1/3 from technical faculties. 
• 42 % of the population speaks English (Gallup International).

Related links -
Financial Times on Investment Potentials in Serbia:

Commentary: Where risks are low and profits high
Indjija investment strategy: Funk rock brings spice to pro-western municipality
Serbia: hostage to its past despite a spurt in growth