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Serbia
Serbia
Serbia
Serbia
Serbia
Serbia
Serbia
Serbia
Serbia
Serbia
Serbia
Serbia
Serbia
Serbia
Serbia
Serbia
Serbia
Serbia
Serbia
Serbia
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Serbia
Serbia
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Serbia

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  • 1. Prospering Foreign Investments D.0.0. Investing in Serbia
  • 2. Key country data        Official name: Republic of Serbia Area: 88,361 km2 Population: 9.5 million Official Language: Serbian State Form: Democratic Republic Capital: Belgrade (1.6 million) Currency: Serbian Dinar (RSD)
  • 3. Serbia’s priorities        EU Integrations Economic stability Infrastructure development Ensuring energy stability Proactive trade diplomacy Support to industries of national importance (Automotive, Electronics & IT) Support to underdeveloped regions and strategic regions
  • 4. Integration processes  The Stabilization and Association Agreement (SAA) with the EU signed in and ratified by Serbian Parliament  Trade interim agreement with the EU  Visa liberalization for Serbian citizens  Serbia’s application for WTO accepted
  • 5. Investment in Transportation Infrastructure – Corridor X  • • • •  A major part of the Corridor X highway already built, but some sections missing: towards FYR Macedonia and Greece towards Bulgaria towards Hungary Belgrade bypass International tenders to be completed
  • 6. Unique export potential • • • EU CEFTA Free Trade Agreements     EFTA Russia Belarus Turkey
  • 7. Favorable tax regime   Corporate income tax is paid at the uniform rate of 10%. Non-residents are taxed only based on their income generated in Serbia. The personal income tax rate is 12% for salaries. Corporate Income Tax: Serbia: 10 % Bulgaria: 10 % Romania: 16 % Hungary: 16 % Czech Republic: 19 % Poland: 19 % Slovakia: 19 % Croatia: 20 % Personal Income Tax: Serbia: 12 % Croatia: 15 % Czech Republic: 15 % Hungary: 16 % Romania: 16 % Poland: 18 % Slovakia: 19 % Bulgaria: 20 %
  • 8. Ensuring energy stability        The “South stream” gas pipeline with a total capacity of more the 10 billion m3/year High capacity underground gas storage in Northern Serbia Construction of additional thermal power plants; Further expansion of existing capacity Construction of an additional major hydro power plant is being considered Focus on renewable sources of energy –feed in Tariff system put in place
  • 9. Incentives in municipalities of special interest     In the municipalities of special interest for regional development: •Niš •Zaječar •Kraljevo •Novi Pazar Min. investment: 0.5 million EUR Minimum new of jobs: 50 Incentives from 5,000 to 10,000 EUR or every new job created
  • 10. Free Zones in Serbia       Fiscal benefits (exemptions from any tax burden for FDI, VAT, company profit tax, property tax, income tax, etc.) Free of customs duties for goods, equipment, raw and construction material Efficient administration (one stop shop) Simple and fast customs procedures Local subsides for using the infrastructure Providing a set of services to users under preferential terms
  • 11. Free Zones Cities There are seven free zones which are currently operating in Serbia:        Subotica Novi Sad Zrenjanin Kragujevac Sabac Uzice Pirot
  • 12. Incentives for investing in Underdeveloped Regions  In the municipalities that are considered most underdeveloped in Serbia: • Min. investment: 0.5 million EUR • Min. creation of jobs: 50 • Incentives from 4,000 to 10,000 EUR/ every new job created
  • 13. Incentives for for Large-Scale Investment Projects In all municipalities in Serbia: • For projects with investment value of over 50 million EUR and creating 300 new jobs the Government will provide up to 20% of total investment • For projects with investment value of over 200 million EUR and creating 1,000 new jobs the Government will provide up to 25% of total investment
  • 14. Most Improved Business Environment  Economist Intelligence Unit: "Serbia is forecast to make the largest improvement in the business environment in the region of Eastern Europe between 2009 and 2013. Out of 16 countries included in the research, Serbia will be leading the region in terms of business reforms by a wide margin".  PricewaterhouseCoopers ranked Serbia as the 3rd most attractive manufacturing and 7th most attractive services FDI destination among emerging economies.  Ernst & Young recorded nearly 150 inward investment projects in Serbia in 2007, 2008 and 2009 - the 2nd best performance in the South East Europe region.
  • 15. Foreign Direct Investments  Since year 2001, Serbia has attracted over $25 billion of inward foreign direct investment.  Since the onset of economic reforms, Serbia has grown into one of the premier investment locations in Central and Eastern Europe. A list of leading foreign investors is topped by world-class companies and banks such as FIAT, Telenor, Stada, Microsoft, Coca-Cola, Michelin, Gazprom, Siemens, IntesaSanpaolo, Raiffeisen, and many others.  Investors from the European Union top the list. The leading spot on the country list is held by Austria, followed by the Netherlands, Greece, Germany, Luxembourg and Norway, while major investor countries also include Italy, the Russian Federation, Slovenia, France and Switzerland.  The actual amount of U.S. investment is significantly higher than the official figure due to their companies investing primarily through European affiliates. This also holds for Belgium, Denmark, Israel, and a number of other countries.
  • 16. Foreign Direct Investments by Industries
  • 17. Overhead Costs • Extremely competitive environment provides second lowest corporate income tax in Europe, together with other favorable taxes and costs.
  • 18. Financial Incentives
  • 19. Liberalized Trade Global Market:   Externally, Serbia can serve as a manufacturing hub for duty-free exports to a market of 1 billion people. It includes the European Union, the United States of America, the Russian Federation, Kazakhstan, Turkey, South East Europe, the European Free Trade Agreement members, and Belarus. This customs-free regime covers most key industrial products, with only a few exceptions and annual quotas for a limited number of goods. Upon the completion of negotiations with Egypt, the territory with duty-free access for Serbia will be increased by the population of additional 77 million.
  • 20. Belgrade - City of Future Belgrade – City of Future     Belgrade, the capital, has been awarded as the City of the Future for Southern Europe 2007 by the FDI Magazine. Selection criteria - economic potential, cost effectiveness, human resources, IT and telecommunications, transport, quality of life, and FDI promotion. In 2008 the municipality of Indjija was ranked among the Top 25 Most Attractive locations for foreign direct investment in Europe by the FDI Magazine. With a population of 1.6 millions, Belgrade is the administrative, economic and cultural center of Serbia.
  • 21. Duty-free Access to a Market of 1 Billion Consumers      Starting a business in Serbia means the opportunity of exporting to a 1 billion people market without paying any customs duties. Serbia is a member of the Central European Free Trade Agreement (CEFTA) comprising of a free trade area with 29 million people. This region is also the one with the highest growth rate in Europe. Serbia is the only country outside of the Commonwealth of Independent States that enjoys a Free Trade Agreement with Russia. Added to this are duty-free exports to the European Union and the United States for most products and services. Finally, with the population of 9.5 million people, Serbian market itself is among the largest in the region.
  • 22. Skilled and Competitive Workers  Serbia's labor force combines exceptional working efficiency with sizable labor supply. With a unique combination of high-quality and low costs, it is one of the key factors in reaching a strong business performance.  Technical education is particularly strong as high school students are among the best performers at world contests in natural sciences, while Serbian engineers are wellknown for their expertise.  In addition, Serbia boasts the highest English speaking proficiency in Eastern Europe. Management education has also been accelerated by the introduction of joint graduate and post-graduate courses organized by local universities and renowned Western business schools.
  • 23. Unique Selling Propositions           Independent privately held company with international roots No governmental or financial services industry affiliation No political affiliation Hundred percent focused on client needs Prepare client for Go or No Go for Investing in Serbia Using or working with local resources - working with our people (no disclosure agreement) Working privately - all work, information and investigations will be done silently in the background (avoiding public noise) Capable of negotiating with government or public institutions subventions Support all industries Experienced in Due Diligence and Compliance Assessments
  • 24. Economic Information • GDP (2010): $40.28 billion. GDP growth rate (2010): 1% (revised downward from 1.8%). GDP per capita (2010): $5,370. Inflation rate (2010): 10.3%. • Natural resources: Coal, petroleum, natural gas, antimony, copper, lead, zinc, timber, bauxite, gold, silver, navigable rivers. • GDP by sector (2009 percentages, latest data available): Agriculture 9.0%; mining and quarrying 1.2%; manufacturing 14.8%; electricity, gas, and water 3.2%; construction 4.7%; wholesale and retail trade, repair of vehicles 1.3%; hotels and restaurants 1%; transport, storage, and communication 7.5%; financial intermediation 2.8%; real estate, renting 15.6%; public administration and defense, compulsory social security 3.4%; education 4.2%; health and social work 5.4%; other community, social, and personal services 2.3%; private households with employed persons 0.1%. Trade (2010): Exports--$9.79 billion. Major markets--Bosnia and Herzegovina, Montenegro, Germany, Italy. Imports--$16.73 billion. Major suppliers--Russia, Germany, Italy, China.
  • 25. Government • Type: Republic. • Constitution: Adopted in an October 28-29, 2006 referendum. • Branches: Executive--President (chief of state) Boris TADIC (since July 11, 2004); Prime Minister (head of government) Mirko CVETKOVIC (since July 7, 2008), Council of Ministers (cabinet). Legislative--Parliament. Judicial-Supreme Court of Cassation and Constitutional Court. • The national legislature of Serbia is a unicameral assembly of 250 deputies chosen in direct general elections for a period of four years. • The deputies in the National Assembly elect the Government of the Republic of Serbia, which, together with the President of the Republic, represents the country's executive authority. The judiciary is independent.
  • 26. Geography  Area: Republic of Serbia (88,361 sq. Km), Central Serbia (55,968 sq. Km), Vojvodina (21,506 sq. Km), Kosovo and Metohija (10,887 sq. Km).  Cities: Capital--Belgrade. Other cities--Novi Sad, Nis, Kragujevac, Subotica, Zrenjamin, Pancevo, and Cacak.  Position: Serbia is located in the central part of the Balkan Peninsula, in the south-eastern part of Europe.  Geographic coordinates: 44 00 N 21 00 S.  Land Boundaries: Total: 2,026 km. Border countries: Bosnia and Herzegovina 302 km, Bulgaria 318 km, Croatia 241 km, Hungary 151 km, Kosovo 352 km, Macedonia 62 km, Montenegro 124 km, Romania 476 km.  Terrain: Varied; in the north, rich fertile plains; in the east, limestone ranges and basins; in the southeast, mountains and hills.
  • 27. Investment Potential     Serbia is positioned at the heart of the river that unites Europe – the Danube River. Passing through ten European countries – Germany, Austria, Slovakia, Hungary, Croatia, Serbia, Bulgaria, Romania, Moldova and Ukraine, the Danube River links the cultures and economies of Western and Southeastern Europe. With 588 navigable kilometers through Serbia, the beautiful landscapes along the river are particularly interesting and offer a high potential for tourism development. As Corridor VII of the European Union, the Danube is an important transport route. Since the opening of the Rhine – Main - Danube Canal, the river connects the Port of Rotterdam and the industrial centers of Western Union with the Black Sea and, also, through the Danube - Black Sea Canal, with the Port of Constanta.
  • 28. Territorial organization  In terms of administrative and territorial division, the Republic of Serbia is divided into provinces, regions, administrative areas, the City of Belgrade, cities and municipalities.  The territorial organization of Serbia includes five regions (Belgrade region, Vojvodina region, Sumadija and western Serbia region, eastern and southern Serbia region and Kosovo-Metohija region). They include the City of Belgrade as a separate territorial unit established by the Constitution and law, and 29 administrative areas, 23 cities, 28 urban municipalities, 150 municipalities, 6,158 villages and 195 urban settlements.  The Republic of Serbia has two territorial autonomies, AP Vojvodina, and AP Kosovo-Metohija.
  • 29. Municipalities and Cities of Serbia  Serbia is divided into 150 municipalities (Serbian: opstine) and 24 cities (gradovi), which are the basic units of local self – government. The city may and may not be divided into city municipalities (gradske opštine).  Six cities, Belgrade, Novi Sad, Nis, Kragujevac, Pozarevac and Vranje, comprise several city municipalities, divided into "urban" (in the city proper) and "other" (suburban).  There are 33 city municipalities (17 in Belgrade, 5 in Niš, 5 in Kragujevac, 2 in Novi Sad, 2 in Pozarevac and 2 in Vranje).
  • 30. Map of Serbia

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