invest n serbia, speach, Milan 1 april

1. JELENA CORSOVIC
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2. Improved Serbian Business
Environment and Opportunities for
Investors
April, 2015

3. Improved Serbian Business Environment
Content
Business Environment and Opportunities
Privatization Process
Political Overview and Economic reforms
Forecasts
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4. Political Overview and Economic
reforms
April, 2015

5. POLITICAL OVERVIEW:
Very stabile
government,
constituted
on April 27,
2014
Prime
Minister
Aleksandar
Vucic,
Serbian
Progressive
Party
Pro EU
Government
In January 2014 Serbia
started the EU
membership
negotiations.
Screening process
successfully completed
1-4-15

6. Government goals:
New Labor Law Bankruptcy Law
Law on Inspections Oversight
entered Parliamentary
procedure
Law on Planning and Construction
Developing eGovernment
Increase predictability of
fiscal and para–fiscal burden
Making the level field business environment:
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7. Business Environment and
Opportunities
April, 2015

8. Serbian Investment and Export Promotion Agency Allocated Funds
Financial Support to Investors
Why?
19 calls
281.2 million € allocated
strategic geographic
location
Among the lowest corporate tax rates in
Europe of 15%

9. Serbian Investment and Export Promotion Agency Allocated Funds
Financial Support to Investors

10. Serbian Investment and Export Promotion Agency Allocated Funds
Financial Support to Investors

11.  In 2011, Serbia was the leader in CEE in attracting FDI with € 2.2 billion of
inbound investments.
 Starting a business in Serbia provides for an opportunity for customs-free
export to a market of 1 billion people.
 Serbia is the only country outside of the Commonwealth of Independent
States that enjoys a free trade agreement with Russia, but also with Turkey,
EFTA, Belarus and Kazakhstan. It is also a member of the CEFTA with 29
million people and one of the biggest markets in the region.
 Serbia's labor force offers a unique combination of high quality, wide
availability and cost effectiveness.
SERBIAN MARKET OVERVIEW:
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12. Advantages
 The amount of funds which can be awarded to large enterprises is
determined up to 50% of the eligible costs for the implementation of the
investment project.
 The amount of funds may be increased by up to 20 percentage points for
small-sized companies and up to 10 percentage points for medium-sized
companies.
 Serbia`s favorable business environment features:
- highly competitive tax rates
- and low operating costs.
- Educated workforce at competitive rates
1-4-2015

13. 1 / 4 / 15
TAX RATES IN SERBIA
20%
20%Copyright, property, profits from gambling and other types of income
Annual income tax 10/15%
Corporate profit tax
Taxes on dividents, shares in profits, royalties, interest and capital gains
15%
10%
15%
Salary tax and income from self-employment
Capital incomes and capital gains
Social Security Contributions
Personal income taxes
For legal entities
Pension and disability insurance -14%
Health insurance - 5.5%
Unemployment insurance - 0.75%
TAX RATES:
Value Added Tax (VAT)
Standard rate 20%
Reduced rate 10%

14. 12 / 12 / 14FOCUS SUL MERCATO SERBO
 Serbia can serve as a manufacturing hub for duty-free exports to a market of 1 billion
people that includes the European Union, the Russian Federation, Kazakhstan, Belarus,
Turkey, South -East (CEFTA),EFTA
 Upon the completion of negotiations with Egypt, the territory with duty-free access for
Serbian products will expand by an additional 77 million people.
LIBERALIZED TRADE
1.083.259.142Total Market Size
Generalized system of
preferences
CEFTA
EFTA
Turkey
Free Trade Agreement
Free Trade Agreement
Free Trade Agreement
29.990.542
13.000.000
75.000.000
Preferential Trade Regime 494.070,000EU
USA
Russia, Belarus, and Kazakhstan Free Trade Agreement 168.640.600
302.558.000
Serbia's Preferential Trade Agreements
Market Trade regime Number of inhabitants

15. 12 / 12 / 14FOCUS SUL MERCATO SERBO
 Exports to the EU market are free-of-customs according to the Stabilization
and Association Agreement.
 For several food products (baby beef, sugar, and wine) export quantities are
limited by annual quotas.
 Imports from the E.U. are pursued based on the Interim Trade Agreement,
as part of the Stabilization and Association Agreement, providing for
progressive abolishment of import customs duties for industrial and certain
agricultural products from E.U. countries by 2014.
Exports to and from EU

16. 12 / 12 / 14FOCUS SUL MERCATO SERBO
 Since 2000. Serbia has attracted more than €22.4 billion of inward foreign
direct investment.
 A list of leading foreign investors that have already invested consists of:
FIAT, Telenor, Microsoft, Coca-Cola, Delhaize, Michelin, Gazprom, Bosch,
Siemens, Banca Intesa Sanpaolo, UniCredit and many others
FDI BY COUNTRIES
 Currently leading spot on the country list is held by Netherlands, followed by
Austria, Greece, Norway and Luxembourg, while major investor countries
also include Germany, Italy, Slovenia, and the Russian Federation. (USA
usually invests through its European affiliates)
FDI BY INDUSTRIES
 Service sectors have proven to be the most attractive to international
investors. Banking and insurance recorded the largest FDI inflow of €5
billion. Manufacturing industries € 4.8 billion, followed by wholesale, retail
and repair of motor vehicles and real estate activities.
FDI facts and figures

17. Forecasts
April, 2015

18. Market that investors and traders are willing
to examine more closely
Over the medium to long term, structural
reforms should create a fundamentally healthier
economy.
SEE has lagged behind and now might be the time for a fresh look.
It ranks in the top 10 markets for sales growth potential this year
Forecasts for Serbia and SEE region

19. Privatization Process
April, 2015

20. 1 / 4 / 15
PRIVATIZATION PROCESS IN SERBIA:
 Serbia passed a law to privatize almost 600 state-owned firms with a
deadline of end 2015.
 Some 160 companies are now in the process of restructuring
 The state will also allow for debt equity swaps for highly indebted firms and
might also grant some debt write-offs to secure the sale.

21. THANK YOU!