This document provides an overview of doing business in Serbia. It discusses Serbia's stable business environment, with a predictable legal system that protects foreign investors. Serbia aims to complete its privatization process by the end of 2015. Recent reforms have provided more flexibility to employers. Serbia's economy has experienced growth due to foreign investment and improving business conditions. The country was granted EU candidate status in 2012 and began accession negotiations in 2014. Overall the document presents Serbia as having great potential for investment and economic growth.

1. DOING
BUSINESS IN
SERBIA
2014

2. 01 F O R E W O R D
02 B U S I N E S S E N V I R O N M E N T
S ta b l e a n d P r e d i c ta b l e
03 W H Y I N V E S T ?
Tr a d e U n l i m i t e d
H u m a n R e s o u r c e s
Favo r a b l e G e o g r a p h i c P o s i t i o n
Low O p e r a t i n g C o s t s
F i n a n c i a l I n c e n t i v e s
S I E P A - A D e c a d e o f M i n d i n g Y o u r B u s i n e s s
04 W H E R E T O I N V E S T ?
A u to m ot i ve I n d u s t r y
A g r i c u l tu r e a n d F o o d P r o d u c t i o n
I C T S e c t o r
S I E P A - S u p p l i e r s D a ta b a s e ™
E l e c t r o n i c s I n d u s t r y
S h a r e d S e r v i c e s a n d B P O
R e a l E s t ate
Wo o d a n d F u r n i tu r e I n d u s t r y
Te x t i l e a n d A p p a r e l P r o d u c t i o n
05 S T E P S T O T A K E
G et t i n g T o a n d W o r k i n g i n S e r b i a
O f f i c e a n d R e s i d e n t i a l S p a c e M a r k et
C o n s t r u c t i o n P r o c e d u r e
S I E P A - I n v e s t m e n t L o c at i o n s D a ta b a s e ™
U s e f u l C o n t a c t s
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 6
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2
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00 I N D E X O F C O N T E N T
Airport City Belgrade, the first multi-use commercial facility in Serbia that merges
the latest in building technology, together with a tenant-focused approach.

3. According to EY*, Serbia was one of Europe’s favorite investment locations in CEE in 2012.
The success continued in 2013 as the number of ne w jobs was up by 18%, placing Serbia
on the 5th position in Europe, while 63 ne w projects made Serbia the second most a ttractive
Poland
-180
01 location in CEE, second only t o Poland. F O R E W O R D
Czech R.
-191
Slovakia
-104
Hungary
-289
Romania
-301
Serbia
+120 Bulgaria
-139
Poland
802
622
Source: EY *
Based on the comparison be tween the
number of FDI projects secured o ver
2004-2008 and 2009-2013 periods, Serbia
is the only country in CEE tha t has raised
its FDI a ttractiverness
* EY European Attractiveness Survey 2014
FDI Projects by Countries
Slovakia
305
201
Bulgaria
287
148
Hungary
597
308
Czech Rep.
512
321
2004-2008
2009-2013
Romania
612
311
Serbia
164
284
Nikola Jankovic
Acting Director, SIEPA
06 07

4. Foreign investors are accorded national treatment
02 B U S I N E S S
and provided with full legal security and protection in respect
to the rights acquired by the virtue of investment. E N V I R O N M E N T
The government’s fiscal consolidation plans outlined in the
draft medium-term strategy identify a set of measures that
aim to put public finances on a sustainable footing. The
2013 general government deficit of 5.0% of GDP exceeded
the initial target, although it came in below the 2012
deficit. The 2014 budget envisaged an increase in the
deficit to 5.5% of GDP to finance mainly higher investment
and interest payments.
A new Privatization Law was enacted in August, setting the
end of 2015 as a deadline for completing the privatization
process and outlining the possible models of privatization:
strategic partnership, transfer of capital without
compensation, sale of capital and sale of assets.
The new Labor Law was adopted granting more flexibility to
employers and providing options for work previously not
available. Amendments to the Pension and Disability
Insurance Law were adopted in July. In August, amendments
to the Bankruptcy Law were adopted, regulating more in detail
the role of the bankruptcy administrator and creditor rights.
Serbia wants to secure a three-year loan agreement with the
International Monetary Fund this year end to help reach debt
and deficit goals.
www.srbija.gov.rs www.seio.gov.rs
Over the past several years, the Serbian economy has
experienced growth due to strong foreign investment and
continuous improvement of its business environment. Major
steps to improve the business climate and reduce the state’s
footprint in the economy have been implemented with the aim to
provide momentum for investments, economic diversification,
and sustainable private sector growth in order to create jobs.
Serbia has set an ambitious plan regarding its top priorities - EU
accession, fiscal consolidation, finalization of the privatization
process, improvements of the Labor Law and pension system
and reforms in the functioning of the public enterprises.
The European Council granted the status of candidate
country to Serbia in March 2012 and decided to open
accession negotiations in June 2013. Accession negotiations
were formally launched in January 2014. The Stabilization
and Association Agreement between Serbia and the EU
entered into force in September 2013. Serbia has continued
to build a satisfactory track record in implementing the
obligations of the SAA as noted in the EC latest report from
October 2014. The analytical examination of the EU Acquis
(screening process) started in September 2013 and so far 5
chapters have been fully screened and screening of 9 more
chapters have started. Overall, the screening exercise is
expected to be completed in 2015.
Serbia’s external position is more balanced than before the
2008–09 crises. This was reflected by a lower current
account deficit, a more competitive exchange rate and a
comfortable level of international reserves. The banking
system is liquid and well-capitalized, a result of cautious
economic policies pursued before and during the crisis.
“Serbia has great potential in the IT industry
- that is why the w orld’s biggest software company
decided to open a development centre in Belgrade”.
Mr. Christopher Brennan,
Central Eastern Europe General Manager,
Microsoft
08 09

5. After the screening process in 2014
Serbia will officialy start
the EU negotiation process in 2015
E N V I R O N M E N T
STABLE AND PREDICTABLE www.nbs.rs
Following an export led recovery last year, the economy
contracted in the first half of 2014. Hence H1 2014 GDP dropped
by app. 0.5% yoy (+0.1% in Q1 and -1.1% in Q2). Exports of
goods and services in euro terms kept growing by double digit
rates, while imports remained restrained due to weak domestic
demand. Net foreign direct investment rose slightly on the
previous year, but is still far below its pre-crisis levels.
Heavy floods in the spring have hit agriculture and
damaged transport and, in particular, energy infrastructure,
further undermining short term growth. The floods will most
likely have a negative contribution on continuation of trade
gap narrowing, bearing in mind the stronger needs for
energy imports, and, possibly, lower potential of
agricultural exports.
In the conditions of weak domestic demand, the effects of good
last year’s agricultural season, decrease in global commodity
prices and relative dinar stability in most of 2013 and 2014,
inflationary pressures have decreased in the last and this year.
The annual inflation slowed down to 2.1% in July 2014 which is
below the lower targeted band of the NBS (of 4±1.5%).
GDP Growth Rates Serbia vs Eurozone Inflation RSD Exchange Rate EUR/RSD, USD/RSD
Tax rates in Serbia
are still one of the most
favorable in Europe.
The risk premium, as measured by JP Morgan's EMBI index,
in the region have had a decreasing trend since February
2014 and has declined further during the second quarter. In
addition to global factors, the fall in Serbia’s risk premium
was aided by the announced fiscal consolidation measures.
Despite the flooding, Serbia’s risk premium was on a decline
throughout May and the first half of June, when it fell to the
level of 220 bp last recorded in early November 2007.
In the second quarter of 2014, the year-on-year inflation
moved below the lower bound of the target tolerance band.
In fact, it plunged to 1.3% in June, its lowest level in the past
50 years. Persistently low inflationary pressures over the
past 18 months reflect the absence of major cost-push
pressures, low aggregate demand, lower inflation
expectations and relative stability of the exchange rate.
Serbias trade balance in million EUR
B U S I N E S S
Source: NBS, Eurostat
As of Q3 2014, the Serbian banking sector consisted of 29
banks, most of which in majority foreign ownership. As
assessed by the National Bank of Serbia in March 2014, the
banking system is stable and highly liquid. Capital adequacy
ratio is more than 20%, almost two times higher than the
regulatory minimum in Serbia and two and a half times
higher than in the EU. Judging by all criteria, banking sector
liquidity is running exceptionally high. At the end of 2013,
liquid assets covered 38.5% of total assets and 62.2% of
short-term liabilities.
In terms of their share in total banking sector assets, the
most significant foreign banks are from Italy and Austria,
followed by banks from Greece, France and other countries.
Source: NBS, Eurostat
11,505
5,961
12,622
7,393
14,250 14,716
8,441 8,738
15,469
10,996
7,500
5,514
2009 2010 2011 2012 2013 2014*
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
14
13
12
11
10
9
8
7
6
5
4
3
2
1
0
-1
-2
-0.6 -0.4
1.6
-1.5
-0.5
104.6
80.8
113.7 114.6 116.7
86.1
83.1
87.1
2.5
0.9
125
120
115
110
105
100
95
90
85
80
75
70
65
60
55
50
12.2
2.1
7.0
2.2
2011 2012 2013 2014* 2011 2012 2013 2014* 2011 2012 2013 2014*
1.4
Import Export
Eurozone GDP Serbia GDP * January - July * January - July
4
3
2
1
0
-1
-2
-3
USD EUR
10 11

6. 03 W H Y
-Duty-free access to a 1 billion people mark et;
-State grants for new jobs created;
I N V E S T ?
-One of Europe’s lowest CIT rates - 15%;
-Major European corridors’ intersection point;
-Access to a competitive and qualified talent pool. LOW OPERATING
COSTS
FINANCIAL
INCENTIVES
TRADE
UNLIMITED
HUMAN
RESOURCES
FAVORABLE
GEOGRAPHIC
POSITION
FDI Ranking
by No. of Projects
FDI Ranking
by value
10.2%
SLOVENIA
8.7%
GREECE
5.2%
FRANCE
8.6%
NORWAY
5.0%
GREECE
6.5%
GERMANY
5.0%
US
5.3%
RUSSIA
4.4%
ISRAEL
4.9%
SLOVENIA
2.5%
CROATIA
4.8%
BELGIUM
2.5%
SWITZER.
4.3%
FRANCE
16.9%
ITALY
14.1%
ITALY
13.0%
GERMANY
12.0%
AUSTRIA
11.6%
AUSTRIA
12.0%
US
Source: SIEPA database of investment projects 2001-2014*
12 13

7. Owing to the free trade agreements with these countries, Serbia is an ideal place for setting
up a manufacturing/distribution hub to serve the markets of the Russian Federation,
South East Europe, the EU and EFT A countries, Belarus, Kazakhstan, and Turkey.
W H Y
I N V E S T ?
Belarus
There are only a few exceptions to the
Agreement, including sugar, alcohol, cigarettes,
as well as used cars, buses, and tires.
EU
Some export limitations are
imposed only on exports of baby
beef, sugar and wine in the form of
annual export quotas. Import from
the EU is customs-free for most of
the products.
CEFTA
Turkey
Companies from Serbia can
export to Turkey without paying
customs duties. Imports of
industrial products from Turkey
are generally customs-free, but
for a large number of goods
customs duties will be progres-sively
abolished over a six-year
period, ending in 2015. Customs
duties remain in effect for
agricultural products.
In addition to duty-free trade between member countries,
the agreement specifies accumulation of product origin,
meaning that products exported from Serbia are considered
of Serbian origin if integrated materials originate from any
other CEFTA country, the European Union, Iceland, Norway,
Switzerland (including Liechtenstein) or Turkey, provided
that such products have undergone sufficient processing,
i.e. if at least 51% of the value added in the product is
sourced in Serbia (if value added there is greater than the
value of the materials used in Serbia).
Russian Federation
The agreement stipulates that goods produced in Serbia, i.e.
which have at least 51% value added in the country, are
considered of Serbian origin and exported to Russia customs
free. The list of products excluded from the Free Trade
Agreement is revised annually. As of March 2012, the list of
excluded products includes: poultry and edible waste, some
sorts of cheese, sugar, sparkling wine, ethyl-alcohol, tobacco,
cotton yarn and fabric, some types of compressors, tractors, and
new and used passenger cars. There is also a list of products
originating from Russia which are excluded from the agreement.
EFTA
Kazakhstan
The Agreement is in effect as of
2011. The list of free trade
exemptions includes meat, cheese,
wine, motor vehicles and several
other product groups.
Industrial products exported from Serbia to EFTA member
states (Switzerland, Norway, Iceland, and Liechtenstein) are
exempted from paying customs duties, except for a very
limited number of goods, including fish and other marine
products. Custom duties for imports of industrial products
originating in EFTA states will gradually be abolished by 2014.
Trade in agricultural products is regulated by separate
agreements with each of the EFTA members, providing for
mutual concessions for specified products.
TRADE UNLIMITED
Serbia is the only country outside of the Commonw ealth of Independent States
that has an a Free Trade Agreement with Russia.
Increase your competitiveness by benefiting from a Cust oms-Free Access to a
Billion Person Market.
www.mtt.gov.rs
14 15

8. AGE
TOTAL
AGE
20-29
AGE
30-39
AGE
40-49
AGE
50-59
Number of registered
unemployed people,
by age (August 2014) 757,243 177,976 187,056 174,802 165,512
Source: National Employment Service of Serbia
W H Y
I N V E S T ?
According to elance.com Serbia is among the t op 5 countries in Europe based on
freelancers’ earnings, while the number of freelancers rises b y 70% annually.
University of Belgrade has confirmed its world class ranking on the Shanghai List of top 500 universities globally.
The structure of
unemployed by level of
education (August 2014)
405,379
53.53%
HIGH
SCHOOL
UNIVERSITY
AND COLLEGE
ELEMENTARY
SCHOOL
110,680
14.61%
241,184
31.85%
HUMAN RESOURCES Source: National Employment Service of Serbia
Educated
Serbia's labor force offers a unique combination of high
quality, wide availability and cost effectiveness. It is one of
the key factors enabling strong business performance.
For decades, Serbia fostered extensive relationships with
leading western economies. A list of blue-chip companies
maintaining strong ties with local partners is topped by
Siemens, Alcatel-Lucent, Fiat, IKEA and many others.
Throughout years of cooperation, Serbian workers received
specific know-how and adopted advanced technological
applications and intense quality control standards. Having
vast experience in manufacturing and management, local
staff requires minimum training to adopt to cutting-edge
technologies and assembly processes.
Universities and colleges in Serbia produce around 47,500
graduates annually. One third of them are produced by business
and administration universities, while another third comes from
technical universities. Leading institutions in this field such as
the School of Electrical Engineering or the School of Mechanical
Engineering in Belgrade or the Technical University in Novi Sad
are recognized internationally for their expertise. University of
Belgrade has confirmed its ranking from 301-400 place on the
2014 Academic Ranking of World Universities (ARWU), also
known as the Shanghai List of top 500 universities globally.
Although the list is considered informal, it is a prestigious
ranking comprising only two percent of all universities globally.
High-quality technical education is largely based on elementary
and high schools offering a more advanced curriculum in
technical sciences than in most other CEE countries. Top-quality
www.bg.ac.rs
www.uns.ac.rs
www.ni.ac.rs
management education in Serbia is provided through joint
graduate and post-graduate courses organized by local
universities and renowned western business schools such as
the French HEC, British Sheffield University and Heriot Watt
University. In addition, there is an increasing number of
international elementary and high schools in Serbia. At the
moment, they offer curricula in English, German, French, and
Russian, including internationally recognized examinations.
Available
Recruitment of young graduates and undergraduates is
simple given the high unemployment rate, especially among
those under 30 years of age (almost 50%). Many are keen to
work for international companies. Serbian workers have a
strong work ethic and demographics are favorable for foreign
companies: a wealth of ambitious and educated people
coupled with a high unemployment rate keep wage expecta-tions
at competitive levels.
The rate of unemployment is as high as 22%, while the
percentage of those with college and university level education
seeking jobs stands at around 15%. The number of engineers
and managers is sufficient to meet the growing demand of
international companies in the country. Freelancing is also an
increasingly popular concept among young educated people in
Serbia, especially in creative industries, software develop-ment
etc. According to elance.com Serbia is among the top 5
countries in Europe based on freelancers’ earnings, while the
number of freelancers rises by 70% annually.
Flexible
The new labor regulations (Labor Law, in effect as of July
2014) are in favor of employer, bolster new employment and
labor flexibility. Employees are entitled for an increased
compensation for working at night and overtime (26%), but
not for working in shifts. A contract for a definite period of
time may now last for up to two years, while severance pays
are paid only for the time with the current employer.
Standard work week for full-time work consists of 40 working
hours, but may be reduced to not less than 36 hours. In
general, a work week is comprised of 5 days but in case there
is a need for work in shifts and overnight hours, an employer
is entitled to determine the exact days and working hours,
pursuant to the needs of a working process. Also, if a work
process allows it, there is a possibility of flexible hours i.e.
flexible start time, but fixed duration. In a given calendar
year, an employee has the right to at least 20 working days of
annual paid leave (holiday) as determined by general act or
contract of employment. This right is acquired after only a
month of continuous work with the current employer.
Working after 10pm is considered work at night.
Cost Competitive
Average salaries in Serbia are low enough to ensure
cost-effective operations. While slightly higher than in
neighboring countries such as Bulgaria, total costs for
employers stand at merely 60% of the level in CEE countries.
Social insurance charges and salary tax nominally amount to
roughly 62% of the net salary, but the tax burden for employers
can be largely reduced through a variety of financial and tax
incentives for new employment.
The average gross salary with out employer’s contributions
across economic sectors for the first eight months of 2014 was
around €540 as noted by the Vienna Institute, but the labor
costs vary among individual industries, cities, and education
levels. The ratio of average salaries among economic sectors
may differ as much as 5:1, while the salary range for the same
position in different regions may also be significant. Overall
salary levels in euro equivalent are rather stable and vary only
by a couple of percentage points annually.
The minimum salary has to be at the statutory minimum wage
determined by the mutual consent of the Serbian Government,
labor unions, and the association of employers. It is currently
slightly higher than €1 per hour, i.e. close to €240 on the
monthly level (as of 2015).
This table does not represent total cost of employees. It is used as an
international benchmarking standard. Average wages encompass net salary
and contributions and tax paid by employees only. Adding contributions
paid by the employer on behalf of the employee will result in total cost.
413 490 537
777 824 870 965 1.048
Average gross
monthly salary (EUR)
BULGARIA ROMANIA SERBIA HUNGARY SLOVAKIA POLAND CZECH REP. CROATIA
Source: Vienna Institute for International Economic Studies, 2014
16 17

9. Serbia bridges the East and the W est.
Its treasured position in the heart of South East Europe
makes it an outstanding investment location.
FAVORABLE GEOGRAPHIC POSITION
Owing to its position on the geographic borderline between
the East and West, Serbia is often referred to as a gateway of
Europe. Two important European corridors, VII – the River
Danube and X – the international highway and railroad,
intersect on the Serbian territory, providing excellent
connections with Western Europe and the Middle East. Serbia
is thus a perfect place for a company to locate its operations if
it wants to closely and most efficiently serve its EU, SEE or
Middle Eastern customers. Bordering the EU, Serbia still
offers a possibility of enjoying all benefits of working outside
the EU while being able to provide services and transport
goods in projected and flexible time frames.
The most efficient way to reach Serbia is by air, using one of
the two available international airports in Serbia - Belgrade
Airport and Nis Airport. The ease of traveling from Belgrade to
almost every destination in the world, either directly or with a
layover is provided by almost all major international airlines.
The daily flight schedule to major transportation hubs such as
Frankfurt, Rome, and Moscow includes more than four flights.
Once in Belgrade, airport Nikola Tesla is located only 18 km
away from downtown and, by taking a highway, it takes no
longer than 20 minutes to reach the heart of the city. The road
network connects the airport with major international roads
E-75 and E-70 which link the capital to Zagreb, Nis, Novi Sad,
Subotica, and other cities in Serbia and the region.
Air traffic to Nis is less frequent, yet it provides a good
international connection to the city.
Bucharest
Istanbul
Ljubljana
Rome
Vienna
Zurich
Sarajevo
Berlin
Düsseldorf
Frankfurt
Kiev
Milan
Munich
Paris
Prague
London
Moscow
Stockholm
Amsterdam
Bejing
Dubai
New York
Toronto
UP TO
1hr
UP TO
2hrs
UP TO
3hrs
MORE THAN
3hrs
Duration of flights
Bratislava578km
Budapest384km
BELGRADE
10th Pan European Corridor
7th Pan European Corridor
Moscow2235km
Minsk1532km
W H Y
I N V E S T ?
London2042km
Stuttgart1451km Vienna612km
Salzburg989km
Graz699km
Ljubljana510km Zagreb442km
Sofia756km
Skopje889km Thessaloniki1020km
Igoumenitsa1051km
Konstanza702km
Istanbul1356km
Amsterdam1722km Hamburg1547km Berlin1255km Frankfurt1282km Zurich1175km Munich930km
Milano1009km Rome1289km Prague907km Warsaw1067km Kiev1302km Bucharest641km
18 19

10. To avoid unnecessary tax burdens,
Serbia has double taxation treaties with 55 countries
(as of September 2014).
LOW OPERATING COSTS
New employment entitles employers
to a sizable relief of personal income t ax and
contributions of up to 75%.
W H Y
I N V E S T ?
BULGARIA
10%
SERBIA
15%
ROMANIA
16%
CZECH REPUBLIC
19%
POLAND
19%
HUNGARY
19%
CROATIA
20%
www.mfin.gov.rs
SLOVAKIA
23%
SERBIA
10%
BULGARIA
10%
CZECH REPUBLIC
15%
ROMANIA
16%
HUNGARY
16%
SLOVAKIA
19-25%
POLAND
18-32%
CROATIA
12-40%
SERBIA
20%
BULGARIA
20%
SLOVAKIA
20%
CZECH REPUBLIC
21%
POLAND
23%
ROMANIA
25%
CROATIA
25%
HUNGARY
27%
Corporate
Profit tax
Salary
Tax rate
VAT
Source: National IPAs
Free zones in Serbia
Subotica
Zrenjanin
Novi Sad
Smederevo
FAS Free zone - Svilajnac
Kragujevac
Krusevac
Pirot
Vranje
Apatin
Sabac
Uzice
“South” - Nis
20 21

11. SIEPA - one-stop-shop
for financial support
FINANCIAL INCENTIVES
W H Y
I N V E S T ?
22
www.siepa.gov.rs
www.privreda.gov.rs
Decree Statistics as of October 2014
TOTAL NUMBER OF
SUBSIDIZED PROJECTS 200
TOTAL VALUE
OF THE PROJECTS
TOTAL AMOUNT
OF SUBSIDIES PLEDGED
NEW JOBS
CREATED 42,405
A DECADE OF
MINDING YOUR
BUSINESS
SIEPA was established more than a decade ago and
entrusted with the mission to support foreign
companies seeking to set up or expand their presence in
Serbia and Serbian companies doing business abroad.
Today, a staff of nearly 50 multilingual employees
handles projects from and to all over the world.
We provide professional services to companies
interested in setting up business operations in Serbia,
focusing on all relevant issues in their decision making
process. Our staff is ready to offer information on the
general investment environment as well as targeted
legal and industry-specific advisory services. Our
network of contacts provides links to all levels of
government as well as private service providers.
By administering the financial incentives program offered
by the government, we have supported opening of more
than 40 thousand new jobs since the launch of the program
in 2006. At the same time, we have technically and
financially supported thousands of Serbian companies
in increasing their competiveness at global markets.
SIEPA’s work is widely recognized, with World Bank’s
MIGA ranking SIEPA among the top five IPAs of
developing and countries in transition topping the list
of our international acknowledgements. The list of our
clients includes FIAT, Benetton, Panasonic, Bosch and
many other global and regional industry leaders.
We invite you to contact our expert staff which is ready
to assist you in developing your business in Serbia.
Working with us is simple, easy, and still costs nothing.
www.siepa.gov.rs
Source: SIEPA - October 2014

12. Mr. Jeff McCroskey, VP Services, Europe 04 W H E R E T O
„I have been nothing but impressed by Serbia - a hidden gem t o the business world.
I will be sure I share my v ery positive experience with many inside and outside of NCR“
I N V E S T ?
AUTOMOTIVE
INDUSTRY
AGRICULTURE
AND FOOD
ICT
SECTOR
SHARED
SERVICES
AND BPO
ELECTRONICS
INDUSTRY
TEXTILE
INDUSTRY
WOOD AND
FURNITURE
INDUSTRY
REAL
ESTATE
In previous chapters we saw the main reasons why
companies selected Serbia as the host for their projects
and also saw detailed information of the FDI source
countries. In order to get the full picture and to understand
the potential and attractiveness of Serbian economy we will
take a look at the specific sectors which attracted the
largest portion of investments.
Apart from what we could mark as expected FDI results such
as financial sector (vast majority of banks operating in Serbia
FDI per sector
by value
TELECOM.
16.6%
FOOD
BEVERAGE &
AGRICULTURE
12.4%
RETAIL
8.8%
FINANCIAL
17.9%
FDI per sector
by No. of
projects
FOOD
BEVERAGE &
AGRICULTURE
10.5%
CONSTRUCTION
7.7%
TEXTILE
7.5%
AUTOMOTIVE
16.0%
are now foreign owned), telecom, retail and real estate, Serbia
recorded large investments in the automotive sector, both in
value and project numbers. FIAT nicely rounded our efforts to
revitalize the automotive industry but in no terms is a sole
player as the next pages will show.
Where Serbia truly stands out is the fact that combined
agro-food investments take a very high place in the overall
analysis, being second in terms of number of projects and
third in value terms. There are a few reasons behind this,
firstly the booming local market which was very interesting for
privatizations in the first round of the tranzition, between
2001 – 2005 followed by major acquisitions such as Pepsico
or Heineken which occurred later, after 2007. Secondly the
regional CEFTA market proved to be one of the major drivers of
the FDI in this sector. Pharmaceutical sector was also quite
interesting to investors and here the network of FTA’s,
especially with Russia (where our pharmaceutical products
are exported in significant scale) played an important role.
Investments into construction material production were also
quite important both in value terms and project numbers.
If we deepen the sector analysis and look at the number of
projects realized we are able to get a better picture of the
attractiveness of specific sectors in Serbia.
AUTOMOTIVE
7.8%
OIL & GAS
6.9%
REAL ESTATE
5.3%
TOBACCO
4.8%
CONSTRUCTION
3.9%
PHARMACEUT.
3.5%
WOOD& &
FURNITURE
1.5%
MACHINERY &
EQUIPMENT
6.4%
ELECTRICAL &
ELECTRONICS
5.5%
REAL ESTATE
5.0%
FINANCIAL
4.4%
RETAIL
3.9%
METALLURGY
3.6%
WOOD& &
FURNITURE
2.8%
Source: SIEPA database of investment projects 2001-2014
The importance of the automotive industry grows compared to
the value analysis pushing it to the number one position. This
proves that FIAT investment although strategically important
wasn’t the main contributor and that the sector has much more
to offer as many German and French investors will testify.
Looking at project numbers, the combined manufacturing sector
plays a much more important role than in value terms. Combined
automotive, electrical and electronics, machinery and
equipment, textile and clothing and metallurgy and metal work
projects account for a large stake of the pie. This tends to confirm
our strategic orientation as we declared investments into
automotive, electronics and ICT the ones of strategic importance.
It also confirms that the key messages sent in the previous
chapter are correctly perceived by the investment community.
24 25

13. “Our operations here will provide Fiat Group with the means t o widen its
W H E R E
T O I N V E S T ?
customer base and to support its expansion and v olume aspirations from a strategic region,
while, at the same time, contributing t o Serbia’s industrial and t echnological development.
For over half a century, FIAT and Zastava have played
an important role in developing the Serbian automotive industry.”
Mr. Sergio Marchionne,
President, FIAT Group
- Wide availability of highly-qualified staff; top technical education
at both the secondary and tertiary levels.
- Perfect geographic location for efficiently serving EU, SEE and Middle Eastern customers.
- Sufficient capacity for even larger volumes of production.
AUTOMOTIVE INDUSTRY
Sector Overview
The Serbian automotive industry has a tradition of more
than 70 years, dating back to 1939 in the city of Kragujevac,
where the Serbian producer of motor vehicles, Zastava,
produced automobiles under the license of FIAT. Zastava’s
suppliers manufactured under strict FIAT quality standards
and acquired high-quality production standards that
enabled them to work with other western car manufacturers
such as Mercedes, Ford, PSA and Opel. At the same time
Opel cars were assembled in the town of Kikinda and
Serbian producers of trucks and buses worked hand in
hand with major OEMs such as Mercedes, Man and others.
Today, it is one of the most prominent sectors in Serbia,
accounting for almost 8% of the entire FDI stock in Serbia
since 2000. More than 60 international investors have
invested almost €1.7 billion, creating more than 27,000
jobs. The Serbian automotive industry supplies almost all
major European and some Asian car manufacturers.
www.acserbia.org.rs
The largest and the most important investment in the
sector is the FIAT project, not only because of the
investment amount, but also because it has helped to
attract a number of other car parts producers. It is also the
largest one of the most important investment projects in
the past 20 years and a future engine of growth of the
Serbian economy. FIAT produced 117,000 vehicles in 2013
generating over €1.5 billion of turnover, majority of which
was exported. Hence FIAT took over the first place in the
race for the biggest exporter from Serbia.
Manufacturing of vehicle chassis system parts, especially tires
and suspension parts is most prominent in the industry. Electrical
system components are another dominant product group with
car batteries and wiring installations as the most important
products. Also, production of engine components, mostly casted,
is very significant, along with forged and machined parts like
camshafts, brake discs, valves and flywheels.
Major Players:
26 27

14. - Serbia is a global leader in the export
of frozen raspberries with $232 million exported in 2013.
- Serbia is the largest provider of frozen fruit to the French and German market,
and the second largest to the Belgium market in 2013.
- Highly-attractive sector accounting for 12.4%
of FDI stock since 2001.
- One of the few industry sectors recording a surplus;
made-in-Serbia food is present around the globe.
AGRICULTURE AND
FOOD PRODUCTION
W H E R E
T O I N V E S T ?
Sector Overview
Serbia boasts ideal natural conditions for growing crops,
fruit and vegetables. The soil is still one of the cleanest in
Europe, while most of the fruit is grown in perfect conditions;
it is hand-picked, carefully stored, and packaged in order to
attain the highest possible quality and a unique flavor.
Serbia’s diverse climate and ample land resources also
create unique opportunities for the development of primary
vegetable production.
An excellent raw material base, network of FTAs, and a long
tradition of high-quality food production and strong regional
brands are key reasons world class companies have come to
Serbia. As noted above analysis, the agro-food sector
accounts for a massive proportion of foreign direct
investments, whether in terms of value or of the number of
projects.
In addition to excellent raw materials and conditions for
producing high-quality, healthy food in Serbia, investors can
also enjoy strong support from Serbia’s widely recognized
www.spos.info www.serbiaorganica.info
www.serbiaorganica.info
fruit-research institutes. Research mainly focuses on
technologically-advanced production that leads to
high-quality, environmentally-friendly seeds and vegetable
crop production. Moreover, Serbian law prohibits the
production and import of any genetically modified (GMO)
foods and seeds.
Made-in-Serbia food is present around the globe, from Japan
to the US, and is sold under Serbian brands and through
world’s largest supermarket chains such as Tesco, Lidl,
Asda, Spar, Carrefour, Metro, Idea, Leader price, X5 Retail
group, Magnit, Auchan Group and Dixie Group, Kopeika, and
Rewe. In the first seven months of 2014, Serbia exported
€1,232 million of agriculture produce, which is for 16.1%
higher than in the same period last year, making it one of the
few industry sectors recording a trade surplus (€537.3
million). International customers keep increasing orders for
Serbian truffles, raspberries, apples, corn, juices,
concentrates, purees, jams, frozen and dried fruit and other
first-class produce.
www.srpskemlekare.org
Major Players:
28 29

15. If you know what you’re looking for,
we know where to find it.
SIEPA SUPPLIERS
DATABASE™
Upgrade your business by buying products and
services from Serbia. In order to assist you in doing
just that, we have developed a comprehensive tool
that enables on-line browsing of our SIEPA Suppliers
Database™ and find the suitable product or
component for your business. This ever-expanding
database currently has around 2,500 suppliers and is
searchable by various criteria such as product, sector,
technology, region, and others. We come in once you
find the product and shortlist companies. By using our
vast experience with the Serbian industry, we will help
you select the right company and put you in contact
with the key people to make sure you establish
mutually-beneficial business cooperation.
serbia-suppliers.rs
W H E R E
T O I N V E S T ?
- Serbia - home to 1,600 innovative IT Companies employing more than 14,000 people.
- Microsoft’s 4th development center in the world opened in Serbia, evolving over time into an innovation center.
- Expertise in custom, high-end IT development services including software development,
hardware, and solutions.
ICT SECTOR
Sector Overview
As the world market for ICT continues to evolve towards
outsourced software engineering, offshore systems design
and integration, Serbia is well-placed both geographically and
structurally to provide a cost-effective, reliable alternative to
more established markets. An outstanding pool of intellectual
capital, attractive labor costs, excellent skills, good
communications networks and a high fluency in English are
just some of the key competitive advantages that persuade
international companies to expand their businesses to Serbia.
Engineering education in Serbia is particularly strong, with
approximately 33% of university graduates coming from
technical schools. ICT is taught at 35 high-education
institutions, 16 of which state-owned, 6 private and 13
state-owned Vocational Higher Schools. These institutions are
located in 18 cities, which greatly helps recruiting a wide base
of ICT students for two studying programs (Tertiary-type A and
type B) and six studying sub-programs. Given today’s growing
demand for ICT products and services, Serbian educational
institutions are facing challenges, both accommodating
booming interest among high-school graduates and supplying
more experts to the market. Total number of new ICT enrollees
in school year 2011/2012 was 5,523, of which 3,042 students
www.ict-net.com
www.vojvodinaictcluster.org
www.ni-cat.org
begun their ICT education with Tertiary type A studying
program (OAS) and the remaining 2,481 with tertiary type B
(OSS). Serbian ICT sector absorbs a vast majority of ICT
graduates, although “brain drain” is still an issue.
The cost-competitiveness of engineers is another advantage of
doing business with Serbia. Compared to salaries in the
country, IT specialists earn more than average, but compared
to their European colleagues, the situation is quite different.
Net salaries range from €600 to €1,200 per month for
highly-qualified and experienced, university-educated talents,
while gross salaries range from €1,000 to €2,000 per month.
Shoulder to shoulder with food, production and automotive
sector, ICT is becoming one of the pillars of the Serbian
economy. A large number of Serbian ICT companies offer
very strong technical skills that have attracted partnerships
with international firms and won them a place in high-value
market niches. Serbia ranks 40th on the list of biggest
software exporters globally. In 2013 Serbia exported around
€230 million in software services, which is a 30% increase
compared to the year before and as much as 165% against
2008. Local market is worth additional €400 million.
Major Players:
30 31

16. W H E R E
T O I N V E S T ?
- Significant investment track record
Siemens, Panasonic, Gorenje,
Elrad, ATB, Gruner, Eaton.
- Manufacturing tradition and
skillset in place.
- Fifth most exported oriented sector in 2013.
ELECTRONICS INDUSTRY
Sector Overview
Serbia is home to a rich tradition in the electronics industry
that dates back to the days of Nikola Tesla, one of the
greatest pioneers and inventors in the field of electricity.
This industry had its peak back in 1980s, when Yugoslavia’s
electronics industry was a $1 billion sector that employed
around 100,000 people. Although the sector today is still
only a fraction of what it was back then, recent foreign direct
investment into the industry and various state-driven
initiatives suggest that this sector has strong potential for
future growth.
From 2001 onwards, this industry has witnessed a steady
revival primarily driven by a continual inflow of foreign direct
investment - roughly €200 million. This, coupled with the
upcoming opening of several ICT-electronics parks, illustrates
that the best is yet to come for companies in Serbia’s
electronics sector. Some of the key investments are those of
Austrian giant ATB Gruppe, Slovenian home appliance
company Gorenje that has invested a total of €44 million in
three separate locations, Siemens with €16 million in Subotica
and Panasonic with €13 million facility in central Serbia.
Serbian electronics industry is a thriving, export-oriented
sector that grows with influx of foreign direct investment.
MEET US AT:
Embedded World, Nuremberg, Germany
Exports from the industry were growing by 24% annually
on average over the past four years (2010-2013). Between
15 and 20 electronics companies each export more than €1
million per year, while the entire sector exported €743
million in 2013 which made it the fifth most exported
oriented sector.
The Government of Serbia was actively promoting the growth
of this sector: along with automotive and ICT industry, the
electronics sector was designated as one of the priority
sectors in Serbia’s National Development Strategy and
allowed investors in this sector to receive more favorable
investment incentive packages. Companies in this industry
have taken advantage of this fact: investments in the
electronics industry are fourth when it comes to the number
of projects which have been approved for funding and third
in terms of created jobs.
Furthermore, numerous initiatives, including the promotion
of IT and Research and Development parks throughout the
country and the founding of an electronic systems cluster,
will propel the sector even further.
Major Players:
32 33

17. W H E R E
T O I N V E S T ?
- Low market saturation.
- Available labor with low attrition rates which is proficient in foreign languages.
- The right time zone to service European customers.
SHARED SERVICES AND BPO
Sector Overview
Serbia holds a whole range of aces up its sleeve to emerge as a
new hot spot for hosting BPO centers. Although new
small-to-medium sized service providers are emerging on
monthly basis, with an increasing number of big players, the
market is still unsaturated compared to “usual” BPO locations in
CEE. However, all of the pre-requisites for growth are in place and
considerable growth potential especially given the size and
availability of the labor pool. Many global players, mostly US
companies, have already recognized and used Serbia’s potential
as a BPO destination. The list of companies serviced from Serbia
is much longer and includes companies across a wide spectrum
of industries. They are serviced on as many as 17 languages.
The workforce is reliable, with a good skills base and business
culture stemming from strong cultural and business ties with
the West. The country has a level of multilingualism, especially
as concerns the English language, almost without parallel in
many other parts of Central and Eastern Europe. In 2012, Serbia
was ranked fourth out of 76 reviewed countries in Business
English proficiency by the Business English Index (BEI). The
average attrition rate for large BPO centers is around 5 percent.
Although there are international BPO centers outside of the
Serbian capital, companies with more diversified talent needs
usually opt for Belgrade. It is one of the largest cities in CEE and
www.siepa.gov.rs
one of the biggest and the best university centers in Balkans.
The total number of studying in Belgrade at all levels and
across all faculties stands at around 118,000, more than half of
the 230,000 students on the country level. Business-related
studies are the most popular, while one third of all students
belong to technical faculties. Out of just over 53,000 students
enrolled in higher education in Serbia in 2012, nearly 27,000 of
them have started studying in Belgrade.
The latest statistics show that the number of unemployed workers
in Belgrade stands at around 107,000. Moreover, there are over
100,000 unemployed in Serbia holding a higher-education
degree (college or university degree+), which is 14.6% of the total
number of the unemployed. Due to a strong migration trend
towards Belgrade the percentage of college/university among the
unemployed in Belgrade is much higher. Unemployment level in
the under 30 population is especially high, with around 300,000
unemployed workers in this tier.
The quality of life is exactly what one could expect from a
capital of 2 million people, with international schools, quality
medical services, and infrastructure to host a large expat
community. In 2007, the Financial Times’ fDi magazine picked
Belgrade as the City of the Future. It is also described by
Lonely Planet as the No. 1 nightlife destination in the world.
Major Players:
34 39

18. W H E R E
T O I N V E S T ?
- Among the highest office yields in Central and Eastern Europe.
- Strong demand for residential space across the country.
- Shopping center stock well below the CEE average.
REAL ESTATE
Sector Overview Sector Overview
The market is witnessing an increasing number of international
companies who have chosen Serbia instead of, for instance, the
Czech Republic, Slovakia, or Bulgaria, which is quite encourag-ing.
Consequently, the office space market now faces a lack of
new supply with only small-scale projects either under construc-tion
or being in shall and core condition, waiting for the future
tenants to finalize construction. The list of announced projects is
long, proving that the office segment remains attractive segment
for the investors, but the vacancy rates will remain insufficient to
accommodate the projected growth of services industry.
Based on CB Richard Ellis’ report, in Q2 2014, the vacancy rate
further dropped below 10% (as compared to the total stock).
Due to the lack of new supply, the market becomes undersup-plied
of quality office spaces as at the moment only a few
office buildings may accommodate requests of over 500 sq.m
as a compound unit. When analyzing the distribution of lease
activities by sector in the first two quarters of 2014, the two
fast growing industries, ICT industry with 53% and SS & BPO
with 16% are still the most dominant.
However, the segment with the most promising investment
potential is the retail market. According to global CBRE annual
research on the presence of leading international brand
retailers (“How Global is the Business of Retail”), in 2014
Serbia’s positioned at 46th place on the global list, with 19% of
share. For comparison, Croatia is ranked at 39th place with
25% of share. Belgrade itself holds 114th place, among 188
cities which participated in the research across the world.
- Large opportunities in sawn wood, engineered wood products, furniture, and paper production.
www.belgradewaterfront.com
www.klasternekretnine.gov.rs www.klasterdp.rs
The total retail stock in Belgrade remained unchanged at the
end of Q2 2014, standing at app. 230,000 sq m of GLA, which
includes all types of retail schemes: western-style shopping
centers, neighborhood malls, department stores and
secondary SC schemes. At the moment, Belgrade retail stock
comprises only three modern western-style shopping
centers (in total app. 105,000 sq.m GLA).
In terms of the new developments, one of the biggest RE
projects in the region – Belgrade Waterfront is underway. This
multi-use complex developed by UAE’s Eagle Hill will include
the construction of 5,700 residential units, 2,200 hotel rooms,
12,700 sq.m of office space on the total of 1.8 million sq.m.
Also, the opening of two retail parks in Belgrade is planned for
2015 and 2016, developed by Israeli IBC and Aviv Arlon, as
well as Poseidon Group’s 20,000sq.m Capitol Park. Poseidon
already built such retail park totaling 9,700 sq.m with 17
stores in Sabac in April 2014, accommodating brands such as
Tempo, C&A, NewYorker, JYSK, Deichmann, Takko Fashion etc.
The construction works on Vivo shopping park Jagodina are
underway. The project will comprise 10,000 sq.m with app. 30
stores, while the opening is expected in late 2014. Slovenian
company Toming targets Cacak to open its first retail scheme
of 7,000 sq.m. Austrian Immofinanz Group is also looking for
locations for retail park development. At the moment, their
scheme Stop.Shopof 11,000 sq.m is planned for development
in Subotica. Subotica should also witness the development of
10,000 sq.m large retail park, planned by MPC.
- Strong local demand and duty-free export access
to Russian, EU and SEE market.
- Top-quality raw base materials.
WOOD AND FURNITURE INDUSTRY
Furniture industry is one of the few sectors recording trade
surplus of over €100 million. FTAs with CEFTA, the EU and
Russian Federation underpin vast customs-free export oppor-tunities
for the Serbian furniture. Made-in-Serbia furniture has
a good reputation at the Russian market and numerous
Serbian construction companies are engaged in projects in
Russia, further increasing the demand. Export of furniture to
Russia is growing at the pace of 50% annually.
The foundation of the industry lies in good raw base and the
skillset of the workers. Forests cover some 2.252.400
hectares (29.1%) of the territory of Serbia. Broad leaves
constitute 90% of Serbian forests, while the remaining
portion is made up of various conifers. The main tree groups
of Serbian natural forests are beech (40%), oak (30%) and
other broadleaves. State owned forests (1,194,123 hectares)
has been certified by FSC standard.
There are 22 high schools in Serbia that specialize in wood
processing, while the Forest Sciences Faculty at the Belgrade
University produces around 1,000 graduates annually.
Serbian companies also have long-standing traditions of
supplying international buyers and the skill-set for the wood
processing industry is constantly improving.
One of the sub-sectors of the industry with the brightest future
is the production of massive furniture. This area offers
comparative advantages such as: high-quality local raw materi-als,
a low-priced labor force, low energy prices compared to
other European countries, and a strategic geographic position
that allows for fast shipment. All of these benefits represent
advantages compared to Asian competitors. Majority producers
of solid wood furniture from Serbia are successful, as they
focus on exporting to Russia, France, Germany, Italy and the
neighboring countries. Upholstery production is also a strong
point for Serbia. Simpo and Forma Ideale are the biggest
furniture producers in Serbia and the region, they are followed
by the exporters such as Matis, Gir, Atlas, Tra-Duga and
Extraform, which are widely recognized for their style and
quality. Serbian companies dominate the region, especially in
Macedonia, Bosnia and Herzegovina, Montenegro, Croatia and
Albania. To support the local and regional demand for
chipboard furniture, there have been significant investments
into automated lines for production of chipboards, especially
by Austrian company Kronospan, the largest multinational
company in this domain, and Fantoni from Italy. Interior design
is also a sub-sector in which Serbian companies are achieving
especially on the markets of Montenegro, Greece and Russia.
The last but certainly not the least important significant
component of furniture industry, offering enormous potential
and competitive advantage, is business relationships between
Serbian designers and local furniture producers, in order to
create a sustainable cooperation and business ventures.
Major Projects: Airport City Belgrade, Belgrade; Block 67, Belgrade; Big Center, Novi Sad Major Players:
36 37

19. - Numerous business opportunities, primarily in yarn,
fabric and ready-made garment production;
more than 25 investors have already taken advantage
of this opportunity.
COMPROM Plus
- One of the most price-competitive industries in Europe
with a respectable tradition and vast availability of skilled workforce.
- Existing FTAs all encompass textile products,
enabling efficient access to various markets.
TEXTILE INDUSTRY
W H E R E
T O I N V E S T ?
Sector Overview
Textile and garment production has a long history and
admirable tradition of fruitful collaboration with foreign
partners. Before the disintegration of Yugoslavia, textiles
were one of the leading exports, with annual industry export
revenues of around $1 billion. Over 70% of the export
revenues originated from the western European market. The
majority of these textile companies were located on the
territory of Serbia. During the eighties of the last century,
the production was mostly conducted on a cut-make-trim
(CMT) basis; where the materials are imported and only
labor is added before re-export. Over the last 10 years, the
Serbian fashion industry has evolved from a
manufacturing-based industry into a design-oriented sector
operating in the global marketplace. Over 1,500 companies
employing 30,000 personnel operate in the Serbian textile
industry which includes garment, textile and leather
production. This is nearly 2% of the total number of
companies and 2.9% of the total number of employees in
Serbia, or 8.7% of employees in the manufacturing sector.
The companies in the textile and garment production
generate around 0.7% of Serbia’s turnover.
Traditionally, Serbian companies provide quality CM and
CMT services for brands like Pompea, Dolce & Gabbana,
Patricia Pepe, Schiesser, Schoffel, Glitz, Lisca, etc. Also, to
a lesser extent, they provide Original Equipment
Manufacturer (OEM) services to global brands such as
Concordia, Bikkembergs, Decathlon, Benetton, Armani,
HIS, Atair and alike.
Serbian indigenous brands are perceived as brands of good
quality available at competitive prices. They traditionally
have a strong presence on the regional markets, while
leaders in this sector having a stronger international
presence including the EU, USA, post-Soviet states, Turkey
and other markets.
www.serbianapparel.com
Major Players:
38 39

20. The business registration procedure in Serbia
typically takes around 5 business da ys.
“The registration of the company w ent on simple and fast.
We think that the procedure is v ery rational and that the competent institutions in
the state administration perform their work very professionally”.
Mr. Milutin Ivanovic,
Former General Manager,
Knauf Beograd, Germany
05 S T E P S
T O T A K E
C O N S T R U C T I O N
P R O C E D U R E
GETTING TO
AND WORKING
IN SERBIA
O F F I C E A N D
R E S I D E N T I A L
S P A C E
M A R K E T
Starting a Business in Serbia
Serbian Company Law is in accordance with the European
Union’s directives and the latest trends in harmonization
with the EU legislation. Therefore, company types in Serbia
are similar to those in other countries.
Usually, international investors pursue business activities in
Serbia by setting up a Limited Liability Company, for which
the minimum capital required is as low as €1. Other usual
forms of incorporation include Joint Stock Companies,
Limited and General Partnerships. Minimum capital required
for opening a Joint Stock Company is around €25,000, while
the minimum capital requirements for setting up an
insurance company range from €2-4 million for companies
providing life insurance to €1-4.5 million for those offering
other forms of insurance. In this case, an operating license
issued by the National Bank of Serbia is also required.
A company can also set-up a representative office in Serbia
which would not have the status of a legal entity and could
also have one or more branches in Serbia. The parent
company assumes responsibility for all obligations that may
occur as a result of the representative office’s operations in
Serbia. Also, opening one or several branch offices is also an
option. Branches do not have legal personality either and
they conduct business activities in the name and on the
behalf of their parent companies.
Finally, business association is a legal entity founded by one
or more companies or entrepreneurs to achieve common
goals, but cannot conduct any business for profit, only for
the mutual interest of its members. The name of business
association must specifically include words "business
association“, abbreviated “b.a.” or “p.u.” in Serbian.
Association is not permitted to convert its legal form into a
company of any type.
All business forms must be registered with the Serbian
Business Registers Agency. The procedure is swift and easy
– for a Limited Liability Company the Agency will issue a
decision on the registration of a company, along with the
registration and tax identification number (PIB), certificate
on the registration with the Fund for Pension and Disability
Insurance, and certificate and registration number with
Republic Health Insurance Fund within the statutory
timeframe of 5 days. Agency’s headquarter is in Belgrade,
but it also has 13 branch offices throughout Serbia (the list of
cities can be found at www.apr.gov.rs). The Agency also
accepts applications over the Internet.
www.apr.gov.rs
40 41

21. “Life is very cosmopolitan, it is very easy to integrate,
and I have a great quality of life. It’s rela tively easy for me
to get back to the UK at weekends, as my children do no t live here with me.
But when they come over to visit, my kids lo ve it.”
Mr. Anthony Burnett,
Former Plant Manager, Ball Packaging
GETTING TO AND WORKING IN SERBIA
Citizens of the EU member countries may travel and stay in
Serbia for up to 90 days without a visa. The same regime
applies to EU membership candidate countries and a
number of other countries such as Argentina, Australia,
Brazil, Canada, Israel, Japan, Mexico, New Zealand, Russian
Federation, The Republic of Korea, Switzerland, Turkey, UAE,
Ukraine, the United Kingdom and US (for a complete list of
countries please refer to www.mfa.gov.rs). Residents of
other countries traveling to Serbia for business purposes or
permanent employment may obtain a business visa which is
valid for up to one year from a Serbian embassy abroad.
Visas can be requested by submitting an application to the
Consular Section of the responsible Embassy or Consulate
General. There are three types of visas that are available:
Short stay visas (type C visa), Transit visas (type B visa) and
Temporary residence visas (type D visa). Short stay visas are
mainly issued for tourism, business and other travel needs
and may be valid for single, double or multiple entries into
the Republic of Serbia. The duration of an uninterrupted
stay and/or the total duration of successive visits of a
foreigner with a short stay visa shall not exceed 90 days
within a period of six months, starting on the day of the first
entry. Short stay visas with multiple entries option are valid
for up to one year, for a maximum stay of 180 days.
www.mup.gov.rs
To start employment in Serbia, a foreigner must be granted
the approval for temporary residence as well as the
approval for employment. Temporary residence may be
approved for a period of up to one year and may be
extended multiple times for the same duration. Business
Permits are issued to company founders, directors of
companies with foreign shareholders, directors of
representative offices, directors of banks, bank
representative offices, insurance companies, and their
representative offices; Work Permits are issued to all
non-Serbian citizens looking to establish employment.
The prerequisite for this is the proposed employment
contract and letter written on company letterhead that
explains the company’s need for the expatriate’s skills. A
work permit is issued for a period of at least 3 months, but
not more than 12 months. It always has the same validity
period as the temporary residence permit. It can be
renewed without any obstacles.
Temporary residence can also be obtained on the basis of
ownership over residential or business structure,
professional specialization, training, engagement at NGOs,
private visits, as well as to accredited journalists, officers of
international institutions and university professors.
“I have lived in Belgrade for 4 y ears and I must sa y,
personally, I believe that Belgrade is the most a ttractive
and most interesting city in Europe.
There is no doubt”.
Mrs. Doerte Weidig,
Former President of ProCredit Bank, Serbia
OFFICE AND RESIDENTIAL SPACE MARKET
S T E P S
T O T A K E
Investors can either buy or rent an office space in all major cities
in Serbia. Naturally, availability of high quality offices is much
greater in larger cities, especially in the capital. According to CB
Richard Ellis’ report, speculative office stock in Belgrade
amounted to a million square meters of GLA in Q1 2014.
Belgrade’s contemporary supply exceeds 734,000 square
meters of GLA, out of which 70% is speculative (513,000 sq.m)
and 28% owner-occupied space (221,000) sq.m.
Class A Stock Class B Stock
Owner-Ocuppied Stock Total Completions
2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: CB Richard Ellis
Belgrade Office Space Stock
500.000
400.000
300.000
200.000
100.000
0
The second quarter of 2014 recorded a slower activity with
the total take-up of 9,356 square meters, while the overall
number of transactions was 16 and the average deal size was
585 sq.m. As of the beginning of 2014, the total take-up
amounted to around 25,000 square meters.
Class A office buildings recorded asking rents ranging
between €14-16/sq.m/month, while average asking rents of
Class B stock vary between €11-12/sq.m/month. Prime yields
range between 9-9.5%.
Residential Market Developments
In 2013, the number of completed units in Belgrade amounted
to 7,596. Currently, New Belgrade municipality marks the
strongest construction activity. According to the official
statistics, the number of finished apartments preserved a
stable trend in Belgrade in the previous few years, after a
certain standstill in construction activities that characterized
the period 2009-2010 thanks to the joint efforts of the
government and the private investors. On the other hand,
when analyzing Serbia as a whole, the construction sector
witnessed the further drop of 12% in the number of finished
apartments, as compared to the 2012-results.
The sales prices of residential units remained mostly stable, due
to the more balanced demand-supply ratio. In central Belgrade
municipalities, the asking prices of high-quality projects start at
€2,200 (VAT included), with most mid-end projects varying
between €1,700-2,200. Steady demand in the leasing segment
continued in the first months of 2014. In general, typical rental
levels range between €8-10/sq m for renovated properties and
from €10-13/sq m for newly built properties, while some of the
units generate asking rents of even €15/sq m, depending on the
location and the quality of properties.
42 43

22. Greenfield and Brownfield Sites That
Match the Color of Your Business
SIEPA
INVESTMENT
LOCATIONS
DATABASE™
A SIEPA database of more than 500 available Greenfield
and Brownfield sites throughout Serbia will ease your
quest for locations that suit the needs of your business.
The database is easy to browse: you just need to choose
the size, rough geographic location and few other
details, and you will instantly get a list of matching
locations. Couple that with municipality-specific data
also, and you will be able to screen the list of potential
locations and come up with a shortlist.
Let us take it from there and advise you on the final
selection and further steps to be taken.
serbia-locations.rs
www.mgsi.gov.rs
“Mace would invite major investors to join
Microsoft, Lukoil, Intesa Sanpaolo, Coca Cola, Telenor, and Mace itself.
The Serbian economy is on the mo ve, has the right a ttitude for
future growth and a stable political and financial pla tform to move forward”
Mr. Mark Richards,
Business Development Director International,
Mace International.
CONSTRUCTION PROCEDURE
The Law on Planning and Construction provides for private
ownership over any type of construction land and enables
further transfer of ownership rights. The provisions are aimed
at replacing the right of use which was commonly used during
previous periods when city construction land was state
owned and when owners of buildings were entitled to the
right of use over the land beneath them.
The Law introduces different categories of construction land,
namely:
- City (Urban) Construction Land and
- Construction Land outside the City Construction Land
Urban construction land may be purchased from an owner of
such land or leased from a municipality through either public
bidding or public tender where the land is sold or leased to
the highest bidder. However, municipal authorities have, and
often exercise, the power to lease the land at a fee lower than
the market value or free-of-charge with the prior consent of
the government. Additionally, a plot of agricultural land may
be converted into construction land with approval of the
competent bodies and payment of the land conversion fee.
A building is lawfully constructed if a building permit has
been issued by the competent authority. The permit is
issued on the basis of a location permit and technical
documentation main design. One of the main features of
the Construction Law is the possibility of a building
permit transfer together with a transfer of property rights
over building/land. Municipalities are authorised to
issue building permits. The competent Ministry is in
charge of issuing building permits for the construction of
nuclear plants, oil and gas production/processing
industry objects, hydro power stations, airports, traffic
infrastructure and similar.
Once a Location Permit is obtained from a municipal
authority, an investor applies for the Construction Permit,
which is issued within 8 days from the date of submission of
the application. A structured technical inspection is done
upon the completion of construction. It may sometimes be
carried out simultaneously with the construction process,
upon which the Occupation Permit is issued. The final stage
in the construction process is the registration of an initiated
structure in the Real Estate Cadaster or in the Land Book
Registry kept by a Municipal Court.
The Construction Law provides for automatic conversion of
the right of use on State owned developed construction land
into ownership at no fee, subject to numerous exceptions.
The main exception is related to the right of use on state
owned developed construction land currently or formerly
held by companies that were subject to privatization,
bankruptcy or enforcement laws which can be converted into
ownership subject to the payment of a fee equal to the
difference between the market value of the land at the
conversion date and the amount paid for the acquisition of
the right of use on such land.
44 49

23. USEFUL CONTACTS
Ministries
Office of the Prime Minister
www.srbija.gov.rs
 predsednikvladeŠgov.rs
Ministry of Foreign Affairs
www.mfa.gov.rs
 mspŠmfa.rs
Ministry of Economy
www.privreda.gov.rs
 kabinetŠprivreda.gov.rs
Ministry of Finance
www.mfin.gov.rs
 kabinetŠmfin.gov.rs
Ministry of Trade,
Tourism and Telecommunications
www.mtt.gov.rs
 kabinetŠmtt.gov.rs
Ministry of Agriculture and
Environmental Protection
www.mpt.gov.rs
 officeŠminpolj.gov.rs
Ministry of Construction,
Transport and Infrastructure
www.mgsi.gov.rs
 kabinetŠmgsi.gov.rs
Ministry of Mining and Energy
www.mre.gov.rs
 pr.kabinetŠmre.gov.rs
Ministry of Public Administration and
Local-Self Government
www.mduls.gov.rs
 jparezanovicŠgov.rs
Ministry of Education, Science and
Technological Development
www.mpn.gov.rs
 kabinetŠmpn.gov.rs
Ministry of Labour, Employment,
Veteran and Social Affairs
www.minrzs.gov.rs
 pressŠminrzs.gov.rs
Other Relevant Institutions
National Bank of Serbia
www.nbs.rs
 kabinetŠnbs.rs
Serbian Business Registers Agency
www.apr.gov.rs
 registerŠapr.gov.rs
Privatization Agency
www.priv.rs
 indoŠpriv.rs
Customs Administrations
www.upravacarina.rs
 kabinetŠcarina.rs
Statistical Office
of the Republic of Serbia
www.stat.gov.rs
 statŠstat.gov.rs
National Employment Service
www.nsz.gov.rs
 pressŠnsz.gov.rs
National Tourism Organization of Serbia
www.serbia.travel
 officeŠserbia.travel
University of Belgrade
www.bg.ac.rs
 officebuŠrect.bg.ac.rs
Other Useful Contacts:
National Agency for Regional
Development
www.narr.gov.rs
 officeŠnarr.gov.rs
Vojvodina Investment Promotion – VIP
www.vip.org.rs
 officeŠvip.org.rs
Agency for Investment Promotion and
Business Support in Central Serbia
www.invest-in-central-serbia.org
 officeŠinvest-in-central-serbia.org
Regional Development Agency
Eastern Serbia (RARIS)
www.raris.org
 officeŠraris.org
National Alliance for Local
Economic Development (NALED)
www.naled-serbia.org
 naledŠnaled-serbia.org
Chamber of Commerce and Industry
of Serbia
www.pks.rs
 kabinetŠpks.rs
Foreign Investors Council
www.fic.org.rs
 officeŠfic.org.rs
American Chamber of Commerce
in Serbia
www.amcham.rs
 infoŠamcham.rs
Delegation of the German Economy in
Serbia/
German –Serbian Business
Association
www.serbien.ahk.de
 dswŠahk.rs
Italian Trade Agency
www.ice.gov.it
 belgradoŠice.it
“Europe’s New Capital of Cool“, Sunday Times
” Belgrade one of the ten “hotspots” of Europe” , Lonely Planet Guide
“Les folles nuits de Belgrade”, Le Monde
“City of Future”, Financial Times
“For the real beguiling Balkan spirit, it has to be Belgrade. It is a city where
hospitality crackles in the air and where looking good is a birthright. Simply irresistible”, CNN Traveler
“Serbia… a natural combination of Oriental passion and European finesse”, Time Out
“The real Belgrade is in the people – they are generous, warm and extraordinarily friendly-they
will go to any lengths to help and make you welcome” , Spaces Magazine
“After taking my traditional Sunday stroll down Knez Mihajlova, I feel enlivened”, Herald Tribune
“No 1 to Party the Night Away” , Times Magazine
46 47

24. Tel: +381 11 3398 550
Fax: +381 11 3398 814
officeŠsiepa.gov.rs
www.siepa.gov.rs
www.doingbusinessinserbia.com