Attractive Business Environment
The Government of Serbia has done a great deal to improve the legal framework in order to better the investment climate. The corporate profit tax was brought down to 10%, currently the lowest corporate profit tax in Europe. The new legal framework allows the transfer of profit made in Serbia abroad, and special incentives for reinvesting the profit back to the Serbian market. These incentives are created for foreign companies making a single investment of 10 million EUR and employing a significant number of employees. There are special incentives for employing the new labor force. For every new employee, the employer is freed from paying the wages tax (14% of gross wages), and in case of employing the ones over 45, the employer is freed from all the taxes and contributions on wages, cutting the labor cost for 42.4%.
Another advantage is that the credit rating of Serbia has improved after agreements are made with the Paris and London clubs of creditors.
From 2000 to this day, foreign investors had utilized all of the existing investment schemes, including Greenfield, privatization, mergers and acquisitions and joint ventures.
|Company||Country of origin||Sector|
|Tarkett Sommer||Germany||Floor Coverings|
|Nova Ljubljanska Banka||Slovenia||Banking|
|Del Yug S.A.||Greece||Food Industry|
|Salford||UK||Dairy and Confectionery Industry|
|Japan Tabacco International||Japan||Tobacco|
|Rudolf Walther||Germany||Retail Sale|
|ATB Austria||Austria||Electric Machines|
|JUB boje||Slovenia||Colour Production|
|Albon Engineering PLC||UK||Automotive Industry|
|Galaxy Tire & Wheel||USA||Tires|
|Efes Breweries International||Turkey||Brewery|
|Linde Gas AG||Germany||Carbon dioxide production|
|Hellenic Sugar||Greece||Food and Beverages|
|Hajdu - Avis Rt||Hungary||Agriculture|
|Maghrabi Alaa Mohammedali||Saudy Arabia||Automotive Industry|
|Bet Shemesh Engines Ltd||Israel||Foundry|
|Vakond KFT||Hungary||Construction materials|
|PG Lorenzetti||Italy||Leather and Shoes Industry|