What’s new in the process of awarding state incentive funds in Serbia?

Newsletter 114

The Republic of Serbia continues to provide incentives for direct investments, as attested by the Regulation on Determining the Criteria for Giving Incentives for Attracting Direct Investments (The Regulation) that came into force on 19 January 2019. The new Regulation contains several new rules and procedures.

I. Minimum investment requirements and the amount of incentives

Minimum investment requirements for which funds are awarded remain the same. They are determined according to the level of development of the local self-government unit, as follows:

• a minimum of EUR 100,000 of the eligible costs of investment and at least 10 jobs created in the devastated areas, qualify for incentives of up to 30% of the eligible costs of investment, or up to 40% of the eligible costs of gross salaries in a two-year period, however not exceeding 7.000 EUR per job;
• a minimum of EUR 200,000 of the eligible costs of investment and at least 20 jobs created in the units of local government that are classified in the IV group of development, qualify for incentives of up to 25% of the eligible costs of investment, or up to 35% of the eligible costs of gross salaries in a two-year period, however not exceeding 6.000 EUR per job;
• a minimum of EUR 300,000 of the eligible costs of investment and at least 30 jobs created in the units of local government that are classified in the III group of development, qualify for incentives of up to 20% of the eligible costs of investment, or up to 30% of the eligible costs of gross salaries in a two-year period, however not exceeding 5.000 EUR per job;