In 2014 the Republic of Serbia adopted a new incentive program for green-field and brown-field projects in Serbia based on the Regulation on the terms and conditions for attracting direct investments (“Off. Gazette of the RS”, no. 55/2014), which entered into force on 24.05.2014 (hereinafter “the Regulation”).
The amount of funding that can be awarded is determined in relation to:
- eligible investment costs (investments in tangible and intangible assets as defined by the Regulation),
- or eligible costs of gross wages for new job positions within a period of two years upon the implementation of the investment project.
Pursuant to the foregoing the Regulation stipulates a limit on the funding amount to be awarded, as follows:
- for eligible investment costs of up to 50 million EUR, the limit of awarded funds may not exceed 50% thereof; however exceptionally it may be increased by an additional 20% and 10% for small-sized companies and medium-sized companies respectively;
- for a part of eligible investment costs ranging btw 50 and 100 million EUR, the limit of funds may not exceed 25% of such costs;
- for a part of eligible investment costs exceeding 100 million EUR, the limit of funds may not exceed 17% of such costs. (Article 5 of the Regulation)
The beneficiary of funds must ensure a participation of no less than 25% of eligible costs from its own resources. (Article 6 of the Regulation)Translation: Vojislava Katić