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For Complete sector - industries overview and informations on business opportunities please visit www.serbia-business.com

Serbia as one of the countries of South Eastern Europe region markets has excellent potentials for both investment in existing business potentials of the market or for business development with local partners ( producers, suppliers etc).

Beside excellent competitive SEE market position, both toward the region and EU and economic relations with Russia( free trade agreement) we are presenting just major cost effective market advantages.

If you are looking for alternative suppliers/producers/partners do not hesitate to contact us for more detail sector - markets overview and informations.

Excellent Location

  • South East Europe, central Balkans; Time zone GMT+1.
  • Geo-strategic position at the crossroads of Pan-European Corridors 7 and 10, a major link between Europe and Asia.
  • 8 neighboring countries: Hungary, Bulgaria, Romania, FYR Macedonia, Albania, Bosnia-Herzegovina, Croatia, and Montenegro.
  • 88,361 km² of territory – rich fertile plains in the north, ancient mountains and hills to the south.
  • Moderate continental climate, average temperature -1°C in January and 22°C in June, well distributed rainfall.

Market Potentials

  • 7.5 mn consumers in Serbia, 2nd largest market in the region.
  • 30 mn consumers in South East Europe with duty-free access.
  • 150 mn consumers in the Russian Federation with customs-free access.
  • Preferential trade status with USA and the EU.
  • Overall duty-free exporting potential: 1 bn consumers.

Growing Economy

  • Serbia – number 1 business reformer in the world (World Bank 2006 report).
  • Currency – Serbian Dinar (RSD); 1 EUR = 80. 12 RSD during 2007.
  • 7.5 % GDP growth rate, GDP per capita $5,764 in 2007.
  • Reduced inflation – 10 % in 2007.
  • €1.7 bn National Investment Plan funds from state budget surplus.
  • $14 bn foreign currency reserves, and growing.
  • Exports $9 bn in 2007 (37 % growth) most to Italy, CEFTA, Germany, Russia.

Taxes & Incentives

  • State grants from €2,000 to €10,000 per new job created for greenfield/brownfield projects.
  • 10 % corporate profit tax rate – among the lowest in Europe.
  • 8 to 18 % VAT rate – among the lowest in CEE.
  • 10-year corporate profit tax holiday for large investments.
  • Tax credits up to 80 % of the amount invested in fixed assets.
  • 5-year corporate profit tax holiday for concessions.
  • Duty-free import of raw materials, semi-products, components, and equipment.

Investment Magnet

  • $13.5 bn total inward FDI inflow since 2001, 90 % average annual FDI growth rate.
  • Serbia – The place of largest greenfield investments in SEE 2004-2006 (OECD).
  • Belgrade – The City of the Future and top FDI location in South Europe 2006/07 (Financial Times).
  • Major investors: Telenor, Philip Morris, Mobilkom, Banca Intesa, Coca-Cola, Microsoft, Stada, InBev, Lukoil, U.S. Steel and many others.

Human Resources

  • Labor force (age 15-64) exceeds 5 mn, 52 % with secondary or higher education.
  • Vast labor pool – unemployment rate 21.6 % (2006).
  • Competitive labor costs – €484 per month, gross (2007).
  • 11. 7 % average growth of industrial productivity in the past 5 years.
  • 700,000 university or college graduates, 1/3 from technical faculties.
  • 42 % of the population speaks English (Gallup International).
CEFTA member

 

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