State, provincial and city incentives

STATE INCENTIVES

Law on Planning and Construction ("Official Gazette of the Republic of Serbia", No. 72/2009, 81/2009 – correction, 64/2010 – decision of the Constitutional Court, 24/2011, 121/2012, 42/2013 – decision of the Constitutional Court, 50/2013 – decision of the Constitutional Court, 98/2013 - decision of the Constitutional Court, 132/2014 and 145/2014)
Article 97 regulates the following:

Land development contribution is not being charged for publicly used facilities that are in public ownership, facilities for utility and other infrastructure, production and storage facilities, underground levels of structural engineering facilities (area intended for vehicle garaging, substations, power transformation stations, storage, laundry rooms, etc.), except for parts of the underground floors used for commercial activities. The contribution is not calculated for open parking lots, internal roads, open playgrounds, outdoor sports fields and athletic tracks.

Incentives for employment
Decree on Terms and Conditions for atrracting Investments

Funds can be allocated for the implementation of investment projects in the production sector and for service projects of service centers in accordance with this Regulation.
The amount of funds that may be allocated shall be determined in accordance with the criteria contained in the Regulation in relation to the eligible costs of the investment.

Conditions for awarding funds:

  • Direct investment shall be held at the same location in the local self-government unit for at least five years after the realization of the investment projects for large companies or for at least three years for small and medium-sized companies;
  • The fund beneficiaries shall not decrease the achieved number of employees after the implementation of the investment project for a period of five years for large companies or for three years for small and medium sized companies.

Up to three years from the date of submission of the application for the allocation of funds, which may be extended for a maximum of five years, after the conclusion of the Contract on the Allocation of Incentive Funds.
After reaching full employment, the fund beneficiary, in accordance with the Contract on the Allocation of Funds, referred to in Article 22 of this Decree, is obliged to regularly pay to each new employee the contracted earnings referred to in Article 2, paragraph 1, item 14) of this Decree.

For more information, please visit the following pages:
http://ras.gov.rs/invest-in-serbia

http://ras.gov.rs/sme-development

http://ras.gov.rs/export-promotion

AP Vojvodina Incentives

For more information, please visit the following page:

http://rav.org.rs/business-environment/incentives/

City Incentives for Investors
 
Incentives for employment: 200,000.00 RSD per person employed.
 
Incentives for decreasing the construction land development contribution:

Decision on determining the construction land development contribution ("Official Gazette of the Republic of Serbia", No.11/2015, 33/2015, 44/2015, 8/2016, 53/2016 i 74/2016)

Article 13 regulates the following:

The contribution is not calculated for publicly- owned public purpose facilities with accompanying contents in the function of these facilities, utility and other infrastructure facilities, production and warehouse facilities,
underground floors of building construction (the space intended for garaging of vehicles, substations, power transformer stations, utensils, laundry rooms, etc.), except for parts of the underground floor used for
commercial activities, open children playgrounds, outdoor sports fields, athletic tracks and passages.

The contribution is not calculated for the social housing objects invested by the City as well as for the construction of facilities - apartments for members of the security forces, whose investor is the Republic of Serbia or a company founded by the Republic of Serbia.

Article 19 regulates the following:
Investors get a 30% discount on contributions paid at one go.
For construction of facilities significant for the City’s economic development, contribution paid at one go can be additionally discounted by up to 30%, with the consent of the City Council and on the proposal of the committee established by the City Council.