Serbia

Serbia Overview

Serbia offers a strategic gateway to both Western Europe and emerging Eastern markets, making it an attractive destination for businesses looking to expand. With a competitive tax system — including a 15% corporate income tax rate — and a network of free trade agreements (covering the EU, China, Russia, Turkey, and CEFTA countries), companies can access over 1.3 billion consumers duty-free. The country boasts a skilled, affordable workforce and growing industries like IT, manufacturing, agriculture, and renewable energy. Combined with government incentives for foreign investors and ongoing infrastructure improvements, Serbia presents a promising environment for business growth and international expansion.

Corporate tax rates & incentives

  • Corporate Tax Rate: 15%​
  • Investment Incentives:
    • Tax Holiday: A ten-year corporate income tax exemption is available for companies investing a minimum of RSD 1 billion (approximately €8.5 million) in property, plant, and equipment, provided they employ at least 100 new workers for an indefinite period.
    • R&D Double Deduction: Research and development expenses incurred within Serbia can be deducted twice for corporate income tax purposes.
    • Royalty Income Relief: Holders of copyrights or similar rights registered in Serbia can exclude 80% of qualified royalty income from their taxable base. ​
    • Investment in Innovative Startups: Investments in newly established companies performing innovative activities entitle taxpayers to a tax credit amounting to 30% of the investment made, with a maximum credit limit of RSD 100 million (approximately €850,000).

Key Industries:

  • Agriculture & Food Processing: Major exporter of fruits, vegetables, and grains — plus growing organic production.
  • Automotive: Strong supply chain, with big names like Fiat and Bosch operating there.
  • ICT & Software Development: A booming sector, especially in gaming, fintech, and software outsourcing.
  • Renewable Energy: Increasing investments in solar, wind, and hydropower to meet sustainability goals.
  • Manufacturing: Competitive labor costs, especially in machinery, textiles, and electronics.

Investment Opportunities:

  • Special Economic Zones with tax benefits.
  • Greenfield Investments supported by government subsidies.
  • Export-Oriented Manufacturing benefiting from free trade agreements (EU, Russia, Turkey, etc.).

Local Business Culture Tip

  • Relationship First, Business Second: Personal relationships are crucial. Spend time getting to know your partners over coffee or meals. Business moves faster when trust is established.
  • Formal, but Friendly: Initial meetings are more formal (suits, handshakes, titles), but the tone becomes more relaxed once the relationship develops.
  • Decision-Making: Usually top-down. Senior managers or business owners make the final call — ensure you’re talking to the decision-makers.
  • Negotiation Style: Serbs appreciate directness but balance it with politeness. Overly aggressive tactics may backfire.
  • Punctuality: Being a few minutes late isn’t uncommon, but foreigners are expected to be on time.

See Bosnia and Herzegovina, Croatia, Montenegro