Business Environment

Central and Eastern European economies expanded rapidly in the last two decades. Even though transition in Serbia began later than in the other countries, tens of billions of foreign direct investments entered the country from 2000. This provided quite high and steady economic growth (7% in 2008).

The Serbian market offers great potential, export to Russia, South East Europe (CEFTA) and the EU is customs free, while trade for more than 4500 products with the USA is being carried out under a Generalized System of Preference.

Serbia is located in a central position of this part of the continent, thanks to the fact that major European corridors 7 (Danube) and 10 (road and rail) that connect Western Europe with the Near East, both run through Serbia. The country is also bordering a few EU Member Countries making it possible for goods to be transported within a short period of time to and from major European markets.

The local market is marked with dinamic expansion as the result of continuous increase in the purchasing power, numerous available credit lines with high percentage of repayment.

The 5-day procedure for company foundation is short and relatively simple, contributing thus to the expansion of SMEs which is, in turn, the main booster of the economic development and of the increase of the rate of employment.

The average net salary amounts to a mere 350€, which is half of that of the new member states in the Central and Eastern European region. On the other hand, prices of communal products, services, like gas and water are lower than in the majority of countries in the region.

The most important tax rates – tax on profit 10%, VAT of 18% and 8% and tax on salaries of 12% are among the lowest in Europe.

For investors, a number of incentives is available, from direct financial subsidies amounting up to 10.000 EUR for opening up a new workplace, to a number of tax benefits like tax exemption on tax on profit for up to 10 years for investments of more than 7,5 million and 100 new workplaces, customs free import of equipment, and many other.

Since BLUEWATERS helps the cooperation between the Government of Styria and the Government of Vojvodina, one of our major goals is to support Styrian entrepreneurs when entering new markets. For that purpose, the Styrian government initiated the RIST platform Regional Internationalization of Styria, a database of identified projects. BLUEWATERS, as key accounter for Vojvodina, has identified more than 210 projects in Vojvodina that are suitable to be financed and performed by Styrian companies.