Since the dissolution of Yugoslavia, Serbia, a small country in Southeast Europe, has undergone significant economic and political transformation. Today, it is a democratic state with a market economy that is currently a candidate for joining the European Union. For foreign investors who want to register a company there, it potentially implies multiple advantages, both now and in the years to come. Trying to make the big picture clearer for you, we have come up with an analysis of the main benefits behind doing business and living in Serbia.
Serbia’s geographical advantage in the European market
Boasting access to major markets and transport routes, the jurisdiction is well located in the very center of Europe. Serbia borders eight countries, including four EU members, namely, Hungary, Romania, Bulgaria, and Croatia. The state has a free trade agreement with the EU, as well as with Turkey and several other jurisdictions. This means that Serbian companies are free to export goods and services to a large and diverse market without paying customs duties or tariffs.
Serbia also has a well-developed infrastructure, including highways, railways, airports, and ports. It is connected to the Pan-European Corridor X, which links Western and Central Europe with the Balkans and the Middle East. With two international airports in Belgrade and Niš, Serbia offers flights to many destinations in Europe and beyond. The country’s access to the Danube River, which is the longest waterway in Europe and a vital transport route for cargo and passengers, plays a significant role in efficient freight and passenger traffic across the continent.
Key industries and banking excellence of Serbia
Serbia’s growing economy had a GDP of about USD 52 billion as of 2020. The industrial base is diverse, encompassing automobiles, machinery, chemicals, textiles, food, and pharmaceuticals. The country’s agricultural potential is evident in its status as a leading global producer and exporter of raspberries, plums, and corn.
The nation’s banking sector is both stable and modern, with over 30 banks, including foreign-owned entities, e.g., UniCredit, Raiffeisen, Intesa Sanpaolo, and Société Générale. These banks offer competitive interest rates, low fees, and high security standards, supporting various payment methods like debit and credit cards, online banking, and mobile banking.
Why Serbia is your top choice for foreign company registration
For foreign investors about to register a company abroad, Serbia is an attractive destination as it offers low costs and easy procedures all in one. The corporate tax rate here is among the lowest in Europe, standing at 15%, along with a 10% value-added tax (VAT) rate and a 10% personal income tax rate. The country also offers tax incentives and exemptions for specific investments, fostering research and development, innovation, and environmental protection.
Registering a company in Serbia presents no difficulties in 2024. You can do it either online or in person. Foreign investors are allowed to have full ownership of their businesses, with no restrictions or minimum share capital requirements for most entities, except for joint-stock companies. The latter need at least EUR 10,000 to launch a business in Serbia. The one-stop-shop system consolidates necessary procedures and documents at the Business Registers Agency.
Residence and citizenship opportunities for foreign investors
Beyond business considerations, Serbia offers opportunities to obtain residency to foreign investors that may potentially turn into citizenship later. Its flexible immigration policy allows foreign nationals to apply for temporary or permanent residence permits, with terms that depend on the duration and purpose of their stay. As of 2024, residency is granted to investors purchasing properties or establishing businesses in the country.
Serbia allows foreign investors to apply for Serbian citizenship after five years of continuous residence in the country, or three years if they are married to a Serbian citizen. Recognizing dual citizenship, Serbia does not forbid investors to maintain their original citizenship while enjoying the same rights and benefits as Serbian nationals do, including voting rights, property ownership, social security, and visa-free travel to over 130 countries, with Schengen states among them.
In Serbia, the country’s economic citizens are offered numerous opportunities in healthcare, education, and social protection. They enjoy the same rights and benefits as Serbian nationals by birth.
Healthcare:
Serbia boasts a universal health coverage system, offering free or subsidized access to a broad spectrum of health services and medicines for all citizens. The country’s network of public and private health facilities ensures quality and affordable care. Notably, Serbia has made strides in improving its health indicators, including life expectancy, maternal and child mortality, and immunization rates. The nation has demonstrated resilience in the face of the COVID-19 pandemic, implementing vaccination campaigns, fortifying health systems, and providing social assistance to vulnerable groups.
Education:
Serbia’s education system is comprehensive and inclusive, spanning pre-primary, primary, secondary, and higher education levels. The country hosts a variety of public and private educational institutions that deliver diverse and relevant curricula and programs. Serbia’s commitment to education is evident in investments aimed at enhancing literacy, enrollment, completion, and attainment rates. In adapting to the digital era, local educational establishments have introduced online learning, fostered digital skills, and promoted innovation.
Social protection:
In Serbia, the national social security system is both generous and comprehensive. It offers various benefits and services to all citizens. Public and private social protection providers form a network delivering integrated support to different beneficiary groups. Serbia allocates significant resources to safeguard the most vulnerable populations, including families with children, older persons, individuals with disabilities, and refugees. Ongoing reforms focus on improving the efficiency of the social security system by simplifying the corresponding procedures and increasing their transparency.
Are you charmed away by the opportunities ahead? Would you like to live in Serbia or maybe set up a business and invest in the country? To learn how to do it without a hitch, contact industry experts from Serbia Wealth. Knowledgeable and experienced, the Serbia Wealth team will not only assist you with setting up a company, opening bank accounts, or applying for a residence permit in Serbia but also become your trusted consultant and point of contact on any other matters related to the country. Don’t wait to open the door to a brighter future in Serbia today!