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Financial Incentives

State Grants

 

A new package has been prepared for investors in Serbia. State grants are offered for Greenfield and Brownfield projects in all industries, except primary agriculture, the hospitality industry, retail, and the production of synthetic fibers and coal.

For standard-scale Greenfield and Brownfield projects in the manufacturing, export-related services sector and tourism, non-refundable state funds are offered in the range between €2,000 and €10,000 per new job, created within three years.

 

For large investors a special financial package is available. If a project's value exceeds €200 million, with the minimum of 1,000 new jobs created within 3 years, the state may cover 20% of the investment. Investments of over €50 million that create the minimum of 300 new jobs within 3 years, can be subsidized up to 20% of the project's value.

 

Financial Incentives

In addition to existing benefits, namely strategic geographic location, duty-free exports to the countries of Southeast Europe and Russia, the lowest corporate tax rate in Europe of 10% and an educated and experienced workforce available at a competitive cost, Serbia offers financial support to investors. So far SIEPA has published 13 calls in which 120 million euros was allocated for the creation of more than 28,000 jobs in Serbia. Based on a Decree of the Government of the Republic of Serbia, the investment projects in all sectors, except trade, catering and agriculture, are eligible to apply for grants. The funds are intended to finance investment projects in the manufacturing and service sectors which may be subject to international trade.

 

http://www.siepa.gov.rs/files/pics2010/ENG_Financial_Grants_NEW_site_1.jpg

 

For large-scale projects, the amount of grants is determined by the government, depending on the investment's importance, value, and term.

 

In case of standard-scale projects, state funds are awarded upon the validation based on the following criteria:

·         Investor's references,

·         Participation of domestic suppliers in the final product and the investment effect on local companies,

·         Investment sustainability,

·         Effects related to R&D,

·         Effects on human resources,

·         Environmental impact,

·         The value of international turnover for investments in the services sector,

·         Imports substitution, and

·         Effects on the development of the local community.

 

Upon the assessment of investment projects, the funds for selected projects are paid out in four increments throughout the project's lifetime:

 

1st increment - after concluding the contract for sale or lease of land;

 2nd increment - after obtaining the construction approval;

 3rd increment - after obtaining the right-to-use permit;

 4th increment - after achieving full employment envisaged by the investment project,within three years from concluding the agreement on awarding funds.

 

Exceptionally, for export related services projects concerning lease of business premises, that has to be completed in two years, the funds are paid in two equal increments:

 

1st -after concluding lease agreement for business premises for at least 5 year period;

 2nd- after achieving full employment envisaged by the investment project -within two years from concluding the agreement on awarding funds.

 

 

Related Information

 

To date, 152 foreign and local companies have already been approved €114.3 million of non-refundable funds for the projects worth €778.1 million providing for 26,135 new jobs.

 

 

The National Employment Service Grants

 

The National Employment Service (NES) grants include:

1. the Employment Subsidies Program,

2. the Apprentice Program, and

3. the Re-Training Program.

 

http://www.siepa.gov.rs/files/graphs2010/ENG_The_National_Employment_Service_Grants.jpg