Over the past years, the Republic of Serbia has been experiencing an increasing level of foreign direct investments. One of the greatest advantages is that Serbia has a customs free access to 1.3 B – consumers: the EU, Russia, Kazakhstan, Belarus, Japan, the UK, Switzerland, the USA, Turkey, Australia and many other countries. Moreover, Serbian government provides financial incentives and benefits to investors, such as: a 10-year corporate profit tax holiday, payroll tax incentives, financial support for Greenfield and Brownfield projects in the production sector and service sector, double taxation avoidance, etc. Serbia also offers competitive operating costs and 15 free trade zones. It offers visa-free regime for citizens of many countries, including China, travelling to Serbia. Its geographic location is the most favorable, with connections to the Rhine-Main-Danube Canal, the Adriatic Sea, the Mediterranean Sea, the Black Sea and the rail-port of Budapest.

Tax benefits in Serbia

Tax benefits in Serbia, apart from already named, entail tax holidays on the personal income tax of the founders of an inovative newly established company. This tax holiday lasts for 3 years, from the founding of the company in Serbia. There are various tax holidays for employing people who are listed as unemployed for a certain period of time. Considering that there are millions of Serbian people living abroad, Serbia offers tax holidays for Serbians, who are internationally educated and have working experience abroad, in order to entice them to return to their homeland. Investors can utilize this benefit as well, by hiring Serbians with international experience. Probably the most influential tax benefit is adopted at the beginning of 2022. This tax benefit for investors includes a 70% tax holiday on personal income tax for employing people in the field of research and development (R&D) in Serbia. Serbia, well known worldwide for its skilled software engineers is thereby in the front line for attracting innovative companies.

Startup in Serbia

All of the listed tax benefits are highly relevant to the startup community. We often get asked how to start a startup in Serbia. It’s actually pretty simple and, apart from the specific formation of a company, listed tax benefits, lower operating costs in Serbia and highly skilled qualified labour enable you to kickstart your startup, especially in the seed stage, when lowering the costs while staying productive is essential. All of these reasons are sufficient for relocation and incorporation in Serbia.

This text is for informational purposes only and does not constitute legal service, as each situation requires a commitment to the specific circumstances of an individual case, which may be different from others.

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