Investing in Serbia: Find Your Way to European and Global Markets

Defying negative forecasts, the economy of Serbia keeps growing in 2024. The country attracts significant foreign investment, which boosts its economy. Reforms have reduced national debt and spurred small and medium-sized business growth. As a result, Fitch and Standard and Poor’s have both given Serbia a BB+ rating to reflect the nation’s economic stability.

Observers of Serbia’s progress will find these developments expected, as the business climate has steadily improved, which offers great opportunities for new companies. While investing in Serbia carries risks similar to other European nations, the benefits are strong and clear, with the nation offering unique advantages for foreign businesses.

Serbia shifts towards transparent business practices

The push for deoffshorization by leading nations has significantly altered global business practices. As things stand, many states prefer to move away from opaque tax havens to more transparent jurisdictions. This shift may initially result in capital outflow, but it also opens up considerable long-term opportunities.

Transparency and legalization are rapidly becoming vital for businesses, and the ones in Serbia are no exception to the trend. Since mid-2019, the nation’s participation in the Common Reporting Standard (CRS) has mandated the automatic exchange of financial account information. This integration means that foreign entrepreneurs and bank account holders in Serbia should expect transparency with their home country’s tax authorities regarding the Serbian assets they have.

Serbia’s compliance with international standards has its advantages for business owners. Being off regulatory watchlists means businesses can operate globally without any hindrance. Although information sharing is obligatory, your details aren’t fully exposed to the public, and a certain level of confidentiality is maintained.

How Serbia’s relations with China and the EU propel growth

Serbia’s commitment to bolstering international trade stability was marked by its August 2019 signing of the Singapore Convention. The State Secretary of the Ministry of Justice of Serbia highlighted that this step was set to widen economic freedoms and stimulate the business environment.

The move is a testament to Serbia’s dedication to nurturing its economic potential. The nation’s ongoing improvement of its business landscape is key to drawing foreign investment, fostering market growth, and advancing infrastructure and financial sectors. This positive momentum is generating a self-reinforcing cycle that benefits all stakeholders and contributes to collective prosperity.

China’s ascent to global prominence is exemplified by its major companies’ investments in Serbian ventures and initiatives. These investments that are a part of the One Belt, One Road initiative are generating new employment opportunities in Serbia across diverse sectors. For companies involved in these projects, it means significant growth.

We can’t help but mention here that Serbia’s strategic cooperation with both China and the European Union, along with its balanced relationship with all, underscores the jurisdiction’s unique and advantageous position in international relations.

Serbia at the crossroads: EU aspirations and global diplomacy

Serbia has consistently voiced its ambition to become part of the European community, with concrete steps taken since 2012 to achieve this goal. Despite some delays and occasional skepticism, the commitment to this path remains firm.

The European Union, with Hungary’s vocal support, is prepared for Serbia’s integration, anticipating collaborative efforts to facilitate the transition soon. At the moment, the EU’s attention is drawn to Serbia’s deepening ties with China.

These developments reiterate Serbia’s appeal to European enterprises and stakeholders, highlighting its strategic significance in the region.

Serbia offers an expedited and simple route to the European markets. Owning a Serbian company today could pave the way for access to the entire EU tomorrow.

For those aiming to reduce national risks, Serbia comes with an attractive solution. The process of acquiring a residence permit or citizenship through company registration is a viable path, and at Serbia Wealth, we will gladly guide you in securing legal and tax residency in Serbia.

Serbia: a neutral ground for thriving in international trade

Serbia’s neutrality in international politics is advantageous for global entrepreneurs. In an age where sanctions can disrupt business by freezing accounts, Serbia’s impartial stance and good relations with the EU and China alike offer a stable environment for business operations.

Despite complexities that arise from EU pressures, establishing a company in Serbia still affords the opportunity to engage in trading with a broad range of international markets.

Financial perks of establishing your business in Serbia

The primary costs of running your company here include office rent, starting at EUR 2400 annually, and accounting services. With the average salary at about EUR 700 in 2023, reflecting a recent increase, Serbia offers access to a vast and highly skilled workforce. Social and medical insurance contributions are modest in the country, which offers affordability as compared to the rest of Europe.

Serbia also enjoys lower costs for electricity, attributed to self-generation, and for gas and fuel, thanks to advantageous supplier contracts.

The corporate tax rate in Serbia stands at 15%, a competitive rate relative to most European nations, which contributes to the overall financial obligations of running a company there.

Why set up your business in Serbia: easy registration and other benefits

The compelling reasons to establish a company or branch in Serbia are numerous, yet the focus here is on the key factors.

A notable benefit of setting up in Serbia is the swift registration process and the convenience of managing various operations from afar. At Serbia Wealth, we offer comprehensive assistance with it, from document preparation to ongoing support throughout the process.

Don’t forget that entrepreneurs venturing into new markets may face challenges, and it makes professional guidance and support indispensable.

Need help setting up in Serbia? Serbia Wealth is here to assist

Our team offers the much needed expertise, experience, and an extensive network of contacts for effective navigation through the local business landscape. Operating within Serbia, we have a detailed knowledge of the local environment, and hence are in a position to provide unparalleled assistance.

Should you need further advice in deciding or have queries about company or branch registration in Serbia or acquiring residency there, don’t hesitate to get in touch with us without further delay.

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