The Government of the Republic of Serbia has amended the Regulation on determining the criteria for granting incentives, raising the threshold for the required minimum investment.
Previously, the Regulation prescribed a minimum investment of 100,000 euros and the creation of 10 new jobs in local self-government units classified as devastated areas based on the level of development.
To receive state aid, investors must invest at least 300,000 euros instead of the previous 100,000 euros. The Regulation has also abolished the division of local self-government units based on the level of development.
The territory of the Republic of Serbia is split into five regions: Belgrade Region, Vojvodina Region, Šumadija and Western Serbia Region, Southern and Eastern Serbia Region, and Kosovo and Metohija Region.
Incentives by region
In the Belgrade Region, investors can expect state incentives if they invest a minimum of half a million euros and employ at least 50 workers. In Vojvodina, the threshold is lower, with an investment of 400,000 euros and the opening of 40 job positions required.
The state will support projects in the Šumadija and Western Serbia, Southern and Eastern Serbia, and Kosovo and Metohija regions where investments are at least 300,000 euros and provide employment for at least 30 new permanent employees.
What else does the Regulation prescribe?
The new Regulation also stipulates that for investments exceeding 5 million euros, there is a deadline for implementing the investment project within ten years from applying the allocation of funds.
Investors will be eligible to receive 20% of eligible costs of gross wages per employee, with a maximum of 2,000 euros if they plan their investment in the Belgrade Region. In Vojvodina, it is 25% of eligible costs of gross wages and a maximum of 3,000 euros.
Prospective investors in the Šumadija and Western Serbia, Southern and Eastern Serbia, and Kosovo and Metohija regions will be entitled to 30% of eligible costs of gross wages, with a limit of 5,000 euros.
