POTENTIAL AND ADVANTAGES FOR FOREIGN INVESTMENTS IN SERBIA Centre for Development, Restructuring and Privatization 2013

 Area : 88,361 km 2  Population : 9.5 million  Official Language: Serbian  Form of Government: Democratic Republic  Capital: Belgrade, 1.6 million  Currency : Republic of Serbia dinar (RSD) ‏ Republic of Serbia

 Corridor X: Highway Salzburg-Thessaloniki  Corridor VII: The Rhine– Main – Danube Canal linking the North and Black Seas  Internal network: 40,845 km - 5,525 km of main roads - 11,540 km of regional roads - 23,780 km of local roads  8 ports on the Danube, 1 on the Sava and 1 on the Tisa River Strategic Position and Infrastructure

 Stabilization and Association Agreement signed in April 2008  SAA ratified in the European Parliament in January 2011  The EU Candidate status granted in March 2012  Interim Trade Agreement with the EU  Visa liberalization for the citizens of Serbia in December 2009 Serbia and the EU

 CEFTA 2006 – entered into force in July 2007, for Serbia in October 2007  EFTA – with Switzerland and Liechtenstein, signed in December 2009 and entered into force in October 2010; with Norway and Island, entered into force in 2011  The Russian Federation– entered into force in 2000, further trade liberalization became effective in April 2009  Belorussia – signed and became effective in March 2009  Kazakhstan – signed in October 2010  Turkey – signed in June 2009 and became effective in September 2010 International Free Trade Agreements

 Foreign Direct Investments (Greenfield)  Brownfield investments  Joint venture  Implementation of PPP framework  Privatization (656 companies from the real sector for privatization, Rehabilitation Centres in Spas of Serbia, ongoing privatization of the public companies)  Trade of shares on the Belgrade Stock Exchange Investment Opportunities

Indirect benefits:  More favourable prices of land than market prices Direct benefits:  free import and export of goods  0% customs tariff for import of goods intended for export  import of goods and rendering transportation and other services in the free zones are VAT exempted Investments into Free Zones

Industrial Zones in Serbia

Investment projects eligible for the financial support Projects of special importanceLarge investment projectsMedium investment projects Amount of funding Up to 17% of total investment amount Up to 20% of total investment amount Up to 10% of total investment amount Minimum investment amount200 million EUR50 million EUR Minimum number of new jobs created 1, * According to the Decree of the RS on direct financing of investors Financial Support

Investment projects eligible for the financial support Direct investments Manufacturing sector Internationally marketable services Strategic projects in tourism Investments in the 4 th group of local self-governments and devastated regions Investments in the 1 st, 2 nd and 3 rd, group of local self- governments In the entire territory of the Republic of Serbia Amount of financial support (in EUR) 4,000 – 10,000 for each new job 4,000 – 10,000 for each new job 4,000 – 10,000 for each new job 4,000 – 10,000 for each new job Minimum investment amount 0.5 million EUR 1 million EUR 0,5 million EUR 5 million EUR Minimum number of new jobs * According to the Decree of the RS on direct financing of investors Financial Support

Lowest VAT Rate Favourable Tax Environment

Lowest corporate profit tax Favourable Tax Environment

Lowest salary tax Favourable Tax Environment

Net salaryGross salary 25,000 RSD (250 EUR) 41,037 RSD (400 EUR) 40,000 RSD (400 EUR) 66,266 RSD (650 EUR) 60,000 RSD (600 EUR) 99,903 RSD (1,000 EUR) Gross monthly salaries in EUR Salaries in Serbia and in the Region

Level of Investments in Serbia from 2002 * Source NBS

FDIs by industry in 2012 * Source NBS

Top ten countries by amount of investments 2005 – 2012 in mln. EUR * Source NBS

The bigest foreign investment in Serbia

155 years of existence and business operation 110,000 companies and 220,000 entrepreneurs Germany, Austria, France, Italy, Montenegro, Ukraine, Belgium, the Russian Federation Membership in the international chamber associations (ICC, Eurochambres, ASCAME, ABC ) More than 70 agreements with chambers, agencies and associations Tradition Membership Representative Offices Abroad Networking Correspondence CCI Serbia – in the best interest of the economy

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