Invest in Obrenovac Serbia

Investment & business opportunities promotion project

Serbia – Reasons to Invest

 

STRONG ECONOMIC PERFORMANCE

In recent years, Serbia has been one of the Europe’s fastest growing economies with GDP averaging 7.3% since 2004. Last year’s growth rate is estimated at 5.8%, while GDP per capita reached $4,028. The average net monthly salary amounted to €297 in December, partly due to the local currency appreciation against euro. Major growth drivers were telecommunications, construction, and transport with the respective rates of 38.7%, 11.8%, and 11.4%, while industrial production recorded a 4.4% upswing.
Inflation in 2006 of 6.6% returned to single digits, while further reductions are projected in the long run. Macroeconomic stability is also reflected in a 0.7% state budget surplus for 2006 providing room for an unprecedented €1.7 billion national infrastructure development plan.
BOOMING MARKET POTENTIAL
Serbia is a member of the Central Europe Free Trade Area (CEFTA) providing duty-free access to a regional 55 million people market. This region is also the one with the highest growth rate in Europe.
With the population of 7.5 million people the Serbian market itself is among the largest in the region. Furthermore, Serbia is the only country outside of the Commonwealth of Independent States that enjoys a Free Trade Agreement with Russia, offering customs-free access to its market of 150 million people. This fact, coupled with duty-free exports to the European Union and the United States for most products and services, is one of the key drivers for international investors to relocate their operations to Serbia.

Therefore, starting a business in Serbia means the opportunity of exporting to a 1 billion people market without paying any customs duties.
LOW OVERHEAD COSTS
One of the key advantages of doing business in Serbia compared to other CEE countries are significantly lower operating costs.
Serbia’s tax system is highly conducive to investment featuring the following unique benefits:

• One of Europe’s lowest corporate profit tax rates set at 10%
• Value Added Tax (VAT), salary tax and social insurance contributions among the most competitive ones in Central and Eastern Europe
• A 10-year corporate profit tax holiday for investment over €7.5 million and at least 100 employees
• Tax credits for investing in fixed assets of up to 80% of the invested amount
• State subsidies for creating new employment.

Labor costs in Serbia are comparable to those in EU membership candidate countries in the region, while standing at merely 40% of their level in Eastern Europe EU countries. In addition, low utility costs are an important factor in reaching high profit margins.
QUALITY HUMAN RESOURCES
Skilled and productive labor force has proven to be one of Serbia’s major competitive advantages in the global investment market.
Serbia fostered extensive relationships with western economies for decades. Siemens, Alcatel, General Motors, FIAT, and IKEA are only a small sample of the blue-chip companies maintaining strong ties with local partners. Throughout years of cooperation Serbian workers have received specific know-how and adopted advanced technology applications and rigorous quality control standards. Having vast experience in both manufacturing and management, local staff requires minimum training to adopt cutting-edge technologies and assembly processes. The skill level of local labor force is reflected in high industrial productivity rising at the 9.8% rate over the past five years.
The quality of Serbia’s intellectual capital is based on its educational system generating well educated, fast learning, multilingual, and IT literate people. In recent years, the number of university graduates grew by almost 10% annually averaging around 13,000. Technical education is particularly strong – high school students perform among the best at world contests in mathematics, physics and IT, and 1/3 of graduates come from technical universities.
STRATEGIC GEOGRAPHIC LOCATION
By operating in Serbia, a company can fully benefit from having production outside the European Union, while enjoying the possibility of easily accessing the EU market. Bordering Hungary, Romania, and Bulgaria, Serbia is at the doorstep of the European Union. It is a natural gateway between South East Europe and Western and Central Europe, a place of intersection of the two most important transportation corridors, connecting Western Europe and the Middle East (Pan-European corridors No. 10 and No. 7). From Serbia, you can effectively serve your European and Middle Eastern customers thereby enhancing your profitability.


Presentation: Invest in Serbia