Financial Benefits and Incentives

Cash Grants


To offset initial capital investments and ease the start-up of business endeavors, the Government of Serbia offers financial support for Greenfield and Brownfield projects in the manufacturing sector and services, which may be subject to international trade. Program of cash grant is regulated through the following set of laws and by-laws:


Construction Land Transfer Subsidy

Government or the local municipality can sell construction land at a price which is lower than the market price in support of an investment project that is of national importance (if the land is owned by the government), or an investment project that promotes local economic development (if the land is owned by the local municipality).


Corporate Income Tax Relief

A 10-year Corporate Profit Tax Holiday is available for investors who hire more than 100 employees and invest more than 8.5 million euros (1 billion RSD). Tax holiday begins once the company starts making a profit.


Payroll Tax Incentives

Employment of people who were registered with the National Unemployment Agency for more than 6 months entitles employers to a sizable relief of taxes paid on net salary from the moment of employment:

  • 1-9 new jobs: 65% reduction
  • 10-99 new jobs: 70% reduction
  • 100+ new jobs: 75% reduction

(payroll tax incentives can’t be combined with Financial Incentives)


Double Taxation Treaties

Serbia has 65 effective double taxation agreements in place that cover income, capital, and property. In addition to having double taxation agreements in place with most European countries, Serbia has double taxation treaties in place with many countries in Asia and Africa.