State to provide EUR 7,000 to hotel owners for each new job – Subsidies for investments of EUR 2 million and employing 70 new workers

The Government of Serbia has adopted the Decree on Defining the Criteria for the Allocation of Incentives for Attracting Direct Investments in the Sector of Hotel Accommodation Services. The funds can be approved for investment projects in the sector of hotel accommodation services which are worth at least EUR 2 million and which secure the permanent employment of at least 70 new workers.

The funds are allocated under the following conditions:

– The direct investment must be made in the same location in the local self-government unit in the period of at least five years after the realization of the investment project for large companies, or at least three years for small and medium companies.

– The total number of employees after the realization of the investment project must not lower over a period of five years for large companies or three years for small and medium companies.

Depending on which group the local self-government belongs in relation to how developed it is, the state allocates subsidies of EUR 3,000 to EUR 7,000 for each new job.

The beneficiary of the funds obliges to secure the share of at least 25% justified costs from their own funds or other sources which don't include state aid.

The deadline for the realization of the project and employing new workers is three years from the date of application and can be extended to no more than five years after the agreement on the allocation of incentives is signed.

For investments of special importance, the deadline for the realization of the investment project and employing new workers is ten years from the date of application.

The government's decision came into effect with its publication in the Official Gazette of May 10, 2019.

I. M.

Vlada Republike Srbije

Decree on Defining the Criteria for the Allocation of Incentives for Attracting Direct Investments in the Sector of Hotel Accommodation Services

subsidies for hotel owners

state subsidies

employment