Ministry of Economy: EUR 900 million provided as support to investors, EUR 5 billion received

In the 15.5 years that the state has been supporting local and foreign investors in projects and employment in Serbia, slightly over EUR 900 million has been set aside from the budget, whereas the total investments amount to around EUR 5 billion.

This is shown by the analysis of the feasibility of incentives for investors that was prepared by the Ministry of Economy. The analysis says, among other things, that the ministry has signed 342 agreements on the allocation of funds to companies and that around 100,000 jobs have been created.

The criteria for the awarding of incentives and setting the amount of the funds are the height of the investment and the number of new employees with full employment contracts, the height of the gross salary that the beneficiary obliges to, the degree of development of the local self-government and others.

The ministry explains for Tanjug that the incentive policy is executed in line with the EU regulations and that the rules are strict and clear, as are the terms under which companies can get state aid.

They add that these are not just financial incentives, but a whole range of various forms of support, due to which, the ministry says, many companies have chosen Serbia as the destination to invest in, in addition to the overall stability in the country.

Thanks to the economic reforms, the ministry says, Serbia has positioned itself as one of the most important investment destinations of central and eastern Europe, as a country with a stable business environment and a recognizable and attractive investment environment.

They say that what has also contributed to the creation of the conditions for the improvement of the business climate was “the adoption of the Law on Investments, which made local and foreign investors equal regarding the rights and obligations”, as well as the signing of bilateral investment agreements which Serbia has signed with other countries.

When asked whether they have any findings about the potential closing of factories other than Geox, the Ministry of Economy says that no other factory, even in the year of Covid, has closed its facility. Instead, they add, the continuation of all the initiated projects and new investments have been announced.

The ministry also says that there are more than 40 re-investments. They explain that these are companies which have completed both project phases and then started new investment cycles and projects, as the managements of those companies have recognized Serbia as a good and safe investment environment.

Ministarstvo privrede Republike Srbije

Law on Investments

investments