Criteria for investor subsidies are changing - the state gives a maximum of EUR 5,000 per employee, the minimum investment threshold raised

The Government of Serbia amended the Decree on determining the criteria for awarding incentives to attract direct investments, raising the threshold for the required minimum investment. Namely, in order for the investor to be able to count on the help of the state, he needs to invest a minimum of EUR 300,000, instead of the previous EUR 100,000. Also, the amended decree abolished the division of local self-governments according to the level of development, and the territory of Serbia is divided into five regions: Belgrade Region, Vojvodina Region, Sumadija and Western Serbia Region, Southern and Eastern Serbia Region and Kosovo and Metohija Region.

Investors in the Belgrade region can count on state incentives if they plan to invest a minimum of EUR 500,000 and employ at least 50 workers, while this threshold is lower for Vojvodina, requiring an investment of EUR 400,000 and the creation of 40 jobs.

In Sumadija and Western Serbia, Southern and Eastern Serbia, as well as in Kosovo and Metohija, the state will support those investment projects where investments are at least EUR 300,000 and which ensure the employment of at least 30 new workers for an indefinite period.

The new regulation stipulates that for investments of more than EUR 5 million, the deadline for the completion of investment project is up to 10 years from the date of submission of the application for the allocation of funds.

In the future, investors will be able to receive 20% of the justified costs of the gross salary per employee, and a maximum of EUR 2,000, if they plan to invest in the Belgrade region. For new employees in Vojvodina, 25% of the justified expenses of the gross salary follows, with a maximum of EUR 3,000 each.

In the regions of Sumadija and Western Serbia, Southern and Eastern Serbia and Kosovo and Metohija, future investors will be entitled to 30% of justified expenses of gross earnings, and the limit is 5,000 EUR.

As per the Regulation that was in force until now, investors could receive a maximum of EUR 7,000 for every newly opened workplace in a local government unit which, according to the level of development, belongs to a devastated area.

The amended regulation pays special attention to technologies with minimal impact on the environment, and an investment project with minimal impact on the environment is clearly defined.

- Technologies with minimal impact on the environment are technologies of renewable energy sources, storage of electrical and thermal energy, heat pumps, network technologies, technologies of renewable fuels of non-biological origin, technologies of sustainable alternative fuels, electrolytic and fuel cells, advanced technologies for energy production through nuclear processes with minimal waste from the fuel cycle, carbon capture, utilization and storage technologies, and energy efficiency technologies associated with the energy system. They refer to the final product, specific component and specific equipment that is primarily used for the production of those products - the regulation says.

I.Z.

Vlada Republike Srbije

Government of Serbia

Decree on determining the criteria for awarding incentives to attract direct investments

subsidies to investors

incentives to attract direct investments