State refunds half of each investment - New regulation on incentives for investors

After nearly a year-long break, the state will again start giving incentives to investors which will be getting up to EUR 7,000 for each newly created job.
The practice of practically paying investors to invest in Serbia, which was first introduced by Mladjan Dinkic and drew harsh criticism from the public, is back in use.
When passing the new regulation on incentives for direct investments, the Government of Serbia neglected even the disappointing data from 2013 which show that out of ten companies that received the most money, as many as four made losses the same year.
According to the new regulation, the Government's assistance will be available to companies investing in production, services that can be a subject of international trade, and strategic projects.
What makes this regulation different than all the previous is that it enables the investor to pick the type of incentive they want to get - the one granted on the basis of the new jobs created or the amount of the investment made.
The Republic of Serbia used to pay up to EUR 10,000 for each newly created job. Now the maximum incentive per new job will be EUR 7,000, and this maximum amount of incentives will be granted only in devastated areas with a minimum investment of EUR 250,000. Businessmen who start their own production in the vicinity of Belgrade, novi Sad or Nis can count on incentives totaling EUR 3,000 per employee.
For investment in Ljig or Ivanjica, which are both underdeveloped areas, the company can get maximum EUR 6,000 per newly created job.
The other option is to get financial assistance from the state on the basis of the amount of the investment made. However, investors who hire more than 200 workers may get an additional incentive.
Therefore, if an investor starts a EUR 50 million worth of production, they can get 25 million from the Republic of Serbia, and if over 200 people are hired, the incentive will be increased by additional 10% of the two-year costs of the payment of gross salaries.
Those who hire more than 500 workers will get an additional incentive of 15%, while 20% of the salary costs will be covered when more than 1,000 workers are hired.

Ministarstvo privrede Republike Srbije

Vlada Republike Srbije

incentives for investors

Mladjan Dinkic

employment incentives