1. INVEST IN SERBIAINVEST IN SERBIA

2. PRESENTATION OUTLINEPRESENTATION OUTLINE
1. Key Drivers to FDI in Serbia
2. Strong FDI Figures
3. SIEPA Services

3. KEY COUNTRY DATAKEY COUNTRY DATA
Area: 88,361 km²
Population: 9.5 million
Capital: Belgrade (1.7 million)
State form: Democratic Republic
President: Mr. Boris Tadic
Prime Minister: Mr. Mirko Cvetkovic
Currency: Serbian Dinar (RSD)
GDP: €31.51 billion (2009)
GDP pc: €4,304 (2009)
Internet domain: .rs

4. KEY DRIVERS TO FDI IN SERBIAKEY DRIVERS TO FDI IN SERBIA
Enhanced Investment Stability
Booming Market Potential
Quality Human Resources
Strategic Geographic Location
Low Overhead Costs
Attractive Investment Incentives
Robust Recent Growth

5. The SAA with the EU signed in April 2008; membership
application submitted in late 2009; acquis
communautaire to be adopted by 2012
Serbia’s application for the WTO accepted; accession
expected by the first half of 2011
PwC EM20 Index 2008–Serbia as the 3rd most
attractive manufacturing and 7th Shared Services
location among emerging markets
E&Y European Investment Monitor–nearly 150 new
projects in Serbia in 2007, 2008, 2009; Serbia holding
the 2nd spot in South East Europe
ENHANCED INVESTMENTENHANCED INVESTMENT
STABILITYSTABILITY

6. National treatment of foreign companies
Free transfer of financial and other assets, including profits and
dividends
Bilateral Investment Treaties with more than 30 countries
Investment projects insured against non-commercial risks by all
major national agencies
ENHANCED INVESTMENTENHANCED INVESTMENT
STABILITYSTABILITY

7. Business legislation reforms in line with the EU legal framework
Key investment-related reforms implemented:
- Tax laws, including VAT Law
- Business registration: 51 days 5 days
- Foreign trade–top reformer in the world for 2006
- The new Planning and Construction Law
- The new Law on Competition Protection
Key investment-related reforms to be implemented:
- ‘The Guillotine of Regulations’–30% fewer regulations
ENHANCED INVESTMENTENHANCED INVESTMENT
STABILITYSTABILITY

8. The new Law on Planning and
Construction:
- Freehold ownership of land
- Improved license issuing
As of May 2009, business
registration done in up to 5
days
All common company forms
available
ENHANCED INVESTMENTENHANCED INVESTMENT
STABILITYSTABILITY

9. BOOMING MARKET POTENTIALBOOMING MARKET POTENTIAL
Duty-free access to a 1 billion
people market:
Customs-free exports to the EU
Generalized System of
Preferences for exports of
4,650 products to the United
States
Free Trade Agreements with
the Russian Federation,
Kazakhstan, Turkey, EFTA
members, and Belarus
Free Trade Agreement (CEFTA)
in South East Europe

10. QUALITY HUMAN RESOURCESQUALITY HUMAN RESOURCES
35,000 university and 2-year
college graduates and 75,000 high
school graduates yearly
Top quality technical education at
both high school and university
level
A wide availability of highly
qualified staff
Strong command of the English
language

11. QUALITY HUMAN RESOURCESQUALITY HUMAN RESOURCES
Rising unemployment as a result of privatization process layoffs; the
unemployment rate particularly high in former, large industrial centers,
making a skilled labor force widely available
Headhunting agencies available in major cities
A 40-hour working week; overtime up to 4 hours/day, 8 hours/week
Flexible working forms available: part-time, work at home, etc.
Two major labor unions, chiefly active in former state-owned firms
QUALITY HUMAN RESOURCESQUALITY HUMAN RESOURCES

12. STRATEGIC GEOGRAPHICSTRATEGIC GEOGRAPHIC
LOCATIONLOCATION
Two European transportation corridors:
- Corridor X: Salzburg-Thessalonica highway
- Corridor VII: The River Danube
A total of €1.7 billion earmarked for further road network
development on the Corridor X
The three remaining Corridor X sections to be completed in the next
three years

13. LOW OVERHEAD COSTSLOW OVERHEAD COSTS
Europe’s second lowest Corporate Income Tax rate
The Value Added Tax rate among the most competitive in Central
and Eastern Europe

14. LOW OVERHEAD COSTSLOW OVERHEAD COSTS
The average salary–60% of
the level in CEE countries
Tax burden totaling about
65% of the net salary;
reduction possible through
tax incentives
The 9.4:1 salary ratio by
specific industries; 4:1ratio
by municipalities

15. ATTRACTIVE INVESTMENTATTRACTIVE INVESTMENT
INCENTIVESINCENTIVES

16. ATTRACTIVE INVESTMENTATTRACTIVE INVESTMENT
INCENTIVESINCENTIVES
Tax incentives:
A 10-year Corporate Income Tax holiday for investment over €8
million and 100 employees
A 5-year Corporate Income Tax holiday for investment in
undeveloped regions
Corporate Income Tax reduction up to 80% of the fixed assets
investment
Salary Tax exemptions for employees below 30 and above 45
years of age
Social insurance charges exemptions for employees below 30
and above 45 years of age
Value Added Tax exemption in Free Zones
Customs-free imports of equipment and certain raw materials

17. ROBUST RECENT GROWTHROBUST RECENT GROWTH

18. ROBUST RECENT GROWTHROBUST RECENT GROWTH
Average exports growth over
the 5-year period–33%
Strong exports performance
driven by the Food, Textile,
Metal, Chemical, Machinery,
and Wood industries
Nearly 55% of foreign trade
pursued with the European
Union

19. ROBUST RECENT GROWTHROBUST RECENT GROWTH––THETHE
CRISIS IMPACTCRISIS IMPACT
The crisis impact cushioned by: a) state-subsidized banking loans, b) active
employment measures, c) public investment in infrastructure development
External liquidity secured through the €3 billion Arrangement with the IMF and the
Agreement with foreign-owned commercial banks in Serbia

20. STRONG FDI FIGURESSTRONG FDI FIGURES
Total inward FDI between 2004
and 2008–over €11 billion
Inward FDI in 2009 reached
about €1.8 billion
A sharp upward trend in
Greenfield projects–130+ such
ventures in 2007, 2008, 2009
About 70% of FDI stemming
from EU countries

21. LEADING FOREIGN INVESTORSLEADING FOREIGN INVESTORS

22. SIEPA SERVICESSIEPA SERVICES
Free-of-charge assistance in all investment project stages; the
Agency specialized in Greenfield projects
An investment portfolio in excess of €1 billion
Fiat, Kronospan, Ball Corporation, Grundfos, Knauf among major
clients

23. CONTACT USCONTACT US
SERBIA INVESTMENT AND EXPORT PROMOTION
AGENCY
3, Vlajkoviceva St.
11000 Belgrade, Serbia
Phone: +381 11 33 98 55 0
Fax: +381 11 33 98 81 4
office@siepa.gov.rs
www.siepa.gov.rs