Serbian government relaxes requirements for investment subsidies

Serbian government has relaxed the conditions for allocation of investment subsidies. Earlier, a company’s investment should have amounted to at least 150,000 EUR to be eligible for subsidies while now that amount has been reduced to 100,000 EUR and an obligation of an investor creating at least 10 new jobs.

The state will pay between 3,000 and 7,000 EUR to investors per each new employee, depending on economic branch. Those investors planning to expand their business in undeveloped areas in Serbia are going to receive the most. For instance, a company willing to invest in Vlasotince will get subsidies in the amount 7,000 EUR per new job, while a company investing in Belgrade will get only 3,000 EUR.

In addition, investors will be getting state aid for capital assets in the amount of 10-30% of the money invested. They will, however, first need to secure 25% of the value of the total investment from their own funds.

– The government decree clearly envisions paying out the money in installments. The amount of each installment is now defined as a percent of the total amount of allocated funds – explains the Blic correspondent.

– The decree had to be changed so that a continuity of economic growth through direct investments would be secured. We are also now exercising tougher control over investors, making sure that are adhering to their contractual obligations. The focus is on investments in undeveloped and devastated municipalities and supporting investors willing to invest at least EUR 2 million and create at least 100 new jobs – Economy Minister, Goran Knezevic says.

(eKapija, 05.01.2017)

http://www.ekapija.com/website/en/page/1638384/Subsidies-for-investments-from-EUR-100-000-and-employment-of-10-workers-Government-of-Serbia-lowers-bar-for-state-aid-to-investors

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This post is also available in: Italiano

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