Serbia Expects €2 Billion in Foreign Investments in 2016 – 13 Billion Dinars Set Aside for Incentives

This year, Serbia expects at least €2 billion worth of FDIs. Last year, excluding the last quarter, close to €1.3 billion of investments were made in Serbia. Companies which are planning to create new jobs for Serbian workforce this year can use up to 13 billion Dinars of incentives. Furthermore, the government has provided 400 million Dinars of incentives for film companies deciding to shoot their films in Serbia.

Late year, the Government adopted a decision to approve financial support for seven investors which is going to result in creation of a total of 6.042 jobs. Over the next three-year-period, these seven investors will spend a total of €532 million on future employee salaries while the state’s assistance will be in the region of €266 million.

„The Investment Law stipulates a legal framework for incentives while a bylaw further regulates the criteria, conditions and way of attracting direct investments“ – the Ministry of Economy explains.

„The maximum financial assistance is stipulated in the regulation which defines the rules for allocation and supervision of state aid, namely the Law on Control of State Aid and the Rules of Procedure for Granting State Aid. According to the aforementioned regulation, large companies qualify for these incentives and other incentives provided by law in the amount of up to 50% of their eligible investment costs. Investment costs are assessed against investments in fixed assets or against the costs of gross salaries over a two-year period following the end of the investment project. Small and medium enterprises are eligible for 70% and 60% respectively.“

Out of the allocated 13 billion Dinars of assistance for this year, some of the money will go towards previously contracted projects implemented by Air Serbia, Fiat, Robert Bosch in Pećinci and Hutchinson in Ruma, as well as towards new investments in Šabac, Novi Sad, Vladičin Han, Doljevac, Aranđelovac, Inđija, Subotica and other municipalities. The Ministry of Economy expects these investments to result in creation of numerous jobs.

(eKapija, 24.01.2016)

This post is also available in: Italiano

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