Business Environment

Those companies which have already recognised the benefits of operating in this emphasize that Vojvodina is competitive because of the optimum ratio of costs, quality and workforce productivity, availability of its locations and workforce, low operating costs, proximity to the EU market, substantial financial and tax relief, a customs system which conforms to EU regulations and, especially, corporate profit tax at a level of 15%, which is among the lowest in the Europe.

For many companies it is important to have access and opportunity to export to a market of more than one billion people, due to the free trade agreements Serbia has signed with member countries of CEFTA, EFTA, Turkey, Belarus, Kazakhstan and Russia, as well as the preferential trade agreements with the EU and the USA, which together opens a duty-free access to the market of over one billion consumers.

By choosing to locate in Vojvodina, foreign investors enjoy the benefits of a highly competitive and advantageous tax system, essential for boosting company profits. In addition, favorable business and investment climate conditions contribute to a proven record of successful FDI attraction. In general, Serbia’s tax regime is highly conductive to doing business. Corporate profit tax is the lowest in the region, while VAT, salary tax and social insurance contributions are among the most competitive in Central and Eastern Europe.

 

SOCIAL INSURANCE CONTRIBUTIONS

Pension & disability12% 14%
Health Insurance5,15%
Unemployment0,75%
Annual Income Tax10-15%
Other Income Tax20%
 

Key export sectors:

Food & Beverage
17.2%
Machines & Equipment
8.5%
Chemicals
8.3%
Rubber & Plastics
7.3%
Motor vehicles & trailers
7.2%

Serbia

  • GDP in 2016 € 34,095,6077
    Source: The European System of National and Regional Accounts (ESA 2010)
  • Currency: Serbian Dinar (RSD)
  • Unemployment 18.5%

Vojvodina

  • Active population 799, 983
  • Export volume € 4,3 bn
  • Export growth 3,2 %
  • Export markets: EU, CEFTA, Russia