Serbia on the Rise: Prime Opportunities for Global Entrepreneurs

As of 2024, the Serbian economy continues to grow. Contrary to pessimistic forecasts, foreign direct investment remains strong, with billions of dollars flowing into this Balkan state. In recent years, the nation has achieved impressive economic results. Reforms have reduced national debt and attracted foreign capital, positively impacting the development of small and medium-sized enterprises.

International rating agencies have recognized these achievements. Fitch has assigned Serbia a sovereign credit rating of BB+ with a stable outlook, and Standard and Poor’s has given a similar rating.

For those closely following Serbia, these developments are not surprising. At Serbia Wealth, we have consistently highlighted the improving business climate and the numerous opportunities for establishing a company or branch in Serbia.

If you have any concerns about potential risks, now is the time to weigh the pros and cons. The risks associated with Serbia are comparable to those you may face in any other European country, but the advantages are increasingly compelling and undeniable. Moreover, Serbia offers several unique benefits for foreign businesses compared to other European markets.

Serbia’s role in the global move toward financial transparency and compliance

The aggressive deoffshorization policies of many leading countries have shifted global business trends. Low-tax, high-confidentiality regions are becoming transparent jurisdictions. While this may cause short-term capital outflows, it also opens dazzling prospects.

Legalization and transparency are now essential for successful business operations, and adapting to these new factors is of major importance.

Since 2019, Serbia has been part of the Common Reporting Standard (CRS) for automatic financial account information exchange. As a result, foreign owners of enterprises or bank accounts in Serbia can no longer expect their assets to remain hidden from their home countries’ tax authorities.

However, this shift also brings benefits. At present, Serbia is excluded from international regulators’ black and gray lists, which allows your company to operate with no doubts or obstructions. You can conduct business openly and confidently in leading markets worldwide.

NB: Information exchange does not mean all your details will be publicly disclosed. A certain level of confidentiality is still maintained.

Trade stability and economic growth in Serbia

In August 2019, Serbia signed the Singapore Convention, which highlighted its commitment to stability in international trade. This move, according to the State Secretary of the Ministry of Justice, will expand economic rights and improve business conditions in the country.

Serbia’s upgraded business climate attracts foreign investments, opens new markets, and develops infrastructure, creating a positive feedback loop for prosperity.

China exemplifies this trend. Leading Chinese businesses invest in Serbian enterprises and projects, especially under the One Belt, One Road strategy. This is a sure way to create new labor markets and significant growth potential.

Plus, don’t forget that Serbia uniquely balances its relationships with China and the European Union, maintaining good relations with all parties.

Serbia’s EU bid: balancing eastern and western alliances

The Serbian government aims to join the European Union and has taken steps toward this goal since 2012. Although progress has been slow, the direction remains clear.

Several EU members, especially Hungary, support Serbia’s integration. The EU is concerned about China’s influence in Serbia and its friendly relations with Russia, as Serbia has not imposed sanctions and continues to cooperate, which underscores the nation’s appeal to European businesses and international players.

The country offers a quick path to accessing European markets. Owning a Serbian company today could mean having the entire EU open to you tomorrow.

For those willing to minimize national risks, Serbia is no doubt attractive. This appeal includes obtaining a residence permit or citizenship.

Business security in Serbia: neutrality amid sanctions

Entrepreneurs worldwide face the risk of having their bank accounts frozen and business operations crippled if they fall under sanctions or are associated with sanctioned individuals.

Serbia, however, maintains a neutral stance in international relations. It has good relations with the EU, China, and even Russia, which is kind of unique in the current political climate.

Despite some complexities due to EU pressure, opening a company in Serbia allows you to conduct business with virtually any country in the world. This neutrality is a significant advantage for international entrepreneurs.

Why Serbia is a cost-effective choice for entrepreneurs

The primary expenses for maintaining your company in Serbia include office rent and accountant fees. Office rentals start at EUR 2400 per year, while the average salary in 2023 was around EUR 700. The country has a large pool of highly skilled workers. Social and medical insurance contributions are minimal and quite reasonable compared to those in Europe.

Thanks to self-generation and favorable supplier contracts, Serbia also benefits from lower costs for electricity, gas, and fuel.

As for the tax burden, which is surely a key consideration for nearly every business person, Serbia’s corporate tax rate is 15%, which is competitive compared to most European countries.

Serbia business setup: quick, remote-friendly, and expert-assisted

The list of reasons to open a company or branch in Serbia is extensive, but we’ve highlighted the most crucial factors. One major advantage is the swift registration process and the ability to handle many operations remotely.

Like with any other process, entrepreneurs may face obstacles and challenges along the way, which makes professional assistance invaluable.

Serbia Wealth experts boast the necessary skills, experience, and a well-developed network of contacts. With an office based in Serbia, we have a precise understanding of local conditions and provide tailored support to our clients.

Need help with Serbian business registration? Contact Serbia Wealth today!

Did the above article help you in making that final decision? Maybe you have further questions about registering a company or branch in Serbia or obtaining residency? If so, don’t hesitate to reach out! Contact our team today, and our specialists will provide detailed answers to any questions you may have. You are also welcome to visit the SerbiaWealth website, specifically designed to provide information about this European nation, for further info and recommendations!