Serbia: New decree concerning state subsidies

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement


Serbia: New decree concerning state subsidies

blagojevic.jpg

Ivana Blagojevic

The Serbian Government passed the decree on conditions and procedures for the attraction of direct investments, which was published in the Official Gazette of Serbia No. 28/2015 from March 20 2015. The decree entered into force on March 21 2015. The decree provides for subsidies for investments into the Serbian market and regulates who can apply for the subsidies, the volume of subsidies and the procedure of applying and granting subsidies.

Eligible applicants

Any foreign or domestic business entity can apply for the subsidies provided by the decree. However, only a domestic legal entity, which is directly or indirectly controlled by the applicant, can be the beneficiary of the subsidies.

The subsidies can be used for the financing of investment projects in production and for services that can be traded internationally. The trade sector is explicitly excluded from applying for the state subsidies.

The following entities cannot apply for subsidies:

  • Business entities with difficulties in their business operations;

  • Business entities which have overdue debts towards the Republic of Serbia;

  • Business entities which have significantly reduced their number of employees in the 12 months preceding the application for subsidies; and

  • Business entities whose shareholder is the Republic of Serbia, Serbian autonomous provinces or municipalities.

The volume of subsidies

The volume of subsidies is determined by the size of the beneficiary of the subsidies:

  • Large enterprises can be granted an amount of up to 50% of justified expenses of the investment project;

  • Medium enterprises are entitled to up to 60% of justified expenses of the investment project; and

  • Small enterprises are entitled to up to 70% of justified expenses of the investment project.

The subsidies can be granted to beneficiaries engaged in production, with minimum justified expenses of the investment project in the amount of €250,000 and to beneficiaries in the service sector, with minimum justified expenses of the investment project in the amount of €150,000.

The procedure for the distribution of the subsidies

The applicants apply for subsidies in a tender procedure. Namely, the Ministry of Trade announces the procedure for the collection of applications for grants. Elected beneficiaries conclude a subsidy agreement with the ministry before the subsidies are disbursed.

Ivana Blagojevic (ivana.blagojevic@eurofast.eu)

Eurofast Global, Belgrade Office

Tel: +381 11 3241 484

Website: www.eurofast.eu

more across site & shared bottom lb ros

More from across our site

It was also a memorable night for Galicia, KPMG, Skadden and Pinheiro Neto, all of which scooped major awards at a gala ceremony in New York
The former Deloitte UK CEO earned a 45% raise in a year when 1,000 staff reportedly lost their jobs – and the pay gap is only getting bigger
In a seminal development for big law, the 95-year-old firm is set to cease operations after a series of high-profile partner departures
UK Chancellor John Healey extended a VAT cut, suspended tariffs, increased a bank surcharge and vowed to increase funding for HMRC
Kristine Riisberg warned that TP decisions can determine top-up tax exposure under pillar two, while global consensus over the rules remains unsettled
Both Germany’s NIS2 and the EU AI Act now determine whether a tax function can meet its obligations – and both can make management personally accountable
Originators, loan purchasers and securitisation vehicles may need to revisit servicing agreements and pricing after a key judgment narrowed the VAT credit management exemption
Opening doors for existing talent within Baker McKenzie and a desire for enhanced legal capabilities informed Ricardo Perera’s switch from KPMG
Boaz Goren’s move to the upstart PE-backed firm takes the number of senior UK tax professionals who have left EY this year to 13
The allegations against Deloitte Cyprus raise uncomfortable questions about how far the big four can distance themselves from misconduct at member firms
Gift this article