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

However, women in tax face greater career obstacles than their male counterparts, an exclusive ITR survey of more than 100 women tax leaders revealed
Under Jeff Soar’s leadership, WTS UK aims to scale to 100 partners within five years and challenge the big four
As the firm embarks on a major shakeup of its EMEA partnerships, some staff will be watching nervously
The buyout of Hucke and Associates continues Ryan’s streak of firm acquisitions; in other news, a UK appeal against VAT on private school fees was dismissed
Tax teams are responding to usual client demand in the region, albeit with increased working from home flexibility, local sources indicate
A 120-plus-day delay to refunds would cost taxpayers almost $3bn in additional interest, the Cato Institute warned; plus indirect tax updates from February
The Office for Budget Responsibility’s pessimistic pillar two forecast accompanied the UK chancellor’s muted Spring Statement, dubbed ‘as dull as possible’ by one adviser
Digital tax reform is dissolving the old ‘temporal buffer’, forcing systems, institutions, and professionals to adapt as real-time reporting reshapes governance, capability, and compliance
Our first instalment features analysis of Deloitte’s landmark EMEA merger, Donald Trump’s Supreme Court tariff showdown and Venezuela’s tax evolution
While some believe it could have a positive effect on the wider advisory landscape, others argue that HMRC’s ‘red tape’ exercise won’t deter bad actors
Gift this article