Why invest in Belgrade?


Macroeconomic stability, market size, business costs, human resources, geographical location and investment infrastructure are the most important of the many reasons why Belgrade is now one of the most attractive locations for business in this part of Europe.


The increasingly favourable business environment in Serbia and Belgrade is based on a stable macroeconomic framework as evidenced by a wide range of positive indicators:

  • a high level of economic growth averaging almost 7% over the last three years:
  • single-digit inflation of 6.6% in 2006;
  • a balanced national budget;
  • record foreign currency reserves amounting to more than 14 billion dollars;
  • low national debt, less than 1/3 of GDP.



Belgrade offers all investors a high sales potential in international and local markets due to:

  • duty-free access for a large number of industrial and agricultural products to the markets of the European Union, USA, Russia and South-Eastern Europe, which comprise almost one billion people;
  • dynamic increase in earnings and purchasing power of the population, whose average net monthly earnings are now more than 350 euros.


In comparison with other countries in the region, operating costs in the capital and the country as a whole are favourable, resulting from:

  • low tax rates, such as profits tax of 10%, VAT between 8% and 18% and income tax of 12%;
  • numerous investment incentives, including state subsidies for direct investments between 2,000 and 10,000 euros for each new job created, 10 years exemption from payment of profits tax on large investments, as well as exemption from income tax and social security contributions for employees below 30 and above 45 years of age;
  • cheaper utilities and services, such as electricity, gas and water.


Investors agree that the quality and cost of labour is one of the key reasons for investing in Belgrade and in Serbia as a whole. Human resources in our country are distinguished by:

  • a high level of productivity, which in manufacturing is increasing  by 11% per annum on average;
  • excellent technical education, which sees a third of the approximately 14,000 graduates each year coming from natural sciences faculties;
  • significantly lower wage contribution costs, equal to less than half of the rates which apply in the new member states of the European Union from Eastern Europe.


Serbia and Belgrade occupy a central geographical location in this part of the continent, thanks to:

  • European Corridors 7 (the Danube River) and 10 (road and rail) connecting Western Europe with the Middle East, which pass through Serbia and meet in Belgrade;
  • common borders with several European Union member states;
  • transport of goods from and to the most important European markets within a short timescale.


As a result of the significant investments made in the last few years, Belgrade is today distinguished by a modern communications and telecommunications infrastructure which comprises amongst other things:

  • easy access to the E75 international motorway and Nikola Tesla International Airport;
  • high-speed Internet links up to 5 Mb/s;
  • a large choice of available top-class business premises, which in 2007 alone will increase by 50,000 m2.