It is not so easy to live in a country like Serbia. No matter how much I love my country, I have to be realistic and see where I actually live. I live in a country that has always had bad politics and economics...In a country that participated in many wars. In recent years, politicians have given us, young people, the task to fix all the things they had done. You have to admit that this is a difficult task. And how is possible in this situation to make a good investment climate? I like the lecture on this topic very much. I gained new knowledge in the last 3 weeks so I have reasearched more about our country which motivated me to do this project.

2. HELLO, HERE WE ARE…
In case you don’t know…
Serbia!

3. INTRODUCTION
Serbia is a sovereign state situated at the crossroads between Central and Southeast
Europe. The capital Belgrade is one of the largest cities in Southeast Europe. We have very
rich and interesting history, unfortunally we were often at war because of good geographic
position. Therefore, the development of our country is slow because of bad policy and
economics.
I would like to present you my point of view for improving the Investment Climate in my country…
So, let me tell you a few things about Serbia…
It is not so good place to live?

4. I AGREE!
• 7,114,393 inhabitants;
• Unemployment rate: 17,9%
• Manpower: 3,260,000
• Population below poverty line: 9.2%
• GDP: $43.866 billion (Nominal)
• Inflation (CPI): positive decrease 2.08%
• Public debt: $30.28 bn (71% of GDP)
• Budget deficit: $2.94 bn (6.9% of GDP)
• Natural increase: -34 786
• Percentage of highly educated population: 6,5%

5. Serbia
Bosnia and Herzegovina
Croatia
GDP in Serbia and neighboring countries:

6. Public debt and fiscal deficit (%GDP)
2013- 2018
Public debtDeficit Public debt (fiscal strategy)
Public debt
2009- 2014
Millions of euro
%GDP

7. LIGHT AT THE END OF THE TUNNEL?
A lot of young people have started to educate in order to
help their country.
And another thing, we have learned something in last 3
weeks, so we have some new ideas ...

8. 1.STABLE MACROECONOMIC
ENVIRONMENT
The term "Macroeconomic Stability" describes a national economy that has minimized
vulnerability to external shocks, which in turn increases its prospects for sustained
growth.
Stability is measured by five variables:
 Low and stable inflation
 Low long-term interest rates
 Low national debt relative to GDP
 Low deficits
 Currency stability

9. 2.REDUCE RED TAPE IMPEDIMENTS TO
DOING BUSINESS
• Revising land rules in order to speed up projects
• Ameliorate tax administration
• Facilitate the registration process

10. Well, a investor and a company with investment should enjoy tax and customs benefits
also, the import of items which represent investment should be free…

11. Inward FDI by Industries 2004-2013
Industry Investment value
(EUR million)
Financial Intermediation 4,968
Manufacturing 4,766
Wholesale, retail and repairs 3,167
Real estate activities 2,459
Transport, storage, communication 2,456
Construction 586
Minig and quarrying 544
Agriculture, forestry and fishing 194
Other utility, social and personal services 136
Professional, scientific and technical activities 119
Accomodation and food services 97
Public administration and social insuarence 83
Electricity, gas and water 73
Administrative and support service activities 26
Education 4

12. Overview of key tax incentives in
Serbia
Corporate Profit Tax Holiday Companies are exempt from Corporate Profit Tax for a
period of 10 years starting from the first year in which
they report taxable profit if they invest an amount
exceeding RSD 1 billion in fixed assets and employ at
least 100 additional employees throughout the
investment period.
Avoiding Double Taxation There is an extensive list of double taxation avoidance
treaties presented in Taxation section of this
publication.
Reduced Salary Load New employment entitles employers to a sizable relief
of taxes and contributions paid on net salary from the
moment of employment until the end of second year.
Value Added Tax Exemptions in Free Zones Entry of goods, transportation and other services
provided to users of Free Zones as well as supplies of
goods and services withing the Free Zones in Serbia is
exempted from Valued Added Tax. There are six Free
Zones, currently operating in the country: Subotica,
Novi Sad, Zrenjanin, Sabac, Kragujevac, and
Pirot.Three more zones are being prepared in Nis,
Smederevo and Uzice. Foreign companies can establish
a privately- owned Free Zone based on the project
approved by the government.

13. COMING TO THE END…
Serbia got few very important investments in recent years as “Telenor”, ”Fiat”, ”GazpromNeft”,
“Etihad”… There is also intention from the UAE to invest heavily in Belgrade real estate that
revolves around Belgrade Waterfront project, which was initiated in 2014.
…This is for now, I hope that in future we will attract more
investments and that we will succeed in our plans for Serbia!
Thank you for attention!