In a nutshell

In January 2019 the Regulation on Rules and Conditions for Attracting Direct Investments has been changed. Now it is renamed to: Regulation on Criteria for Granting Investment Incentives (hereinafter: "Regulation"). The changes and amendments include:

1) equalization of criteria for incentives eligibility for investment projects, and
2) elimination of public call for submissions.

 

Unifying Criteria for accepting Investment Projects eligible for incentives
(of all sizes and industries)

Up to now, there has existed a separated set of criteria for eligibility and viability assessment for investments classified as those of national importance or employing more than 100 new employees or in agriculture ("Selected Investments"); for all other investments, a different set of criteria has existed.

New Regulation equalizes the criteria for eligibility of the Selected Investments to apply for incentives The criteria for assessing viability of an investment were also unified, they are in accordance with standards previously reserved for Selected Investments.

 

Elimination of Public Call for Submissions

Until now, investors wishing to apply for incentives for projects creating up to 100 new jobs needed to apply based on a public call for submissions. New Regulation eliminates the public call, so now all potential investors directly get in contact with the Development Agency of Serbia ("DAS").

 

Other changes

New Regulation eliminated the eligibility condition for an investor to apply for incentives if it decreased number of its employees by 10% or more in the 12 months prior to application.

New Regulation no longer provides the possibility of investment incentives to projects in the hotel accommodation industry nor the services in international trade. New Regulation does specify that projects regarding service/assistance centres will remain fully eligible for incentives.