Serbia is one of those small countries located in the heart of the Balkans. Being in such a troubled region, Serbia was not considered one of the best options for those who wanted to invest in Europe and get good profits. Even so, over the years the Balkan tiger can enjoy today the title of the country with the most stable indicators in the region.

Liberal economic policies, the arrival of new multinational companies and the improvement of the quality of life are some of the key points that have made Serbia an attractive country for those who wish to get the sound business opportunities that the local market has to offer.

In recent years, Serbia has opened the doors of its economy to the free market and is in search of foreign investment. This recovery has been able to put an end to the economic crisis it experienced after a decade of successive civil wars.

In short, Serbia has managed to be in the position where it is now thanks to three things: its strategic location, the investment climate and the good development of its educational and financial system.

Also, this country offers one of the best residency by investment programs in Eastern Europe, a competitive banking system and a vanguardist crypto law framework.

In this article, we will give you an overview of the investment conditions in this country.

A Little Bit of History

In order to know the first steps of Serbia, it is necessary to know that it would be necessary to begin in the VII century, when a group of tribes united in the year 845 to form Rascia, the first known Serbian state within the Byzantine Empire.

In 1217, with the creation of the Kingdom of Serbia, the country began to enjoy a great reputation on the European continent for its cultural, political and economic importance vis-à-vis the rest of the continent due to the annexations and alliances of the successors of the Nemanjić dynasty, so when the kingdom managed to reach significant dimensions, in 1346 Stefan Uroš IV Dušan founded the Serbian Empire.

At that stage we can say that it was a high point territorially speaking, as it was known for one of the largest and most important states in Europe, but when Dušan was succeeded by his son to hold the reins of Serbia, but due to his inexperience and inability to maintain the territory, it caused its fragmentation and subsequent domination by the Ottoman Empire for 400 years.

After successive wars against the Ottoman Empire to gain their independence, the Serbs began to see the light in the 1880s with the establishment of the Kingdom of Serbia with King Milan Obrenovic at its head.

With the arrival of the 20th century, Serbia underwent too many changes. Its rivalry with Austria-Hungary triggered the First World War. But when World War II began, it was invaded and occupied again by the Germans. The first half of the 20th century was not easy for the Serbs.

With the post-war effects, Yugoslavia was led by the most powerful man of the very effective Serbian partisan guerrilla, Joseph Broz Tito, an important communist leader who ruled with an iron fist until his death. He established a highly centralized, state-centered economy, a trait that still endures in the country's political and economic culture.

However, Yugoslavia's unity depended solely on Tito's ability to hold all factions together. After his death in 1980, Yugoslavia began a slow and painful disintegration over the next two decades. Serbia officially entered the new millennium with its economy and political stability in tatters.

During those years, the Serbian people endured acute hyperinflation, three wars of secession and financial isolation. The scars of the past continue to mark the international role of Serbia, which is always struggling to find a place between the West and Russia. 

However, Serbia has striven to present itself as a country open for business and ready to take advantage of the opportunities offered by the 21st century.

After the fall of Milosevic, the country pushed for reforms aimed at market liberalization and regional integration that would bring the Serbian economy back to life. The reforms were partially successful, and GDP grew by 5% on average between 2000 and 2008, although the global crisis of 2009 dragged down economic growth.

Why Serbia?

At the beginning of this century, Serbia bore the cross of political instability caused by its authoritarian past. Today, the country is not only leading the region's post-pandemic economic recovery and managed to increase its Gross Domestic Product by 7.5% in 2021, but is expected to continue to increase its indicators over the next few years.

Although many problems persist there, the government is encouraging private investment to stimulate its economy and strengthen its profile as a candidate for European Union membership. Serbia is expected to be formally a member in 2025.

Once it is part of this organization, not even the sky would be the limit, if you compare it to the potentialities that this would bring. Serbia will not only have access to the European market, but also to the Russian and Asian markets. 

Still, Serbia is not considered a very advanced economy, compared to its neighbors in Europe or Asia. But that news doesn't necessarily have to be bad, it can also mean that there are unlimited business opportunities to exploit to your advantage. You can look at it as if you have a mine full of diamonds, you just have to work to get the benefits that Serbia can offer you.

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Doing business

If we were to think about the reasons why you should do business in Serbia, you would really be surprised at the potential advantages, having a country that is well positioned geographically, with connections to large international markets and a large untapped market.

In a nutshell, the following advantages that Serbia can bring as a country to invest in should be taken into account:

The first thing is that its geographical location makes it perfect to enter towards the European and Asian market.

At the same time, the government has implemented a friendly trade regime for foreign investors, so you would not have to pay tariffs when importing and exporting.

If you are worried about taxes, you won't have any headaches in Serbia, as its tax burden is even a bit lower compared to European countries.

And with the good news that the Serbian economy is not fully developed, it allows you to have thousands of economic opportunities to grow and prosper without much competition.

Serbia has the best of both worlds: it has the economic potential of any developing economy coupled with a European lifestyle.

The Serbian economy has shown signs of continuous growth since the fall of communism. Its GDP grew at a rate of 7.5% during 2021, also boasting a low inflation rate of 1.6%, which is truly uncommon when you look at the high inflation around the globe. Although the COVID-19 pandemic created a recession in 2020, GDP contracted by only 1.1%. This is little compared to the United States or Germany, whose economies collapsed in 2020.

As an export-oriented country, its manufacturing industry is key. Its main products go to machinery manufacturing, automotive, the shared services sector, electronics, ICT, food, textiles and metallurgy. As a result, its main export customers are Germany, Italy, Bosnia and Herzegovina, Romania and Hungary.

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What can we do for you?

As you may notice in this article, Serbia is a country with an amazing economic potential thanks to its strategic location and undeveloped economic sectors.

Our partners in this Balkan country are a consulting firm who can help you regarding Serbian residency programs, opening a bank account and even getting a cryptolicense.

They can help you in every step of the process, giving world-class advice and preparing all the needed documentation so you can obtain a residency permit or open a bank account in a Serbian bank.

If you wish to invest in Serbia, then don’t hesitate and request a consultation now.

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