Introduction

In recent years, the globe’s collective memory about Serbia and the Balkans is filled with images of its turbulent past, communism and violence.

Some would even point at Serbia’s complicated past as a reason for not investing in the country. However, many years have passed since then, and by knowing just a little of Serbia, we will find that the ghosts of the past should not deter us from looking into the country’s bright future. 

In fact, the latest economic data indicate that there are good chances that the recent upswing in the Serbian economy will hold, giving investors a good opportunity to get good returns if they put their money in this Balkan country.

Mundo´s freedom rating is essentially a freedom index whereby our teams of specialists rate a combination of freedoms which include freedom from violence and personal attacks, financial freedom from high taxes, business freedom from government interference, and especially from socialism and communism.

Political Stability (7/10)

Unstable government, protests and weak institutions have been the common denominator of this country for the last years. In fact, The Economist’s democracy index ranked Serbia as a “flawed democracy” in 2020.

The ruling party is the Serbian Proggresive Party (SNS), which has governed the country since 2012. Its opponents have denounced the increasing authoritarian practices and repression against opposition politicians.

Doing business in Serbia can be one of the best decisions you can make. In recent years, the country has had a solid economic performance, thanks to its low taxes and strategic position in Europe. Serbia is the ideal place for those who want to expand their commercial horizons and protect their well-earned capital.

These are some of the reasons why foreign capitals have been flowing into Serbia in recent years. In fact, Serbia is the second largest recipient of Foreign Direct Investment (FDI) in the Eastern Europe economies, just after Russia.

In a nutshell, we will tell you the main reasons to establish a company in Serbia:

-A corporate tax rate of 15%, one of the lowest in Europe.

-Free trade agreements with many countries in Central and Eastern Europe, as well as preferential custom regimes for some exports to the European Union.