Serbia

serbia

Quick facts:

Territory 88,361 km2
Population 7.18 million (2013)
Currency Serbian Dinar (RSD)
Capital Belgrade
Official language Serbian
Memberships UN, CoE, OSCE, PfP, BSEC, and CEFTA
Real GDP per capita 3,100 EUR per inhabitant (2011)
Growth of GDP, % Forecast: 1.5% in 2014, 2.0% in 2015
Average gross salary 57,921 RSD / EUR (May 2013)
VAT rate 20% – general rate; reduced rates: 8% or 0% for certain categories of goods and services
Company Income Tax 15% plus 10% on withdrawal
Phone code  +381
Top domain  .rs and .срб

Serbia is considered a large potential market, mostly due to its dynamic domestic demand and its growing openness to trade and foreign investment. The financial crisis forced the country’s government to ask the IMF for a loan, which was granted in 2009 when Serbia undertook measures to reduce its budgetary deficit to 3%. Since that time, the economy has displayed signs of revival and the estimated GDP growth for 2011 was 2.0%. Nevertheless, serious challenges still remain ahead, such as controlling the inflation rate (11.3% in 2011) and reducing unemployment levels (20.5% in 2001), which are among the highest in Europe. For the past decade, Serbia has been attracting FDI especially in the banking and financial sectors, which have helped significantly in reducing the deficit on foreign trade. Although the financial crisis of 2009 and 2010 saw a decline on the development of investments, the last year has shown that foreign investors are still interested in the Serbian market (FDI accounts for 3.0% of GDP). The main investors are Austria, Greece and Norway, with European countries in general representing 70% of foreign investments in Serbia. The standard VAT rate is 18%, whereas CIT amounts to 10%.