Agency for Investment Promotion and Business Support in Central Serbia

Another Round of Grants for Investments

A new investment package has been prepared for investors into Serbia. State grants are offered for Greenfield and Brownfield projects in all industries, except for primary agriculture, the hospitality industry, retail, and the production of synthetic fibers and coal. Deadline for applications is January 27th 2012.

For large investors, a special financial package is available. If a project's value exceeds €200 million, with the minimum of 1,000 new jobs created within 3 years, the state may cover 20% of the investment. Investments of over €50 million that create the minimum of 300 new jobs within 3 years, can be subsidized up to 20% of the project's value.

For standard-scale Greenfield and Brownfield projects in the manufacturing, export-related services sector and tourism, non-refundable state funds are offered in the range between €2,000 and €10,000 per new job created within three years.

For large-scale projects, the amount of grants is determined by the government, depending on the investment's importance, value, and term.

In case of standard-scale projects, state funds are awarded upon the scoring based on the following criteria:

Investor's references,
Participation of domestic suppliers in the final product and the investment effect on local companies,
Investment sustainability,
Effects related to R&D,
Effects on human resources,
Environmental impact,
The value of international turnover for investments in the services sector,
Imports substitution and
Effects on the development of the local community.

Applications are to be submitted to SIEPA. Upon the assessment of investment projects, the funds for selected projects are paid out in four increments throughout the project's lifetime:

after concluding the contract for sale or lease of land,
after obtaining the construction approval,
after obtaining the right-to-use permit,
after achieving full employment envisaged by the investment project. within three years from concluding the agreement on awarding funds.

Exceptionally, for export related services projects concerning lease of business premises, that has to be completed in two years, the funds are paid in two equal increments:

after concluding lease agreement for business premises for at least 5 year period;
after achieving full employment envisaged by the investment project -within two years from concluding the agreement on awarding funds.

More at www.siepa.gov.rs