Why Serbia? 8 Reasons to Choose This Country for Living and Investment

Serbia is a country that in recent years has become increasingly popular among foreigners looking for the best place to live and invest. Located in the heart of the Balkans, it bridges East and West, offering a unique combination of European culture, affordable living standards and business prospects.

One of the key reasons for the growing interest in Serbia is its rapid development. The country has successfully overcome the economic challenges of the past and is now actively attracting foreign investment, offering favorable conditions for business, favorable tax rates and access to European Union markets.

Serbia is also renowned for its hospitality and high quality of life. The locals are happy to welcome foreigners, and the rich culture, picturesque landscapes and diversity of opportunities make this country attractive for both professional and relaxed life.

In recent years, more and more people from all over the world have chosen Serbia for relocation. Entrepreneurs start companies here, families move for a safe and comfortable life, and investors see Serbian real estate and economy as an excellent prospect for income.

This article will explain the eight main reasons why Serbia is becoming a good choice for living and investing, and what makes it special among other countries in Europe.

Serbia is located in the heart of the Balkan Peninsula, making it an important crossroads for transportation and trade routes between Europe and Asia. Its geographical location offers unique advantages both for doing business and for ease of travel and logistics.

Crossing of key transportation routes

Serbia is part of the Trans-European Transport Network (TEN-T), which connects the European Union countries with the Western Balkans. Important corridors pass through its territory, such as:

• Corridor X: A major highway route connecting Central Europe to Greece via Slovenia, Croatia, Serbia, and Northern Macedonia.
• Danube Corridor: The Danube River, which flows through Serbia, is a key water route linking the countries of Central Europe to the Black Sea.

Access to European and Asian markets

Serbia is well positioned to do business due to its proximity to major markets. The country borders eight countries, including EU member states such as Hungary, Romania, Bulgaria and Croatia. It allows:

• Deliver goods to and from the European Union quickly.
• Utilize Serbian manufacturing capacity to export to more than 1.3 billion consumers through free trade agreements (including the EU, Russia, Turkey and the Eurasian Economic Union).

Modern transportation infrastructure

• Highways: Developed road network, including modern highways such as Belgrade-Budapest and Belgrade-Nis.
• Rail: The opening of the high-speed line between Belgrade and Novi Sad was a significant step to improve domestic and international transportation links.
• Air travel: Belgrade Nikola Tesla Airport is the largest transportation hub in the region, offering direct flights to dozens of European and world cities.

Links to useful resources:

• Trans-European Transport Network (TEN-T)
• Map of key corridors in Serbia
• Nikola Tesla Airport Information
• Danube River: route and significance
• Official information about Belgrade transportation

Serbia’s strategic position makes it a gateway between East and West, which attracts investors and entrepreneurs seeking access to large markets. The convenience of transportation logistics reduces costs and simplifies doing business, and the prospects for further infrastructure development only increase this potential.

Serbia attracts investors from all over the world due to its low tax rates, government incentives and openness to business. This makes the country attractive to both start-ups and large corporations looking to enter new markets.

Low taxes

Serbia offers one of the most competitive tax systems in the region:

• Corporate tax: only 15%, which is one of the lowest rates in Europe.
• Value Added Tax (VAT): 20% (reduced rate of 10% for certain goods and services).
• Dividend tax: 15%, which is favorable for foreign investors.
• Incentives for new companies: young companies can get tax vacations and other incentives for job creation.

Government incentives

Serbia actively supports foreign investors through a number of programs and subsidies:

• Financial assistance: Direct subsidies for job creation. The amount of aid depends on the region and the number of jobs.
• Investment Zones: Simplified paperwork and infrastructure support for projects in designated zones.
• Free Trade Agreements: Serbia has signed more than 15 agreements including the EU, Russia, Turkey and the Eurasian Economic Union, allowing investors access to markets with more than 1.3 billion consumers.

Examples of successful foreign investments

• Fiat Chrysler Automobiles: Built a plant in Kragujevac, investing more than 1 billion euros. The plant produces popular car models for the world market.
• Continental: The German giant has opened several production and research centers in Serbia, creating thousands of jobs. Read more: https://www.continental.com/en/career/continental-serbia/
• Microsoft: Established a major development center in Belgrade, an important step for the country’s IT industry. Read more: https://careers.microsoft.com/v2/global/en/locations/belgrade.html
• Linglong Tire: The Chinese company has invested more than 800 million euros in the construction of a tire plant in Zrenjanin.

Benefits for investors

1. Transparent legislation for foreign companies.
2. A highly skilled and affordable labor force.
3. Developed transportation and IT infrastructure.

Links to useful resources:

• National Development Agency of Serbia (RAS)
• Map of investment zones in Serbia
• Fixed tax and contributions calculator

Serbia continues to strengthen its reputation as a center of attraction for investors. Low taxes, access to large markets and the government’s willingness to support business make this country an attractive place to deploy capital and develop new projects.

Serbia is one of the most affordable countries in Europe in terms of cost of living, while offering a high quality of life. This makes it particularly attractive to families, retirees, relocates and investors who want to live comfortably without overpaying for basic necessities.

Price comparison with other European countries

Housing

• Renting an apartment in the center of Belgrade: about 500-800 euros/month for a one-bedroom apartment.
• In Belgrade, real estate prices have increased significantly in recent years, but some neighborhoods still offer more affordable options. According to the Republika Geodesic Factory (RGZ), the average price per square meter in the old stock is 2,190 euros, while in new buildings it is 2,434 euros.

Buying real estate: 2,000-3,000 euro/m² in the center of Belgrade, which is much cheaper than in the capitals of Western European countries (for example, in Berlin the cost exceeds 6,000 euro/m²).

Neighborhoods with the most affordable prices (Source: https://novaekonomija.rs/vesti-iz-zemlje/gde-su-najjeftiniji-stanovi-u-beogradu):

• Rakovica: Among the central city municipalities, Rakovica stands out with the most affordable prices. In old buildings, prices range from 1,785 to 2,373 euros per square meter. In new buildings, the minimum price is 1,538 euros and the maximum is 2,870 euros.
• Cukarica: The average price per square meter in old buildings is 1,950 euros, in new buildings – 2,115 euros. In the districts of Cerak, Sremcica and Bele Vode you can find apartments at a price of about 1,500 euros per square meter.
• Barajevo: This municipality offers the most affordable options. The average price per square meter in the old stock is 869 euros. Prices range from 733 to 1,004 euros per square meter. For example, a 66 square meter apartment sells for 52,000 euros, which is 788 euros per square meter.
• Kaludzherica and Grocka are among the cheapest. According to the website 4zida, the average price of a square meter in Grocka is 1,397 euros per square meter. However, these places are the most famous for the amount of illegal development.
• Ritopek (in Grocka): We offer the construction of new energy-efficient houses using modern technologies at the price of 1,360-1,890 euro/m² depending on the selected configuration. As a result, you get a new modern house in a beautiful suburb of Belgrade on the banks of the Danube.

In the suburbs, prices drop to 1,000- 1,500 euros/m².

Thus, the neighborhoods of Ritopek, Rakovica and Barajevo provide opportunities to purchase housing at more affordable prices compared to the rest of Belgrade.

Build your home in Ritopek with us

Foodstuffs

• Average cost of a shopping trip for a family of 2: 250-300 euros/month.
  • Estimated prices:
    • Bread – 0.5 euro.
    • A liter of milk is 1 euro.
    • 1 kg of chicken – 5 euros.
  • Prices in cafes and restaurants: a cup of coffee – 1.5 euros, dinner in a restaurant for two – 20-30 euros.

Transportation and services

• Monthly pass for public transportation in Belgrade: 25 euros.
• Internet (high speed): 15-20 euros/month.
• Utilities: 100-150 euros/month for an apartment of 60 m².

High quality of life at moderate costs

Despite the affordability of prices, Serbia offers a high standard of living thanks to:

• Quality Health Care: Public and private clinics offer a wide range of health care services at affordable prices.
• Education: International schools and universities with competitive prices. For example, studying at an international school costs an average of 5,000-7,000 euros per year, which is significantly lower than in Western Europe.
• Entertainment and Culture: Theaters, concerts, museums and festivals are available both in price and location.

Comparison with neighboring countries

• Living costs in Serbia are lower than in Croatia or Slovenia, and about equal to those in Montenegro.
• According to Numbeo, the cost of living index in Belgrade is 30-50% lower than in major Western European cities such as Berlin, Paris or London.

Serbia is one of the few European countries offering relatively simple and transparent procedures for obtaining a residence permit (Permit to Stay). This makes it attractive for foreigners wishing to settle in Europe, whether for living, working or business.

Description of procedures and requirements for obtaining a residence permit

1. Common grounds for obtaining a residence permit in Serbia:
   • Buying real estate: One of the most popular ways. Buying a house or apartment in Serbia allows you to apply for a residence permit. Real estate documents, such as the bill of sale (contract of sale), are mandatory for registration. You can contact us for consultation and we will help you to apply for a residence permit for real estate after buying a house.
   • Work or business: It is possible to obtain a residence permit through employment or registration of your own company.
   • Study: Foreign students can apply for a residence permit based on enrollment in Serbian educational institutions.
   • Family reunification: Possibility to obtain a residence permit on the basis of close relatives already residing in Serbia.
2. Application Procedure:
   • Contact the Ministry of Internal Affairs of Serbia (MUP) where you live or where the property is located.
   • Provide the following documents:
     • A valid passport.
     • Certificate of ownership of real estate (or other grounds such as a contract of employment).
     • Proof of financial security (bank statements, lease agreements).
     • Health insurance for the entire duration of your stay.
     • Two passport size photographs.
   • Waiting for approval takes 2 to 4 weeks.
3. Validity period of the residence permit:
   • A residence permit is usually issued for 1 year with the possibility of extension. After 5 years of permanent residence it is possible to apply for a permanent residence permit or citizenship.

Opportunities for entrepreneurs and investors

1. Business Registration:
   • Foreigners can open a company in Serbia in just a few days. The minimum authorized capital is 1 euro and the registration process is simplified.
   • Business owners and their employees are eligible for a residence permit on the basis of economic activity.
2. Buying Real Estate:
   • It is not only a basis for obtaining a residence permit, but also a profitable investment. Real estate in Serbia is becoming more expensive every year, especially in such popular areas as Belgrade and Novi Sad.
   • Renting a purchased home can generate a steady income.
3. Investment Programs:
   • Serbia provides a number of tax incentives for investors in the IT sector, manufacturing and agriculture.
   • Access to European and Asian markets through free trade agreements makes the country particularly attractive for business.

Links to useful resources:

• The Ministry of Internal Affairs of Serbia (MUP) is the official source of information on the process of obtaining a residence permit.
• Website of the Serbian Chamber of Registration – for information on business registration.
• Map of MUP offices – for applying for a residence permit.
• Life in Serbia: A Guide for Foreigners – useful information for relocants.

Conclusion

The simple procedure of obtaining a residence permit makes Serbia a convenient entry point to Europe for foreigners. The possibility to obtain a residence permit through the purchase of real estate, opening a business or employment makes this process accessible to different categories of migrants. This is another important factor that attracts attention to the country.

Serbia is actively developing its infrastructure, creating convenient conditions for both residents and businesses. This is one of the reasons why foreigners choose this country for living and investing.

Modern transportation networks

1. Roads:
   • Serbia has an extensive road network, including modern highways.
   • Major transportation corridors:
     • Corridor X: Connects Central Europe with Greece and Turkey.
     • Miloš Veliki highway (E763): Connects Belgrade and the Southern Adriatic (Montenegro).
   • New roads are regularly built or upgraded, improving access to key locations.
2. Railroad Networks:
   • Serbia is investing in upgrading its railroad infrastructure.
   • The recently opened high-speed railroad between Belgrade and Novi Sad allows you to get from one city to the other in just 30 minutes.
   • Further development of high-speed routes to Budapest is planned.
3. Airports:
   • Nikola Tesla Airport in Belgrade is the largest transportation hub in the region, with direct flights to Europe, Asia and North America.
   • Regional airports in Niš and Kragujevac provide accessibility for domestic and low-cost international flights.

Availability of high-speed internet and telecommunication services

1. Internet:
   • Serbia is actively implementing fiber-optic networks, providing fast Internet access even in remote regions.
   • The average Internet speed is 50-100 Mbps, which is comparable to the level of developed countries.
   • Internet cost: about 15-20 euros per month for high-speed access.
2. Cell Phone:
   • Serbia has a stable 4G network covering most of the country.
   • The three main telecom operators – Telekom Srbija, Telenor and A1 – offer favorable tariffs for calls and internet.
   • The 5G network is expected to be deployed in the coming years.
3. Television and online services:
   • Most residents use IPTV and satellite television.
   • International streaming services such as Netflix, Amazon Prime and HBO Max are available.

Links to useful information:

• Telekom Srbija – basic internet and mobile services.

Conclusion

Developed infrastructure makes Serbia convenient for life and business. Modern transportation networks ensure easy movement within and outside the country, and quality telecommunication services make it possible to work and study remotely. All this makes Serbia an attractive choice for foreigners looking for comfort and accessibility.

Serbia is known for its high level of education and training of specialists, which makes it attractive for foreign investors and companies. The availability of qualified personnel combined with competitive labor costs provides unique opportunities for business development.

High level of education and professional training

1. Education System:
   • Serbia offers quality education from elementary level to higher education.
   • Local universities, such as the University of Belgrade and the University of Novi Sad, are among the best universities in the region and train high level specialists.
   • A system of vocational education has been developed that focuses on training for specific industries.
2. International Programs:
   • Many Serbian universities cooperate with foreign universities, offering exchange programs and double degrees.
   • The high level of foreign language skills (especially English) among graduates makes them internationally competitive.
3. Highly Skilled Areas:
   • IT and Technology: Serbian specialists are in demand in the international market due to their high skills in programming, software development and cybersecurity.
   • Engineering and Manufacturing: Thanks to a strong tradition in technical education, engineers and laborers from Serbia are popular in the automotive, engineering and construction industries.

Availability of specialists in various fields

1. IT and Startups:
   • Serbia is a leader in the region in terms of IT sector development.
   • Belgrade and Novi Sad are centers of IT activity, where both international companies such as Microsoft and Schneider Electric and many startups are concentrated.
   • The salaries of programmers and IT specialists are competitive but lower than in Western Europe, which makes their recruitment profitable for businesses. The average salary in the IT sector is around 1,500-2,000 euros.
2. Manufacturing Sector:
   • Serbia is known for its highly skilled workforce in manufacturing, especially in the automotive and electronics sectors.
   • Examples of successful investments: Fiat Chrysler plants in Kragujevac and Continental in Novi Sad.
3. Agriculture and Agribusiness:
   • Serbia has a long tradition in agribusiness. Highly qualified agronomists and farm workers ensure the competitiveness of agricultural products.

Peaksel, founded in 2012 in Niš, specializes in the development and publishing of mobile games and applications. Today, the team has more than 60 employees, mostly of Serbian origin. The company has a portfolio of more than 300 apps and games that have been downloaded more than 500 million times.
Recently (2023) Peaksel completed the construction of its own freestanding office building in Niš, indicating its growth and stability in the market.

Links to useful information:

• The University of Belgrade is the leading university in Serbia.
• Statistical Bureau of Serbia – data on labor market and employment.
• Manufacturing sector in Serbia (RAS) – information for investors.

Conclusion

Skilled labor force is one of Serbia’s main assets. The high level of specialist training, availability of personnel in key industries and competitive labor costs make this country ideal for the location of manufacturing, IT companies and startups. This is beneficial both for business and for creating a sustainable economic model.

Serbia is a country with a unique culture, rich history and hospitable atmosphere. This combination makes it interesting both for tourists and for those who plan to live or work here.

Cultural heritage and traditions

1. Historical Wealth:
   • Serbia is a country with thousands of years of history. The cultures of East and West have crossed here, leaving traces in architecture, art and traditions.
   • Medieval monasteries: Many of them, such as Studenica and Žića, are on the UNESCO World Heritage List. These unique monuments of Byzantine and Orthodox art delight visitors from all over the world.
2. National Traditions:
   • Serbia is famous for its holidays and festivals that reflect its rich folk culture. For example:
     • Glory is a unique family tradition dedicated to honoring the patron saint of the family.
     • Gucha Festival is an annual brass band festival attracting thousands of guests. https://www.guca.rs/
   • Serbs are proud of their cuisine, which is a real gastronomic journey. Try traditional dishes such as ćevapi, sarma and ajvar.

Attractions in Serbia

Victory Monument, Kalemegdan Fortress, Belgrade, Serbia. Photo: Dimitrije Milenkovic.

1. Belgrade:
   • The capital of Serbia is a city where history meets modernity.
   • Main Attractions:
     • Kalemegdan Fortress: historic city center overlooking the confluence of the Danube and Sava rivers.
     • St. Sava Temple: one of the largest Orthodox churches in the world.
2. Novi Sad:
   • A city known for its Exit Festival, which annually attracts music lovers from all over the world.
   • Petrovaradin Fortress is an impressive architectural monument with a panoramic view of the Danube.
3. Natural Beauties:
   • National parks such as Tara, Jerdap and Kopaonik offer stunning views, hiking trails and unique flora and fauna.
   • Danube River: Serbia is one of the key points on the Danube Route, a popular tourist destination.
   • Ritopek: a beautiful place on the banks of the Danube, famous for its cherry and apricot orchards.

Attractiveness to tourists and expats

1. Hospitality:
   • Serbs are known for their hospitality and friendliness. Expats often comment that they feel at home here.
2. Developed infrastructure for tourists:
   • Well-organized excursions, hotels for every taste and purse, as well as a well-developed transport network.
   • Affordable prices for vacations: traveling in Serbia is cheaper than in Western European countries, with a similar level of service.
3. International Community:
   • In major cities such as Belgrade and Novi Sad, there are active expat communities that help foreigners adapt and make new acquaintances.

Links to useful information

• List of UNESCO World Heritage Sites in Serbia
• Serbia’s official tourism website
• Guide to Belgrade – information about the sights of the capital city.

Conclusion

Serbia’s rich culture and centuries-old history make it not only a fascinating destination for tourists, but also a comfortable country to live in. Its unique blend of tradition, accessibility and hospitality makes it attractive to expats seeking a place to enjoy life surrounded by cultural and natural treasures.

Serbia has a wealth of natural resources that make it a tempting place to live, travel and do business. The clean environment, unique landscapes and developed infrastructure for ecotourism and agriculture offer many opportunities for both locals and foreign investors.

Clean environment, national parks and rivers

1. National Parks:
   • Serbia is home to five major national parks, each offering unique natural beauty:
     • Tara National Park: famous for its dense forests, gorges and Drina Canyon – one of the deepest in Europe.
     • Jerdap National Park: located along the Danube and includes the Iron Gate, the largest river gorge in Europe.
     • Kopaonik: a high mountain park with unique flora and fauna, a popular destination for winter tourism.
     • Fruska Gora: a picturesque region known for its monasteries and vineyards.
     • Char Planina: home to rare animals and plants protected by international organizations.
2. Rivers and Lakes:
   • Serbia has a dense network of rivers, among which the Danube, the second longest in Europe, stands out.
   • Drina and Sava are popular destinations for rafting and fishing.
   • Lakes such as Srebrno Jezero attract nature lovers.
3. Environmental Policy:
   • Serbia is actively developing environmental protection programs, including waste recycling and renewable energy projects.
   • Much of the country retains high air and water quality.

Ecotourism and agribusiness opportunities

1. Ecotourism:
   • Serbia’s national parks and nature reserves offer a variety of hiking and biking trails.
   • Outdoor activities such as rafting, bird watching and camping are popular.
   • Agritourism: Many villages offer guests the opportunity to stay on traditional farms where they can experience the local culture and cuisine.
2. Agribusiness:
   • Serbia is known for its fertile land and mild climate, ideal for growing fruits, vegetables and grapes.
   • The main export products are raspberries, cherries, plums, corn and sunflowers.
   • Increasing demand for organic produce offers opportunities for organic farms and exports.
3. Investments in agriculture:
   • Government support for agribusiness includes subsidies and tax incentives.
   • Serbia has free trade agreements allowing exports to EU, Russian and other markets.

Links to useful information:

• Tourism in Serbia: Ecological routes
• Ministry of Agriculture of Serbia
• Data on rivers and lakes in Serbia

Conclusion

Serbia’s natural resources are not only beauty, but also opportunities. The developed infrastructure of national parks and clean environment make the country a great place for ecotourism. Fertile lands and support for agribusiness open wide prospects for investors wishing to work in the agricultural sector. All this makes Serbia a country with great potential for living, recreation and business.

We will help you to choose a plot, build a modern economical and environmentally friendly house, make a residence permit for real estate. Contact us.

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