Decree on More Precise Criteria for Assessment of Economic Feasibility for Designating Free Zone Areas Adopted

The Government of Serbia adopted the Decree on More Precise Criteria for Assessment of Economic Feasibility for Designating Free Zone Areas at a session held on April 30, 2020.

The new decree was adopted with the aim of developing free zones, attracting new investors and providing further support to business entities which already operate in the free zone regime.

– The key changes in the new decree pertain to the removal of the limiting criteria from the previous one, such as the requirement for 50% of the total investments to be of foreign origin and the list of activities for which the economic feasibility of designating a free zone area is assessed, on the one hand, and on the other, the reduction of the necessary amount of investments and the number of new employees as a requirement for expanding the free zone area – it is said on the website of the Free Zone Administration of the Ministry of Finance.

The new decree encourages the existing tenants to reinvest and increase the number of employees within the free zone, supports the development of small and medium business entities, primarily companies which provide services, but also incites the development of startups and capital-intensive projects, which entail modern technology.

– The implementation of the new decree will have considerable positive effects on the economy of the Republic of Serbia in the sense of an increase in the inflow of direct investments, the value of the production, export and employment, a positive trade balance, the transfer of modern technologies and know-how and an increase in public revenues through the payment of wage contributions and taxes and an increase in the consumption on the whole – it is said.

The PDF version (in Serbian) can be found HERE.

Vlada Republike Srbije

Uprava za slobodne zone Srbije

Ministarstvo finansija Republike Srbije

Decree on More Precise Criteria for Assessment of Economic Feasibility for Designating Free Zone Areas

development of free zones