Free Zones
Income generated through commercial activities in the free zones is exempted from value added tax. Also, the new law envisages foreigners to be able to establish a privately owned free zone based on the project approved by the Government.
The geographical location of Serbia provides significant advantages to the Serbian free zones. There are four free zones which are currently operating in Serbia: Pirot, Subotica, and Zrenjanin, together with the Free Zone Novi Sad which has recently obtained this status.
In general, all kinds of business and industrial activities can be performed in the Serbian free zones including manufacturing, storing, packing, general trading, banking and insurance. Investors are free to construct their own premises, while zones also offer office spaces, workshops, or warehouses on rental basis with advantageous terms. All fields of activities open to the Serbian private sector are also open to joint ventures of foreign companies.
Imports into and exports from the free zones are unlimited. Goods that are imported from free zones into the domestic market are subject to foreign trade regime. However, if goods are produced out of minimum 50% domestic components are considered to be domestic goods.
Free zones may be founded and governed by either domestic or foreign companies. There are no restrictions on export and import of goods and services from and into the zones or on other transactions. The proportion of foreign capital participation in investment within the free zone remains unlimited. Earnings and revenues created within a free zone can be transferred to any country, including Serbia, freely without any prior permission, and are not subject to any kind of taxes, duties and fees. This creates many opportunities for cooperating with domestic and foreign industries.
