Serbia has positioned itself as an attractive hub for international companies looking to expand their presence in the European Union and other global markets. Its strategic location, favorable trade agreements, participation in EU programs and investment incentives make it an ideal base for manufacturing, logistics and R&D activities.
1. Strategic location and market access
Serbia’s geographical position in Southeast Europe provides excellent connectivity to both EU and non-EU countries. The country offers access to a market of over 1.3 billion people through various free trade agreements. This includes duty-free or preferential trade agreements with the European Union, the Eurasian Economic Union (Russia, Belarus and Kazakhstan), Turkey, the United States, and the Central European Free Trade Agreement (CEFTA) members.
2. Free trade agreements and EU integration
Serbia has established itself as a central hub for exporting to the EU, which is its largest trading partner. As part of its EU accession efforts, Serbia recently joined the EU Single Market Programme, which aims to enhance the competitiveness of Serbian businesses and promote their integration into the EU internal market. This program allows Serbian companies to collaborate more closely with EU companies and access EU funding for innovation, development, and research .
3. Investment incentives and free zones
Serbia offers numerous incentives for international companies, including tax holidays, cash grants for job creation, and subsidies for establishing production facilities. The country also has 14 Free Zones, where companies can benefit from VAT and customs exemptions, as well as streamlined administrative procedures. These zones are strategically located near major transport routes, making them ideal for companies engaged in manufacturing and distribution.
4. R&D and nearsourcing opportunities
With increased foreign investment, Serbia has been expanding its capabilities in research and development. German automotive and technology companies such as ZF Friedrichshafen and Brose have established R&D centers in Serbia, leveraging the country’s skilled workforce and proximity to the EU to develop new products and technologies. The focus on R&D and technological innovation is supported by Serbia’s participation in EU programs, enabling international companies to engage in nearshoring and reduce costs associated with long supply chains.
5. Integration into global supply chains
Serbia’s free trade agreements allow companies operating within its borders to export goods duty-free to numerous markets. The country’s agreement with China, which came into effect in 2024, opens up new opportunities for companies looking to reach the Chinese market while maintaining operations close to the EU. This makes Serbia a strategic base for companies seeking to manage supply chains more efficiently and diversify market access.
Overall, Serbia’s unique combination of strategic location, favorable trade agreements, and growing integration into EU and global supply chains make it a compelling choice for international companies looking to expand their footprint in Europe and beyond.
