Serbia has introduced a regulatory framework to attract direct investments in automating existing capacities in the food industry. Eligible investments include both tangible assets such as plants, machinery, and equipment, and intangible assets like patents, standardization, and licenses.
The incentives are available for investment projects with a minimum value of one million euros. Intangible asset costs can be recognized at 50 percent for large enterprises and 100 percent for small and medium-sized enterprises. Investors are required to contribute at least 25 percent of the eligible costs from their own funds or other non-state-aid sources.
Maximum incentive rates are set at 50 percent of eligible costs for large enterprises, 60 percent for medium enterprises, and 70 percent for small enterprises. For investments exceeding 50 million euros, the rate decreases to 25 percent, and for investments above 100 million euros, it falls to 17 percent. Investments must remain at the same location for at least five years for large enterprises and three years for small and medium-sized enterprises.
Project evaluation criteria include investor references, the size and type of investment, the technological level of the activity, participation of domestic suppliers, productivity improvements, introduction of new technologies, financial viability, and planned increases in production and trade.
The implementation period for projects is up to three years from the date of application, extendable to a maximum of five years. Incentives for automation cover 20 percent of eligible costs for fixed assets.
The Ministry of Economy allocates funds through a public call. Applications are submitted to the Serbian Development Agency, which conducts a professional evaluation and informs the investor of the proposed incentive amount. The agency also provides a draft agreement for the allocation of funds. Incentives are disbursed in annual installments and secured with a bank guarantee.
Recipients are required to report on project implementation and allow independent audits. The Ministry monitors the size, pace, and structure of investments, ensuring compliance with the intended project purposes while maintaining records of granted incentives and contractual obligations.
