Guidance

Doing business in Serbia: Serbia trade and export guide

Updated 4 August 2015

This guidance was withdrawn on

Department for International Trade withdrew this publication because it was out of date.

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This publication is available at https://www.gov.uk/government/publications/exporting-to-serbia/doing-business-in-serbia-serbia-trade-and-export-guide

Brexit

Learn about changes for UK exporters to Serbia if the UK leaves the EU without a deal.

Managing risk

Find out how UK companies can control risks when doing business in Serbia.

Export opportunities and advice

Find more export advice and explore opportunities overseas on great.gov.uk.

1. Serbia export overview

Serbia is strategically located with easy access across Europe.

Contact a Department for International Trade (DIT) Serbia export adviser for a free consultation if you’re interested in exporting to Serbia.

Contact UK Export Finance (UKEF) about trade finance and insurance cover for UK companies. You can also check the current UKEF cover position for Serbia.

UK business is thriving in Serbia. There are close to 100 UK firms operating in the Serbian market. Many more UK companies are represented through agents, and distributors.

A growing number of UK brands are imported into Serbia and products are received well in the market.

Serbia’s estimated gross domestic product (GDP) in 2014 was about £28 billon.

Benefits for British businesses exporting to Serbia include:

  • 50% growth in UK exports in the last 5 years
  • English is widely used as business language
  • demand for investment across industry sectors
  • demand for UK consumer goods

Strengths of the Serbian market include:

  • high growth rates in the region
  • stable economy
  • strategic geographical location
  • open business environment
  • skilled and educated workforce

2. Challenges

Serbia is a relatively young democracy and market economy. There can be some challenges including:

  • bureaucracy
  • small scale corruption
  • slow response from local authorities and goverment agencies

3. Growth potential

3.1 Economic growth

Serbia has a mixed economy dominated by a large and growing services sector.

Serbia is an investment destination for manufacturing and processing industries. This is supported by its proximity and links to European Union (EU) markets.

The industrial sector generates about 31% of GDP with services accounting for over 60%. Agriculture makes up about 8%. GDP growth is expected to average between 0.5% and 1.5% over the next 2 years. The Budget deficit remains high, but the government has taken steps to reduce it.

Serbia’s priority sectors for economic growth include:

  • transport
  • infrastructure
  • energy
  • agriculture and agri-business
  • education and training

3.2 Trade agreements

Serbia is a member of the Central European Free Trade Agreement (CEFTA).

Serbia has Free Trade Arrangements (FTA) with Russia, Turkey, Belarus and the European Free Trade Association (EFTA). It hopes to join the World Trade Organization (WTO) by 2016.

3.3 Emerging Europe

The Central and Eastern European (CEE) region offers considerable potential for British businesses. UK exports are worth over £16 billion, with goods exports doubling over the past decade, and services exports - over £4 billion - trebling.

The region offers numerous opportunities, particularly in 6 main sectors:

  • advanced manufacturing
  • defence and security
  • energy
  • healthcare and life science
  • infrastructure
  • services

High Growth Europe: Grow your business close to home

Watch our other videos on growing your business in CEE markets.

4. UK and Serbia trade

In 2014 UK exports to Serbia amounted to £121 million. Combined bilateral trade was around £212 million.

64% of Serbia’s overall trade is with the EU.

Top UK exports to Serbia include:

  • specialised machinery
  • road vehicles
  • manufactured goods
  • office machinery
  • scientific instruments
  • electrical machinery
  • medicinal and pharmaceutical products
  • telecoms and sound equipment

5. Opportunities for UK businesses in Serbia

Department for International Trade (DIT) provides free international export sales leads from its worldwide network. Search for export opportunities.

Read our publication ‘Emerging Europe - Central and Eastern Europe 2015/2016: The top 50 commercial opportunities’.

5.1 Aid funded business

Serbia is in accession negotiations with the EU. It will receive around £210 million in aid every year from the EU. This funding is available through international tenders, consultancy and other service and supply contracts in all fields.

Opportunities for UK companies exist in:

  • programme and project management services
  • technical assistance
  • infrastructure
  • energy
  • policy advisory and compliance services
  • human resource management
  • agriculture

Identify opportunities to supply products and services to the international aid agencies. Contact the Department for International Trade (DIT) Aid Funded Business Service for more information.

Contact Jeremy.Lang@fco.gov.uk for more information on aid funded opportunities.

5.2 Food and drink

Agri-business accounts for almost 10% of Serbian GDP. However, equipment is outdated and requires modernising.

Consumers in Serbia are becoming more open to new food and drink products. In particular demand is growing for:

  • British ales
  • cheese
  • fish
  • frozen food

Opportunities for UK companies exist in:

  • equipment and machinery
  • alcoholic beverages
  • dairy products
  • fish

Contact Mina.Knezevic@fco.gov.uk for more information on food and drink opportunities.

5.3 Education and training

The Serbian education system is developing. All segments of the education and training sector are seeking to build more institutions. The EU is an important partner in this reform.

Opportunities for UK companies exist in:

  • vocational skills and technical expertise
  • high quality education
  • corporate and professional training
  • equipment and software
  • professional English language programmes

Contact Ivana.Stanojkovic@fco.gov.uk for more information on education and training opportunities.

5.4 Infrastructure and transport

Over the next 5 years Serbia is expecting investment worth several billion into rail and motorway networks. The majority of funding for these projects will come from international financial institutions

Opportunities for UK companies exist in:

  • consultancy and supply services
  • building new railroads and motorway networks
  • refurbishment of railroad and motorway networks
  • new powered and unpowered vehicles purchase

Contact Mina.Knezevic@fco.gov.uk for more information on infrastructure and transport opportunities.

5.5 Energy

Serbia’s energy sector is in need of modernisation and refurbishment. Focus will be on increased efficiency of existing facilities and investment in new energy production facilities.

The use of renewable energy is still in early development. Equipment provision and consultancy services will be necessary across all areas as Serbia develops in this sector.

Opportunities for UK companies exist in:

  • power generation
  • transmission
  • rehabilitation
  • energy from waste
  • renewable energy
  • energy efficiency projects
  • national and local energy infrastructure projects
  • environmental and wastewater projects

Contact Zlatan.Milosevic@fco.gov.uk for more information on energy opportunities.

5.6 Security and cyber security

Both public and private sector clients are looking to source products and solutions in areas such as:

  • digital forensics
  • information and data sharing
  • cyber security threats
  • e-commerce fraud

Opportunities for UK companies exist in:

  • anti-corruption methods
  • eliminating organised crime
  • modernisation of the prison system
  • re-equipping of the emergency services
  • cyber security threats

Contact Export Control Organisation (ECO) to check your goods you are meeting legal requirements for export.

Contact Mina.Knezevic@fco.gov.uk for more information on security and cyber security opportunities.

6. Start up considerations

There are several ways you can do business in Serbia:

  • establish joint ventures
  • co-operate with a local partner
  • set-up a limited liability company
  • register a branch

Serbian government has taken steps to streamline business registration procedures with company types similar to those in the UK and most other countries.

The Serbian government has been working on introducing a legislative business environment in line with the EU regulations.

You should seek legal advice or guidance from the appropriate regulatory agency in Serbia. These include:

Contact the Department for International Trade (DIT) team in Serbia to help find tax and legal advisers before entering into agreements.

7.1 Standards and technical regulations

Local standards and technical regulations may apply. Serbia also strives to adopt EU laws and regulations in this area.

7.2 Intellectual property (IP)

Trademarks, designs, patents and copyright are the principal forms of IP protection available to companies and individuals.

The Intellectual Property Office of the Republic of Serbia is responsible for intellectual property protection.

8. Tax and custom considerations

8.1 Value added tax (VAT)

The following VAT rates are applicable:

  • 20% standard rate which is applicable to most taxable goods
  • 10% lower rate which is applicable for certain goods

Serbia’s tax administration can provide you with a breakdown of taxes.

8.2 Corporate tax

Corporate profit tax rate in Serbia is set at 15%.

8.3 Income tax

Serbia has a progressive tax rate. Non-residents are taxed only on their source income in Serbia. Residents are taxed on their worldwide income.

8.4 Customs

98% of EU origin goods can be imported into Serbia free of customs duty from now until Serbia joins the EU.

Strategic agricultural products remain under customs tariff protection for the time being.

You can find more about import tariffs in the Market Access Database.

8.5 Documentation

Standard import documentation certificates may be required in Serbia.

You can find more information on customs procedures on goods entering Serbia.

9. Entry requirements

British citizens do not require a visa for tourism or business visits up to 90 days.

Obtain a visa from the Visa Section of the Serbian Embassy in London before travelling to Serbia if you plan to stay longer than 90 days.

9.1 Travel advice

If you’re travelling to Serbia for business, check the Foreign and Commonwealth Office (FCO) travel advice beforehand.

10. Contacts

Contact the Department for International Trade (DIT) team in Serbia for more information and advice on opportunities for doing business in Serbia.

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