www.rav.org.rs

If you seek to sharpen your competitive edge and to be one step ahead of your competitors, is the right place to grow your profits.

Vojvodina is located in the northern part of the Republic of , enclosed by the EU bor- der from three sides. With its long industrial tradition, well developed educational system, and innovation stimulating environment, it is considered to be the engine of Serbia’s economic development. As a result of its advanced hi-tech culture that positively supports innovation and economic growth, Vojvodina continues to significantly contribute to Serbian GDP creation. The ideal geographic location of Vojvodina region, covering 21,506 square kilometers, provides excellent opportunities for production sites, logistics, and export processing zones. In addition to various Free Trade Agreements, many benefits originating from its favorable location, including the two major Pan-European transport routes (Corridor X and the River), are readily available to all the companies doing business in Vojvodina. There is also a Corridor XI which connects and South Adriatic, and in a broader context, it will connect , Serbia, Montenegro, and Italy. The region of Vojvodina provides a sound investment environment guaranteed by the legislation that is in line with the relevant EU practices. Along with the number of government initiatives to proactively facilitate the FDI inflow, Vojvodina offers an outstanding support sys- tem for growing your profits, increasing productivity, and boosting competitiveness. Vojvodina is among the most culturally vibrant places in the region. It is home to 27 different WELCOME TO nationalities where 6 official languages are in use. This magnitude of multicultural density is what guarantees a continuous supply of fresh perspectives and an ever-enduring exchange of cre- VOJVODINA ative ideas between people that share the same values of an inclusive, cohesive, and open society. Additionally, various arts and music festivals all year round are continuously invigorating the cultural landscape allowing you to recharge your creative batteries and get in that innova- tion-oriented mindset.

2 3 I Total area 47 km2 OLAN SERIA I Population million (excl ) UKRAINE I DP 21 EUR 4512 illion ZEH REULI I redit rating /Stale ERMANY I Doing usiness rating 22 - 44th out of 1 SLOVAKIA 21 - 4th out of 1 1250km I Unemployment rate 21 1 1000km I Doule Taxation Treaties with 5 countries I ilateral Investment Treaties with 3 countries AUSTRIA 750km * Prediction of Statistical Office of the Republic of Serbia SWITZERLAN 500km HUNARY 250km VOJVODINA I Total area 215 km2 SLOVENIA ROMANIA I Territorial organization 3 counties ROATIA 45 municipalities VOJVODINA I Unemployment rate 21 2 I ain industry sectors Food and everage

Tisa OSNIA AN Pharmaceutical products HERZEOVINA Danube SERIA Ruer Plastics Black Sea E-70 Belgrade Electrical products ULARIA Sava I Industrial production growth rate 21/21 Adriatic MONTE- Sea I Vojvodina export share in total Serian export 21 35 ITALY NERO E-75 I Export volume 21 EUR 1 illion NORTH MAEONIA I Export growth rate 21/21 I Key export areas Food everage 121 otor vehicles trailers 115 ALANIA TURKEY Agricultural production 13 Aegean Other machines and equipment 4 REEE Sea Ruer Plastics 1 Electrical products 72 Ionian hemicals 5 Sea oke and oil derivate production 5 EU 71 KEY EPORT EFTA 154 ARKETS RUSSIA 55 OTHER 73 Source: Chamber of Commerce and Industry of Vojvodina, National Bank of Serbia, Statistical Office of the Republic of Serbia 2 3 AIRPORTS RAILWAYS Airport “Nikola Tesla” Belgrade Novi Sad – (); WHY INVEST? (70 km from Novi Sad). Novi Sad – Zagreb (); Timisoara Airport Novi Sad – Thessaloniki (Greece); (154 km from Novi Sad). Novi Sad – Sofia (Bulgaria); Osijek Airport Novi Sad – Timisoara (Romania). Did you know that Serbia is the only country outside vide an excellent starting point to boost your investment to (105 km from Novi Sad). the Commonwealth of Independent States that has a Free its fullest potential. BY RAIL Trade Agreement with Russia? Additionally, if you want The region of Vojvodina has been declared as one of Railway-road Corridor X connects Salzburg, to gain a duty-free access to market, the top FDI regions for Cost Effectiveness - allowing you to Ljubljana, Zagreb, Belgrade, Nis and Thessaloniki 1 billion consumer BY AIR we also have Free Trade Agreements with EU, CEFTA, EFTA, achieve the best ratio between cost and quality. The closest airport to Novi with branch in Belgrade, Novi Sad, Budapest. The EAEU and Turkey. To jump-start your success and to help you get the great- Sad is Belgrade Nikola Tesla railway network is well organized. Intercity trains If you are looking for the right place to set up your busi- est value from your investment, investors are rewarded with International Airport (70 km operate between all major cities in the region. ness while remaining close to your distribution centers – the generous and easy-to-access incentive packages, both on away), which is served by major European flight car- GETTING WATERWAYS region of Vojvodina offers a quick solution to optimize your state and provincial government levels. riers and several low-cost Corridor VII - Danube, Sava, , operational costs while employing a high-quality work- We invite you to launch your investment project in the re- carriers. Once you arrive AROUND Danube–Tisza–Danube canal. force at competitive rates. gion of Vojvodina and to experience all of the advantages that at Belgrade Airport you Top-notch investment locations suitable for a wide range make Vojvodina the first-choice location for growing your can easily get to Novi Sad of activities and tailored to your specific requirements pro- business. by pre-booking a private PUBLIC TRANSPORTATION transfer with the average Public transportation in major cities in cost of EUR 30. Vojvodina is well established and organized, and can be used by purchasing tickets directly ROADWAYS on the bus. In addition, taxis are quite cheap Corridor X: and very popular form of transport. E - 75 highway ON ROAD (Greece – North Macedonia – The ideal location and transportation infrastructure of Vojvodi- Serbia – Hungary – Slovakia na enables quick and easy access to other CEE and SEE coun- – Czech Republic – Poland – tries. Public roads and railway lines are passing through the 1 I TOP QUALITY WORKFORCE AT COMPETITIVE RATES Finland – Norway) & regional administrative center of Novi Sad with all other areas E - 70 highway being easily accessible within a relatively short period of time. 2 I COMPETITIVE OPERATING EXPENSES (Spain – France – Italy – TOP 5 Standard speed limits which may vary are 130 km/h on high- Slovenia – Croatia – Serbia ways; 100 km/h on motorways; on main roads outside built-up – Romania – Bulgaria – 3 I QUICK ACCESS TO GLOBAL MARKETS areas 80 km/h, and in built-up areas 50 km/h. Road toll is to be REASONS Turkey – Georgia) paid on most sections of the highways (E70, E75, E763), and can Corridor XI: TO INVEST IN be paid: in cash (RSD, EUR), by credit card (Mastercard, Maestro, 4 I BOOSTING PROFITS WITH FAVORABLE TAX SYSTEM E - 763 highway Visa or American Express, as well as the national DinaCard) or by #VOJVODINA (Serbia - Montenegro). using electronic toll collection pass. 5 I GENEROUS INCENTIVES

4 www.rav.org.rs 5 TOP-QUALITY WORKFORCE COMPETITIVE Achieve highest performance at competitive rates OPERATING EXPENSES

• Optimal ratio between cost, productivity, and quality of the workforce Get on a fast track to success boosting the overall competitiveness of the business environment. LABOR COST STRUCTURE • Access to exceptional talent pool with multicultural diversity offers flexi- Average salary in Vojvodina 2019 Implementation of investment projects in Vojvodina results in a significant reduction ofoperational costs. bility and adaptability for maintaining unrivalled performance levels. % EUR • There are 143 registered secondary schools from which 121 are state GREENFIELD AND BROWNFIELD LOCATIONS owned and 22 private. Teaching is conducted in Serbian, Hungarian, Ruthe- Net salary 440.75 nian, Slovakian, Romanian and Croatian. Personal Income Tax 10 % 47.08 Greenfield project Brownfield project • Vojvodina represents a specific hub forUniversity education – 3 Univer- Contributions (Employee) 19.9 % 121.20 Construction costs: Existing business options: sities (1 state – 14 Faculties, 2 private – 9 Faculties) with internationally I Industrial facilities (average cost) ..... 300 - 500 EUR/m2 I Lease (average cost) GROSS SALARY 609.03 recognized Faculty of Technical Sciences (28 undergraduate academic I Business premises (average cost) ..... 750 - 900 EUR/m2 • Old build ...... 1 - 2.5 EUR/m2 profiles, 33 master academic profiles). (Employer) 16.65 % 101.40 Contributions I Average land cost ...... 3 - 10 EUR/m2* • New Build ...... 3 - 5 EUR/m2 • Science and Technology Park in Novi Sad aims to enable researchers in TOTAL COST 710.43 * Land cost in Novi Sad is above average I Built to lease option research institutes to convert the results of their research into products, Source: Statistical Office of the Republic of Serbia I Lease with purchase option services, processes or software that will find their place in the market.

• Vojvodina boasts 65,108 enrolled students in 2018/2019 out of which Minimum Average monthly 42,489 attend University of Novi Sad. CEE Countries bruto wage bruto wage (EUR) 2019 (EUR) 2019 0.150 From all the applicants that speak foreign languages, most of them speak • Serbia 308 638 English and German, and some of them Russian, French, Spanish and 0.100 Italian. Romania 439 1,038 Hungary 461 1,129 0.050 NATIONAL EMPLOYMENT SERVICE GRANTS Croatia 507 1,182 0 Employment Slovakia 520 1,090 0.039 0.083 0.029 0.077 0.029 0.097 0.032 0.097 0.034 0.096 0.034 0.129 0.030 0.103 0.035 0.100 0.033 0.124 prices in EUR* subsidies program cca. € 1,700 - 2,560 SERBIA CZECH HUNGARY ROMANIA SLOVENIA SLOVAKIA CROATIA POLAND EU 28 COUNTRY Czech Republic 525 1,328 Industry gas prices (EUR per kWh) 2019 * Excluding VAT and other recoverables taxes and levies Apprentice program cca. € 265 - 300 per employee Poland 530 1,147 Industry electricity prices (EUR per kWh) 2019 Re-training program max cca. € 1,000 per employee Slovenia 887 1,754 Source: Eurostat Source: National employment service Source: Eurostat

6 7 QUICK ACCESS TO GLOBAL MARKETS GLOBAL MARKET ACCESS To Moskva - Helsinki

Duty free access to 1 bn consumer market IV To Prague - Dresden CZ To Kiev IX Nuremberg Zilina UA Ljubasvka IV SK MD V VIENNA DE V CHISINAU Odessa • Ideal geographic location - allowing you to most efficiently im- EAEU (population 180 mil) Free trade agreement between the BRATISLAVA DANUBE (VII) DANUBE (VII) plement JIT/JIS production models and to cost-effectively Republic of Serbia and the Member States of the Eurasian Eco- HU nomic Union (Russian Federation, Republic of Belarus, Republic Salzburg AT distribute aftermarket products to the region. Positioned at BUDAPEST of Kazakhstan, Kyrgyz Republic and the Republic of Armenia). IV IX the intersection point of two major European corridors - Corri- CH V The agreement with EAEU contains integrated free trade agree- Graz dor VII and Corridor X as well as Corridor XI. X RO X Arad DANUBE (VII) ments, which Serbia has with the Russian Federation, Belarus Brennero Maribor V • Only one border crossing the EU along with duty-free export and Kazakhstan, with modernized text and slightly amended Tarvisio LJUBLJANA X IV list of exceptions from free trade regime, with the extension of ZAGREB Constanza to many countries, allows companies to serve their global V SI VOJVODINA A X IV BUCHAREST IV the free trade zone on Kyrgyzstan and Armenia. The agreement A HR Novi Sad markets from a single location. V Rijeka V with EAEU will provide additional benefits for exporting some Milan IX Verona Venice • The region of Vojvodina is uniquely positioned for global V types of cheeses, alcoholic beverages (fruit brandy and wine) BELGRADE Varna DANUBE (VII) Bjala trading offering duty-free access to over 1 billion consumers. and cigarettes from Serbia to the EAEU market. On the other X Modena BA XI Gornja Pleven Black hand, it will enable new benefits for some cheeses, alcoholic Zadar Orjahovica EU (population 445 mil) - enabled customs - free export of all products Bologna RS IV Sea Niš Burgas beverages, cigarettes and taps, valves and similar devices for A X BG bearing the Serbian origin label, excluding wine and baby beef. In addi- Split SARAJEVO VIII VIII pipelines, for goods originating from EAEU when importing to Turrhenian IT Preljina tion, the EU FTA abolished customs duties and quantitative restrictions Sea Ancona ME Radomir Serbia. Adriatic Ploce X SOFIA Svilengrad for import of Serbian textile products and guarantees to maintain the IV ISTANBUL Sea PODGORICA Plovdiv same policies in the future. Exemption from payment of customs duties Dupnica Ormenion USA (population 328 mil) - duty-free entry for more than VIII IX Bar E for all industrial products originating in the EU, and the part of agricul- 4,650 products, including most manufactured and interme- Pescara TR E SKOPJE Veles IV ture means the exemption reduction of customs duties, depending on diate goods and selected agricultural and primary industrial Alexandroupolis X NMK E the Annex or the SAA Protocol in which the product is located. products, has been enabled. The products that have been ex- Durres VIII Lin X Aegean cluded from this list generally fall in the categories of textile A Elbasan CEFTA (population 21 mil) - free trade agreement between Albania, Bos- VIII Florina Sea products, leather goods and footwear. Bari Kapshtice THESSALONIKI nia and Herzegovina, North Macedonia, Moldova, Montenegro, Serbia and I AL Kosovo. Duty-free trade and accumulation of origin. Exported products TURKEY (population 82 mil) - Export is duty-free, as well as Brindisi Kristallopigi orridor IV Vlore E DUTYFREE to be considered of a Serbian origin, need to have undergone sufficient import of industrial products and certain agricultural products orridor V Ionian processing in Serbia. such as 5,000 t of beef per year as well as clearly defined quota Sea EL EXPORT TO OVER of raw and refined sunflower oil, sunflower seeds and specific orridor VII anube) Igoumenitsa EFTA (population 14 mil) - free trade agreement between Switzerland, 1 BILLION CONSUMER BASE orridor VIII Norway, Iceland, Liechtenstein and Serbia, there are no customs duties types of pastry products. The export quota from Serbia to Tur- except on fish and seafood. Trade of agricultural products is regulated key for the particular types of frozen vegetables and prunes will orridor I be doubled. EAEU EFTA USA by mutual concessions. orridor 180 mil 14 mil 328 mil orridor I Via Egnatia EU CEFTA TURKEY Adriatic orridor 445 mil 21 mil 82 mil 8 9 ADVANTAGES OF DOING BUSINESS BOOSTING PROFITS WITH IN THE FREE ZONE REGIME: FAVORABLE TAX SYSTEM

• Fiscal benefits • Customs benefits • By choosing to invest in Vojvodina, foreign investors enjoy the benefits of a SOCIAL INSURANCE highly tax system, essential for boosting • Financial benefits competitive and advantageous company profits. Besides, favorable business and investment climate con- CONTRIBUTIONS • Benefits of local self-government ditions contribute to a proven record of successful FDI attraction. I Pension & disability • Efficient Free Zone Administration 14 % and 11.5 % (One Stop Shop) • In general, Serbia’s tax regime is highly conducive to doing business. Corporate profit tax is the lowest in the region, while VAT, salary tax I Health Insurance and social insurance contributions are among the most competitive in 5.15 % both employee and employer Central and Eastern Europe. I Unemployment Novi Kanjiža Kneževac 0.75 % employee Corridor X • The base for determining social security contributions is the gross sal-

Corridor VII (Danube) Čoka ary. Social security contributions are paid by both the employer and the Bačka employee. I Annual Income Tax Ada Free Zones 10 - 15 % Nova • The minimum base for contributions is 35 % of the average monthly Mali Crnja Iđoš in Vojvodina: I Other Income Tax Novi salary earned in Serbia, while the maximum base is 5 times the average Kula Bečej Bečej 1. Free Zone Subotica 20 % monthly salary. Vrbas Žitište Odžaci 2. Kikinda (Free Zone Subotica) 3. Free Zone Novi Sad Bački Žabalj Sečanj Bač Petrovac 4. Free Zone Apatin Bačka SALARY TAX RATE CORPORATE PROFIT TAX RATE STANDARD VAT RATE Palanka Plandište 5. Free Zone Zrenjanin Serbia 10 % Serbia 15 % Romania 19 % Beočin NOVI SAD 6. (Free Zone Sabac) Kovačica Romania 10 % Poland 19 % Serbia 20 % Irig Vršac Šid Inđija Czech Republic 15 % Romania 16 % Slovakia 20 % Corridor X Sremska Stara Mitrovica Ruma Pazova Slovenia 16 - 50 % Croatia 18 % Czech Republic 21 % Pančevo Bela Crkva Poland 17 - 32 % Czech Republic 19 % Slovenia 22 % Pećinci Free zone Slovakia 19 - 25 % Slovenia 19 % Poland 23 % BELGRADE Free zone branch Corridor X Corridor VII (Danube) Croatia 24 - 36 % Slovakia 21 % Croatia 25 %

Corridor XI

Source: Deloitte 2019, European Commission 10 11 GENEROUS INCENTIVES WHERE TO INVEST? Get on a fast track to success

In the region of Vojvodina you will find all the support INCENTIVES OF REPUBLIC OF SERBIA Tax holiday – 10 years tax holiday for compa- you need to successfully set up your investment and make UNPARALLELED nies which invest an amount exceeding RSD sure it continues to grow. INVESTMENT Funds are awarded for financing investment projects in 1 billion (cca € 8.5 million) in fixed assets and the You will easily establish a relationship with all the relevant production sector, food processing, hotel accommo- employ at least 100 additional employees on OPPORTUNITIES dation and for the projects relating to services provided governmental institutions, as well as the business and science an indefinite contract. by service centres. The awarded funds are up to 50 % - 70 %, community. In addition to directly access the network of key I Trim operating cost (depending on the size of the company) of the investment Various tax incentives from 60% - 100% stakeholders within each sector, your investment project will I Maintain high product quality amount, based on the investment value or based on the deduction of salary tax and mandatory contri- be fully equipped to quickly move forward. 2-year gross salary of the employees. butions for new employment. I Recruit highly qualified workers The region of Vojvodina has a uniquely diversified econo- at competitive wages Salary tax incentives - employment of my, hosting many companies from different sectors. No matter Achieve better capital optimization INCENTIVES OF AP VOJVODINA people who were registered with the National which sector you choose in addition to preferential business I Just as it is done on the republic level, the financial incentives Employment Agency for more than 6 months setting, you will get the greatest support to take your success Improve performance levels within the same sectors and limitations are allocated on the I entitles employers for a sizable relief of to the next level. provincial level. taxes paid on net salary from the moment of 1. Subsidizing new employment employment until December 31, 2020. · 10 - 100 new employees · 3,000 - 5,000 EUR per worker 2. Co-funding new equipment Growing your profits INVESTMENT · up to 50 % of total equipment value AGRIBUSINESS · 17,000 – 68,000 EUR per project OPPORTUNITIES Increasing productivity MUNICIPAL INCENTIVES AUTOMOTIVE • Greenfield - free of charge or at a discounted price • Local taxes Boosting competitiveness ICT

12 13 AGRIBUSINESS AUTOMOTIVE Agriculture has always been a significant part of the Vojvodina economy and a generator of good results. WHY? Due to an optimal ratio between labor cost, productivity, and quality of workforce The region of Vojvodina has all the ingredients you need to successfully service the fast-growing global together with the fast and efficient connection to a network of Pan-European transport consumer markets with premium food products. routes.

• Out of a total of 1.8 million ha of agricultural land and forest, 1.6 million A variety of opportunities to gear up for greater SUPPLIERS' DAY profitability indicators: SUPPLIERS' DAY ha is suitable for Intensive agricultural production (plow, orchards, B2B event organized by B2B event organized by and vineyards). RAV every year in April • Ideal geographic location for JIT/JIS production RAV every year in November • 0.76 ha of arable land per capita, which exceeds the European average more info models, due to proximity to leading car manufac- more info of 0.21 per capita. www.rav.org.rs turers. www.rav.org.rs • Vojvodina is unique in the high percentage of its rural population actively • Access to top OEMs - 1,250 km radius. involved in primary agricultural production. There is a total of 128,465 • Increasing number of new investment projects in agricultural households in Vojvodina. the last few years. • Lowest usage of fertilizers and pesticides in Europe. • Top technical education and availability of highly- qualified staff. • Over 50,000 ha on which vegetable crops for seed production are cultivated. BECOME A PART OF OUR BECOME A PART OF OUR • Organic production potential with strictly prohibited production and SUPPLIERS’ BASE • Long-standing tradition in high-quality production SUPPLIERS’ BASE trade of GMO food. standards.

I University of Novi Sad I The University of Novi Sad, a total of 14 faculties I Faculty of Agriculture, Novi Sad SUPPORTING I Faculty of Technical Sciences with 15,000 students I Faculty of Technology, Novi Sad INSTITUTIONS: I Vocational secondary schools, with possibilities of dual education SUPPORTING I Institute of Field and Vegetable Crops, Novi Sad INSTITUTIONS: I Scientific Veterinary Institute, Novi Sad I Institute of Food Technology, Novi Sad I BioSense Institute, Novi Sad

14 15 Vojvodina Development Agency (RAV) serves as a ICT one-stop-shop for all your investment - related en- quiries. Due to our close association with various IT companies from Vojvodina take the lead in Serbian decade-long growth of the sector of 25% YoY growth, providing world class product and services to global markets. Maturity of the IT companies allows for top- state and provincial government institutions, and our notch B2B cooperation, weather you need JV, takeover, joint project or just nearshoring – you are certain to extensive network of local partners from the private find suitable match among local IT companies. sector, academic institutions, and business associa- YOUR RELIABLE PARTNER! tions - RAV represents your trusted source for obtain- • Sophisticated, top-quality IT services. Vojvodina Development Agency (RAV) is established ing the most reliable information needed for making an informed investment decision. • Partnering with established companies with global references SUPPORTING under the jurisdiction of the Government of AP of Vojvo- • Local ecosystem with 350+ companies, employing 10,000+ dina, with the aim to provide support for the implementa- Our services are designed to help foreign com- experienced IT experts. INSTITUTIONS: tion of the development policy of Vojvodina, agricultural panies establish their businesses in the region of • Wide array of expertise within the local IT community. policy and rural development. Vojvodina. I Vojvodina Development Agency • Strong local IT hubs of support. • Vojvodina ICT Cluster I Vojvodina ICT Cluster - Business Incubator Novi Sad I Business Incubator Novi Sad - Startit Center • Each year about more than 900 university students enroll I Startit Center Novi Sad DEPARTMENT FOR STRATEGIC DEPARTMENT FOR at the Faculty of Technical Sciences (IT related studies). RESEARCH DEVELOPMENT AND INVESTMENT INNOVATION POLICY SUPPORT I Analysis and research of the existing resources and I Advisory support for both domestic and foreign invest 1,400 12 SERBIAN IT EXPORT economic potentials. ments and business incubators. 1,200 Average growth: 23 % 11 I Defining the subsidy measures for the development of I Capacity building for investment promotion. 1,000 the economy agriculture, energy sectors, tourism and 800 7 rural development. 600 5 455 400 DEPARTMENT FOR NATIONAL DEPARTMENT FOR 2 344 225 200 127 1 AND INTERNATIONAL FUNDS PROMOTION 2 11 0 I Coordination of funds awarding on local, I Promotion of all existing resources and potentials. million EUR / years 2007 2008 200 2010 2011 2012 2013 20014 2015 2016 2017 2018 201 regional and national level. I Positioning Vojvodina as an ideal investment Source: IT in Serbia – At a Glance, Vojvodina ICT Cluster, 2018 I Research and promotion of all available location for future projects. international funds.

16 www.rav.org.rs 17 SUCCESS STORIES

FOREIGN 370 INVESTORS BILLION FDI € 9.3 INVESTMENT NEW JOBS 93,000 CREATED

The next logo here, can be yours...

18 19