Entrepreneurs from across the world who seek to maximize their profits can consider Serbia as one of the viable options: You will be able to save costs while retaining the quality of services on the same level. The IT sector has been studying Serbia for several years now as a potential destination where it can successfully outsource different projects. There are more and more companies in other countries that open offices in Serbia and hire local employees as it helps their business prosper. What are the main reasons why the Balkan country is so popular? Read on to find out.
If you want to discover the country in greater detail, you are welcome to read more on its advantages and peculiarities. The link will bring you to our portal focused on Serbian business and possibilities for setting up companies, corporate and personal banking and its features, asset protection opportunities (Serbian associations are great asset protection instruments), lifestyle (discover why the pace of life in the country may suit you perfectly or make you extremely irritable), and much more! You can book a free individual session with our expert to discuss your plans and goals and find the best solution in your situation. We have a local office in Belgrade, and we can help you with a large number of administrative issues – from opening a bank account and forming a company to investing in real estate.
Why Outsource to Serbia?
The first reason is the cost of the workforce: in fact, it is the lowest in Europe! However, it does not mean that you can only hire employees with a basic education here: you will find a lot of highly qualified specialists who speak English fluently, which may be exactly what you need.
If you are a foreign company that decides to outsource its activities to Serbia, you will be able to take advantage of considerable tax benefits. It will surely help you increase business profitability and reduce the cost of business processes.
The IP-Box regime is in place in the country, which means that you may obtain a reduction on tax payable on the profit generated from software developed in Serbia (from 3% to 15%). If you have R&D expenses that are related to local employees, you will pay less corporate tax. Moreover, these costs are doubled in your balance sheet!
If a citizen earns a salary above average in the country, he or she has the right to a 70% reduction on social security contributions and personal income tax for three years (this regulation took effect in 2022). And if you are a foreign employee whose income is three times the average Serbian wage, you can obtain the same reduction for five years.
An employee will have to pay a capital gains tax on shares at the time of sale only.
If you establish a startup in Serbia, you will not pay any taxes on salaries or social contributions in the first three years.
In total, prices for outsourcing services in Serbia are really affordable, which makes it possible for companies to considerably reduce the costs of software development and IT support without any quality deterioration.
Another piece of good news is that the local electricity bills are among the cheapest in Europe! As for the cost of renting real estate (offices and apartments), it has slightly increased over the past two years, but most employees and entrepreneurs still find it affordable. You will not regret choosing Serbia as the country for outsourcing your IT projects!
Highly Skilled Employees for Your Serbian Company
You will find a great number of IT professionals with high qualifications in Serbia. The local software development companies have experience of cooperating with large multinationals, such as Intel, Microsoft, and so on.
There is an acute shortage of local specialists in the country at present, but the situation is getting better as the authorities are taking measures to improve education and attract the workforce from abroad (especially highly skilled employees).
Education in Serbia
The level of education and scientific research in the country is rather high, and you will find a lot of universities here that produce skilled graduates in different fields (law, accounting, marketing, information technology, and so on). Belgrade and Novi Sad universities are excellent places where outsourcing companies can hire staff for their needs.
The Serbian authorities are doing their best to invest in technical specialities and IT infrastructure.
Time Zone and Geographic Location
As Serbia is located in the central European region, it can be easily and conveniently accessed from different regions, and the communication between the local specialists and client companies will be really quick.
Serbia is located in the same time zone as the majority of European countries, which means that interaction with teams working in other regions will not be difficult. The time difference with the US and China may be somewhat challenging, but the 4.5-hour difference with India is quite comfortable for interaction between several teams.
Serbian Economy
The economy in Serbia is stable and it is steadily growing, and the levels of unemployment and inflation are quite low. As a result, companies that opt for Serbia as an outsourcing ground can rely on its predictability.
Serbia is focused on friendly relations with all countries, and it is a party to more than 60 double taxation agreements, which may be a great benefit for you.
Foreign entrepreneurs can take advantage of various incentives and legal protection. There are major European, Chinese, and American investors here that put billions of dollars into the Serbian economy, which is a sign that the country can be trusted.
Level of English
English is the language of international communication, and it is crucial for outsourcing purposes. Most Serbians (especially those who work in the IT sphere) have quite a high command of English and can communicate effectively.
How to Start a Serbian Company for Outsourcing?
If you decide to opt for Serbia, we recommend registering a limited liability company (doo in Serbian). This is the most popular legal form that can be fully owned by a foreigner and can be started with 1 euro (authorized capital). You will need to appoint at least one director, and it can be a foreigner.
The company must have a registered address and can be formed remotely with our help.
Interested? Simply click on the above link to contact our expert!
