4 Things Foreign Investors Must Know Before Investing Into Serbia
Best Support For Foreign Investments in Serbia. How to Protect Foreign Investment in Serbia Trustworthy Attorneys in Serbia Best Belgrade Law
Where is Serbia?
Serbia, located in the Balkans, is a country that has been attracting foreign investment for several years.
Serbia’s strategic location, highly-skilled workforce, and favorable economic policies make it an attractive investment destination.
However, foreign investors often face numerous challenges when investing in Serbia, including issues related to the protection of their investments.
What Serbian Government Did?
In recent years, the Serbian government has taken several steps to improve the investment climate and protect foreign investments.
One of the most significant steps is the adoption of a new Law on Foreign Investments in 2015, updated in 2018, which aims to provide comprehensive protection for foreign investors and their investments in Serbia.
The new Law on Foreign Investments in Serbia provides several key protections for foreign investors, including the right to:
Fair and Equitable Treatment
- Fair and Equitable Treatment: The law guarantees fair and equitable treatment of foreign investors in Serbia. This means that foreign investors are entitled to the same level of protection and treatment as domestic investors. The Serbian government has also committed to treating foreign investors in accordance with international law, including the protection of their property rights.
Protection against Expropriation
- Protection against Expropriation: The new law also provides foreign investors with protection against expropriation. The Serbian government cannot expropriate foreign investments unless it is done for a public purpose, is non-discriminatory, and is done in accordance with due process of law. If expropriation does occur, the foreign investor is entitled to compensation that reflects the fair market value of their investment.
Transfer of Funds
- Transfer of Funds: The law also guarantees the free transfer of funds related to foreign investments, including profits, dividends, and the proceeds of the sale of investments. This protection ensures that foreign investors can repatriate their profits and investment returns without restrictions.
Investor-State Dispute Settlement
- Investor-State Dispute Settlement: The new law also provides for the resolution of disputes between foreign investors and the Serbian government through international arbitration. This mechanism allows foreign investors to seek redress for any breaches of the law or other violations of their investment rights.
The Serbian government has also taken other steps to improve the investment climate in Serbia.
For example, Serbia has signed bilateral investment treaties (BITs) with many countries that provide additional protections for foreign investors. These BITs include provisions for the protection of investments, the free transfer of funds, and the settlement of disputes.
In conclusion, the Serbian government has taken significant steps to protect foreign investments in Serbia, including the adoption of a new Law on Foreign Investments.
PS. This law provides comprehensive protections for foreign investors, including fair and equitable treatment, protection against expropriation, the free transfer of funds, and access to investor-state dispute settlement mechanisms. These protections, along with Serbia’s favorable investment climate, make it an attractive destination for foreign investors looking to expand their operations.
For more information on this or any other legal, tax, or business topic, feel free to write to us at office@statt.rs at any time or call us at phone number +381113281914 every working day from 08:30 to 16:30.