13 May Interview with PhD. Nemanja Aleksić, Lawyer & Managing Partner of the Aleksić & Associates
How competitive and attractive is Serbia in the EU context and what remaining bottlenecks and further reforms are needed to further enhance the ease of doing business in the country.
Serbia today is emerging as one of the most dynamic and resilient economies in Southeast Europe. Over the past decade, it has transformed from a cost-driven location into a diversified and investment-attractive market, offering a rare blend of stability, opportunity and affordability. The economy showed strong momentum in 2024, despite a challenging global environment. Employment is up and public debt remains well within sustainable limits. Serbia’s consistent macroeconomic performance growth since pre-pandemic levels has been accompanied by record levels of foreign direct investment, growing exports and rising real wages. These are not small achievements for a country still in transition.
Sectors like construction are booming, supported by public infrastructure projects and commercial development linked to Expo 2027. At the same time, the IT and innovation ecosystem is rapidly expanding. Serbia is now recognized as a regional tech hotspot, with IT services exports, a thriving startup scene and a strong pipeline of engineers and software developers. It’s no longer just a place to outsource, Serbia is becoming a place to build and scale global tech solutions. Business costs remain low by European standards. For example, energy and logistics costs are among the most affordable in the region. But what sets Serbia apart is its high-value human capital — educated, multilingual and increasingly innovation-driven. Serbia’s position as a regional export platform is also a key strength.
That said, the path forward still requires work. Judicial inefficiency, administrative burdens and regulatory inconsistencies, particularly at the municipal level, remain challenges for investors. And while EU accession remains a key anchor for reform, the pace of integration will be crucial in boosting long-term business confidence. Still, the broader picture is clear: Serbia is no longer a hidden gem, it’s increasingly seen as a reliable, reform-oriented and opportunity-rich economy. With sustained commitment to the rule of law, digital transformation and green development, Serbia is well on its way to becoming a leading business and innovation hub in Southeast Europe. It has become the top FDI destination in the Western Balkans, consistently attracting more foreign investment than all neighboring countries combined. All foreign investments represent a deeper confidence in Serbia’s stability and long-term potential.
What’s notable is that FDI is now more diversified, by sector and geography. Investments are flowing into automotive, electronics, agribusiness, IT services and logistics. Serbia’s appeal goes beyond low costs. The government has built a robust support system for investors, including cash grants for capital projects, payroll tax incentives for new job creation, 10-year corporate tax holidays for large investors and fast-track support from the Serbian Development Agency. These tools are matched by strategic infrastructure projects and the Expo 2027 development cycle, which is expected to further boost construction, services and international visibility.
That said, investors still want to see greater legal predictability, efficient dispute resolution and faster alignment with EU regulations. These are the final frontiers Serbia must cross to fully unlock its potential. The overall direction is positive. Serbia is a regional leader in investment attraction, with a solid track record, strong institutions and growing international trust.
What guarantees and protection mechanisms exist for businesses and investors?
Serbia has taken serious steps to strengthen its legal and institutional framework in line with European standards, especially as part of its EU accession process. For businesses and investors, there are clear legal guarantees and protection mechanisms, both under domestic law and through international agreements.
Firstly, Serbia has signed many bilateral agreements on investment protection and is a signatory to key international treaties such as the ICSID Convention and the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. This means that foreign investors have access to international arbitration in case of disputes with the state — an important safety net.
Domestically, the constitution guarantees the protection of property, legal equality and the freedom of entrepreneurship. Foreign investors are guaranteed national treatment meaning they enjoy the same rights and obligations as domestic companies and their investments cannot be expropriated without fair compensation.
When it comes to dispute resolution, Serbia has both specialized commercial courts and the option for alternative dispute resolution, including arbitration and mediation. The Commercial Court of Belgrade is one of the most prominent institutions handling business disputes. Arbitration can be conducted in Serbia or abroad and there’s Permanent Arbitration at the Serbian Chamber of Commerce, which handles both domestic and international cases.
There is still work to do though. While the legal framework is in place, businesses still often report that enforcement can be slow and that judicial efficiency needs improvement. Continued reform of the court system, particularly when it comes to predictability, transparency and digitalization, is one of the country’s priorities.
On the intellectual property (IP) side, Serbia has a well-developed legal framework aligned with World Intellectual Property Organization standards and EU IP legislation. It’s a member of the Paris Convention, the Madrid Agreement and the Trade-Related Aspects of Intellectual Property Rights Agreement. The IP Office of Serbia handles registration and enforcement, covering patents, trademarks, industrial designs and copyrights. Protection is available both to domestic and foreign companies under the principle of reciprocity. While the IP system is functional, stronger enforcement mechanisms and judicial training are needed, especially in light of Serbia’s growing tech and creative industries. The good news is that awareness and institutional support in this area are improving year by year.
In short, Serbia offers a solid legal foundation for doing business, with international protections, local enforcement mechanisms and a legal environment that continues to evolve. The laws are there, the institutions are improving but, like in many transition economies, the focus now is on improving the speed, consistency and reliability of implementation.
What are the highlights of the Serbian taxation system compared to other European regimes?
Serbia’s taxation system is considered one of the more competitive and investor-friendly in Europe, especially when compared to EU member states. It’s built on a flat-tax model, which keeps things relatively simple and predictable, something businesses tend to appreciate. The corporate profit tax rate is 15%, which is among the lowest in Europe. For comparison, the EU average sits closer to 21–22%, with countries like Germany and France well above that. Serbia also applies a standard VAT rate of 20%, with a reduced 10% rate for essentials, which again is in line with or below most regional peers.
What sets Serbia apart is its fiscal incentive package including a 10-year corporate tax holiday for large investments (over €8.5 million and 100+ new jobs), payroll tax reliefs of up to 75% for hiring unemployed persons, cash grants and investment subsidies for both greenfield and brownfield projects and special benefits for innovation-based and IP-heavy companies, including R&D tax breaks and exemptions for qualified IP income
In terms of fiscal consolidation, Serbia has made notable progress in recent years. The tax administration has undergone significant digitalization, including the introduction of e-filing, e-invoicing and real-time reporting systems, which are helping to increase transparency and reduce the informal economy. Of course, like many countries, tax complexity can still be a concern, especially at the local level, where interpretation of rules can vary. But overall, Serbia is moving in the right direction: simplifying compliance, increasing automation and improving coordination between tax institutions.
Right now, Serbia’s fiscal competitiveness is strong, especially for export-oriented, tech- driven and labor-intensive industries. It’s not just about low rates, it’s also about predictability, accessibility of incentives and the ability to operate within a clear and stable framework. Serbia offers a smart mix: low tax burdens, broad incentive programs and a government actively working to modernize the system. That’s a very appealing formula.
Can you give us an overview of Aleksić & Associates including your key competence areas, values, mission and latest developments?
Aleksić & Associates is a full service corporate law firm with a long tradition of servicing corporate clients across various industries and one of the leading and largest law firms in Serbia with 309 employees. We are proud of the fact that we are present in the two main Serbian economic centers. Our home office is located in Novi Sad, the capital of the northern region of Serbia, located in Vojvodina, the richest and one of the most active regions in Serbia in terms of direct foreign investment, while our associate office is located in Belgrade. Both business premises, in exclusive locations, are owned by us.
Although we commenced operations over 25 years ago as a civil law firm, the rising interest of investors in this region over the last 20 years has compelled us to focus entirely on corporate law and banking as our main area of practice. Today our law firm is providing services in all areas of commercial, civil, labor and criminal law.
Our dedicated team of experienced professionals, legal experts, experienced business and economics advisors allows us to offer our clients a 360-degree approach to any of the matters arising in their daily business. We are dedicated to training and educating our experts and have developed a special mentoring program as we believe that it makes a crucial difference for our clients. We aim to understand our clients and their business, to anticipate their needs and risks and look for the best solutions to all the challenges they face in everyday business. Our clients most value our commitment, reputation, proactive approach and the highest ethical standards.
What recent regulatory changes have been introduced and how does a firm like Aleksić & Associates ensure compliance with relevant regulations?
At Aleksić & Associates, we’ve observed a steady and meaningful shift in Serbia’s regulatory environment—particularly in the areas of corporate transparency, compliance and alignment with EU standards. These changes reflect the country’s broader ambition to build a more modern, rules-based economy that inspires investor confidence. Key reforms have included the tightening of anti-money laundering regulations, the introduction of mandatory disclosure of beneficial ownership and the adoption of a GDPR- aligned data protection framework. These developments demand a more structured and vigilant approach to how companies manage internal controls, data governance and legal risk.
Our role as legal advisors is to help businesses not only understand their obligations, but to embed compliance into their day-to-day operations. At Aleksić & Associates, we work closely with clients to implement tailored compliance systems, conduct internal legal audits and guide them through increasingly complex regulatory landscapes, from corporate law to sector- specific rules. We are particularly active in advising companies undergoing organizational restructuring, market entry, or those involved in cross-border M&A. In these contexts, compliance is not just about avoiding penalties, it’s about creating a foundation for sustainable, long-term growth. We also support our clients through training programs and legal risk assessments, ensuring that management and staff alike are equipped to maintain regulatory standards, both locally and in line with international expectations.
Ultimately, our job is to be more than a legal buffer. We see ourselves as partners in responsible business, helping companies grow in Serbia with clarity, predictability and full awareness of their obligations under law. Transparency is not just a regulatory requirement, it’s a competitive advantage. We’re here to help our clients embrace that mindset.
How is Aleksić & Associates adapting its activity and modernizing with new technologies, including AI and what challenges and opportunities does the digital transformation present?
We see technology and innovation not as a disruption, but as an opportunity to elevate the way we practice law and serve our clients. The legal profession is evolving rapidly and we are fully committed to embracing that transformation both internally and in how we support companies navigating it themselves. We’ve taken concrete steps to modernize our operations, starting with the digitalization of internal workflows, client communication and document management. We are also exploring the integration of AI-powered legal research and contract analysis tools, which help us process large volumes of data more efficiently, without compromising accuracy. These tools don’t replace lawyers but they augment our capabilities, allowing us to spend more time on strategic thinking and client guidance.
We’re already working with companies in technology, fintech, telecom and cybersecurity sectors who are deeply affected by evolving regulation. From data protection and digital identity to AI governance and platform liability, the legal framework is struggling to keep pace with the speed of innovation. Our role is to provide clarity, reduce legal uncertainty and help clients stay ahead of the regulatory curve, especially as Serbia gradually aligns its legislation with the EU’s Digital Services Act, Digital Markets Act and upcoming AI Act. Of course, digital transformation also comes with challenges. Cybersecurity, ethical AI use, algorithmic bias and data ownership are no longer niche legal questions, they’re strategic issues that every business must address. At Aleksić & Associates, we’re building expertise in these areas and developing interdisciplinary collaborations with IT experts to deliver comprehensive advice.
One of the biggest shifts we’re seeing is in governance models. Boards, founders and executives now need to think beyond traditional risk. AI governance, digital ethics and cyber compliance are becoming part of core decision-making and we’re here to help them design policies, frameworks and internal controls that support innovation while ensuring legal and reputational protection.
We’re realistic about the pace of change. It’s fast and sometimes overwhelming but we’re also optimistic. As a firm, we’re evolving in step with our clients. Our vision is not just to provide legal answers, but to be a partner in navigating the future of law, business and technology.
As more foreign investors are interested in diversifying their investments in Europe, how is your firm working to internationalize its practices and increase your level of expertise to match the market’s requirements?
We’ve always believed that legal services must evolve alongside the markets they serve. With Serbia becoming an increasingly attractive destination for foreign direct investment, particularly from the EU, North America and Asia, we’ve made internationalization a core part of our strategy.
This means, first and foremost, ensuring that our legal practice meets the expectations of international clients, both in substance and in service culture. We’ve expanded our team to include multilingual and internationally trained lawyers and we invest continuously in cross- border legal education, particularly in areas like EU law, international arbitration, M&A, compliance and regulatory affairs. We also maintain active cooperation with leading law firms across Europe and globally, through legal networks and partner alliances, enabling us to offer seamless support in multi- jurisdictional matters. Whether it’s advising a foreign company entering the Serbian market, supporting M&A deals, or assisting in complex compliance scenarios, we aim to provide the same level of clarity, precision and strategic advice expected from top-tier legal advisors anywhere in Europe.
In recent years, we’ve seen strong growth in foreign clients and their expectations are clear: they want advisors who not only understand local law but also understand international business culture and timelines. That’s exactly what we’ve built our practice around. Beyond legal services, we see ourselves as advisors on doing business in Serbia. That means helping clients understand the broader landscape — tax, incentives, labor regulations, corporate structures and dispute resolution mechanisms — all tailored to international standards and communicated in a language and format they’re comfortable with.
Internationalization isn’t just about speaking English or translating documents, it’s about thinking globally while acting locally. It’s about offering legal certainty in a market that’s still developing and building long-term partnerships based on trust, responsiveness and results. As Serbia continues to position itself as a gateway to both the EU and the wider region, our mission is clear: to be a reliable, forward-looking legal partner to every international business that chooses to invest and grow here. Serbia today is a dynamic and increasingly stable economy, strategically positioned at the heart of Southeast Europe, with access to over a billion consumers through its broad network of free trade agreements. Now is the right time to discover Serbia, not only as a smart business decision, but as a place where innovation, opportunity and partnership come together.