Serbia is currently one of the fastest‑growing and most attractive markets in the Balkan region, with an average projected growth rate of 3.5%–4% for 2025 and a GDP per capita (PPP) exceeding USD 29,000 (IMF, 2025). The Serbian economy is driven by advanced industrial sectors, services, and technological innovation, and serves as a central gateway to markets in Central and Southern Europe. Relations between Israel and Serbia have been rapidly strengthening in recent years, with growing cooperation in technology, security, agriculture, tourism, and investments.
Serbia offers a particularly attractive environment for companies and investors from Israel, combining stable economic growth, competitive operational costs, and strategic access to European markets. In 2025, Serbia’s GDP is expected to reach USD 95–100 billion, with GDP per capita (PPP) approaching USD 30,000.
The country attracts significant levels of foreign direct investment — reaching a record EUR 5.1 billion in FDI in 2024 — reflecting strong international confidence in the local market. Serbia offers competitive corporate tax rates (15%), skilled labor at relatively low cost compared to Western Europe, and free trade agreements with the European Union, Balkan countries, Turkey, and China.
Taxation Overview:
Serbia’s strategic geographic location in the heart of the Balkans provides direct access to a market of over 500 million consumers across Europe. It serves as an ideal platform for regional expansion in sectors such as technology, smart agriculture, advanced industry, energy, and infrastructure.
For Israeli companies, Serbia represents a strategic opportunity that combines a rapidly developing market with broad access to European economic zones.
