Land law categorization in Serbia & Construction procedure - key points
Law categorization in Serbia
Serbian legal framework recognizes two land categories most commonly used for investment purposes.
Construction land
It is the land on which structures have been built as well as the land that serves for regular use of the land that serves for regular use of these structures and the land designated for construction and regular use of structures envisaged by the urban plan.
Construction land can be:
- public construction land ( in state-municipality ownership)
- other construction land ( in all ownership forms – private and state)
Agricultural land ( in all ownership forms – private and state owned)
- cultivable land
- uncultivable land
Characteristics of public construction land
Public construction land has the following characteristics:
- it is state owned
- it covers land area where structures of public interest have been constructed
- it is a land area designated for construction of public structures, as well as public areas (public roads, parks, squares, streets etc) according to the Urban plan
Public construction plan is exclusively state property and as such is solely intended for construction of structures of public interest ( roads, schools, hospitals, infracture)
Other construction land is land where structures already exist, as well as land predefined for construction of structures. It is previously not declared as public construction land. It is transferable and can be found in all types of ownerships. The municipality is responsible for rational use of other construction land. The structures which can be built on other construction land are: residential, commercial, industrial, etc. This classification is in accordance with the Urban municipality plan.
There are three ways of acquiring other construction land ( OCL) for construction
By leasing the land
OCL in state ownership – municipality land can be leased for 99 years under conditions set my municipal authorities. The land is leased through either public bidding or public tender. The lessee automatically obtains a right to build structures.
Once he has the structures built on the land previously acquired he becomes owner of a built structure, and is obliged to use the land according to its designated purpose.
Acquiring a ‘right to use’ the land
The right to use the land granted for indefinite period of time by the newly adopted Law on Urban planning and construction. The right use to use the land is irrevocable and permanently attached to the ownership of the structure located on a particular land lot. It is based on either:
- ownership of a structure built on the land in accordance with the Urban plan ( in which case the land has the same status as the structure)
- intention to construct a building on urban land. Right to use the land is related to the ownership of the structure located on the urban plan. It entitles the user to permanently use the land as long as the previously acquired structure remains on the land acquired.
By acquiring OCL through conversion of agricultural land into construction land
By acquiring agricultural land in private ownership with a possibility of conversion into construction land and investor automatically obtains the right to build a structure on it according to the Urban plan. Only agricultural land which is included in Urban plan can be reclassified to OCL.
For the conversion of agricultural into OCL land an investor must submit a formal application which includes:
- description of the current and intended use of land in question
- a certificate of owner or the right to use papers
- an extract from Urban plan which provides grounds for obtaining a building permit
Construction procedure
1. Assessment of urban conditions for construction
- excerpt from Urban plan or Act of urban conditions, not older than 6 months
2. Obtaining land
- leasing land – municipally owned
- buying private building with the right of use the land for building new structure according to Urban plan
- buying agricultural land with the possibility of conversion
3. Construction approval
- conceptual project – preliminary architectural design
- proof of ownership, leasing or right of use the land
- excerpt from Urban plan or act on zoning conditions
- validity of the construction approval is 2 years from obtaining
4. Notice of the start of construction
- Investor submits the main project with the confirmation of payments of compensations for the development for the development of the construction land and other administrative fees
5. Construction
- preparing construction documents
- the investor provides expert supervision
6. Technical inspection of a structure
- assessment of compliance of the construction works with construction approval and technical documentation
7. Occupancy permit
- as-built drawings
- technical inspection of the structure
Construction approval can be obtained now very easy considering the tendency to simplify the construction procedure, Urban permits and building permits have been abolished and replaced with construction approval. Prior to construction of structure a potential investor is obliged to obtain the construction approval and prepare technical documentation for the construction.
Investment insurance organization and International Banks in Serbia
To secure your investment in Serbia
Investment insurance organization and International Banks
There are various foreign companies along with other bilateral and multilateral organizations providing risk insurance against non commercial risks such as : civil war, expropriation, nationalization , confiscation, inconvertibility of profits and dividends and transfer inability of currency.
Investment insurance organization
Austria – OEKB –
www.oekb.at
Belgium – ONDD –www.ondd.be
Canada – EDC –www.edc.ca
Germany – PwC/Euler Hermes –www.agaportal.de
France – COFACE –www.coface.com
Italy – SACE –www.isace.it
Japan – NEXI –www.nexi.go.jp
Korea – KEIC –www.keic.or.kr
Slovenia – SID –www.sid.si
UK – ECGD –www.ecgd.gov.uk
USA – OPIC –www.opic.gov
World Bank – MIGA –www.miga.org
Extensive reforms in financial sector have produced a sound and efficient banking system in Serbia. The results are best seen through rapid growth of total domestic and foreign currency savings, standing at more than 2 billion EUR or almost 100 times the amount five years ago.
Among many other, 17 foreign banks have set up their business operations in Serbia either through Greenfield projects or acquisitions.
Alpha Bank – Greece
Banca Intesa – Italy
Credit Agricole – France
EFG Eurobank – Greece
Erste Bank – Austria
Findomestic – Italy
HVB Bank – Austria
LHB – Germany
National Bank of Greece – Greece
New Ljubljana Bank – Slovenia
OTP – Hungary
Piraeus Bank – Greece
Procredit Bank – Germany
Raiffeisenbank – Austria
Societe Generale – France
Volksbank – Austria
Source National Bank of Serbia
Investment insurance organization and International Banks
There are various foreign companies along with other bilateral and multilateral organizations providing risk insurance against non commercial risks such as : civil war, expropriation, nationalization , confiscation, inconvertibility of profits and dividends and transfer inability of currency.
Investment insurance organization
Austria – OEKB –
www.oekb.atBelgium – ONDD –
www.ondd.beCanada – EDC –
www.edc.caGermany – PwC/Euler Hermes –
www.agaportal.deFrance – COFACE –
www.coface.comItaly – SACE –
www.isace.itJapan – NEXI –
www.nexi.go.jpKorea – KEIC –
www.keic.or.krSlovenia – SID –
www.sid.siUK – ECGD –
www.ecgd.gov.ukUSA – OPIC –
www.opic.govWorld Bank – MIGA –
www.miga.orgExtensive reforms in financial sector have produced a sound and efficient banking system in Serbia. The results are best seen through rapid growth of total domestic and foreign currency savings, standing at more than 2 billion EUR or almost 100 times the amount five years ago.
Among many other, 17 foreign banks have set up their business operations in Serbia either through Greenfield projects or acquisitions.
Alpha Bank – Greece
Banca Intesa – Italy
Credit Agricole – France
EFG Eurobank – Greece
Erste Bank – Austria
Findomestic – Italy
HVB Bank – Austria
LHB – Germany
National Bank of Greece – Greece
New Ljubljana Bank – Slovenia
OTP – Hungary
Piraeus Bank – Greece
Procredit Bank – Germany
Raiffeisenbank – Austria
Societe Generale – France
Volksbank – Austria
Source National Bank of Serbia
Labour relations in Serbia
Labour relations in Serbia
Employment may be established with a person who is in good general health, who is over 15 years of age and who meets the criteria for the position established in relevant enactment of the employer.
As for the foreigner, work permits are required for foreigners employed in Serbia and are issued with a validity of 3 to 12 months. An application for a work permit is submitted in person or by mail to the Labor market office in Belgrade. The average time for obtaining the work permit is two days. Work permit can be renewed without obstacles and the procedure is identical with the first application.
Steps for obtaining a work permit
1. A residence permit issued by the Ministry of Foreign affairs
2. An application by the company
3. An application by the individual
4. A work permit issued by the Labour Market office
Employment types
A labor contract may be granted for both, definite and indefinite period of time. A labor contract for a definite period of time may be signed for specific circumstances such as seasonal jobs, specific projects etc. Contract for definite period of time may last no longer than one year.
The labor contract may be concluded for a part-time work, for definite or indefinite period of time. The employee is entitled to social insurance and to all the rights stemming from the employment contract in proportion to the time spent at work.
An employer may sign a contract with a person for temporarily and periodical work related to his line of business. This contract can be longer than 120 days in one year. A person with whom this contract has been made is entitled to pension, disability and health insurance. An employee can also conclude a special service contract to perform jobs outside the line of business of his employer and with the aim of independent execution of particular physical labor or intellectual work.
Working hours/overtime/leave
The working week has 40 working hours. A Book of Rules signed between the employer and employee may conclude a reduction in the number of working hours which cannot be lower than 36h per week. In the case of sudden increase in the scope of work and in other cases imposing the need for completion of unplanned work within a specific time limit employees can work overtime, no more than four hours a day, and at most eight hours per week.
For each calendar year, an employee has the right to at least 20 working days of annual leave for a period to be determined by general act or contract of employment.
Hope this will assist you a little bit more.
official source: digest of SIEPA various guidelines
Employment may be established with a person who is in good general health, who is over 15 years of age and who meets the criteria for the position established in relevant enactment of the employer.
As for the foreigner, work permits are required for foreigners employed in Serbia and are issued with a validity of 3 to 12 months. An application for a work permit is submitted in person or by mail to the Labor market office in Belgrade. The average time for obtaining the work permit is two days. Work permit can be renewed without obstacles and the procedure is identical with the first application.
Steps for obtaining a work permit
1. A residence permit issued by the Ministry of Foreign affairs
2. An application by the company
3. An application by the individual
4. A work permit issued by the Labour Market office
Employment types
A labor contract may be granted for both, definite and indefinite period of time. A labor contract for a definite period of time may be signed for specific circumstances such as seasonal jobs, specific projects etc. Contract for definite period of time may last no longer than one year.
The labor contract may be concluded for a part-time work, for definite or indefinite period of time. The employee is entitled to social insurance and to all the rights stemming from the employment contract in proportion to the time spent at work.
An employer may sign a contract with a person for temporarily and periodical work related to his line of business. This contract can be longer than 120 days in one year. A person with whom this contract has been made is entitled to pension, disability and health insurance. An employee can also conclude a special service contract to perform jobs outside the line of business of his employer and with the aim of independent execution of particular physical labor or intellectual work.
Working hours/overtime/leave
The working week has 40 working hours. A Book of Rules signed between the employer and employee may conclude a reduction in the number of working hours which cannot be lower than 36h per week. In the case of sudden increase in the scope of work and in other cases imposing the need for completion of unplanned work within a specific time limit employees can work overtime, no more than four hours a day, and at most eight hours per week.
For each calendar year, an employee has the right to at least 20 working days of annual leave for a period to be determined by general act or contract of employment.
Hope this will assist you a little bit more.
official source: digest of SIEPA various guidelines
Serbia Energy capital investments -Construction of new facilities-
Obrenovac Serbia Energy Observer
Capital investments in Serbian energy sector
-Construction of new facilities-
The tender for selection of strategic partner for construction of new power plants TENT B3 and TE Kolubara B is being expected in the third quarter of 2007, while the signing of the contract with selected partner is planed for second quarter of 2008.
Management board of Electric power industry of Serbia EPS adopted the information on realization of joint investment of EPS and strategic partner in the construction of thermo power facilities TENT B3 (700mw) and Kolubara B (2x350 mw). Strategic partner will be selected in a tender procedure and project companies will be founded as Ltd companies which are the most appropriate model for planed joint investment. Assets ratio of EPS and strategic partners in the basic capital of project companies will be defined after tender procedures, decision making on the most important steps will be made with mutual consent of both sides regardless of their share in the companies.
Total estimated value of investment in the plant Kolubara B is 750 mill Euro. EPS will deposit in the new joint company non financial share in assets and objects, rights and investment which will cover various preparatory works and services, while the strategic partner would have both non deposits as well as money capital deposits. When it comes to the TENT B3 project company total estimated value of this investment is app. 900 mill. Euro and EPS will invest in this company, beside the non financial deposit, significant ammount of financial assets what represents that this investment is even more real.
Considering the importance of this planed capital investments it is logical to consider the active role of government of Serbia especially within the scope of providing of support to selected model of investment realization and regulation of relations with strategic partners and their rights protection.
For realization of this model of joint venture it is necessary to perform two separate tender procedures for selection of strategic partner, also it is crucially important to produce the appropriate model of contract for purchase of electrical energy which will be produced in these new companies and that will be purchased by EPS on a long time agreement base.
It is planed that EPS in the first five years takes 100% of produced electrical energy, what is usual credit condition, and for the time period between 6 and 15 year, the strategic partner will submit the proposal of, within the tender application, the structure of delivery of electrical energy to EPS and of course with the right of first buyer. Beside these elements of relations regulations with strategic partner, the tender documentation for TENT B3 will contain important elements of rules of joint usage of existing infrastructure of TENT
----Source TENT magazine----
Obrenovac as Serbian & Balkan energy center will host and be in the center of this planed capital investments and even more increase its strategic and business importance in Serbia. Strategic position of Obrenovac, closeness of Belgrade and its airport are the advantages already interesting and attractive for foreign companies interested in energy market entry but as well on other related sectors.
For sure we can say that Obrenovac is becoming the business centre beyond the energy capital, place that can meet any investor needs.
www.investinobrenovac.com
Capital investments in Serbian energy sector
-Construction of new facilities-
The tender for selection of strategic partner for construction of new power plants TENT B3 and TE Kolubara B is being expected in the third quarter of 2007, while the signing of the contract with selected partner is planed for second quarter of 2008.
Management board of Electric power industry of Serbia EPS adopted the information on realization of joint investment of EPS and strategic partner in the construction of thermo power facilities TENT B3 (700mw) and Kolubara B (2x350 mw). Strategic partner will be selected in a tender procedure and project companies will be founded as Ltd companies which are the most appropriate model for planed joint investment. Assets ratio of EPS and strategic partners in the basic capital of project companies will be defined after tender procedures, decision making on the most important steps will be made with mutual consent of both sides regardless of their share in the companies.
Total estimated value of investment in the plant Kolubara B is 750 mill Euro. EPS will deposit in the new joint company non financial share in assets and objects, rights and investment which will cover various preparatory works and services, while the strategic partner would have both non deposits as well as money capital deposits. When it comes to the TENT B3 project company total estimated value of this investment is app. 900 mill. Euro and EPS will invest in this company, beside the non financial deposit, significant ammount of financial assets what represents that this investment is even more real.
Considering the importance of this planed capital investments it is logical to consider the active role of government of Serbia especially within the scope of providing of support to selected model of investment realization and regulation of relations with strategic partners and their rights protection.
For realization of this model of joint venture it is necessary to perform two separate tender procedures for selection of strategic partner, also it is crucially important to produce the appropriate model of contract for purchase of electrical energy which will be produced in these new companies and that will be purchased by EPS on a long time agreement base.
It is planed that EPS in the first five years takes 100% of produced electrical energy, what is usual credit condition, and for the time period between 6 and 15 year, the strategic partner will submit the proposal of, within the tender application, the structure of delivery of electrical energy to EPS and of course with the right of first buyer. Beside these elements of relations regulations with strategic partner, the tender documentation for TENT B3 will contain important elements of rules of joint usage of existing infrastructure of TENT
----Source TENT magazine----
Obrenovac as Serbian & Balkan energy center will host and be in the center of this planed capital investments and even more increase its strategic and business importance in Serbia. Strategic position of Obrenovac, closeness of Belgrade and its airport are the advantages already interesting and attractive for foreign companies interested in energy market entry but as well on other related sectors.
For sure we can say that Obrenovac is becoming the business centre beyond the energy capital, place that can meet any investor needs.
www.investinobrenovac.com
Capital investment in Serbian energy sector
Obrenovac Serbia Energy Observer
Capital investment in Serbian energy sector
- TENT A4 Overhaul 2007- general overview-
Ongoing overhaul of TENT Obrenovac A4 unit is far most one of the biggest investment in Serbian energy sector in this year.
Beside several Serbian companies some respective foreign companies are involved in the A4 overhaul and engaged in their line of expertise. Beside Alstom power and Doosan Babcock Energy two project leading companies, we would like to mention several Serbian companies working as their subcontractors Gosa, Termoelektro, Izoprogres as well as the large number of local companies from Obrenovac providing the necessary local services for cost effective project management.
Work progress is ongoing and in accordance with previously determined Project schedule of rehab and overhaul of A4 unit on TENT Obrenovac. Excellent coordination of works between contractors and TENT related departments is one of the main reasons for positive and effective project management and it can serve as a example for future planed rehab activities on TENT power plants A and B..
It is important to mention that the number of local services companies from Obrenovac is increasing on this type of capital overhauls which demonstrates their importance for cost effective project management but also potentials for some other future cooperation.
With establishment of cooperation with EU engineering associations and engineering consulting companies, Invest Obrenovac Energy Observer created the link of cooperation between Serbian companies and their counterparts in energy and other related sectors, important for any market entry or joint investments.
Investors are recognizing the importance of complete information on local investment climate, full scale of required services and other necessary elements for any market entry, temporarily or permanent.
A4 Tent Obrenovac 2007 overhaul is just an inceptive phase of future planed activities and capital investments in Serbian energy sector.
www.investinobrenovac.com
Capital investment in Serbian energy sector
- TENT A4 Overhaul 2007- general overview-
Ongoing overhaul of TENT Obrenovac A4 unit is far most one of the biggest investment in Serbian energy sector in this year.
Beside several Serbian companies some respective foreign companies are involved in the A4 overhaul and engaged in their line of expertise. Beside Alstom power and Doosan Babcock Energy two project leading companies, we would like to mention several Serbian companies working as their subcontractors Gosa, Termoelektro, Izoprogres as well as the large number of local companies from Obrenovac providing the necessary local services for cost effective project management.
Work progress is ongoing and in accordance with previously determined Project schedule of rehab and overhaul of A4 unit on TENT Obrenovac. Excellent coordination of works between contractors and TENT related departments is one of the main reasons for positive and effective project management and it can serve as a example for future planed rehab activities on TENT power plants A and B..
It is important to mention that the number of local services companies from Obrenovac is increasing on this type of capital overhauls which demonstrates their importance for cost effective project management but also potentials for some other future cooperation.
With establishment of cooperation with EU engineering associations and engineering consulting companies, Invest Obrenovac Energy Observer created the link of cooperation between Serbian companies and their counterparts in energy and other related sectors, important for any market entry or joint investments.
Investors are recognizing the importance of complete information on local investment climate, full scale of required services and other necessary elements for any market entry, temporarily or permanent.
A4 Tent Obrenovac 2007 overhaul is just an inceptive phase of future planed activities and capital investments in Serbian energy sector.
www.investinobrenovac.com
HR management as one of the crucial steps in Serbian market entry
Within the scope of ongoing and perspective investment projects and market entries in various business sectors foreign companies are paying great attention to the proper labor selection, from start up teams to the full scope of operational staff.
There are many HR companies working in Serbia, majority are foreign companies, but as well with raising number of local Serbian agencies. And they all have sufficient number of clients since Serbia has a good labor market.
Among many of the foreign HR companies operating in Serbia as local legal entities, it can be determined that more or less the market is shared. We have agencies working for clients from the eastern part of EU and doing pretty good making their name in Serbia , as well as world wide known companies from the western part of EU. For example, very often German company market entry and its start up teams building are entrusted to the German owned HR agency. The new trend is exporting of labor force to the EU countries.
Considering the increasing number of companies entering Serbia and the same demands for professional and skilled labor force maybe there is a space for more companies in this sector.
Dekra employment, as one of the leading HR companies working in Serbia, is specialized in assisting foreign companies in their establishment and start up business. As part of the joint stock company DEKRA AG (Stuttgart), Serbian Dekra employment definitely brought new business approach and solutions in this highly important aspect of doing business in Serbia.
In addition Dekra employment is the Co-founder of the German Management Pool, multilevel project that offers to potential investors in Serbia cost effective and complete business solutions for their start up.
Better insight you can find on:
http://www.dekra-zapo.co.yu/eng/index.jsp
http://www.germanmanagementpool.com/
There are many HR companies working in Serbia, majority are foreign companies, but as well with raising number of local Serbian agencies. And they all have sufficient number of clients since Serbia has a good labor market.
Among many of the foreign HR companies operating in Serbia as local legal entities, it can be determined that more or less the market is shared. We have agencies working for clients from the eastern part of EU and doing pretty good making their name in Serbia , as well as world wide known companies from the western part of EU. For example, very often German company market entry and its start up teams building are entrusted to the German owned HR agency. The new trend is exporting of labor force to the EU countries.
Considering the increasing number of companies entering Serbia and the same demands for professional and skilled labor force maybe there is a space for more companies in this sector.
Dekra employment, as one of the leading HR companies working in Serbia, is specialized in assisting foreign companies in their establishment and start up business. As part of the joint stock company DEKRA AG (Stuttgart), Serbian Dekra employment definitely brought new business approach and solutions in this highly important aspect of doing business in Serbia.
In addition Dekra employment is the Co-founder of the German Management Pool, multilevel project that offers to potential investors in Serbia cost effective and complete business solutions for their start up.
Better insight you can find on:
http://www.dekra-zapo.co.yu/eng/index.jsphttp://www.germanmanagementpool.com/
Residential market situation in Serbia & Investment Perspective
Besides shopping malls, office space and logistics centers, residential projects currently probably constitute the most dynamic segment in an allover pattern of the real estate development in Serbia. We can openly say that this portion of the real estate together with office space has come most closely to the world already existing standards but still very demanding in our own market.
During the past decade, Serbian residential market has been influenced by many factors which included the political and economical situation and overall standard of the population. Due to these reasons, no extensive development or construction activity occurred in this period in the major Serbian cities causing a large gap between the present housing supply and the anticipated needs. Because of population migrations on micro and macro level and the overall development of the country, most effectively depicted in its economy revival, it is expected that the demand will steadily grow in the coming years. Additional support is expected to arrive in shape of constant strengthening of the macroeconomic picture and widening credit options.
The economic and demographic composition of the population of Belgrade and other big Serbian cities and the constant and steady growth of its economic capabilities has influenced the growth of supply and demand for high-middle and high-end units. Apartments in central area of Belgrade sell for 1,700 to 2,000 EUR/m2. Depending on the exclusivity of the location, the prices can go up to as high as 3,000 EUR/m2. There are several large scale projects in the pipeline with amenities and finishing works which should meet the need of even the most demanding buyers.
During the past decade, Serbian residential market has been influenced by many factors which included the political and economical situation and overall standard of the population. Due to these reasons, no extensive development or construction activity occurred in this period in the major Serbian cities causing a large gap between the present housing supply and the anticipated needs. Because of population migrations on micro and macro level and the overall development of the country, most effectively depicted in its economy revival, it is expected that the demand will steadily grow in the coming years. Additional support is expected to arrive in shape of constant strengthening of the macroeconomic picture and widening credit options.
The economic and demographic composition of the population of Belgrade and other big Serbian cities and the constant and steady growth of its economic capabilities has influenced the growth of supply and demand for high-middle and high-end units. Apartments in central area of Belgrade sell for 1,700 to 2,000 EUR/m2. Depending on the exclusivity of the location, the prices can go up to as high as 3,000 EUR/m2. There are several large scale projects in the pipeline with amenities and finishing works which should meet the need of even the most demanding buyers.
Property market & legislation in Serbia
LEGISLATION
LAND CLASSIFICATION
According to the Law on Planning and Construction, the main types of land are:
• Construction land
• Agricultural land
There are two types of construction land:
• Public construction land
• Other construction land
Public construction land is land in state ownership, on which public structures of general interest have been built, and developed public areas, as well as land, according to an adopted plan, designated for stated purposes.
Other construction land is land that can be in all types of ownership, due to fact that it is subject to free trade on the market.
LAND OWNERSHIP
Apart from private and state property, there are specific types of public property and different forms of collective property (cooperative, mixed property).
All of the city construction land is under the state property regime. Owing to the fact that the city land is state property, the real estates built on this land are in private ownership. The owner of real estate built on city land enjoys exclusive “right of use” of the land.
According to the legal regulations, foreign individuals and legal entities which have business in the Republic of Serbia can acquire real estate (except city construction land – state property) in the same way as domestic entities, on two conditions:
• Property intended for use must be for business purposes
• Reciprocity must exist with the foreign country from which foreign investor is coming
There are certain limitations on acquiring real estate property rights for foreigners which are related to property locations (vicinity of military facilities or the like).
LEASE OF OTHER CONSTRUCTION LAND
Lease period: private family homes - 99 years; other purposes – 15 to 80 years
Initial fee is 90% of the market value of the construction land
Procedure:
1. Public auction in Public Enterprise (PE) for City Construction and Development
2. Bringing a Leasing Act from the Executive Board of the City Assembly
3. Signing a leasing contract with the PE for City Construction and Development
Deadline for bringing the land to its intended use, in compliance with the urban development plan, is 3 years following the day of signing the lease contract.
PERMISSION FOR THE CONSTRUCTION OF NEW BUILDINGS
Construction of building is carried out on the basis of Construction Approval and technical documentation consisting of: general design , conceptual design, detailed design (subject to technical control), contractor’s design and as-built design.
LAND CLASSIFICATION
According to the Law on Planning and Construction, the main types of land are:
• Construction land
• Agricultural land
There are two types of construction land:
• Public construction land
• Other construction land
Public construction land is land in state ownership, on which public structures of general interest have been built, and developed public areas, as well as land, according to an adopted plan, designated for stated purposes.
Other construction land is land that can be in all types of ownership, due to fact that it is subject to free trade on the market.
LAND OWNERSHIP
Apart from private and state property, there are specific types of public property and different forms of collective property (cooperative, mixed property).
All of the city construction land is under the state property regime. Owing to the fact that the city land is state property, the real estates built on this land are in private ownership. The owner of real estate built on city land enjoys exclusive “right of use” of the land.
According to the legal regulations, foreign individuals and legal entities which have business in the Republic of Serbia can acquire real estate (except city construction land – state property) in the same way as domestic entities, on two conditions:
• Property intended for use must be for business purposes
• Reciprocity must exist with the foreign country from which foreign investor is coming
There are certain limitations on acquiring real estate property rights for foreigners which are related to property locations (vicinity of military facilities or the like).
LEASE OF OTHER CONSTRUCTION LAND
Lease period: private family homes - 99 years; other purposes – 15 to 80 years
Initial fee is 90% of the market value of the construction land
Procedure:
1. Public auction in Public Enterprise (PE) for City Construction and Development
2. Bringing a Leasing Act from the Executive Board of the City Assembly
3. Signing a leasing contract with the PE for City Construction and Development
Deadline for bringing the land to its intended use, in compliance with the urban development plan, is 3 years following the day of signing the lease contract.
PERMISSION FOR THE CONSTRUCTION OF NEW BUILDINGS
Construction of building is carried out on the basis of Construction Approval and technical documentation consisting of: general design , conceptual design, detailed design (subject to technical control), contractor’s design and as-built design.
Characteristics of the Serbia labor market
The labor force is one of the major assets of the region
Central and Eastern Europe is one of the most important developing regions. In 2006, 12 German chambers of commerce for the first time conducted a survey among 1000 German companies operating in 14 countries, concerning the investment climate in the region of East Europe.
The companies are generally satisfied with the conjuncture, and even more with their own business results: more than half of the companies surveyed said their operating results were good, and 42% of them deem their results to be satisfactory.
The surveyed companies generally assessed the overall business climate positively. Where prospects for 2006 are concerned, Serbia occupies the second position, with two thirds of respondents expecting the economic situation to improve.
The most optimistic were the German firms operating in Latvia, Serbia, Macedonia and Lithuania – over 75% of them said they count on improved conditions for doing business.
With regards to investment intentions in 2006, the findings of the German Foreign Trade Chambers (AHK) show the need to „catch up in the South“. Thus, 61% of the companies intend to invest in Serbia in this year.
In response to the question whether they would choose this region again for investments, 84% of respondents said they would invest in Serbia again, while 16% answered this question negatively.
Some of the attractive elements of the labor market in Serbia are:
- A high concentration of well-educated people
- Excellent foreign language skills
- Competitiveness of labor costs
Source: Report on the Conjuncture, 2006, German Chambers of Commerce Abroad
Central and Eastern Europe is one of the most important developing regions. In 2006, 12 German chambers of commerce for the first time conducted a survey among 1000 German companies operating in 14 countries, concerning the investment climate in the region of East Europe.
The companies are generally satisfied with the conjuncture, and even more with their own business results: more than half of the companies surveyed said their operating results were good, and 42% of them deem their results to be satisfactory.
The surveyed companies generally assessed the overall business climate positively. Where prospects for 2006 are concerned, Serbia occupies the second position, with two thirds of respondents expecting the economic situation to improve.
The most optimistic were the German firms operating in Latvia, Serbia, Macedonia and Lithuania – over 75% of them said they count on improved conditions for doing business.
With regards to investment intentions in 2006, the findings of the German Foreign Trade Chambers (AHK) show the need to „catch up in the South“. Thus, 61% of the companies intend to invest in Serbia in this year.
In response to the question whether they would choose this region again for investments, 84% of respondents said they would invest in Serbia again, while 16% answered this question negatively.
Some of the attractive elements of the labor market in Serbia are:
- A high concentration of well-educated people
- Excellent foreign language skills
- Competitiveness of labor costs
Source: Report on the Conjuncture, 2006, German Chambers of Commerce Abroad
Austrian companies interested in Serbian market
Serbian Minister of Trade and Services Predrag Bubalo met yesterday with a delegation of businessmen from Salzburg province and discussed economic cooperation between Serbia and Austria, and the stated province in particular.
The Ministry of Trade and Services says in a statement that representatives of the largest Austrian retail chain Spahr voiced interest in entering Serbia’s market and adds that the company has 25,000 employees and over 1,000 retail facilities, of which around 500 are in Italy and 280 in Slovenia, Hungary, the Czech Republic and Croatia.
At the meeting, held at the ministry, the collocutors also talked about the upcoming privatisation of the Belgrade Fairgrounds, for which Austria’s Reed Exhibitions is interested.
The delegation, led by Salzburg Vice-Governor Wilfried Haslauer, comprised directors of the Spahr retail chain Karl Blumberger and Karl Adamek, and Director of the Reed Exhibitions, Matthias Limbeck.
Source (Government of Serbia)
The Ministry of Trade and Services says in a statement that representatives of the largest Austrian retail chain Spahr voiced interest in entering Serbia’s market and adds that the company has 25,000 employees and over 1,000 retail facilities, of which around 500 are in Italy and 280 in Slovenia, Hungary, the Czech Republic and Croatia.
At the meeting, held at the ministry, the collocutors also talked about the upcoming privatisation of the Belgrade Fairgrounds, for which Austria’s Reed Exhibitions is interested.
The delegation, led by Salzburg Vice-Governor Wilfried Haslauer, comprised directors of the Spahr retail chain Karl Blumberger and Karl Adamek, and Director of the Reed Exhibitions, Matthias Limbeck.
Source (Government of Serbia)
Serbian Industrial production in first half of year 5.2%
The Serbian Statistics Office stated that industrial production in Serbia in June 2007, against the same period in 2006 went up by 4.8%, and in relation to the 2006 average, it increased by 4.4%.
In the first half of 2007, when compared to the same period in 2006, industrial production increased by 5.2%.
Observed by sectors, in June 2007 compared to June 2006, in the sector of electric power, gas and water supply there was a growth of 15.6%, mining and quarrying rose by 10.1%, and the manufacturing industry saw a growth of 2.3%.
In June 2007, against June 2006, industrial production in durable consumer goods was up by 13.8%, in energy by 10.4%, in capital goods by 6.3%, in intermediate goods, excluding energy, by 3.6%, and non-durable consumer goods by 1.9%.
Overall industrial production in June 2007, compared to June 2006, showed growth in 17 divisions that in the structure of industrial production participate with 70%, fall in 12 sectors that in the structure of industrial production participate with 30%.
The largest positive effect on industrial production growth in June 2007 compared to June 2006 was made by the sector of electricity, manufacture of food products, manufacture of basic metals, publishing, printing and reproduction, mining and briquetting of coal.
The most positive effect on industrial production growth in the first half of 2007 compared to the same period in 2006 was made by the sector of manufacture of food products, manufacture of basic metals, manufacture of furniture and manufacture of electrical machinery and apparatus.
The deseasonlised index of industrial production index for June 2007, compared to the 2006 average, indicates a 3.5% growth of overall industrial production and a 0.1% growth of manufacturing.
The deseasonalised industrial production index for June 2007, compared to May 2007 shows a 1.7% fall in overall industrial production and a 5.2% fall in manufacturing.
The production of small and medium-sized enterprises (SMEs) that were not included in regular statistical surveys was conducted on a sample of 334 selected units in the manufacturing section. In June, 107 enterprises submitted the requested data.
When the assessment of industrial production of SMEs of the sample is included, in June 2007 compared to the 2006 average, overall industrial production increased by 5.1% (otherwise this growth equals to 4.4%) and manufacturing increased by 8.4% (otherwise the growth stands at 7.3%).
(Government of Serbia)
In the first half of 2007, when compared to the same period in 2006, industrial production increased by 5.2%.
Observed by sectors, in June 2007 compared to June 2006, in the sector of electric power, gas and water supply there was a growth of 15.6%, mining and quarrying rose by 10.1%, and the manufacturing industry saw a growth of 2.3%.
In June 2007, against June 2006, industrial production in durable consumer goods was up by 13.8%, in energy by 10.4%, in capital goods by 6.3%, in intermediate goods, excluding energy, by 3.6%, and non-durable consumer goods by 1.9%.
Overall industrial production in June 2007, compared to June 2006, showed growth in 17 divisions that in the structure of industrial production participate with 70%, fall in 12 sectors that in the structure of industrial production participate with 30%.
The largest positive effect on industrial production growth in June 2007 compared to June 2006 was made by the sector of electricity, manufacture of food products, manufacture of basic metals, publishing, printing and reproduction, mining and briquetting of coal.
The most positive effect on industrial production growth in the first half of 2007 compared to the same period in 2006 was made by the sector of manufacture of food products, manufacture of basic metals, manufacture of furniture and manufacture of electrical machinery and apparatus.
The deseasonlised index of industrial production index for June 2007, compared to the 2006 average, indicates a 3.5% growth of overall industrial production and a 0.1% growth of manufacturing.
The deseasonalised industrial production index for June 2007, compared to May 2007 shows a 1.7% fall in overall industrial production and a 5.2% fall in manufacturing.
The production of small and medium-sized enterprises (SMEs) that were not included in regular statistical surveys was conducted on a sample of 334 selected units in the manufacturing section. In June, 107 enterprises submitted the requested data.
When the assessment of industrial production of SMEs of the sample is included, in June 2007 compared to the 2006 average, overall industrial production increased by 5.1% (otherwise this growth equals to 4.4%) and manufacturing increased by 8.4% (otherwise the growth stands at 7.3%).
(Government of Serbia)
CZECH-SERBIAN COOPERATION
CZECH-SERBIAN COOPERATION
Projects, activities and cooperation between Czechs and Serbs
If you have realized a project with the aim of establishing and developing the traditionally good relations between Czechs and Serbs, you can contribute to the list on this page. Just send some text describing your activity and as long as it will be correspond to the philosophy of this section, we will publish it. Send your text to info@newbalkan.com.
Thank you for your contribution.
Projects, activities and cooperation between Czechs and Serbs
If you have realized a project with the aim of establishing and developing the traditionally good relations between Czechs and Serbs, you can contribute to the list on this page. Just send some text describing your activity and as long as it will be correspond to the philosophy of this section, we will publish it. Send your text to info@newbalkan.com.
Thank you for your contribution.
Invest Obrenovac Promotion Project - Multi level international partnerships
Investment Promotion Project Invest Obrenovac Serbia, beside the fact that it is a local initiative, in the past several months managed to attract positive attention many related international and Serbian institutions.
Beside the established communication and cooperation with Invest in Western Balkans, the World Bank program for Balkans, relations were established with several specialized investment companies which resulted in several organized visits to the Municipality of Obrenovac and possible perspective investors.
On the other hand partnerships were established with SIEPA, SEIO, Serbian and Belgrade chambers of commerce etc. For promotion of Serbia the project team received number of positive comments. In addition cooperation was established with foreign trade agencies so many Serbian companies can be presented on foreign markets.
More onwww.investinobrenovac.com
Beside the established communication and cooperation with Invest in Western Balkans, the World Bank program for Balkans, relations were established with several specialized investment companies which resulted in several organized visits to the Municipality of Obrenovac and possible perspective investors.
On the other hand partnerships were established with SIEPA, SEIO, Serbian and Belgrade chambers of commerce etc. For promotion of Serbia the project team received number of positive comments. In addition cooperation was established with foreign trade agencies so many Serbian companies can be presented on foreign markets.
More on
www.investinobrenovac.com
Serbia Energy sector capital investments - perspective for foreign companies
Serbia Energy sector capital investments - perspective for foreign companies
I believe that all sector companies should pay attention to this capital investments in energy sector in Serbia. By entering through "small doors" of the market they can establish their presence and make their profit.
TENDER FOR COMPLETION OF STEAM POWER PLANTS "NIKOLA TESLA" AND "KOLUBARA B"
Soon unique tender for completion of steam power plants "Nikola Tesla" and "Kolubara B" – value of both projects is approximately EUR 1.5 billion
Electric Power Company of Serbia will announce unique tender for completion of Steam Power Plants "Kolubara B" and construction of the third block in Obrenovac-based Steam power plant "Nikola Tesla B" – General Manager of EPS, Vladimir Đorđević, announced.
Đorđević said that the power of both production capacities will be 700 MW, and strategic partner will be able to choose between investing in construction of one or both power plants. It is estimated that total value of both projects will be about EUR 1.5 billion. Đorđević said that the councillor had completed tender documentation, about which EPS would give its opinion in May and forward it to the Administrative Board of the company for adoption, while the final decision about announcement of the tender would be made afterwards by the Government of Serbia.
He expressed hope that there would be some companies interested in completion of Kolubara B and construction of new block in TENT, because Serbia needed both production capacities. As he explained, 700 MW would satisfy the growing needs for electric energy.
I believe that all sector companies should pay attention to this capital investments in energy sector in Serbia. By entering through "small doors" of the market they can establish their presence and make their profit.
TENDER FOR COMPLETION OF STEAM POWER PLANTS "NIKOLA TESLA" AND "KOLUBARA B"
Soon unique tender for completion of steam power plants "Nikola Tesla" and "Kolubara B" – value of both projects is approximately EUR 1.5 billion
Electric Power Company of Serbia will announce unique tender for completion of Steam Power Plants "Kolubara B" and construction of the third block in Obrenovac-based Steam power plant "Nikola Tesla B" – General Manager of EPS, Vladimir Đorđević, announced.
Đorđević said that the power of both production capacities will be 700 MW, and strategic partner will be able to choose between investing in construction of one or both power plants. It is estimated that total value of both projects will be about EUR 1.5 billion. Đorđević said that the councillor had completed tender documentation, about which EPS would give its opinion in May and forward it to the Administrative Board of the company for adoption, while the final decision about announcement of the tender would be made afterwards by the Government of Serbia.
He expressed hope that there would be some companies interested in completion of Kolubara B and construction of new block in TENT, because Serbia needed both production capacities. As he explained, 700 MW would satisfy the growing needs for electric energy.
Zrenjanin - another attractive city for investments in Serbia
At the investment attracting contest "Invest in Serbia", which was organized by USAID, Municipality of Zrenjanin won the title of the most attractive city for investments in Serbia.
What do city officials take price in and what do they point to ?
* Capital of Banat
* Largest municipality in Vojvodina and the second largest in Serbia (1,326 square kilometers)
* More than 100,000 ha of agricultural land
Population:
* 140,000 (85,000 in the city and 55,000 in rural area)
* 700,000 - Banat
Zrenjanin - University center:
* 2 technical faculties
* 4,000 students
* 8 secondary schools
It is pointed out that the University adapts to the needs of the investors for workers of certain vocation, so that the education programs are also adapted.
What are the other comparative advantages of Zrenjanin:
* Geographic position and traffic infrastructure
* Qualified and experienced manpower
* Very long industrial-entrepreneurial tradition
* Quick and efficient administration
* Free building land in industrial zones
* Location in industrial zones with complete infrastructure
* Freeing from payment for local fees and taxes
* Possibility of doing business in Free zone Zrenjanin
Distance from major cities in the surroundings:
* Novi Sad 50 km
* Belgrade 80 km
* Timisoara 100 km
* Szeged 130 km
* Osijek 140 km
source:
www.invest-in-zrenjanin.com
What do city officials take price in and what do they point to ?
* Capital of Banat
* Largest municipality in Vojvodina and the second largest in Serbia (1,326 square kilometers)
* More than 100,000 ha of agricultural land
Population:
* 140,000 (85,000 in the city and 55,000 in rural area)
* 700,000 - Banat
Zrenjanin - University center:
* 2 technical faculties
* 4,000 students
* 8 secondary schools
It is pointed out that the University adapts to the needs of the investors for workers of certain vocation, so that the education programs are also adapted.
What are the other comparative advantages of Zrenjanin:
* Geographic position and traffic infrastructure
* Qualified and experienced manpower
* Very long industrial-entrepreneurial tradition
* Quick and efficient administration
* Free building land in industrial zones
* Location in industrial zones with complete infrastructure
* Freeing from payment for local fees and taxes
* Possibility of doing business in Free zone Zrenjanin
Distance from major cities in the surroundings:
* Novi Sad 50 km
* Belgrade 80 km
* Timisoara 100 km
* Szeged 130 km
* Osijek 140 km
source:
www.invest-in-zrenjanin.com
The Western Balkans Factsheet -summarizing the key advantages of the Western Balkans region as potential location for investment
The Western Balkans Factsheet -summarizing the key advantages of the Western Balkans region as potential location for investment
http://www.iiwb.org/documents/WB_Factsheet.pdf
Investment Horizons: Western Balkans - Benchmarking FDI Opportunities
http://www.iiwb.org/documents/Benchmarking_study.pdf
http://www.iiwb.org/documents/WB_Factsheet.pdfInvestment Horizons: Western Balkans - Benchmarking FDI Opportunities
http://www.iiwb.org/documents/Benchmarking_study.pdf
Invest in Obrenovac Serbia - Some past activities
Invest in Obrenovac Serbia - Investment & Business Promotion Project
Recent activities:
- presentation presented in 5 world languages
- established cooperation and communication with Serbian Diplomatic and Economic Representative Network in the World
- established cooperation and communication with Foreign Diplomatic & Economic Missions in Serbia
- established cooperation and communication with other Serbian cities and regional business associations
- representatives of Austrian Trade visited Obrenovac Project Office and Municipality, specific steps of cooperation initiated
- Hotel Obrenovac presented as a perspective investment project - Under privatization
- Protent Obrenovac - presented as reliable partner for doing business in Energy sector in Serbia
- New investment projects upcoming
1. New highway - Belgrade - Pozega
2. Construction of TENT B3 one of the planned biggest investment projects in Serbia starting 2008.
The place that meets your needs.
Invest in Obrenovac Serbia
www.investinobrenovac.com
Recent activities:
- presentation presented in 5 world languages
- established cooperation and communication with Serbian Diplomatic and Economic Representative Network in the World
- established cooperation and communication with Foreign Diplomatic & Economic Missions in Serbia
- established cooperation and communication with other Serbian cities and regional business associations
- representatives of Austrian Trade visited Obrenovac Project Office and Municipality, specific steps of cooperation initiated
- Hotel Obrenovac presented as a perspective investment project - Under privatization
- Protent Obrenovac - presented as reliable partner for doing business in Energy sector in Serbia
- New investment projects upcoming
1. New highway - Belgrade - Pozega
2. Construction of TENT B3 one of the planned biggest investment projects in Serbia starting 2008.
The place that meets your needs.
Invest in Obrenovac Serbia
www.investinobrenovac.com
Invest in Obrenovac - Serbian Local Investment & Business Promotion Project
Dear All,
Allow me to present to you Serbian Local Investment & Business Promotion Project Invest in Obrenovac Serbiawww.investinobrenovac.com
The mission of the project is to present one Serbian local community, its advantages and possibilities, in order to attract investments and new business initiatives.
Invest in Serbia Obrenovac - The place that meets your needs
The municipality of Obrenovac is offering a wide range of investment opportunities in sectors such as agribusiness, construction, tourism, logistics, shared business services and others. Strategic location of Obrenovac, access to all major transportation infrastructure, including pan-European Corridors No. 10 and No. 7, vicinity of Belgrade`s International Airport, highly developed infrastructure, and efficient administration will be decisive for your success.
The project has the goal to establish cooperation with other cities in Serbia in order to establish one unique presentation of the business possibilities. So far investors, embassies and foreign trade representatives relied on the Siepa activities and information’s, and in general that was efficient and useful for some communities.
During the inceptive phase of the project, all economic diplomatic & trade representatives in Serbia were informed about the project. The reactions of the mentioned targeted parties are more than great, direct inventive approach increases the chances for success. Such actions are recognized as very interesting and useful by all parties. Several official visits were organized with specific steps to follow. The importance of the project was recognized by huge official web visits statistics from many countries.
The project, which is initiative of group of young people, demonstrated that the decisive orientation to changes can be valuable even in operating under limited funds. The project now has several partners. Municipality realized the importance and significance of the project and possibilities of such promotion. The real business is yet to come.
One of the other aspects of the project is the education and understanding of EU values, business and cultural aspects of Serbia wishes for EU membership. The project has the mission to close in EU to common people. The strength of changes and development lies in peoples believes that such path can bring development and improvement of their lives. For that reason the project will try, in cooperation with donors, to fund some excellent students and maybe to give some scholarships for their professional improvement.
The project office is yet planned for near opening. Considering the importance of such initiative the project seeks support from foundation grants and corporate gifts.
The project team has great plans for further development and activities
Allow me to present to you Serbian Local Investment & Business Promotion Project Invest in Obrenovac Serbia
www.investinobrenovac.comThe mission of the project is to present one Serbian local community, its advantages and possibilities, in order to attract investments and new business initiatives.
Invest in Serbia Obrenovac - The place that meets your needs
The municipality of Obrenovac is offering a wide range of investment opportunities in sectors such as agribusiness, construction, tourism, logistics, shared business services and others. Strategic location of Obrenovac, access to all major transportation infrastructure, including pan-European Corridors No. 10 and No. 7, vicinity of Belgrade`s International Airport, highly developed infrastructure, and efficient administration will be decisive for your success.
The project has the goal to establish cooperation with other cities in Serbia in order to establish one unique presentation of the business possibilities. So far investors, embassies and foreign trade representatives relied on the Siepa activities and information’s, and in general that was efficient and useful for some communities.
During the inceptive phase of the project, all economic diplomatic & trade representatives in Serbia were informed about the project. The reactions of the mentioned targeted parties are more than great, direct inventive approach increases the chances for success. Such actions are recognized as very interesting and useful by all parties. Several official visits were organized with specific steps to follow. The importance of the project was recognized by huge official web visits statistics from many countries.
The project, which is initiative of group of young people, demonstrated that the decisive orientation to changes can be valuable even in operating under limited funds. The project now has several partners. Municipality realized the importance and significance of the project and possibilities of such promotion. The real business is yet to come.
One of the other aspects of the project is the education and understanding of EU values, business and cultural aspects of Serbia wishes for EU membership. The project has the mission to close in EU to common people. The strength of changes and development lies in peoples believes that such path can bring development and improvement of their lives. For that reason the project will try, in cooperation with donors, to fund some excellent students and maybe to give some scholarships for their professional improvement.
The project office is yet planned for near opening. Considering the importance of such initiative the project seeks support from foundation grants and corporate gifts.
The project team has great plans for further development and activities
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