In a proactive move to boost the hospitality industry and attract tourism, the Serbian Government has recently introduced crucial changes to the Decree on Criteria for Granting Incentives to Attract Direct Investments in Hotel Accommodation Services. This strategic update is aimed at stimulating hotel development, responding to the growing demand triggered by the forthcoming EXPO Belgrade 2027.
The revised Decree focuses on encouraging investments in the construction, reconstruction, and expansion of three-plus star hotels within the Belgrade region. Notably, subsidies do not extend to garni and apart-hotels. Investors can potentially receive grants of up to 20% of justified project costs, provided they meet conditions like minimum investment value, equity contribution, and compliance with quality standards and accommodation capacities.
Investors should be mindful of the two-year timeline for completing hotel projects from the subsidy application date, with an option to extend until December 31, 2026. The Decree also extends support to spa resorts, with slightly more flexible conditions and an additional requirement related to employee engagement.
The information in this document does not constitute legal advice on any particular matter and is provided for general informational purposes only.