In efforts to revitalize the hospitality industry and boost tourism, the Serbian Government adopted changes to the Decree on Determining the Criteria for Granting Incentives to Attract Direct Investments in the Hotel Accommodation Services Sector (“Decree”). The Decree is aimed at stimulating the development of hotels and comes as a direct response to the growing demand for accommodation due to the international exhibition EXPO Belgrade 2027.
The investments related to the realisation of EXPO Belgrade 2027 qualifying for subsidies include construction, reconstruction, and expansion of hospitality facilities – specifically, three-plus star hotels in the Belgrade region. Notably, investments in garni and apart-hotels are not eligible for subsidies.
Investors could receive grants of up to 20% of justified project costs, subject to fulfilling conditions related to minimum investment value, equity contribution, implementation of certain quality standards and accommodation capacities.
The hotel investment must be completed within two years as of applying for subsidies with a possibility to extend the completion until 31 December 2026.
Aside from the Belgrade region, the Decree offers state aid for hotel investments in spa resorts. The conditions for this aid appear to be generally more lenient than those for the Belgrade region, with an additional condition requiring the engagement of a certain number of employees.
The information in this document does not constitute legal advice on any particular matter and is provided for general informational purposes only.
