At the end of last year, the Government of the Republic of Serbia adopted the Regulation on Amendments and Supplements to the Regulation on Determining Criteria for Granting Incentives for Attracting Direct Investments in the Hotel Accommodation Sector (“Official Gazette RS”, No. 103/2023). This regulation precisely defines the conditions for subsidizing investments in the hotel accommodation sector, aimed at preparations for the international specialized exhibition EXPO 2027, which will be held in Belgrade from May 15 to August 15, 2027. This regulation, adopted at the initiative of the Ministry of Finance, represents a significant step towards improving and expanding the tourism capacities of the Belgrade region, with the goal of attracting direct foreign and domestic investments.
Subsidy Amount:
Investors will be eligible for a subsidy amounting to 20% of eligible investment costs in tangible and intangible assets from the date of application for the incentive until the expiration of the investment project realization period, or gross wages for new employees during a two-year period after reaching full employment at the beneficiary. The subsidies apply to both the construction of new hotel facilities and the reconstruction and expansion of existing hotels.
Conditions for Receiving the Subsidy:
- Minimum investment amount for new hotels: 5 million euros;
- Minimum investment amount for reconstruction or expansion of existing hotels: 2 million euros;
- Minimum number of accommodation units: 50, with mandatory hotel categorization of three or more stars;
- Investment location: Subsidies are intended for investments in the Belgrade region, excluding investments in guesthouses and apartment hotels.
Application and Project Realization Deadlines:
- Applications for subsidies must be submitted before the start of the investment project, no later than December 31, 2024.
- The deadline for realizing the investment project is two years from the date of the subsidy application, with the possibility of extension until December 31, 2026. Exceptionally, the deadline for determining the hotel’s category can be extended until February 28, 2027.
Investor Obligations:
- Investors are required to provide at least 25% of eligible costs from their own funds or from sources that do not include state aid.
- The direct investment must be maintained at the same location in the local government unit for at least five years after the investment project realization, with the obligation to maintain the hotel categorization.
This regulation offers investors the opportunity to contribute to the enhancement of Belgrade’s hotel offerings in preparation for EXPO 2027. Through targeted investments in new hotel construction or modernization of existing capacities, Belgrade will be ready to host participants and visitors of this significant international event, which is estimated to attract at least 2.6 million people.