Dr Milan Parivodi ć
Managing Partner, WOLF THEISS Serbia
Advisor to Prime Minister of Serbia
Vienna, November 5th, 2007

Central location in the Balkans
 Crossroads of 2 Pan-European transportation axes:
VII (Danube) and X (high-ways)
 Vicinity of other
European capitals
(1-2 hours by plane)
 Vicinity of regional capitals
Sheet 2 | 5.11.2007

Free Trade – Export from Serbia customs free!
 Serbia is in the middle of the CEFTA Area – access to market of
25 million customers
 Customs free exports Russian Federation – access to market of 135 million customers
 C ustoms free exports to EU – access to market of
470 million people
 Customs free access to 630 million customers !
Sheet 3 | 5.11.2007

RAPID ECONOMIC GROWTH OF SERBIA
 Average GDP growth 7% (2005-2007)
 FDI in Serbia US $ 5,5 billion in 2006 (from 1,5 bil. in 2005)
 GDP per capita US$ 5600 (from US$ 800 in 2000)
 Credit rating BB(Fitch Ratings; Standard & Poor’s)
 F oreign currency reserves US $ 14 billion in 2007 from $524 million in December 2000
 Competitive banking market – above 40 banks operating
Sheet 4 | 5.11.2007

Valuable Human Capital
Number of graduated students from universities in Serbia
1998
1999
2000
2001
2005
2,880
2,692
2,699
2,678
3,121
Source: Republic Statistical Office
Sheet 5 | 5.11.2007
9,982
11,228
11,968
11,879
14,099 students from technical faculties

Favourable Tax Regime
Corporate Profit Tax Rate
Serbia 10%
Among the Lowest Corporate
Profit Tax rates in Europe !!!
Personal Income Tax Rates
Serbia 12%
Sheet 6 | 5.11.2007

Investment Incentives in Serbia
 Large investment projects: 7 mill € and 100 new employments cumulatively
10 year tax holiday!
 Tax relief up to 2 years for hiring new employees
 Tax credit up to 80% of investment amount for investing in fixed assets
 Import of equipment as investment is free from custom duties, VAT is charged
Sheet 7 | 5.11.2007

Improved Economic Legal Framework
Specific legislation enacted outlining guarantees and safeguards for foreign investors
Foreign Investment Law Foreign Trade Law
Company Laws
Bankruptcy Law
Sheet 8 | 5.11.2007
Law on Arbitration
Law on Execution Procedure
Mortgage Law
Law on Special Authorities for
Protection of Intellectual Property

Improved Economic Legal Framework
Serbia has enacted specific legislation outlining guarantees and safeguards for foreign investors
Foreign Investment Law
 Extends national treatment to foreign investors
 Permits free and unlimited transfer/repatriation of profits and dividends
 Provides guarantees against expropriation
 Duty free import of equipment for foreign investor
Sheet 9 | 5.11.2007

Improved Economic Legal Framework
New Foreign Trade legislation is fully in line with WTO requirements and EU acquis
Foreign Trade Law
 Fully affirms freedom of foreign trade:
- Cross-border trade and international trade are defined and liberal
- Outward direct investment and construction abroad are defined and liberal
 Introduces antidumping, counter veiling and safeguard measures under WTO rules and EU acquis
Sheet 10 | 5.11.2007

Improved Economic Legal Framework
Company Laws
 New Law on Registration of Companies establishes an independent
Companies Registry
 Incorporation of companies and branches within 10 days
 Companies Act drafted after OECD model improves:
- Overall corporate governance
- Protection of minority shareholders
- Simplifies procedures for increase of share capital
 Forms of corporate presence: Joint stock companies, Limited Liability
Companies, Limited Partnerships, Partnerships, Foreign and
Domestic branches, Representation offices
Sheet 11 | 5.11.2007

Improved Economic Legal Framework
Law on Execution Procedure
 Speeds up execution procedure
 Introduces summary collection procedure (app. 40 days)
 Efficient Central Bank mechanism for collection of debts
 Quick injunctions are rendered by courts
 Principle aim is to enhance financial discipline
Sheet 12 | 5.11.2007

Improved Economic Legal Framework
Mortgage Law
 Possibility to register mortgage on non-registered buildings
 Possibility to register mortgage on building site
 Creditor sells assets in an efficient non-judicial procedure
Sheet 13 | 5.11.2007

Improved Economic Legal Framework
Law on Arbitration
 Fully in line with UNCITRAL MODEL LAW
 Regulates international and inaugurates domestic arbitrations
 Arbitral award final and binding without court approval
 Court review of arbitration award is very restricted
Sheet 14 | 5.11.2007

Improved Economic Legal Framework
Law on Special Authorities for
Protection of Intellectual Property
 Inspections are obliged, without any prior procedure, at the spot to seize infringing goods, based on personal professional judgment
 Enforces copyright, trademarks, designs, software, architectural plans, patents
Sheet 15 | 5.11.2007

Improved Legal Framework
The EBRD 2005 and 2006:
Serbia fastest reformer among 27 countries in transition!
Sheet 16 | 5.11.2007
World Bank 2005:
Serbia 1 st in speed of reforms out of 155 countries!
World Bank 2006:
Serbia 2st in speed of reforms out of 175 countries!
US Trade Department awarded Serbia
“Market of the Month” title in January 2006!

Major Foreign Investors in the Past Five Years
COMPANY
Telenor – Mobi 63
FCC/Alpine/Porr
Philip Morris
– DIN
STADA
Nordzucker AG
InBev – Apatinska pivara
Lukoil – Beopetrol
Intesa – Delta Banka
Holcim
– Novi Popovac
Alpha
– Jubanka
US Steel – SARTID
Metro Cash&Carry
OMV
USA
Germany
Germany
Belgium
Russia
Italy
Switzerland
Greece
USA
Germany
Austria
COUNTRY OF
ORIGIN
Norway
Spain, Austria
SECTOR
Telecommunications
Highways construction
Tobacco
Pharmaceuticals
Sugar
Beer
Oil
Banking
Cement
Banking
Steel
Wholesale
Oil
TYPE OF
INVESTMENT
Privatization
Concession
Privatization
Acquisition
Acquisition
Acquisition
Privatization
Brownfield
Privatization
Brownfield
Brownfield
Greenfield
Greenfield app. INVESTMENT
AMOUNT (MIL EUR)
1,513
1,300
518
500
430
400
333
185
168
150
150
150
Sheet 17 | 5.11.2007

Key Investment Opportunities in 2008
Methods
Greenfield
Brownfield
Concessions
Privatization
NIS (Oil Industry of Serbia)
Electric power generation
JAT (national air carrier)
Major hotels privatisations
Construction of highways
Fixed telephony
Insurance
Remaining industrial companies in state ownership
Sheet 18 | 5.11.2007

Major law reform in 2008
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 Law on Restitution and City Construction Land
 Law on Urban Planning and Construction
Sheet 19 | 5.11.2007

Sheet 20 | 5.11.2007
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Our geographical presence 10 offices
250 lawyers
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Austria
Albania
Bosnia and Hercegovina
Croatia
Czech Republic
Hungary
Romania
Serbia
Slovak Republic
Slovenia
Sheet 21 | 5.11.2007

Statements about Wolf Theiss
“Austrian Tax Law Firm of the Year 2007”
“Austrian Tax Law Firm of the Year 2006”
“ Austrian Law Firm of the Year 2007”
“Czech Law Firm of the Year 2007”
Wolf Theiss has recently won the Chambers Award for
“Eastern European Law Firm of the Year 2006”
Sheet 22 | 5.11.2007

Sheet 23 | 5.11.2007
SYNERGY: Regional Practice Groups
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Banking / Finance
Corporate / M&A
Real Estate
Litigation / Dispute Resolution
Infrastructure
Tax
Employment Law
Intellectual Property
Competition & Antitrust

OUR RECENT DEALS IN SERBIA
 Kohlberg Kravis Roberts & Co. Ltd.
 Stada Arzneimittel AG
 EBRD
 Nordzucker AG value EUR 177 mil.
value EUR 500 mil.
value EUR 70 mil.
 UniCredit Markets & Investment Banking value EUR 85 mil.
 Porr Solutions value EUR 1200 mil.
Sheet 24 | 5.11.2007

Sheet 25 | 5.11.2007
Vienna contact
WOLF THEISS
Schubertring 6
A 1010 Vienna
Tel. +43 1 51510
Fax +43 1 51510 25 contact@wolftheiss.com
www.wolftheiss.com

Invest safely
 Belgrade Contact
WOLF THEISS
Attorneys at Law
Dr Milan Parivodi ć
Čika Ljubina 12
11 000 Beograd
SERBIA
Tel +381 11 330 29 00 milan.parivodic@wolftheiss.com
www.wolftheiss.com
Sheet 26 | 5.11.2007
Thank you!