Key Points
- Serbia ended its incentive program for hiring newly settled individuals on June 17, 2025
- The termination was due to high application volumes and limited budgetary capacity
- Employers may still access tax relief under Serbia’s income tax law
Overview
As of June 17, 2025, Serbia officially ended its financial incentive program for employers hiring newly settled individuals, citing a surge in demand and the resulting strain on government resources. The decision comes amid a significant increase in eligible applicants, which has made it challenging for authorities to project and allocate funding for future employer reimbursements.
The program previously provided direct financial benefits to companies employing individuals who had recently relocated to Serbia. However, the rapid growth of the eligible population outpaced available budgetary support, prompting the government to scale back the initiative. This adjustment reflects a shift in policy priorities and fiscal management as Serbia continues to refine its approach to workforce integration and economic sustainability.
Although the direct incentive has been discontinued, employers still retain access to tax relief measures through existing legislation. Specifically, under the Law on Personal Income Tax, companies hiring newly settled taxpayers can benefit from a reduced salary tax base, offering some continued support for onboarding foreign talent.
This policy update is particularly relevant for HR managers and global mobility professionals navigating hiring strategies in Serbia. While the removal of the incentive may affect recruitment costs, available tax relief provisions may help offset the impact.
Looking Ahead
Employers should evaluate how the termination of the incentive program may influence their relocation and hiring strategies for newly settled individuals. While the tax relief under Serbia’s income tax law still provides a financial benefit, companies may need to adjust internal budgeting or explore alternative workforce development measures. Ongoing monitoring of employment and tax policies will be critical, as Serbia may introduce new economic or talent-attraction initiatives in response to labor market trends.
