How Foreign Contractors Can Successfully Launch a Construction Business in Serbia

Serbia is experiencing one of the fastest construction booms in the Balkans. From large-scale residential developments and new commercial complexes to energy infrastructure and preparations for EXPO 2027, demand for skilled labor and reliable construction firms has never been higher. Yet despite a rapidly expanding market, companies across Serbia face a persistent challenge: there simply are not enough qualified workers to meet the demand.

This shortage has created a rare window of opportunity for foreign construction professionals, contractors, tradespeople, and business owners who want to enter a high-growth market with significantly fewer barriers than those found in Western countries. For many, Serbia offers the chance to launch a construction business, begin bidding on projects quickly, and scale faster than they could in Canada, the United States, the UK, or Western Europe.

This guide explains the factors behind Serbia’s construction labor gap, the opportunities available to foreign contractors, and the exact pathway for setting up a compliant construction business in Serbia.

Infrastructure Expansion and EXPO 2027

Belgrade and Novi Sad are experiencing unprecedented investment in housing, commercial buildings, hotels, and transportation networks. EXPO 2027 alone is driving thousands of new construction tenders, engineering projects, and urban redevelopment initiatives.

Large-Scale Foreign Investment

Serbia continues to attract:

• Global tech companies

• Manufacturing plants

• Logistics centers

• Renewable energy projects

• Data centers

All of these sectors require qualified construction firms, subcontractors, electricians, plumbers, and craftsmen.

Housing Demand from Returning Diaspora & Expats

With lower taxes, lower cost of living, and strong quality-of-life appeal, Serbia is seeing a significant rise in foreign residents and returning Serbian citizens. These individuals are buying and renovating homes — further driving demand for skilled labor.

Despite the construction boom, Serbia faces an estimated 30,000-worker gap across trades such as:

• Electrical work

• Plumbing

• Carpentry

• Tile installation

• Painting

• Mechanical trades

• Masonry

• Renovation and finishing work

Even basic repairs can take weeks to schedule, and clients often report inconsistent quality, long delays, and difficulty finding reliable professionals. Many reputable craftsmen are booked months in advance and rarely accept small jobs.

This shortage is not temporary. It is structural — driven by demographic decline, migration to Western Europe, and an aging workforce.

For foreign tradespeople and construction business owners, this means one thing:

The Serbian market needs you — immediately.

1. Easier Access to Large Contracts Compared to Western Countries

Foreign contractors arriving from markets like Canada or the UK often comment on the difference:

• Less red tape

• Faster approvals

• More direct access to developers

• Opportunities to bid earlier

• Faster reputation growth

Serbia’s market rewards speed, reliability, and quality. When companies deliver on time and communicate clearly, doors open quickly.

2. Lower Operating Costs

A foreign-owned construction company in Serbia can benefit from:

• Lower payroll costs

• Lower corporate taxes

• More affordable equipment

• Competitive material pricing

• Lower overhead

This structure allows foreign firms to scale faster and maintain healthier profit margins.

3. Ability to Hire Quickly and Fill Market Gaps

Foreign companies often bring:

• Better training

• Stronger work discipline

• More organized project management

• International experience

Developers and project leads value these attributes — and they often provide foreign firms with consistent, ongoing work.

The DOO (Serbian Limited Liability Company) is the preferred structure because:

• It protects the owner from personal liability

• Only one shareholder is required

• It can be 100% foreign-owned

• It enables hiring employees

• It qualifies you for construction industry authorizations

This structure also allows the company to immediately begin bidding on contracts once properly registered.

A DOO requires:

• A corporate bank account

• A minimum capital contribution of 100 RSD (less than 1 EUR)

• A registered business address (virtual office or physical office is allowed)

Foreigners can open the company remotely or in person.

Depending on the activities you intend to perform, your company may need:

• Construction activity codes

• Engineering supervision licenses

• Safety compliance

• Environmental compliance

• Authorized responsible persons (“odgovorno lice”)

Relocation Serbia assists with all of this, ensuring your company is registered correctly from day one.

Hiring in Serbia requires:

• Proper employment contracts

• Mandatory social contributions

• Accurate payroll reporting

• HR compliance

• Registration with Serbian authorities

Many foreign firms outsource payroll and HR to ensure compliance while keeping internal operations focused on growth.

Once registered, your company can quickly gain access to:

• Residential development tenders

• Commercial renovation projects

• Electrical and plumbing jobs

• Government projects

• Subcontracting opportunities

• Large foreign-investor projects

• Energy and industrial plants

Relocation Serbia’s network includes developers, construction leads, project managers, investors, and foreign companies entering Serbia — giving our client companies a direct path to securing work.

1. AI-Proof Industry

While many white-collar professions face automation, construction and skilled trades remain hands-on and indispensable. Global labor shortages in these fields are projected to grow through 2035.

2. Rapidly Growing Expat Market

More foreigners relocating to Serbia means more renovations, custom builds, and new construction.

3. Serbia’s Push Toward Modernization

Billions are being invested to modernize:

• Roads and bridges

• Public buildings

• Energy grids

• Green energy installations

• Industrial zones

• Residential neighborhoods

4. High Trust for Foreign Tradespeople

Many homeowners and developers actively seek out:

• Canadians

• Americans

• Germans

• Austrians

• Romanians

• Mexicans

• British tradespeople

Because of strong reputation for reliability and quality.

Relocation Serbia provides a beginning-to-end solution designed specifically for foreign construction businesses:

Business Formation

• DOO registration

• Company structure and tax planning

• Virtual office or physical office setup

Full Operational Support

• Payroll management

• HR compliance

• Accounting & CFO oversight

• Monthly financial reporting

• Contractor agreements and legal documents

Access to Work Opportunities

• Introductions to developers and project managers

• Guidance on how to enter the tender system

• Networking with construction-sector partners

• Market positioning for scaling quickly

Local Support

• Serbian-language assistance

• Translation for contracts and negotiations

• Support with equipment purchases

• Help with sourcing workers

Our goal is simple:
Your business in Serbia runs smoothly — even if you don’t speak the language.

Serbia’s construction sector is experiencing exceptional growth, creating a clear opportunity for foreign contractors, tradespeople, and construction business owners. With a severe workforce shortage, increasing demand for high-quality craftsmanship, and billions in upcoming projects, foreign companies can establish themselves quickly, secure consistent contracts, and grow a highly profitable operation.

Launching a construction business in Serbia is straightforward when you have the right support team managing compliance, HR, taxes, licensing, and connections. If you are ready to take advantage of this booming market, now is the time.