Is Serbia's Economy Growing? Why Expats and Investors Are Paying Attention in 2025

The European Commission’s Spring 2025 Economic Forecast confirms what many on the ground already sense: Serbia is growing, even amid political tension and foreign skepticism.

Despite recent protests and U.S. sanctions targeting Serbian-Russian energy ties, the European Commission attributes Serbia’s resilience to:

• 
  

  Domestic demand and private consumption

  
  


• 
  

  A strong labor market, especially in IT and manufacturing

  
  


• 
  

  Rising foreign direct investment (FDI)

  
  


• 
  

  Ongoing public and private infrastructure development
  
  

  
  

In real terms? Factories are being built. Real estate is booming. People are still spending.

“Even during the student protests and brief road blockades, daily life in Serbia continued like normal. The idea that the economy has frozen is simply not true.”

Yes—but only marginally.

According to the EU report, foreign investor confidence has dipped slightly due to:

• 
  

  Political instability

  
  


• 
  

  Blockades in early 2025

  
  


• 
  

  Sanctions risk against companies like NIS, Serbia’s state-linked petroleum firm
  
  

  
  

However, the data also shows:

• 
  

  FDI remains strong

  
  


• 
  

  New construction and factories continue

  
  


• 
  

  Real estate demand is rising, not falling
  
  

  
  

“I personally know professionals working at NIS. Reserves are full. Even if sanctions happen, the company is prepared to weather 6–12 months without issue.”

Why Now Is a Smart Entry Point:

1. 
   

   Real estate in Belgrade and Novi Sad is still more affordable than most EU cities

   
   


2. 
   

   Village properties and outskirts remain cheap for early investors

   
   


3. 
   

   New infrastructure is being built in anticipation of the 2027 Expo, which is expected to bring 4 million+ visitors

   
   


4. 
   

   Early movers get higher ROI before investor confidence fully rebounds
   
   

   
   

“If you can look past temporary political noise, you’ll get in before the next wave of foreign capital floods in.”

Serbia remains an excellent country to:

• 
  

  Set up a limited liability company (DOO) with 15% corporate tax

  
  


• 
  

  Open a freelancer sole proprietorship with flat-rate tax under €300/month

  
  


• 
  

  Tap into skilled labor markets in IT, construction, and manufacturing

  
  


• 
  

  Serve EU and global clients with low overhead
  
  

  
  

Bonus: Non-EU entrepreneurs can get temporary residence permits by setting up a company or proving foreign income.

While Serbia is officially a candidate country, many locals—and foreign investors—are skeptical of the benefits of full EU membership.

“Joining the EU now would be like arriving at a party at 3 a.m.—the music’s bad, the food’s gone, and everyone’s left.”

Historically, new EU members like Croatia and Bulgaria faced rising costs, stagnant wages, and fewer entrepreneurial incentives post-accession. Serbia, on the other hand, currently benefits from EU funds without full regulation—a sweet spot.

In terms of scale, infrastructure, and foreign interest, Serbia leads the Balkans. It has:

• 
  

  The most diversified economy in the region

  
  


• 
  

  The largest population and labor market

  
  


• 
  

  Consistent investment from Germany, China, UAE, and the U.S.

  
  


• 
  

  Key logistics and transport hubs connecting Europe and Asia
  
  

  
  

“Whether or not Serbia joins the EU, it's already playing a major role in European trade and energy.”

The upcoming EXPO 2027 in Belgrade is expected to:

• 
  

  Draw 4 million+ global visitors

  
  


• 
  

  Accelerate hotel and tourism infrastructure

  
  


• 
  

  Trigger real estate spikes and international interest
  
  

  
  

This event could position Serbia as a regional tech, tourism, and trade hub.

If you’re frustrated with stagnant economies, rising taxes, and political dysfunction in the West, Serbia offers a compelling alternative:

• 
  

  Strong GDP growth

  
  


• 
  

  Affordable entry points in real estate and business

  
  


• 
  

  A skilled labor force

  
  


• 
  

  Rising demand and international relevance
  
  

  
  

👉 Don’t wait until the party’s full. Serbia’s economic table is still being set—and there’s room for bold movers.