The City of Pančevo is located in South Vojvodina, at the confluence of the Tamiš and the Danube rivers, at the very edge of the Panonian Plain. It is the economic, cultural and administrative centre of South Banat and one of the most important industrial centres in the Republic of Serbia. Including its 9 surrounding villages, the city area covers 755 km2. Pančevo is just 15 km away from Belgrade and 40 km away form the Nikola Tesla International Airport. Its ethnically diverse population numbers 128,447 of which majority are Serb. 67% of them are working-age population and 10% are with college or university education which is well over the Republic average.The climate is exceptionally agreeable with the annual average of 12ºC.
Reasons to invest in Pančevo:
Good geographic position and transportation network;
Many locations with minimum infrastructure;
Qualified, experienced and cheap labour;
Stimulating tax facilities;
Fast and efficient administration;
Organized support to investors;
Free trade regime with Russia and the countries of the South-East Europe.
Exceptional strategic position and good infrastructure
Since the pan-European Corridors 7 and 10 run through this region, the city of Pančevo has an excellent strategic position. It has good road and railway connections with Belgrade being on the regional route E70 (Belgrade-Pančevo-Vršac-Romania).
Also, situated at the confluence of the Tamiš and the Danube rivers (on the Danube transversal of Corridor 7), LUKA DUNAV - the main port of Pančevo, adds to the attractiveness of the city in terms of business locations. The Port of Pančevo on the Danube is the most upstream port for river and seal vessels of maximum 5,000t load capacity, that can take in ships at any water level. The city infrastructure is very good, with 150km length of local roads and about 300 telephone lines per 1000 inhabitants.
Good business tradition
The town of Pančevo was first mentioned more than 850 years ago. Many of our business institutions have a very long tradition. Our first artisan guild was founded 215 years ago. The most renowned governor of the National Bank of Serbia was Djordje Weifert from Pančevo, and the oldest Balkan brewery was founded here back in 1722. Many industrial plants have a long continuous history like the Oil Refinery, Nitrogen Plant, Petrochemical Industry, Aircraft factory, Glassworks, textile and furniture industries which date back to the first half of 20th century. Ever since 1905 Pančevo has been a town of various fairs. It also has the oldest aerodrome in the Balkans.
Strong economic potential
The most important economic branches in our city are crude oil processing, production of plastic masses (HIP Petrochemical Complex), fertilizers (Nitrogen Plant), textile and fashion industry and agriculture.
The city of Pančevo makes one third of the gross national income as well as export of the Province of Vojvodina. Its budget is one of the biggest ones in Serbia. Pančevo is the biggest petrochemical centre in the Balkans (Oil Refinery, Petrochemical Complex), also known for its metal processing industry (“Utva” – Aircraft Factory, Large Vehicle Factory), structural carpentry (“Tehnomarket”; a private company for the production of aluminium profiles – Extrusion, CLUSTER), light textile and leather processing industry (more successful private companies: The Passage Group, Modus, Aries) and a CAD CAM technology centre. 99% of all businesses in Pančevo are SMEs. There are about 5,000 stores and 2,000 companies (60% of which private). We dispose of 60,000 hectares of arable land (“Stari Tamiš” is one of the best farming conglomerates in Serbia – currently under privatisation procedures). Tourism is one of our untapped potentials – the town currently lacks tourist accommodation capacities and needs further investments into the fishing and hunting grounds, development of nautical tourism, upgrading of existing and development of new business, cultural and sporting events including traditional agricultural fairs, carnival etc.
Technically educated labour is a great Pančevo potential, too.
Direct foreign investments
A new package of economic reforms as well as border with EU have established a favourable environment for growing interest of potential investors: 75% of companies have been privatized. The most significant foreign investors in Pančevo are Beer Brewery Efes – Weifert, Vojvodinaput AD (Vojvodina Roads), Messer – Technogas, HIP Nitrogen Plant – ARVI, AUSTRUBAU – “Konstruktor” and “Utva Fluid”.
- Brownfield investment possibilities
- New locations for Greenfield investments
- Organizing business clusters
- Construction of a new bridge (ring-road around Belgrade) Pančevo-Starčevo-Beograd
- Strategic oil and gas pipelines (Konstanca-Pančevo)
All locations are city development locations, mostly vacant lots.
Existing infrastructure: water supply, sewage system, HV&LV power networks, TT network, in most locations also the gas network and access to local and regional routes.
1. Mali rit – 142,000 m2
2. The Port of Danube – Luka Dunav Mali rit – 370,000 m2
3. Sports Centre Strelište – 54 a
4. Strelište – The Green Market Complex – 1 ha
5. Gas Station – Hipodrom – 4 ha
6. Kotež 1, Fabeg – 7,000 m2
7. Kotež 2, Sports Centre – 6 ha
8. Community Centre Gornji grad – 7.7 ha
9. Community Centre Centar – 0.5 ha
10. Kudeljarski nasip KC-10 – 4.6 ha
- The lowest profit tax rate for businesses in Europe – 10%
- The lowest personal income tax – 12%
- The lowest VAT rate – 18%
- 10 years of tax-free operation for major investments
- Faster depreciation
- Imported production equipment is duty free
- Free trade regime with Russia and countries of the South East Europe
- Incentives for production businesses (the compensation for fitting the business location with infrastructure is reduced in proportion to the planned number of new employees)
- Property tax – 0.2%
- Local communal tax for company display in business area
in the year of registration- free
for medium-sized businesses - 30% reduction
for small-sized businesses - 80% reduction
- Eco tax – 0.1-0.2% for small and medium size businesses is reduced for 50%
- Land development fee- reduced for advance payment