Serbia’s legal and business environment in 2025 has faced a period of adjustment, with slower economic dynamics influenced by political uncertainty and reduced investment activity. Nevertheless, Wolf Theiss Partner Natasa Lalovic Maric notes that the market continues to show meaningful pockets of resilience, supported by selective transactional activity and steady legislative developments that signal a more stable and constructive outlook moving forward.
"Serbian economy in 2025 showed signs of slowdown," Lalovic Maric begins. Political instability following late-2024 events, including large-scale protests, has had a tangible economic impact. “Foreign direct investment is a crucial growth driver for Serbia, and that engine has slowed significantly,” she explains. "While net FDI reached approximately EUR 5.2 billion in 2024, inflows by mid-2025 were just under EUR 1 billion, implying a sharp year-on-year drop. This contraction has inevitably translated into lower overall deal activity."
Yet, several sectors have demonstrated strong resilience and clear potential, even against the backdrop of broader macroeconomic moderation. Lalovic Maric points to IT and fintech as clear standouts. “Serbia, and the wider region, remains very strong in software development and tech services,” she notes. "In 2025, roughly 19% of FDI was directed toward IT and fintech, underlining continued investor confidence in these areas. "Green energy is another space where activity remains steady, with ongoing investments aligned with Serbia’s broader energy-transition goals. " Serbia does not operate an FDI screening regime comparable to those in many EU states, which continues to facilitate investment from non-EU jurisdictions, including China," Lalovic Maric highlights as well.
Focusing on notable recent transactions, Lalovic Maric says that while deal volumes were lower, several significant deals still shaped the market. "There have been a number of high-profile exits, including United Group’s partial exit from the Serbian market. Another major deal was the sale of Imlek, Serbia’s largest dairy producer, by MidEuropa to a group of domestic investors. These were among the largest completed transactions of 2025,” she says. In addition, the ongoing sale of a significant stake in NIS, Serbia’s national oil and energy company, remains a focal point. "The transaction, involving MOL and potential investors from the UAE, is driven largely by sanctions-related pressures prompting Gazprom’s exit, though it has yet to close."
Shifting gears to focus on legislative developments, Lalovic Maric notes several areas that are relevant for corporate and transactional work. "Amendments to the Company Law affecting cross-border mergers are set for implementation in 2027. Once effective, they will finally enable cross‑border restructuring options that are essential for entities operating across multiple jurisdictions."
Another key area is beneficial ownership regulation. Serbia already had a UBO regime in place, but recent changes have tightened the rules significantly. “The determination and registration of ultimate beneficial owners is now more demanding, with a comprehensive set of supporting documents required,” Lalovic Maric says. The goal is to strengthen AML compliance and corporate transparency and improve the overall business environment. Furthermore, she notes that "amendments to takeover rules and changes to competition regulation have also been announced. At this stage, the direction and scope of those reforms remain uncertain.”
Ultimately, Lalovic Maric concludes: "Several key sectors continue to demonstrate resilience, significant transactions are still progressing, and ongoing efforts toward legislative alignment are reinforcing overall market predictability. Early signs from the beginning of 2026 also indicate a renewed uptick in investor interest and a gradual strengthening of confidence, suggesting that the market is recalibrating and preparing for a more balanced period of growth."
