Foreign companies need to be aware of endemic corruption and conflict of interest within Serbia’s state institutions. Government procurement and privatisation are especially vulnerable to fraud and embezzlement. The European Commission assesses the implementation of the anti-corruption legislation as being deficient pointing out ineffective anti-corruption institutions.

Serbia offers a liberal and investor friendly business environment. However, foreign companies are challenged by burdensome and corruption-prone process of obtaining permits and licenses. Serbia has introduced a number of changes to its anti-corruption legislation to bring it in line with the EU standards. The Criminal Code has been amended to include abuse of office in the sector of public procurement as a new corruption offence. The Law on Prevention of Conflict of Interest regulates the acceptance of gifts and hospitality and allows officials accept gifts with a value not exceeding half of the average monthly salary in Serbia. The Law on Public Procurement was adopted in 2013 addressing lack of transparency and kickbacks in public procurement. Nevertheless, Serbia’s regulatory efficiency is weak and bribery of public officials is common practice among companies. According to Business, Corruption and Crime in Serbia 2013, the prevalence of bribery by businesses in Serbia significantly exceeds the regional average.

Public trust in key institutions remains low and Serbian public officials are believed to be corrupt by the majority of the population. Despite challenges, the government has showed an effort to fight official corruption by an increasing number of prosecutions and investigations of high-level corruption cases.  

Detailed descriptions of the level of corruption in a number of sectors of the Serbian economy are outlined in the profile’s Corruption Levels. For a more detailed analysis of the Serbian government's anti-corruption activities, visit Public Anti-Corruption Initiatives. Private Anti-Corruption Initiatives provide information on the country’s media environment and on civil society’s anti-corruption efforts.