In recent years, the Balkans have developed into one of the most attractive nearshoring locations in Europe. Countries such as Serbia, Croatia and Montenegro are becoming increasingly popular as companies across the continent look for cost savings, agile teams and world-class talent.

In contrast to conventional offshore sites, the Balkans provide skilled professionals, cultural compatibility, and geographic proximity, which makes them perfect for tech operations, remote teams, and regional expansion.It's obvious why companies are looking east to manage their growth while reducing risk when you combine this with the growth of Employer of Record (EoR) services.

Lured by cost savings, highly skilled talent and strategic advantages, European companies are increasingly relocating their offices and remote teams to the Balkans. This article examines the reasons for the increasing popularity of Balkans as nearshoring locations and shows how employing an Employer of Record (EoR) reduces the risks of entering these markets.

Why are Companies Choosing The Balkans ?

Below you will find some of the most important factors that motivate international companies to decide in favour of the Balkans.

1: Cost Effectiveness

The Balkans are among the most favourable nearshoring locations on the continent, offering European companies an unrivalled mix of cost efficiency and world-class talent. Companies can drastically reduce their operating costs without sacrificing expertise, as skilled IT, customer service and finance professionals earn up to 50 per cent less than in Western Europe.

2: Growing Tech & Outsourcing Infrastructure

Government incentives, EU-aligned regulations and an increase in skilled labour have contributed to the rapid growth of tech and outsourcing infrastructure in the Balkans. While Croatia's EU membership guarantees smooth compliance for companies, other countries such as Serbia have launched programmes like "Digital Serbia" to attract IT investments. Due to its low corporate taxes, Montenegro is quickly becoming a centre for teleworking and fintech. Major cities such as Belgrade, Zagreb and Podgorica are now home to booming tech parks, shared service centres and a talent factory for engineers and multilingual employees. 

Top-Tier Talent Pool in Balkans

The talent pool in the Balkans is comparable to that of some of the most advanced markets in Europe. Countries such as Serbia, Croatia and Montenegro are constantly producing highly skilled labour, especially in industries such as software development, engineering, finance, digital marketing and customer service.

3: Strategic Location 

In contrast to outsourcing to Asia or Latin America, real-time collaboration is possible in the Balkans, as they are in the same or a +1 hour time zone as most of Europe. There are also good transport connections to EU hubs in large cities such as Belgrade, Zagreb and Podgorica.

4: Cultural Compatibility

Communication barriers are reduced by the fact that many experts from the Balkans are fluent in German, English and other European languages. In addition, the efficiency of teamwork is increased by cultural similarities with Western Europe.

How Partnering with an EOR in the Balkans can Help ?

One of the most efficient ways to gain access to labour in the Balkans is to use an Employer of Record (EoR), a third-party organisation responsible for hiring, managing and paying workers on your behalf.

Instead of setting up a legal entity in Balkans, working with an EoR will help you manage all the administrative tasks such as.

• Drafting Employment Contracts
• Payroll & Tax compliance
• Benefits & HR management
• Onboarding & legal risk

Why is EOR a preferable choice in the Balkans ?

• No Need for Local Entity
• Speedy Hiring without HR headaches
• Reduced legal and tax risks
• Focus on operations, not admin

This approach is perfect for agile recruitment, expanding remote teams or testing new markets while fully complying with local labour regulations.

Final Thoughts

The Balkan countries represent a strong alternative to traditional outsourcing locations due to their cost savings, highly skilled labour force and geographical advantages. By working with an EoR such as Swapp Agency, companies can access this potential without the burden of direct hiring.

Is your company a good candidate for nearshoring in the Balkans? The answer seems to be yes, if you look at the data and the increasing foreign investment.