Bringing Your Business to Serbia: Customs, VAT, and the Strategic Advantage of Relocating Your Operations
TL;DR: Serbia is becoming a magnet for global entrepreneurs seeking lower taxes, strategic location, and operational freedom outside the EU. While customs duties, VAT, and import documentation require careful handling, the benefits — 15% corporate tax, strong trade access, and full ownership rights — far outweigh the setup costs. Plan ahead, hire a local customs broker, and structure your move through a Serbian entity to reclaim VAT and streamline your transition.
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Across Europe and beyond, a quiet shift is taking place. More companies are shuttering their costly operations elsewhere and opening headquarters in Serbia — a country that offers sovereignty from EU bureaucracy, competitive tax rates, and a rapidly growing business environment.
For founders and investors, Serbia’s position is unique: outside the European Union yet deeply integrated through bilateral trade agreements, it provides both freedom and access. This balance makes Serbia a magnet for businesses seeking lower taxes, more flexibility, and a launchpad into both Eastern and Western markets.
But moving your business — and your assets — here involves more than just strategy. It requires understanding Serbia’s customs landscape, import duties, VAT system, and regulatory expectations.
Serbia’s sovereignty is one of its biggest strengths. By remaining outside the EU, it avoids many of the costly compliance frameworks and rigid labor structures that weigh down neighboring countries. At the same time, it maintains bilateral trade agreements with the EU, EFTA, CEFTA, Russia, Turkey, China, and dozens of other markets.
This hybrid position means that while Serbia enjoys global access, companies importing goods must navigate its independent customs and tax systems. The key advantage is freedom — the trade-off is planning.
When relocating corporate assets — whether servers, manufacturing equipment, or office inventory — the first step is classification. Serbia’s import duties are determined by the Harmonized System (HS) code, which categorizes goods based on their nature and origin.
Duties and Taxes
Most import duties range between 0% and 15%, depending on the product type. Duties are calculated using the declared customs value, which includes:
The origin country of the goods
The invoiced price
Freight and insurance costs
This declared value is essential; under-declaration or missing documentation can delay clearance or trigger audits. While customs brokers can estimate your total import costs, the final assessment always rests with Serbian customs officials.
Real-World Example
A recent corporate relocation managed by Relocation Serbia involved a German technology firm transferring one hundred servers to Belgrade. With a customs value of €1 million and a 2% duty rate, they paid €20,000 in duties and €200,000 in refundable VAT. Within six months, the tax savings from Serbia’s 15% corporate rate had already offset their relocation costs.
Serbia applies a standard VAT rate of 20%, though it can drop to 10% or even 0% under specific conditions — particularly for goods produced within Europe with valid certificates of origin.
How VAT Is Calculated
VAT applies not only to the cost of goods but also to:
Freight
Insurance
Customs duties
For example, importing equipment valued at €100,000 with a 2% duty rate would trigger approximately €20,400 in VAT. However, registered VAT payers can reclaim this amount, effectively turning VAT into a temporary cost rather than a permanent expense.
Certain categories require licenses or special permits before import:
Dual-use goods (technology, encryption, defense)
Medical and telecom equipment
Radio devices and chemicals
Companies entering specialized industries should plan for additional documentation and potential pre-approval periods. Missing these permits is one of the most common causes of customs delays.
To prevent setbacks at the border, ensure your shipment includes:
Commercial invoice
Packing list
Bill of lading or airway bill
Certificate of origin
Import license (if applicable)
Declaration of conformity
Incomplete or mismatched paperwork can result in confiscation, storage fees, or inspection delays. Partnering with a local customs broker early is not optional — it’s essential for speed and compliance.
Certain goods, particularly food and agricultural products, may face seasonal tariffs or quotas. Many investors in agribusiness opt to purchase new equipment locally rather than import it, using Serbian business write-offs to offset the expense.
This approach reduces paperwork and simplifies long-term tax reporting while supporting the domestic supply chain.
The decision to ship existing assets or purchase new ones in Serbia depends on three factors:
Depreciation vs. Replacement Value – Equipment near the end of its lifecycle may not justify the import cost.
VAT Recovery Timeline – If you are VAT-registered, importing can be cash-neutral after refund, but timing is key.
Operational Downtime – Customs processing and logistics can take weeks. Sometimes, buying new locally accelerates launch.
Serbia’s growing manufacturing base means local sourcing is often more cost-effective than shipping and clearing older equipment from abroad.
Even seasoned investors face bottlenecks when:
HS codes or declared values are incorrect
Certificates of origin are missing or inconsistent
Import licenses are mismatched or incomplete
Customs inspection backlogs occur (a growing trend as Serbia’s imports rise)
Undeclared items are discovered in mixed shipments
The antidote is early preparation and transparent documentation. Serbian customs are efficient but meticulous.
Beyond logistics, the reason so many entrepreneurs choose Serbia is simple: a 15% corporate tax rate, competitive personal tax structure, and access to double-taxation treaties with over 60 countries.
In contrast to Western Europe’s 30–40% rates, Serbia’s environment rewards reinvestment and expansion. The ability to own property, operate independently, and hire locally without EU red tape further strengthens its appeal.
For global founders and digital entrepreneurs, Serbia offers the freedom to operate, lower overhead, and full legal ownership — all within a growing European market.
Relocating your business to Serbia isn’t just about moving goods — it’s about designing your next decade. To make the transition seamless:
Engage a licensed customs broker at least 60 days before shipment.
Ensure all commercial documents are translated and notarized.
Plan for temporary VAT outlay (reclaimable later).
Choose between importing vs. sourcing locally early.
Register your Serbian entity (DOO) before shipping to enable VAT reclaim.
With the right planning, the process becomes predictable, cost-effective, and legally sound.
Choosing Serbia as your corporate base is more than a tax decision — it’s a statement of independence. While EU economies tighten under complex regulation, Serbia continues to attract visionaries who value control, efficiency, and opportunity.
Understanding the customs process, duties, and VAT structure allows you to move confidently — turning potential obstacles into advantages.
Relocation Serbia has helped countless entrepreneurs and corporate clients relocate operations, manage imports, and secure compliance with Serbian authorities.
If you’re considering moving your business or investing in Serbia, book a paid consultation today. We’ll help you calculate your import costs, navigate customs, and structure your transition for success.