Cryptocurrency in Serbia: Taxation, Legal Framework, and What Expats Must Know Before Moving

As regulatory pressure increases across the European Union, many cryptocurrency holders are exploring alternative jurisdictions that offer legal clarity, reasonable taxation, and operational flexibility. Serbia has emerged as a serious contender.

At Relocation Serbia, we regularly assist crypto investors, traders, exchangers, and entrepreneurs who are considering moving to Serbia. Some have relocated permanently. Others have purchased real estate or vehicles using crypto-derived funds. Several operate crypto-related businesses while holding Serbian residency.

However, cryptocurrency taxation and compliance are never one-size-fits-all. Your tax exposure depends on:

• Where you currently reside

• Where you are tax resident

• Whether you trade personally or through a corporation

• How and when you convert crypto to fiat

• Whether you plan to apply for Serbian residency

This guide provides a structured overview of how cryptocurrency works in Serbia from both a legal and tax perspective.

Yes. Cryptocurrency is fully legal in Serbia.

Serbia regulates digital assets under its Law on Digital Assets, which recognizes cryptocurrencies and digital tokens as legally defined assets. They are not treated as legal tender but as property or intangible assets.

This distinction matters significantly for taxation and reporting purposes.

Personal Capital Gains Tax on Cryptocurrency

For individuals, cryptocurrency is subject to capital gains tax when disposed of.

A taxable event generally occurs when:

• Crypto is sold for fiat currency

• Crypto is converted into another asset

• Crypto is commercially used

The standard capital gains tax rate is 15% on the difference between the purchase price and the sale price.

If you purchased Bitcoin at €20,000 and sold at €40,000, you are taxed at 15% on the €20,000 gain.

Important clarifications:

• There is no tax on unrealized gains

• There is no annual wealth tax on crypto holdings

• Holding crypto alone does not create a tax liability

• Taxation occurs when conversion or disposal happens

Crypto-to-Crypto Transactions

Technically, exchanging one cryptocurrency for another may be considered a taxable disposal event. This means that trading Bitcoin for Ethereum could trigger capital gains tax based on the difference between acquisition value and disposal value.

Enforcement depends heavily on documentation, reporting, and exchange transparency. Proper accounting and compliance are critical.

Serbia taxes individuals based on residency, not citizenship.

If you spend more than 183 days in Serbia within a 12-month period, you are generally considered a Serbian tax resident.

This has major implications.

For example:

• A U.S. citizen trading in the United States may still owe U.S. taxes under global taxation rules.

• If that same individual becomes a Serbian tax resident, Serbian tax may also apply.

In some cases, this can create double taxation exposure depending on treaty provisions.

For EU citizens, the situation is often different. Many are relocating due to heavy regulatory frameworks under EU digital asset rules and increasing reporting burdens. Serbia is not bound by EU crypto frameworks and offers more structural flexibility.

However, residency planning must be done strategically.

If you operate through a Serbian company (DOO), crypto held on the balance sheet is classified as an intangible asset.

Corporate profit tax in Serbia is 15%.

If crypto is held by the company and later converted into fiat, any realized gain becomes part of corporate taxable profit.

It is important to note:

• Companies cannot freely transact domestically in crypto as payment for goods and services.

• In most practical situations, crypto must be converted into fiat before use in traditional transactions.

• Proper valuation and accounting standards apply.

For entrepreneurs looking to establish crypto-related operations in Serbia—such as exchanges, brokerages, custody services, or token issuance projects—licensing under the digital asset framework is required.

Operating without licensing is not recommended.

We have worked with clients who have effectively used crypto to fund property purchases and other significant acquisitions.

However, in most scenarios:

• Crypto must be converted into fiat currency.

• The fiat funds are then used for the purchase.

• Capital gains tax may be triggered at the point of conversion.

Serbia does offer potential reinvestment relief in certain structured cases, particularly when gains are reinvested into Serbian real estate or business equity within defined timeframes.

Each case requires individual analysis.

Serbian banks are still evolving in their approach to crypto clients.

Some banks are open to working with crypto investors. Others remain conservative.

There are locally founded crypto exchanges operating in Serbia that allow conversion into fiat and transfers into Serbian bank accounts. This provides practical infrastructure for investors who want operational clarity.

Bank selection and compliance positioning matter significantly.

From our experience working with clients across Ireland, Sweden, Italy, and other EU jurisdictions, several motivations are common:

1. Regulatory Simplicity

Many EU residents report regulatory fatigue due to increasing compliance burdens.

2. Competitive Tax Environment

A 15% capital gains rate and no wealth tax on crypto holdings can be attractive compared to certain EU countries.

3. No Exit Tax Regime

Serbia does not impose an exit tax on unrealized gains upon arrival. Some EU countries impose significant exit taxes upon departure.

4. Geographic Proximity

Serbia offers short travel times to EU capitals while remaining outside EU regulatory frameworks.

5. Straightforward Residency Options

Serbian residency can be obtained through:

• Business formation

• Real estate purchase

• Employment

• Other structured legal pathways

Before relocating to Serbia with crypto, you must evaluate:

• Current tax residency

• Double taxation treaty coverage

• Source of funds documentation

• Exchange reporting transparency

• Corporate vs. personal trading structure

• Long-term residency plans

The biggest mistake investors make is assuming lower headline tax rates automatically result in lower total taxation.

In some cases, maintaining operations in the original jurisdiction may be more efficient.

In others, Serbian residency creates strategic advantages.

The only way to determine which applies to you is through structured analysis.

Serbia offers:

• Legal recognition of digital assets

• 15% capital gains tax

• No wealth tax on crypto holdings

• No exit tax regime

• Flexible residency pathways

• Strategic geographic location

However, cryptocurrency taxation is highly individualized.

Your optimal strategy depends on your current country of taxation, your trading structure, corporate exposure, and your long-term plans.

Relocation planning must align with both Serbian law and your originating jurisdiction.

If you are considering moving to Serbia with cryptocurrency, we strongly recommend booking a paid consultation with Relocation Serbia. We will analyze your case individually, structure your residency and business setup correctly, and ensure compliance while optimizing your position.

Your Move, Our Mission.