Employer of Record (EOR) in Serbia: How Foreign Companies Can Hire Employees Without Establishing a Local Entity
TL;DR: Hiring in Serbia has never been easier. Through a licensed Employer of Record (EOR) like Relocation Serbia, foreign companies can employ Serbian talent without opening a local entity. The EOR handles every legal, payroll, and compliance obligation while you retain full control of daily work. This model is ideal for testing the Serbian market, building remote teams, or hiring specialized professionals in Belgrade or Novi Sad. Backed by Serbian labor law and managed through a compliant agency structure, it removes risk, ensures transparency, and allows your company to scale confidently in Southeast Europe.
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As Serbia continues to attract international companies seeking skilled talent, many foreign employers face a practical challenge: how to hire employees in Serbia without setting up a local business entity. Establishing a company requires registration, tax compliance, and ongoing administration—often more than a firm needs when testing new markets.
That’s where the Employer of Record (EOR) model becomes the strategic solution. Through an EOR arrangement, a licensed local partner such as Relocation Serbia employs staff on your behalf, handling all employment, payroll, tax, and compliance obligations—while you retain full control over daily work and performance.
This model enables companies to access Serbian talent quickly and compliantly, without the complexity of opening a branch or subsidiary.
Serbia’s reputation as a cost-effective, highly educated, and multilingual workforce destination has grown rapidly. With strong expertise in IT, finance, customer service, manufacturing, and engineering, Serbian professionals increasingly support global operations from Novi Sad, Belgrade, and other regional centers.
Key advantages include:
Competitive labor costs compared to Western Europe.
Flat 15% corporate tax rate and favorable social contributions.
Geographic proximity to EU markets with strong infrastructure.
Cultural alignment and strong English proficiency in professional sectors.
However, while hiring talent in Serbia is attractive, employment law, taxation, and HR compliance remain tightly regulated. That’s where a compliant EOR partner becomes essential.
An EOR serves as the official employer in Serbia for your chosen staff. The EOR signs the employment contract, manages payroll, benefits, and contributions, and ensures compliance with Serbian labor laws. You—the foreign company—manage the employee’s tasks, goals, and performance.
At Relocation Serbia, our Belgrade-based EOR team manages all back-office obligations, including:
Payroll and salary disbursements in RSD or EUR
Tax withholdings and social insurance contributions
Employment contracts aligned with Serbian labor law
HR compliance and reporting
Paid leave, sick leave, and benefits administration
Regulatory filings and communication with authorities
The relationship is straightforward:
Your company engages Relocation Serbia as your Employer of Record.
We hire the employee through our Serbian legal entity.
You direct the employee’s daily work, projects, and communication.
We handle payroll, benefits, and full legal compliance.
One monthly invoice covers all employment costs and EOR fees.
This structure keeps you legally compliant and your operations agile.
Serbia regulates EOR activity under the Law on Agency Employment, ensuring that workers employed through licensed agencies receive equal treatment and protection as any direct hire.
In practice, this means:
The EOR must be a licensed temporary employment agency or operate via a licensed local partner.
Employees are guaranteed the same labor rights as directly employed staff, including salary, hours, leave, and benefits.
Unlicensed operation can lead to significant fines and liabilities for both the agency and client company.
Relocation Serbia operates through a fully licensed and compliant Belgrade office, authorized to provide EOR and HR management services across Serbia, including Novi Sad. This ensures every engagement remains legally sound and risk-free for our international partners.
The Employer of Record solution is ideal for companies that want to:
Test new markets before opening a subsidiary.
Hire remote employees or local representatives in Serbia.
Operate cost-efficiently while maintaining full legal compliance.
Expand teams quickly without delays linked to company registration.
Avoid double taxation or complex cross-border accounting.
Many international firms based in Dubai, the EU, the UK, and North America leverage our EOR services to maintain their favorable tax structures abroad while building a team in Serbia.
By delegating employment obligations to a trusted local partner, they gain both flexibility and peace of mind.
It’s important to understand that an Employer of Record is not an outsourcing agency. The EOR does not build your product, handle your clients, or supervise daily work. Your employee does that directly under your direction.
The EOR’s role is purely administrative and legal—ensuring payroll accuracy, regulatory compliance, and HR continuity. This distinction keeps the line of authority clear while securing your operations under Serbian law.
Relocation Serbia’s EOR service uses a transparent monthly invoicing model. The invoice covers:
The employee’s gross salary.
Employer contributions and taxes.
A fixed EOR service fee for compliance management.
The foreign company pays the invoice; Relocation Serbia then pays the employee and all relevant authorities. This structure eliminates the risk of payroll errors or late filings and keeps all financial flows fully auditable.
Partnering with a licensed EOR in Serbia ensures full adherence to local employment law. This includes:
40-hour maximum workweek with regulated overtime.
Legally mandated paid vacation and sick leave.
Pension and health contributions.
Data protection in line with GDPR requirements.
Failure to comply—such as hiring staff directly without a local entity—can expose foreign companies to penalties, lawsuits, and back taxes. A properly structured EOR agreement avoids these risks entirely.
With a team of HR specialists, payroll experts, and legal advisors, Relocation Serbia provides seamless EOR support for international clients hiring anywhere in Serbia.
Our advantage lies in combining:
Regulatory expertise – licensed and compliant under Serbian law.
Local reach – operating in both Belgrade and Novi Sad.
End-to-end service – from recruitment to payroll and ongoing compliance.
Personalized support – one dedicated account manager per client.
Whether you need a single local representative or an entire remote team, our EOR service ensures your presence in Serbia is legitimate, efficient, and low-risk.
The Employer of Record model in Serbia empowers foreign companies to hire qualified Serbian professionals without opening a local company. It simplifies market entry, safeguards compliance, and minimizes administrative overhead—while giving businesses access to one of Europe’s most promising labor markets.
By partnering with Relocation Serbia, you gain a reliable, fully licensed EOR partner that handles every legal, payroll, and compliance aspect—so you can focus on growing your business.
If your company is ready to hire employees in Serbia without setting up a business, contact Relocation Serbia today to schedule a paid consultation. Our experts will provide a tailored EOR solution aligned with your operational and legal requirements.