How Self-Employed Expats Pay Taxes in Serbia (Freelancers, LLCs, and Traders Guide)

To pay taxes in Serbia, you generally must become a tax resident, which occurs if:

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  You spend 183+ days in Serbia within a 12-month period, or

  
  


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  Your center of economic interest (e.g., business, property, family) is in Serbia

  
  

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Once you’re a tax resident, you’re subject to Serbia’s domestic tax laws—whether under temporary residence, permanent residence, or citizenship.

There are two common ways expats structure their income in Serbia:

1. Freelancer / Sole Proprietorship (Paušalni Sistem)

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  Known locally as a preduzetnik

  
  


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  Operates under flat-rate tax, paid monthly

  
  


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  No need for bookkeeping unless you surpass the earnings threshold

2. LLC Owner / Company Employee (DOO)

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  You create a limited liability company

  
  


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  You pay yourself a salary as an employee of your company

  
  


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  Allows write-offs, better banking relationships, and potential credit access

  
  

Serbia’s paušalni system is ideal for:

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  Freelancers

  
  


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  Consultants

  
  


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  Designers, developers, writers

  
  


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  Remote workers under €65,000/year in revenue

🔹 Key Features:

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  Fixed monthly tax regardless of income (below €65K/year)

  
  


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  No VAT registration required unless over €65K

  
  


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  No bookkeeping required

  
  


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  Covers pension, health, and unemployment contributions

  
  


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  Payable by the 15th of each month

  
  

📌 Tax rate depends on your municipality (e.g., Novi Sad vs. Belgrade)

🧾 Example: A graphic designer in Novi Sad may pay ~€250/month in total taxes under paušalni.

⚠️ Not Available For:

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  Financial traders

  
  


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  Certain professional sectors (check with a local advisor)

If you're:

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  Earning above €65,000/year

  
  


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  Need expense write-offs

  
  


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  Engaged in financial trading or consulting

  
  


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  Planning to get a loan or mortgage

  
  

Then setting up a DOO (LLC) is likely your best route.

🔹 Key Tax Details:

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  15% corporate income tax

  
  


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  10% personal income tax on your employee salary

  
  


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  Social contributions apply to your employee salary

  
  


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  15% tax on dividend distribution (optional)

  
  

💼 Compliance Requirements:

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  You must hire a certified accountant within 10 days of formation

  
  


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  Monthly tax filings

  
  


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  Quarterly VAT if registered

  
  


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  Year-end financial reporting

  
  

🔄 Withholding Tax for Non-Residents:

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  If you’re not a tax resident, Serbia applies a 20% withholding tax on earnings from your Serbian LLC

Many of our clients at Relocation Serbia choose LLCs because they:

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  Want formal payslips for credit or rental applications

  
  


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  Need legal protection through limited liability

  
  


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  Trade crypto, forex, or international equities

  
  


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  Want to legally optimize earnings above the paušalni cap

📈 Example: A U.S.-based crypto trader earning $200,000/year forms a Serbian DOO and only pays 15% corporate tax—no U.S. ties if structured correctly.

🔹 Financial Trading (Stocks/Forex):

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  Treated as other income

  
  


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  Taxed at a flat 15% on capital gains

  
  


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  Applicable to crypto, stocks, real estate, etc.

  
  


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  Deductible expenses allowed (e.g., purchase price, broker fees)

🔹 Crypto:

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  Not taxed until converted to fiat currency

  
  


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  15% capital gains upon conversion

  
  


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  Losses can be deducted against crypto gains within the same year

🔹 Dividends & Interest:

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  15% withholding tax on domestic and foreign source dividends

  
  


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  Applies to both LLC and individual investors

Even though the U.S. taxes its citizens globally, Serbia offers strategies to reduce double taxation:

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  FEIE (Foreign Earned Income Exclusion) allows up to ~$126,500/year (2025) tax-free if you qualify



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  Your Serbian LLC is not a U.S. entity, so only Serbian taxes apply to its profits

  
  

📌 Always consult a cross-border tax advisor to ensure compliance.

We assist you with:

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  Business setup (preduzetnik or DOO)

  
  


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  Bank account creation

  
  


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  Residency applications

  
  


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  English-speaking tax accountants

  
  


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  Custom advice for U.S., Canadian, EU clients

👉 Book a Consultation to get personalized guidance on your tax structure and relocation plan.

Serbia offers one of the most appealing tax systems in Europe for self-employed expats. Whether you’re a solo freelancer or a six-figure entrepreneur, you can benefit from low, flat-rate taxes and flexible structures that align with your income and residency goals.

📬 Want to save on taxes and live better in Serbia? Contact Relocation Serbia today and start building your future from the heart of the Balkans.