How self-employed expats pay taxes in Serbia: freelancers, LLCs & traders
Self-employed people in Serbia usually work as a registered entrepreneur (preduzetnik), often on the flat-rate (paušalni) regime, or through a limited company (DOO). Serbian law taxes company profit at 15%. Which set-up fits you is decided case by case, and if you are a US citizen or hold another passport, your home country may have its own rules. Here's how each path works.
This guide is general information, not tax advice. Your situation is decided case by case — contact us or your home-country adviser.
Watch the full breakdown
Expat self-employment tax in Serbia, on YouTube
Becoming a tax resident in Serbia
Under Article 7 of the Law on Personal Income Tax, a person is a Serbian tax resident if their residence or centre of business and vital interests is in Serbia, or if they stay in Serbia for 183 or more days, continuously or with breaks, in a 12-month period that begins or ends in the tax year (PwC Worldwide Tax Summaries, reviewed 7 August 2026). Tax residence is separate from a residence permit or citizenship. Whether, and from what date, the law makes you resident is decided case by case.
Two main paths for self-employed income
Freelancer / sole proprietor (paušalni)
- known locally as a preduzetnik
- flat-rate tax, paid monthly
- minimal bookkeeping while under the threshold
LLC owner / company (DOO)
- a limited liability company
- the owner can be employed by the company
- full bookkeeping; business costs go through the company
Option 1: the flat-rate (paušalni) system
The paušalni regime is a flat-rate system for registered entrepreneurs. Whether your activity can use it is decided case by case. Key features set in law:
- Fixed monthly tax regardless of exact income, while you stay within the regime's turnover limit
- Minimal bookkeeping required
- covers pension, health, and unemployment contributions
- payable by the 15th of each month
- the exact amount depends on your municipality and activity
The two limits, as set in law: the flat-rate (paušal) regime is available up to RSD 6,000,000 of annual turnover (Law on Personal Income Tax), and VAT registration is required once turnover passes RSD 8,000,000 in 12 months (Law on Value Added Tax). These are two different limits. The monthly flat-rate amount is set by the Tax Administration for each entrepreneur. Checked 17 October 2026.
Not available for: some activities set out in the law. Whether yours qualifies is decided case by case.
Option 2: setting up an LLC (DOO)
A DOO is a limited company with its own books and its own tax. Whether a DOO or an entrepreneur registration fits you is decided case by case. The rates set in law (PwC Worldwide Tax Summaries, reviewed 7 August 2026):
- 15% corporate income tax on profits
- 10% personal income tax on salaries
- social contributions on salaries
- 15% tax on dividends paid out
Compliance: a Serbian company must keep books, file monthly returns when it pays salaries, file VAT returns if registered, and file year-end financial statements. Our company formation and tax & bookkeeping services do this work for you.
Non-residents: payments from a Serbian company to a non-resident can be taxed in Serbia at source, and a tax treaty can change the rate. How this applies to you is decided case by case.
Traders, crypto investors & dividend earners
- Capital gains (for example on shares): Serbian law sets a 15% rate (PwC Worldwide Tax Summaries, reviewed 7 August 2026).
- Crypto: digital assets have their own rules in Serbian law. How a gain or a swap is taxed is decided case by case. See our crypto tax guide.
- Dividends & interest: Serbian law sets a 15% rate; interest on dinar savings and Serbian government bonds is exempt (PwC Worldwide Tax Summaries, reviewed 7 August 2026). How a treaty affects foreign income is decided case by case.
US citizens: read this carefully
There is no income-tax treaty between Serbia and the United States. US citizens keep filing in the US wherever they live. We do not give US tax advice. Topics to raise with your US adviser before anything is set up in Serbia:
- Owning a Serbian company as a US person — how US rules on foreign companies apply to you.
- Your income from Serbia — salary, self-employment, trading gains, dividends — and which US reliefs, if any, apply to it.
- US reporting forms for your Serbian company and your Serbian bank accounts.
We handle the Serbian side — company setup, Serbian tax registration, bookkeeping and Serbian filings — and work alongside your US adviser. See our international tax advisory.
Which structure fits you?
Which set-up fits you is decided case by case. Your income, your clients, whether you need a basis for residence, and your home country's rules all count. Contact us and we will look at your situation.
How Relocation Serbia can help
- business setup — preduzetnik or DOO
- bank account creation and residency applications
- English-speaking tax accountants
- coordination with US, Canadian, and EU cross-border advisors
Frequently asked questions
Final thoughts
Serbia sets its tax rates in law, and self-employed people have two main set-ups: an entrepreneur registration (often flat-rate) or a company (DOO). Which one fits you, and how your home country treats you, is decided case by case. We handle the Serbian side; your home-country adviser handles theirs.
This guide is general information, not tax advice. Your situation is decided case by case — contact us or your home-country adviser. Sources: Law on Personal Income Tax (Art. 7); Law on Corporate Income Tax; Law on Value Added Tax; PwC Worldwide Tax Summaries — Serbia (reviewed 7 August 2026). Figures checked 17 October 2026 · Relocation Serbia.