Tax, bookkeeping & compliance
Tax & Bookkeeping in Serbia for Foreigners
Serbia's tax system is competitive — 15% flat corporate tax, 10% personal income tax, 20% VAT (€64K threshold), and 60+ double taxation treaties. All Serbian companies are legally required to maintain accounting records and file statutory returns. Relocation Serbia provides certified bookkeeping, tax filing, payroll, and cross-border tax advisory — entirely in English — for freelancers, entrepreneurs (PR), and company owners (DOO).
- 15% corporate income tax — one of Europe's lowest flat rates
- 60+ double taxation treaties — including USA, UK, Canada, Australia
- All communication in English — certified Serbian accountants
- Cross-border income, FATCA, CRS, and crypto compliance covered
- Fully manageable remotely — we handle all Tax Administration communication
15%
Corporate income tax
20%
Standard VAT (PDV) rate
10%
Reduced VAT on essentials
15%
Dividend withholding tax
Who we serve
Tax and accounting services for every client type
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The right accounting structure depends entirely on how you earn and operate in Serbia. We advise on structure first — then manage ongoing compliance from there.
Individuals
Digital Nomads & Freelancers
Operating as a paušalac (flat-rate taxpayer) or PR (entrepreneur) with income from foreign clients. We manage registration, quarterly tax payments, and annual returns.
Individuals
Foreign Residents
Individuals with Serbian residency earning income from abroad — employment, investments, pensions, rental income, or digital assets. Tax residency assessment and cross-border compliance.
Corporate
DOO Company Owners
Foreign-owned Serbian limited liability companies requiring monthly bookkeeping, VAT filings, payroll, annual accounts, and corporate tax returns under Serbian GAAP.
Corporate
Foreign Businesses in Serbia
International companies operating through a Serbian entity — including those with EOR arrangements, Free Zone operations, or subsidiary structures requiring consolidated reporting.
Serbia's tax system
Key tax rates every foreigner in Serbia needs to know
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Serbia's tax rates are among the most competitive in Europe. Here are the rates that apply to foreign individuals and companies operating here.
Corporate Income Tax (CIT)
Serbia's flat corporate income tax rate applies to the net taxable profit of all Serbian entities — DOOs, branches, and representative offices. No progressive rate, no surcharge.
Personal Income Tax (PIT)
Serbia applies a flat 10% personal income tax on employment income after the non-taxable allowance. Higher rates of 15% and 20% apply to specific income types including capital gains and higher self-employment income bands.
VAT (PDV)
Serbia's standard VAT rate is 20% on most goods and services. A reduced rate of 10% applies to food, medicines, books, water supply, and public transport. VAT registration is mandatory above the €64K annual turnover threshold.
Dividend Withholding Tax
Dividends paid to foreign shareholders are generally subject to a 15% withholding tax in Serbia. However, Serbia's double taxation treaties with 60+ countries frequently reduce this rate — sometimes to 5% or 0%.
What we manage
Every accounting and tax obligation — handled in English
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Every filing, every deadline, every authority communication — managed by our certified accounting team on your behalf.
Monthly Bookkeeping
Full accounting records maintained to Serbian GAAP standards — invoices, receipts, bank reconciliation, and ledger maintenance for every client transaction.
VAT (PDV) Filing
Monthly or quarterly VAT returns prepared and submitted to the Serbian Tax Administration. Input VAT tracked, output VAT calculated, and refund claims managed where applicable.
Payroll & Social Contributions
Monthly payroll calculation, payslip generation, personal income tax deductions, and social contribution payments (pension, health, unemployment) — for all employee types.
Corporate Tax Return
Annual corporate income tax return (PDP) prepared and filed, including depreciation schedules, tax adjustments, and any applicable incentive or relief claims.
Annual Financial Statements
Statutory financial statements (balance sheet, income statement, cash flow) prepared per Serbian GAAP and submitted to the Serbian Business Registers Agency (APR) and National Bank of Serbia.
Tax Administration Communication
All correspondence with the Serbian Tax Administration (Poreska Uprava) handled on your behalf — queries, audits, notices, and deadline extensions where applicable.
Cross-Border Income Reporting
Structured reporting for foreign-source income — employment abroad, investment returns, pension income, rental income, and digital asset holdings — in full compliance with Serbian tax law.
FATCA & CRS Compliance
Advisory and compliance support for US citizens subject to FATCA and all nationalities subject to Common Reporting Standard (CRS) obligations affecting Serbian accounts and entities.
Crypto & Digital Asset Reporting
Tax treatment of cryptocurrency holdings, trading gains, and digital asset income under current Serbian tax law — including Serbian annual return obligations for digital asset holders.
Which business structure is right for your situation?
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The accounting obligations, tax rates, and compliance burden differ significantly depending on your business structure. We advise on the right choice before you register anything.
Sole traders
Paušalac (Flat-Rate Freelancer)
The simplest structure for freelancers earning below the VAT threshold from foreign clients. Fixed quarterly tax payments calculated on a flat estimated revenue — no monthly bookkeeping required.
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Most common for foreigners
DOO (Limited Liability Company)
The standard structure for foreign entrepreneurs, companies, and anyone wanting liability protection and the ability to hire employees. Full bookkeeping required. Qualifies for residency permit.
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Mid-tier
Preduzetnik
(Sole Trader)
More formal than the paušalac, the preduzetnik structure involves full bookkeeping but unlimited personal liability. Tax is paid on actual profits rather than an estimated flat rate.
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Tax treaties
Serbia's double taxation treaties — what they mean for you
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Serbia has signed over 60 bilateral double taxation treaties. For foreigners earning income from multiple countries, these treaties are one of the most financially significant aspects of Serbian tax residency.
A double taxation treaty (DTT) is a bilateral agreement between two countries that determines which country has the right to tax specific types of income — employment income, dividends, interest, royalties, pensions, and capital gains — and at what rate. Where Serbia has a treaty, the withholding tax on dividends paid to foreign shareholders is typically reduced from 15% to 5% or lower.
Cross-border complexity
Specialist services for international income and reporting
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Foreigners in Serbia with income from multiple countries, foreign assets, or international reporting obligations require more than standard local bookkeeping. Here is what we cover.
Foreign Income & Tax Residency Assessment
We assess when you become a Serbian tax resident (183-day rule and domicile test), what that means for your global income reporting obligations, and how to structure your affairs efficiently within Serbian law.
US FATCA Compliance
US citizens in Serbia remain subject to FATCA reporting requirements regardless of where they live. We coordinate with US-qualified tax advisors to ensure Serbian filings align with US obligations — including FBAR reporting for Serbian bank accounts.
Common Reporting Standard (CRS)
Serbian financial institutions report account information for foreign-resident account holders to their home countries under CRS. We ensure your Serbian entities and accounts are structured and disclosed correctly.
Cryptocurrency & Digital Assets
Serbia has specific tax treatment for digital asset holdings, trading gains, and crypto income. We ensure compliant reporting of digital assets in your annual Serbian tax return and advise on structuring for tax efficiency.
Foreign Pension & Investment Income
Foreign pensions, dividend income, stock options, rental income from abroad, and other passive income sources have specific treatment under Serbian tax law and applicable DTTs. We structure reporting correctly for each income type.
Global Tax Coordination
We liaise with your existing accountant or tax advisor in your home country to align Serbian filings with your global tax position — ensuring consistency across jurisdictions and avoiding inadvertent compliance gaps.
How we work
From initial assessment to ongoing compliance
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Every engagement follows the same four stages — regardless of whether you're a freelancer or a multi-entity corporate client.
Initial consultation & structure assessment
We review your income sources, business activities, nationality, and existing structure (if any). We recommend the optimal Serbian business structure — paušalac, PR, or DOO — and confirm whether VAT registration is required or beneficial for your specific situation.
Registration & setup
Where required, we handle business registration, tax ID (PIB) registration, VAT registration, and social contribution account setup — coordinated with our company formation team where you're also registering a DOO.
Ongoing monthly compliance
Monthly bookkeeping, VAT returns, payroll processing, and tax payments are managed on a recurring basis. You receive monthly reporting in English — profit & loss, cash flow, and key compliance deadlines — without needing to interact with Serbian authorities directly.
Annual returns & year-end
Corporate income tax return, annual financial statements, and any required statutory filings are prepared and submitted annually. We flag any changes to Serbian tax law that affect your obligations and advise on any available reliefs or optimisation opportunities.
Questions
Tax & bookkeeping FAQ
The questions we answer most from foreign clients setting up their accounting in Serbia.
What is the corporate income tax rate in Serbia?
Serbia's corporate income tax rate is a flat 15% on net taxable profit — one of the lowest in Europe. There is no progressive rate, no municipality surcharge, and no minimum tax. Companies operating within Serbian Free Economic Zones may qualify for a 10-year corporate tax holiday on qualifying profits. Relocation Serbia assesses Free Zone eligibility as part of company setup.
Do I need an accountant in Serbia as a foreigner?
In virtually all cases, yes. All Serbian DOOs are legally required to maintain accounting records and submit statutory financial statements. Freelancers registered as a paušalac have simpler obligations but still require correct registration and quarterly tax payments. The penalties for late filing or non-compliance are significant. Relocation Serbia provides certified accounting services entirely in English — you don't need to interact with Serbian tax authorities directly.
What is the VAT threshold in Serbia?
VAT (PDV) registration becomes mandatory once your annual turnover exceeds RSD 8 million — approximately €64,000 at current exchange rates. Below this threshold, VAT registration is optional (voluntary registration is possible if beneficial). Above the threshold, registration is mandatory and monthly or quarterly VAT returns must be filed. We confirm the current threshold and your obligations on the consultation call.
Does Serbia have a double taxation treaty with my country?
Serbia has signed over 60 double taxation treaties — including agreements with the USA, UK, Canada, Australia, Germany, France, Netherlands, Ireland, UAE, and most major economies. These treaties reduce or eliminate withholding taxes on dividends, interest, and royalties paid to residents of treaty countries. The specific rates and covered income types vary by treaty. We confirm the applicable treaty provisions for your specific country and income structure on the consultation call.
Can I manage my Serbian accounting remotely?
Yes. Once your business is registered and accounting set up, all ongoing monthly bookkeeping, VAT filings, payroll, and annual returns are managed entirely remotely by Relocation Serbia. We handle all communication with the Serbian Tax Administration on your behalf. Some initial registration steps may require your presence in Serbia — we confirm which steps apply to your situation on the consultation call.
I earn income from US stocks and a foreign pension — how is this taxed in Serbia?
Foreign investment income and pension income have specific treatment under Serbian tax law and applicable double taxation treaties. Generally, once you become a Serbian tax resident (after 183 days or by establishing domicile), Serbia has the right to tax your worldwide income — but DTTs reduce or eliminate double taxation on most income types. US citizens have additional complexity due to FATCA and worldwide income tax obligations regardless of residency. We work with clients on exactly these cross-border situations — book a consultation and we'll map your specific income types to their Serbian tax treatment.