Tax & bookkeeping in Serbia for foreigners
Serbia's tax system is competitive — a flat 15% corporate tax, 10% personal income tax, 20% VAT, and 60+ double taxation treaties. Every Serbian company must keep accounting records and file statutory returns. We provide certified bookkeeping, tax filing, payroll, and cross-border advisory — entirely in English — for freelancers, sole traders, and company owners.
Tax and accounting for every client type
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.
Digital nomads & freelancers
Operating as a paušalac (flat-rate taxpayer) or sole trader with income from foreign clients. We manage registration, quarterly tax payments, and annual returns.
Foreign residents
Individuals with Serbian residency earning income from abroad — employment, investments, pensions, rental, or digital assets. Tax-residency assessment and cross-border compliance.
DOO company owners
Foreign-owned Serbian limited liability companies requiring monthly bookkeeping, VAT filings, payroll, annual accounts, and corporate tax returns under Serbian GAAP.
Foreign businesses in Serbia
International companies operating through a Serbian entity — including EOR arrangements, free-zone operations, or subsidiary structures requiring consolidated reporting.
Key tax rates every foreigner needs to know
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 applies to the net taxable profit of all Serbian entities — DOOs, branches, and representative offices. No progressive rate, no surcharge, no minimum tax.
Personal Income Tax (PIT)
Serbia applies a flat 10% personal income tax on employment income after the non-taxable allowance. Other income types — such as capital gains (generally 15%) and certain self-employment income — have their own treatment, and an additional annual income tax can apply to high earners.
VAT (PDV)
Serbia's standard VAT rate is 20% on most goods and services. A reduced 10% rate applies to food, medicines, books, water supply, and public transport. VAT registration is mandatory above RSD 8 million (~€68,000) annual turnover.
Dividend Withholding Tax
Dividends paid to foreign shareholders are generally subject to 15% withholding tax in Serbia. Where a double taxation treaty applies, this rate is frequently reduced — sometimes to 5% or lower.
Every obligation — handled in English
Every filing, every deadline, every authority communication — managed by our certified accounting team on your behalf.
Monthly bookkeeping
Full accounting records to Serbian GAAP — invoices, receipts, bank reconciliation, and ledger maintenance for every transaction.
VAT (PDV) filing
Monthly or quarterly VAT returns prepared and submitted. Input VAT tracked, output VAT calculated, refund claims managed where applicable.
Payroll & contributions
Monthly payroll, payslips, income-tax deductions, and social contributions (pension, health, unemployment) for all employee types.
Corporate tax return
Annual corporate income tax return prepared and filed, including depreciation schedules, tax adjustments, and any applicable relief claims.
Annual financial statements
Statutory statements (balance sheet, income statement, cash flow) per Serbian GAAP, submitted to the Business Registers Agency (APR).
Tax Administration contact
All correspondence with the Tax Administration (Poreska Uprava) handled for you — queries, audits, notices, and extensions where applicable.
Cross-border income reporting
Structured reporting for foreign-source income — employment abroad, investments, pensions, rental, and digital assets — compliant with Serbian law.
FATCA & CRS compliance
Advisory and compliance support for US citizens subject to FATCA and all nationalities subject to CRS obligations affecting Serbian accounts and entities.
Crypto & digital assets
Tax treatment of cryptocurrency holdings, trading gains, and digital-asset income under current Serbian law, including annual return obligations.
Which business structure fits your situation?
Obligations, tax rates, and compliance burden differ significantly by structure. We advise on the right choice before you register anything.
Paušalac
The simplest structure for freelancers below the VAT threshold earning from foreign clients. Fixed quarterly tax on a flat estimated revenue — no monthly bookkeeping.
- Tax basis
- Flat estimated revenue
- VAT
- Not required below threshold
- Bookkeeping
- Minimal
- Best for
- Freelancers, solo consultants
DOO
The standard structure for foreign entrepreneurs wanting liability protection and the ability to hire. Full bookkeeping required. Qualifies as a residency-permit basis.
- Corporate tax
- 15% on net profit
- VAT
- Above RSD 8M (~€68k)
- Bookkeeping
- Full monthly
- Best for
- Most foreign entrepreneurs
Preduzetnik
More formal than the paušalac — full bookkeeping but unlimited personal liability. Tax is paid on actual profit rather than an estimated flat rate.
- Tax basis
- Actual net profit
- VAT
- Above threshold
- Bookkeeping
- Full monthly
- Best for
- Higher-revenue sole traders
Serbia's double taxation treaties — what they mean for you
Serbia has signed over 60 bilateral double taxation treaties. For foreigners earning income from multiple countries, these are one of the most financially significant aspects of Serbian tax residency.
A double taxation treaty determines which country has the right to tax specific types of income — employment, dividends, interest, royalties, pensions, and capital gains — and at what rate. Where Serbia has a treaty, withholding tax on dividends paid to foreign shareholders is typically reduced from 15% to 5% or lower. Treaty partners include the UK, Canada, Germany, France, the Netherlands, Ireland, the UAE, and most major European economies.
Serbia and the United States do not have a double taxation treaty. This is one of the most important facts for Americans in Serbia. Without a treaty, there is no bilateral framework allocating taxing rights — so you rely on US domestic mechanisms such as the Foreign Earned Income Exclusion (FEIE) and Foreign Tax Credit (FTC), rather than treaty relief, to manage double taxation. US citizens also remain subject to US worldwide taxation, annual filing, and FATCA/FBAR obligations regardless of Serbian residency. We coordinate with US-qualified advisors to align both sides correctly — this is exactly the kind of cross-border situation we handle.
Specialist services for international income
Foreigners with income from multiple countries, foreign assets, or international reporting obligations need more than standard local bookkeeping. Here's what we cover.
Tax-residency assessment
We assess when you become a Serbian tax resident (183-day rule and domicile test), what it means for global income reporting, and how to structure efficiently within Serbian law.
US FATCA compliance
US citizens remain subject to FATCA regardless of where they live. We coordinate with US-qualified advisors to align Serbian filings with US obligations, including FBAR for Serbian accounts.
Common Reporting Standard (CRS)
Serbian institutions report account information for foreign-resident holders to their home countries under CRS. We ensure your entities and accounts are structured and disclosed correctly.
Crypto & digital assets
Serbia has specific treatment for digital-asset holdings, trading gains, and crypto income. We ensure compliant reporting in your annual return and advise on tax-efficient structuring.
Foreign pension & investment income
Foreign pensions, dividends, stock options, and rental income have specific treatment under Serbian law and applicable treaties. We structure reporting correctly for each income type.
Global tax coordination
We liaise with your home-country accountant to align Serbian filings with your global position — ensuring consistency across jurisdictions and avoiding compliance gaps.
From assessment to ongoing compliance
Every engagement follows the same four stages — whether you're a freelancer or a multi-entity corporate client.
Consultation & structure
We review your income, activities, and nationality, recommend the optimal structure — paušalac, sole trader, or DOO — and confirm whether VAT registration is required or beneficial.
Registration & setup
Where required, we handle business registration, tax ID (PIB), VAT registration, and social-contribution setup — coordinated with company formation where you're also registering a DOO.
Ongoing monthly compliance
Monthly bookkeeping, VAT returns, payroll, and tax payments managed on a recurring basis. You receive monthly reporting in English — without dealing with Serbian authorities directly.
Annual returns & year-end
Corporate income tax return, annual financial statements, and statutory filings prepared and submitted. We flag any changes to Serbian tax law that affect you and advise on available reliefs.
Tax & bookkeeping FAQ
Get your Serbian tax & books handled
Book a consultation. We confirm the right structure and exactly what compliance looks like for your situation — in plain English.