Moving to Serbia · Comparison · Updated November 2026
Serbia or the West in 2027? The facts side by side
Short answer
Serbia taxes salaries at 10 % and company profit at 15 % (PwC, August 2026), lower than the UK, Germany or Canada. Living costs and wages are also lower: the average net salary was about 1,000 euros a month in August 2026 (RZS). Serbia is not in the EU or Schengen, and the Ministry of Interior decides who gets residence.
Not sure which route into Serbia fits you? Try the Route Finder.
Facts checked 6 November 2026. Not legal or tax advice.
How does Serbia compare with Western countries?
Serbia today is an EU candidate with growing tech hubs in Belgrade and Novi Sad. Three things matter most:
Taxes. Flat, low rates on salaries and company profit, set by Serbian tax law.
Costs. Rent, food and services cost less, but local wages are lower too.
Residency. Most Western passports get 90 visa-free days; living here needs a permit.
How do taxes in Serbia compare in 2027?
Serbia uses low flat rates. Western countries mostly use rising (progressive) rates. Top rates below are for the highest earners (PwC Worldwide Tax Summaries, 2026).
| Tax | Serbia | UK | Germany |
|---|---|---|---|
| Salary tax | 10 % flat | Up to 45 % | Up to 45 % + surcharge |
| Company profit tax | 15 % | 25 % | About 30 % |
| Capital gains | 15 % | Up to 24 % | About 26 % |
| VAT (standard) | 20 % | 20 % | 19 % |
Serbian residents are taxed on worldwide income, and social contributions come on top of salary tax everywhere. Canada’s federal top rate alone is 33 %.
This guide is general information, not tax advice. Your situation is decided case by case — contact us or your home-country adviser.
Our residence permit service prepares your file and follows it with the Ministry of Interior. You deal with the people who do the work.
Is Serbia cheaper than the West?
Usually yes, for people with foreign income. But prices are rising. These are the newest official numbers.
- Average net salary: about 1,000 euros a month, August 2026 (RZS).
- Inflation: 4.1 % a year in September 2026 (RZS). The National Bank of Serbia targets 3 %.
- New flats: about 3,147 euros per m² in Belgrade and 2,186 euros per m² in Novi Sad, early 2026 (RGZ, the property cadastre).
For a full list, see our guide to the hidden costs of living in Serbia.
How is the Serbian economy doing?
Serbia’s economy grew 2.0 % in 2025 (RZS). Canada grew 1.7 % the same year (Statistics Canada).
Belgrade hosts Expo 2027 from 15 May to 15 August 2027. Serbia has been an EU candidate since 2012, but there is no date for joining. Rules can change in 2027, so check the latest before you decide.
What do you need to live in Serbia?
To live in Serbia longer than 90 days in any 180, you need a residence permit. You’ll usually need:
- valid passport
- reason to stay (work, company, family, property, study)
- address in Serbia
- health insurance
- legalised, translated documents
Why it has to be right: the Ministry of Interior can refuse or delay a file with a missing or wrong document. A temporary permit lasts up to three years, and permanent residence is possible after three years of temporary residence (Law on Foreigners). Get the free Serbia Relocation Checklist.
What are the trade-offs?
A Serbian permit does not let you live in EU countries.
Local jobs pay far less than in the West.
Rents and food have gone up fast in Belgrade.
Offices work in Serbian; documents need translation.
Who decides your residence in Serbia?
The Ministry of Interior (MUP) decides residence permits. In recent cases a few weeks to a few months has been typical for a permit. MUP sets the timing and we don’t promise a date.
Relocation Serbia, with offices in Belgrade and Novi Sad, handles residence permits, company setup and accounting. Read more in moving to Serbia from Canada and Serbia for digital nomads.
Start with the €49 Relocation Roadmap (credited toward any package within 90 days — see pricing).
This guide is general information, not tax advice. Your situation is decided case by case — contact us or your home-country adviser.
Frequently asked questions
Is Serbia cheaper than Western countries in 2027?
For most people with foreign income, yes, though prices are rising (RZS, September 2026).
What is the income tax rate in Serbia?
Salary tax is 10 % and company profit tax is 15 % (PwC, August 2026). Contributions are added on top.
Is Serbia in the EU or Schengen?
No. Serbia is an EU candidate, but not a member and not in Schengen.
Can foreigners live in Serbia in 2027?
Yes, with a residence permit for a valid reason such as work, a company or family.
Who decides a residence permit in Serbia?
The Ministry of Interior (MUP). We prepare the file; the authorities decide.
Updated November 2026 · Relocation Serbia. General information, not legal or tax advice. Every case is decided by the authorities.