Taxes in Serbia in 2026: income tax rate for foreigners

Tax rates in Serbia in 2026: the short version

Serbia taxes salaries at 10%, company profits at 15% and charges 20% VAT (value added tax, PDV in Serbian). On paper that is one of the lowest sets of rates in Europe: Hungary, for comparison, takes 15% from salaries.

The real cost sits in social contributions, not in the tax. Every salary loses 19.9% to pension, health and unemployment insurance, and the employer adds another 15.15% on top. For example, an employee with a gross salary of $2,000 (200,000 dinars) costs the company $2,200 (230,300 dinars) and takes home $1,400 (143,622 dinars). The remaining 37.6% goes to the state.

Serbian laws state every amount in dinars. Amounts below are in US dollars with dinars in brackets, at the Google rate of 17 October 2026: one US dollar buys about 105 dinars, so 100,000 dinars is roughly $960. Worked examples are in dinars.

If a guide still shows a tax-free amount of $280 (28,423 dinars) or an employer pension contribution of 11%, it describes earlier years. The allowance rose to $330 (34,221 dinars) on 1 January 2026 and goes up to $360 (37,369 dinars) on 1 January 2027. The employer contribution was cut to 10% back in 2023.

Compare taxes in 146 countries: relocation taxes 2026

Who counts as a tax resident of Serbia

A residence permit does not make anyone a Serbian tax resident, but 183 days in the country do - even without a permit. The status decides what gets taxed: a resident pays on worldwide income, a non-resident only on what was earned in Serbia.

Article 7 of the Personal Income Tax Law (Zakon o porezu na dohodak građana) sets two tests, and meeting either one is enough:

• A home or the centre of business and vital interests (centar poslovnih i životnih interesa) in Serbia. The tax office looks at where the family, the home, the job, the business and the bank accounts are.
• 183 days or more in Serbia, in one stretch or with breaks, within any 12 months that begin or end in the tax year.

The second test is trickier than it looks. The count runs over a rolling 12 months, not a calendar year. Example: arriving on 1 September 2025 and staying until mid-March 2026 gives 196 days. The period started in 2025 and ended in 2026, so residence comes into question for both years.

Any part of a day counts as a day in the country, except transit. Those who have not lived in Serbia before become residents no earlier than the day of first entry. And if it is already clear on arrival that the test will be met, the status starts at once, from day one.

The status is confirmed by a tax residence certificate (potvrda o rezidentnosti) issued by the Serbian Tax Administration (Poreska uprava). The certificate is what unlocks a double tax treaty and prevents paying twice.

When both Serbia and the previous country claim the same resident, the treaty between them settles it: permanent home first, then centre of vital interests, habitual abode and nationality. How the 183-day rule works across countries is covered in our article on tax residency in 2026.

A residence permit is a separate matter with its own rules: it is granted for registering a business, for investment or for employment. The tax office does not look at the type of permit, it counts days and interests.

Serbia tax residency: how to become a resident and count the days

Serbia counts 183 days in any 12 months that start or end in the tax year. The window rolls: an autumn and a spring in Belgrade add up to residency even though no calendar year has half a year. Any part of a day in the country is a full day.

A residence permit alone does not make you resident, while a family and home in Serbia do even without 183 days. A resident pays tax on worldwide income, a non-resident only on Serbian income. The status is confirmed by a Serbian Tax Administration certificate.

Mistakes cost more: a window across two years that nobody counted. Murblz support removes these risks: we count the rolling window, obtain the certificate and help with your former country. We guarantee professional work and a transparent process, and in most cases a result on the first filing.

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What is the income tax in Serbia and how much of a salary is left

A gross salary of $2,000 (200,000 dinars) turns into $1,400 (143,622 dinars) in hand: income tax takes 8.3% of the gross amount, contributions take 19.9%. There is one rate for every salary, 10% (Article 16 of the Personal Income Tax Law), and no monthly brackets.

The tax is not charged on the whole salary. First the tax-free $330 (34,221 dinars) a month come off the gross amount. Every full-time employee gets this allowance without filing anything. Until 2026 it was $280 (28,423 dinars), so take-home pay went up in January without a single decision by employers.

Worked example in dinars for a gross salary of 200,000 a month, about $2,000, in 2026:

The employer calculates and pays the tax and contributions on payday, and the employee files no return. The minimum wage in 2026 is $4 (371 dinars) net per hour, rising to $4 (405 dinars) in 2027.

Social contributions: who pays and how much

Contributions cost more than income tax in Serbia: 35.05% of gross salary against 10%. They, not the tax, decide how much a hire costs and how much is left in hand.

The rates are set in Article 44 of the Law on Mandatory Social Insurance Contributions (Zakon o doprinosima za obavezno socijalno osiguranje). Pension and disability insurance is abbreviated PIO in Serbian.

The base has a floor and a ceiling. In 2026 contributions are charged on at least $490 (51,297 dinars) a month, even if the salary is lower, and on no more than $7,000 (732,820 dinars). The ceiling equals five national average salaries.

The ceiling makes high salaries cheaper. Worked example in dinars: on a gross salary of 800,000, about $7,700, contributions are paid only on 732,820, so the employee saves about 13,400 a month and the employer about 10,200 more. Everything above the ceiling bears only the 10% tax.

Contributions give access to public healthcare and count towards a pension. The employee's health insurance also covers family members - for those who moved with children this is the main practical point of an official salary.

How other income is taxed

Salary is the cheapest kind of income. Everything else is taxed at 15% to 20%, but without contributions or with standard deductions that shrink the base.

Annual tax for high earners

The flat 10% ends at three average annual salaries. Those who earned more in a year receive an additional assessment from the Tax Administration - the annual personal income tax (godišnji porez na dohodak građana). For 2025 the threshold is $52,000 (5,439,096 dinars) of net income.

The excess is taxed at 10% until the taxable part reaches $110,000 (10,878,192 dinars), and at 15% above that. Before the calculation $7,000 (725,213 dinars) are deducted for the taxpayer and $2,600 (271,955 dinars) for each dependant, but no more than half of the base. For those under 40 at year-end, another three average annual salaries, the same $52,000 (5,439,096 dinars), come off salary, self-employment income and author fees.

The base includes salary, sole proprietor income, fees, rent and other income, and for residents also what was earned abroad. Dividends, interest and capital gains stay out of the annual tax: they have already been taxed at 15%. The threshold for 2026 will be known in early 2027, once the statistics office publishes the average salary.

What is the corporate tax in Serbia and what does it cost to take out dividends

A Serbian company pays 15% on profit, and its owner pays another 15% on dividends. Together that is 27.75% of what was earned: out of 100 dinars of profit 15 go to the budget at once, and 12.75 more are withheld from the remaining 85.

The 15% rate is the same for every industry and business size (Article 39 of the Corporate Income Tax Law, Zakon o porezu na dobit pravnih lica). There are no local surcharges. For comparison, corporate tax is 9% in Hungary and 10% in Bulgaria.

The form foreigners use most is the limited liability company (društvo sa ograničenom odgovornošću, DOO for short). It is also a basis for a residence permit: see how this works on the page Serbia residence permit by investment in a business.

What reduces the tax

• Dividends between Serbian companies stay out of the tax base (Article 25). A holding inside the country does not pay twice.
• Research and development costs for work the company carries out in Serbia are deducted at double the amount (Article 22g).
• Intellectual property income: 80% of licence fees for registered copyright and patents is excluded from the base (Article 25b). The effective rate on such income is 3%. The relief is tied to the company's own development costs and requires separate documentation.
• Losses are carried forward against the profit of the next five years.

Which incentives are being withdrawn

Serbia is aligning its tax law with European Union rules, and the generous investment incentives are being cut back. The amendments were published on 1 September 2026 in the official gazette (Službeni glasnik RS, issue 80/2026).

• The ten-year corporate tax holiday for those who invested more than $9.6 million (1 billion dinars) in fixed assets and hired at least 100 employees. Only companies that meet both conditions by 31 December 2027 can still qualify. Those who made it keep the relief until the term runs out.
• The 30% tax credit for investment in the capital of new innovative companies is abolished for investments made after 2026.

The rest of the amendments - the limit on deducting loan interest, the rules for controlled foreign companies, the tax on moving assets out of the country - start on the day Serbia joins the European Union. Some technical provisions apply from 1 January 2027 and 2028. The 15% rate stays.

Murblz specialists help register a company and open its account: see the terms on the pages company formation in Serbia and business accounts in Serbia.

What is the VAT rate in Serbia and when is registration required

The standard VAT rate in Serbia is 20%, and every business with turnover above $77,000 (8 million dinars) in 12 months has to charge it. Below that threshold registration is voluntary, and for a sole proprietor with modest revenue it is the main way to keep the books simple.

There are three rates (Article 23 of the Value Added Tax Law):

• 20% - the general rate on goods, services and imports.
• 10% - bread, milk, meat, vegetables and fruit, medicines, textbooks, newspapers, firewood and pellets, gas and heating, hotels, passenger transport, cinema and concert tickets, and the sale of new homes.
• 0% with the right to deduct input VAT - exports of goods and the transport linked to them.

Insurance, transactions in securities and residential lettings are exempt without the right to deduct. The sale of resale property carries no VAT either, but the 2.5% transfer tax is paid instead.

Returns are filed monthly, or quarterly if annual turnover is below $480,000 (50 million dinars). New companies file monthly for their first two calendar years. The deadline is 15 days after the end of the period.

For foreign businesses there is no threshold. A company with no office in Serbia that sells goods or services to final customers here has to register for VAT from the first sale and appoint a tax representative (poreski punomoćnik) - a Serbian resident who files returns on its behalf. If it deals only with Serbian VAT payers, the buyer accounts for the tax.

What changes from 2027

The rates and the $77,000 (8 million dinars) threshold stay as they are: a higher threshold did not make it into the 2026 amendments. What changes is the mechanics. For tax periods after 31 December 2026 the tax office introduces a preliminary VAT return that the system assembles from electronic invoices. The registration form is filed within five days of crossing the threshold, and the VAT status then lasts at least until the end of the following calendar year (Article 38).

Electronic invoices (the electronic invoicing system) are already mandatory between companies and with the state: invoices are issued and received through the government platform, not on paper.

How much do sole proprietors, freelancers and IT specialists pay in Serbia

A sole proprietor on the lump-sum tax pays the same amount every month whatever the earnings: 45.05% of a notional income set by the tax office, not of the money in the account. For a developer with foreign clients this is the cheapest legal regime in the country - with a hard revenue cap and an independence test attached.

Sole proprietor on the lump-sum tax

A sole proprietor is called preduzetnik in Serbian. The lump-sum tax (paušalno oporezivanje) is available if last year's turnover did not exceed $58,000 (6 million dinars), and the business is not registered for VAT (Article 40 of the Personal Income Tax Law). The regime is closed to advertising and market research, wholesale and retail trade, hotels and restaurants, financial intermediation and real estate activities.

The Tax Administration issues a decision setting a notional monthly income. It depends on the type of activity, the municipality and how long the business has existed. That amount is charged 10% tax, 24% pension contribution, 10.3% health and 0.75% unemployment insurance. Actual revenue does not affect the payment, and there is no income return to file.

There was a plan to raise the cap to $77,000 (8 million dinars), but it did not make it into the 2026 amendments: from 2027 the cap stays at 6 million. The rule that the notional income cannot rise by more than 10% a year has also been extended.

The independence test

The lump-sum tax is not for those who in substance work as staff. The law checks a sole proprietor who works for one client against nine criteria (test samostalnosti): who sets the working hours and place, whose equipment is used, whether work for others is banned, whether one client brings 70% of revenue over 12 months, and so on.

Five matches out of nine, and the fee is taxed as other income: 20% of the full amount with no deduction for costs, plus contributions. The Serbian client has to withhold and pay them. The test applies both to lump-sum sole proprietors and to those who keep books.

Sole proprietor who keeps books

Above $58,000 (6 million dinars) of turnover, or in industries closed to the lump-sum tax, a sole proprietor keeps books and pays 10% on actual profit plus 35.05% contributions. Above $77,000 (8 million dinars) of turnover VAT is added. This is the point where a company is usually compared: 15% on profit and 15% on dividends, with no contributions on dividends.

Freelancers without a registered business

Those who receive money from foreign clients as individuals get two models to choose from. The return is filed once a quarter, within 30 days of its end, and the model is chosen in the same return.

The example is for a freelancer with no other health insurance. Model A pays off at low incomes: up to $1,100 (110,647 dinars) a quarter the tax is zero. Once income is several times the deduction, model B is almost always cheaper.

A 70% cut for those who relocate to work

The most generous relief in Serbian law targets specialists who move to the country. Article 15v of the Personal Income Tax Law calls them newly settled taxpayers (novonastanjeni obveznik) and cuts the base for tax and contributions by 70% for five years.

The conditions are strict. It takes an open-ended employment contract with a Serbian employer, a move to Serbia and tax residence there. The employee must not have lived mainly in Serbia during the 24 months before the contract, and the salary must exceed $4,200 (439,692 dinars) a month. For those under 40 who spent the previous 12 months studying or training abroad the bar is lower: $2,800 (293,128 dinars).

Worked example in dinars. Under the general rules a gross salary of 500,000, about $4,800, leaves about 353,900 in hand. With the relief the base for tax and contributions shrinks to 30%, and about 456,200 are left, roughly $4,400. The employer saves another 53,000 of contributions a month. The employer applies the relief, and the conditions have to hold for all five years.

IT specialists, startup founders and digital nomads

Serbia has no separate IT regime. Developers use the lump-sum tax, and specialists hired from abroad use the 70% cut. Founders of a new innovative company who also work in it are exempt from tax and contributions on their salary for 36 months, up to a set limit.

There is no special tax status for digital nomads either, but there is a 90-day rule (Article 9b). A non-resident who spent no more than 90 days in Serbia in 12 months and worked for a foreign client with no business in the country pays no tax on that income.

After 183 days the picture changes. A resident with a salary from a foreign employer has to calculate and pay the tax and contributions personally: the return is due within 30 days of each payment. It is the least convenient set-up of all, so for a long stay it is worth comparing it in advance with a sole proprietorship and a Serbian company.

Taxes on property, cars, inheritance and crypto in Serbia

A flat assessed at $150,000 (15 million dinars) costs its owner at most $670 (70,000 dinars) of tax a year, or $480 (50,000 dinars) if the owner is registered and lives there. The tax is based not on the purchase price but on a value set by the municipality: the floor area times the average price per square metre in the zone.

The Property Taxes Law (Zakon o porezima na imovinu) only caps the rates; the exact rate is approved by the city or municipal assembly.

The tax on a home where the owner is registered and lives is halved, but by no more than $200 (20,000 dinars) a year (Article 13). It is paid in four instalments: in mid-February, May, August and November.

Buying, selling and renting out

The price of a new-build includes 10% VAT. A resale purchase carries no VAT, but it does carry the tax on the transfer of absolute rights (porez na prenos apsolutnih prava) - 2.5% of the contract price. By law the seller pays it. The same 2.5% applies to buying a used car, but there the buyer pays, and the base is not the contract price but a statutory formula: engine capacity and power adjusted for the age of the car (Article 27a). The exemption for first-time home buyers is available only to Serbian citizens.

The gain on a sale is taxed at 15%. There is no tax if the property was owned for at least ten years in a row, or if the money is put into a home for the seller and family in Serbia within 90 days. The return is due 30 days after the sale.

Rent is taxed at 20% after a 25% standard deduction, that is 15% of the rent. If a company rents the flat, it withholds the tax. If the tenant is an individual, the owner files the return.

Inheritance and gifts

Children and the spouse pay nothing on either an inheritance or a gift, and the parents of the deceased are exempt when inheriting (Article 21). Heirs of the second order, such as brothers and sisters, pay 1.5%, everyone else 2.5% of the value received (Article 19).

Cars

Each year, when the registration is renewed, a tax on the use of motor vehicles is paid. The amount depends on engine size and the age of the car. In 2026 for cars made in 2021-2026 it is $19 (1,910 dinars) for engines up to 1,150 cc, $170 (16,890 dinars) for 1,600 to 2,000 cc and $3,400 (349,560 dinars) for engines over 3,000 cc. Electric cars and hybrids are exempt.

Cryptocurrency

Crypto has its own statute in Serbia - the Law on Digital Assets (Zakon o digitalnoj imovini), in effect since 2021. Profit from selling digital assets is taxed as a capital gain at 15%. The return is due within 120 days after the end of the quarter in which the sale took place.

The tax is halved if the proceeds are invested within 90 days in the share capital of a Serbian company or in an investment fund operating in Serbia (Article 79a). If the company reduces its capital in the year of the investment or the following two years, the relief has to be repaid. Losses are offset against future gains for five years.

What taxes do non-residents pay in Serbia

A non-resident pays in Serbia only on Serbian income, and the law does not raise the rates for individuals because of their status: the same 10% on salary, 15% on dividends, 20% on rent. Foreign companies have it worse - 20% is withheld at source, and 25% from companies in preferential-regime jurisdictions.

The rates for companies are set in Article 40 of the Corporate Income Tax Law. Services are taxed regardless of where they are provided: an invoice for advice from a foreign firm to a Serbian client falls under the tax even if its staff have never been to Belgrade. The list of jurisdictions with a preferential tax regime is approved by the Serbian Ministry of Finance.

A double tax treaty lowers these rates. To apply it, the recipient gives the Serbian payer a tax residence certificate from the home country on the form of the Serbian Ministry of Finance and confirms being the beneficial owner of the income. Without the certificate the full rate is withheld.

What a non-resident owner needs to know

• Tax representative. A non-resident who earns income or acquires taxable property in Serbia has 10 days to tell the Tax Administration who the representative is (poreski punomoćnik) - a Serbian resident who receives the tax office's letters, files returns and pays the tax. The fine for staying silent is $48 to $1,500 (5,000 to 150,000 dinars).
• Property tax for a non-resident is the same as for locals, but without the discount for living in the home.
• Sale. A foreign company pays 20% on the capital gain under a tax office decision and files the return through the representative within 30 days.
• Short stays. Up to 90 days in 12 months, work for a foreign client with no business in Serbia is not taxed.
• Annual tax. A non-resident with Serbian income above the threshold also pays the annual tax, but only income from Serbia goes into the calculation.

Serbia's double tax treaties

Serbia applies more than 60 treaties. The list covers most of Europe, including Germany, France, the United Kingdom, Switzerland and the Netherlands, as well as China, India, the United Arab Emirates, Turkey, Kazakhstan, Belarus, Armenia, Georgia and Azerbaijan. With Ukraine the rates are 5% or 10% on dividends and 10% on interest and royalties. With Belarus - 5% or 15% on dividends, 8% on interest, 10% on royalties.

Double taxation is removed by credit: tax paid in one country is deducted from the tax in the other. The relief is not automatic: the payer abroad usually needs a certificate of Serbian tax residence, and without it withholds tax at its own rates for non-residents.

The convention with Russia, signed with the Federal Republic of Yugoslavia on 12 October 1995 and applied since 1 January 1998, applies in full: Russia's 2023 suspension covered it only with respect to Montenegro. It caps tax at source at 5% on dividends for a company that holds at least 25% of the capital and has invested at least $100,000, 15% on other dividends and 10% on interest and royalties.

There is no treaty with the United States. American dividends of a Serbian resident are taxed under the domestic rules of both countries, and only the unilateral foreign tax credit removes the double charge.

Automatic exchange of account information

In the list of commitments on the automatic exchange of financial account information kept by the Organisation for Economic Co-operation and Development, Serbia has no date for a first exchange. That is no reason to treat a Serbian account as invisible: exchange on request works, and banks check the origin of funds when an account is opened.

When to file tax returns in Serbia and what the penalties are

Overdue tax in Serbia grows at the National Bank's key rate plus 10 percentage points a year, and an unfiled return costs an individual up to $1,500 (150,000 dinars). There are many deadlines and almost all of them are short: 15 or 30 days.

The last line is a trap for newcomers. The Law on Tax Procedure and Tax Administration (Zakon o poreskom postupku i poreskoj administraciji) requires telling the tax office about every account abroad. For a new resident who kept accounts in the previous country this is a separate duty with a fine of $48 to $1,500 (5,000 to 150,000 dinars).

Penalties and limitation periods

• Late-payment interest - the key rate of the National Bank of Serbia plus 10 percentage points a year, simple interest, from the first day of delay (Article 75).
• An individual who did not file a return, or filed it with errors and did not correct them, pays $48 to $1,500 (5,000 to 150,000 dinars), under Article 180.
• A company or sole proprietor that did not file a return and did not pay the tax is fined 30% to 100% of the unpaid amount, but no less than $4,800 (500,000 dinars) for a company and $960 (100,000 dinars) for a sole proprietor, under Article 177.
• VAT evasion above $9,600 (1 million dinars) is already a criminal matter: one to five years in prison.
• Limitation - five years from the start of the year after the one in which the tax should have been assessed. The absolute limit is ten years. Pension and health contributions never become time-barred (Article 114e).

What changes from 2027

From 1 January 2027 the tax-free part of a salary rises to $360 (37,369 dinars) a month and the minimum wage to $4 (405 dinars) net per hour. The Tax Administration moves to a new information system, SiTAX, and the 2026 amendments let it file a return on the taxpayer's behalf from the data it already holds. Arguing with such a return is harder than filing your own on time.

All returns are filed electronically through the Tax Administration's ePorezi portal. Logging in requires a qualified electronic signature.

Who Serbia's taxes suit and who they do not

Serbia pays off for those who earn on their own and stay within $58,000 (6 million dinars) a year: a sole proprietor on the lump-sum tax hands over a fixed amount and keeps no books. For an employee on an official salary the country costs 37.6% of the total cost of labour - that is Central European territory, not a tax haven.

A good fit for:

• Developers, designers and other contractors with foreign clients and turnover of up to $58,000 (6 million dinars) a year. The lump-sum tax gives a predictable payment and minimal reporting.
• Specialists hired by a Serbian company on a salary above $4,200 (439,692 dinars) a month. For five years tax and contributions are charged on only 30% of the salary.
• Investors with dividends and interest. A flat 15%, such income stays out of the annual tax, and capital gains after ten years of ownership are not taxed at all.
• Families with assets. Children and the spouse receive inheritances and gifts tax-free.
• Those with income from countries that have a tax treaty with Serbia. The network covers more than 60 countries, from most of Europe to China, India and the United Arab Emirates.

A poor fit for:

• Remote employees of foreign employers who live in Serbia for more than 183 days. The 10% tax and 35.05% contributions have to be calculated and paid personally after every salary.
• A fast-growing business. Past $58,000 (6 million dinars) of turnover the lump-sum tax ends, past $77,000 (8 million dinars) VAT begins. The move from a fixed payment to bookkeeping and contributions on real income is noticeable.
• Those counting on investment incentives. The ten-year corporate tax holiday closes to new projects after 2027, the credit for startup investment after 2026.
• Those looking for a country outside information exchange. Serbia is a European Union candidate and has already rewritten its tax law to match European Union directives: the rules for controlled foreign companies and the tax on moving assets out start on accession.
• Those who want a passport. Tax residence does not lead to citizenship: naturalisation takes years and requires giving up the previous passport. Details are on the page Serbian citizenship.

What to do before moving

• Count the days. The 183 days are counted over a rolling 12 months, not a calendar year.
• Choose the form in advance: lump-sum tax, a sole proprietor who keeps books, or a company. A new sole proprietor opts for the lump-sum tax at registration, an existing one applies for the next year by 31 October.
• Check what happens to income in the previous country after the change of residence, and obtain a Serbian residence certificate.
• List the foreign accounts: the tax office has to be told about each one within 15 days.

The overall picture for the country - visas, residence permits, citizenship - is on the Serbia page, and it can be compared with other jurisdictions in the section on taxes and tax residency. Murblz specialists calculate the tax burden for specific income, register companies and sole proprietorships, and bring in Murblz specialists for disputes with the tax office.

What makes the Serbian tax system convenient

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