Serbia tax
Tax residence: At least 183 days in 12-month period beginning or ending in the tax year. Foreign-source income of residents: Worldwide, foreign tax credit. 2 special regimes for new residents: Flat-rate taxation of entrepreneurs and 70% reduction of the salary tax base and contribution base.
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Tax residence
- At least 183 days in 12-month period beginning or ending in the tax year · Presence in Serbia for 183 or more days, continuous or interrupted.
Special regimes for new residents
Special regime
Flat-rate (lump-sum) taxation of entrepreneurs
10% tax
Details
- Who: Entrepreneur registered with the competent register who applies to the tax authority
- Limit: RSD 6M/yr ≈ $57k
Registered entrepreneurs may elect to pay 10% self-employment income tax on a lump-sum income set by the tax authority instead of on actual income. 4
Taxed on
Lump-sum income determined by decision of the tax authority from average monthly salary, number of employees and an activity coefficient (Art. 40-41).
Who it applies to
- Entrepreneur registered with the competent register who applies to the tax authority.
Exclusions
- Advertising and market research; wholesale and retail trade, hotels and restaurants, financial intermediation and real-estate activities (kiosk trade excepted); businesses with investment by other persons; entrepreneurs registered for VAT.
Limits
- RSD 6,000,000 a year (≈ $57,200) · Total turnover in the previous year (or planned turnover when starting) above this removes the right to lump-sum taxation.
Visas
Requires a registered entrepreneur status; a foreigner needs a residence ground such as self-employment.
Other taxes
Social contributions are separate.
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Special regime
Newly settled taxpayer: 70% reduction of the salary tax base and contribution base for five years
Tax relief
Details
- On: Salary from a permanent employment contract with a qualifying employer
- Who: Has not mainly lived in Serbia in the 24 months before signing the employment contract
- Limit: RSD 440k/mo ≈ $4,190
A person who has not mainly lived in Serbia in the previous 24 months (or is under 40 and returns from studies abroad), and is hired on a permanent contract by a qualifying Serbian employer for a role that needs special expertise, pays salary tax and contributions on a base reduced by 70% for five years. 1 2
Taxed on
Salary from a permanent employment contract with a qualifying employer, after the standard non-taxable deduction (Art. 15a), reduced by 70%; the contribution base is the salary reduced by 70%.
Who it applies to
- Has not mainly lived in Serbia in the 24 months before signing the employment contract; or is under 40 and lived mainly abroad in the previous 12 months for further education or training.
- Is hired on a permanent contract by a Serbian-resident employer that is not related to the person's previous employer.
- The expertise condition is treated as met when monthly salary is above RSD 439,692 (≈ $4,190) (first group) or above RSD 293,128 (≈ $2,790) (second group, under 40 returning from studies).
- Settles in Serbia and is a tax resident by centre of business and life interests and a resident for treaty purposes.
- The relief runs five years from signing the contract while the conditions continue, including after a change of employer.
Exclusions
- The wording covers salary under a permanent employment contract; fixed-term contracts are not named.
Limits
- RSD 439,692 a month (≈ $4,190) · Salary above which the role and expertise condition is treated as met (first group: no mainly Serbian residence in the previous 24 months).
- RSD 293,128 a month (≈ $2,790) · Salary above which the role and expertise condition is treated as met (second group: under 40, studied or trained abroad in the previous 12 months).
Tax residence
The person must settle in Serbia with the employment or within a reasonable time after and be a tax resident by centre of business and life interests; the relief starts with the first salary for the month in which the competent authority's proof is obtained.
Visas
Not tied to a permit; a foreigner needs a residence and work ground, for example a single permit on employment.
Other taxes
The 10% salary tax and contributions (14% employee and 10% employer pension, 5.15% health each, 0.75% unemployment) apply to the reduced base; value added tax and other taxes are separate.
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Which visas the regimes apply to
- 70% reduction of the salary tax base and contribution base: Work permit (single permit). Not tied to a permit; a foreigner needs a residence and work ground, for example a single permit on employment.
Standard rules and foreign-source income
Standard rules
Personal income tax: residence test and rates
10% tax
Details
- On: Residents: income by category earned in Serbia and abroad
- Who: Resident: domicile or centre of business and life interests in Serbia
- Limit: RSD 34k/mo ≈ $330
Residents are taxed on income earned in Serbia and in another state; salary and self-employment income are taxed at 10%, capital income and capital gains at 15%, royalties and property income at 20%, with a tax credit for income tax paid abroad up to the Serbian tax on that income. 1 2 3
Taxed on
Residents: income by category earned in Serbia and abroad. Non-residents: Serbian-source income.
Who it applies to
- Resident: domicile or centre of business and life interests in Serbia, or 183 or more days (any partial day counts, transit excluded) in a 12-month period beginning or ending in the tax year.
- Foreign tax credit (Art. 12): a resident who earns income in another state, on which tax was paid there, receives a credit equal to the foreign tax, not above the Serbian tax on that income.
- Salary tax base is the salary minus a non-taxable amount of RSD 34,221 (≈ $330) a month for full-time work in 2026; the amount is RSD 37,369 (≈ $360) a month from 1 January 2027.
- Mandatory social contributions on salary: pension and disability 14% employee and 10% employer, health 5.15% each, unemployment 0.75% employee.
Exclusions
- A person who was not present in the tax year and has no domicile or centre of interests in Serbia is not resident for that year.
Limits
- RSD 34,221 a month (≈ $330) · Non-taxable amount deducted from full-time salary in 2026; RSD 37,369 (≈ $360) from 1 January 2027.
Days in the country
- At least 183 days in 12-month period beginning or ending in the tax year · Presence in Serbia for 183 or more days, continuous or interrupted.
Visas
Tax residence arises from presence or interests, not from a residence permit.
Other taxes
Social contributions on salary and self-employment (pension and disability, health, unemployment) and the annual personal income tax on large income are separate; contribution rates on salary are 24% pension, 10.3% health and 0.75% unemployment in total.
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VAT, social security and other taxes
- Social contributions on salary and self-employment (pension and disability, health, unemployment) and the annual personal income tax on large income are separate; contribution rates on salary are 24% pension, 10.3% health and 0.75% unemployment in total.
- Social contributions are separate.
- The 10% salary tax and contributions (14% employee and 10% employer pension, 5.15% health each, 0.75% unemployment) apply to the reduced base; value added tax and other taxes are separate.
Questions people ask
When do you become a tax resident in Serbia?
At least 183 days in 12-month period beginning or ending in the tax year (Presence in Serbia for 183 or more days, continuous or interrupted).
Is foreign-source income taxed in Serbia?
Worldwide, foreign tax credit. Residents are taxed on income earned in Serbia and in another state; salary and self-employment income are taxed at 10%, capital income and capital gains at 15%, royalties and property income at 20%, with a tax credit for income tax paid abroad up to the Serbian tax on that income.
Who qualifies for Flat-rate taxation of entrepreneurs?
Entrepreneur registered with the competent register who applies to the tax authority. Requires a registered entrepreneur status; a foreigner needs a residence ground such as self-employment.
Who qualifies for 70% reduction of the salary tax base and contribution base?
Has not mainly lived in Serbia in the 24 months before signing the employment contract; or is under 40 and lived mainly abroad in the previous 12 months for further education or training. Not tied to a permit; a foreigner needs a residence and work ground, for example a single permit on employment.
≈ USD figures are approximate: daily reference rates from ExchangeRate-API, dated 12 Oct 2026, refreshed when the site is updated.
Sources (4)
Official sources
- Law on Personal Income Tax (Sl. glasnik RS 24/2001 and amendments, consolidated text as published on paragraf.rs) · Paragraf Lex (reproduction of the Official Gazette text) · checked 2026-10-10
- Law on Contributions for Mandatory Social Insurance (consolidated through Sl. glasnik RS 80/2026), Serbian text · paragraf.rs reproduction of the Official Gazette of the Republic of Serbia · checked 2026-10-11
- Law amending the Law on Personal Income Tax (Sl. glasnik RS 80/2026): non-taxable amount RSD 37,369 from 1 January 2027 · National Assembly of the Republic of Serbia · checked 2026-10-11
- Law on Personal Income Tax (consolidated through Sl. glasnik RS 80/2026), Serbian text · Paragraf (reprint of the Official Gazette text) · checked 2026-10-10