--- title: "Serbia tax for new residents 2026: Worldwide, foreign tax credit" url: https://settleanywhere.com/countries/serbia/tax/ lang: en updated: 2026-10-11 --- # 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. Checked against official sources on 11 Oct 2026 [Change log](https://settleanywhere.com/changes/) ## 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. (source 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. Checked against official sources on 10 Oct 2026, some details partly verified [Change log](https://settleanywhere.com/changes/) 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. (sources 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. Checked against official sources on 11 Oct 2026, some details partly verified [Change log](https://settleanywhere.com/changes/) ## Which visas the regimes apply to - **70% reduction of the salary tax base and contribution base**: [Work permit (single permit)](https://settleanywhere.com/countries/serbia/single-permit-employment/). 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 Foreign-source income: Worldwide, foreign tax credit **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. (sources 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. Checked against official sources on 11 Oct 2026, some details partly verified [Change log](https://settleanywhere.com/changes/) ## 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 1. [Law on Personal Income Tax (Sl. glasnik RS 24/2001 and amendments, consolidated text as published on paragraf.rs)](https://www.paragraf.rs/propisi/zakon_o_porezu_na_dohodak_gradjana.html) · Paragraf Lex (reproduction of the Official Gazette text) · checked 2026-10-10 2. [Law on Contributions for Mandatory Social Insurance (consolidated through Sl. glasnik RS 80/2026), Serbian text](https://www.paragraf.rs/propisi/zakon_o_doprinosima_za_obavezno_socijalno_osiguranje.html) · paragraf.rs reproduction of the Official Gazette of the Republic of Serbia · checked 2026-10-11 3. [Law amending the Law on Personal Income Tax (Sl. glasnik RS 80/2026): non-taxable amount RSD 37,369 from 1 January 2027](https://www.parlament.gov.rs/upload/archive/files/lat/pdf/zakoni/14_saziv/2551-26%20-%20Lat..pdf) · National Assembly of the Republic of Serbia · checked 2026-10-11 4. [Law on Personal Income Tax (consolidated through Sl. glasnik RS 80/2026), Serbian text](https://www.paragraf.rs/propisi/zakon_o_porezu_na_dohodak_gradjana.html) · Paragraf (reprint of the Official Gazette text) · checked 2026-10-10