Verified Facts
The tax rates in Serbia range from 10% to 20% for personal income, with a corporate tax rate of 15%, and a standard VAT rate of 20%.
Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. This is a general guide only.
Quick Facts
Tax System Overview
Serbia has a territorial taxation system, where residents are taxed on their worldwide income, but non-residents are only taxed on their Serbian-sourced income. To be considered a tax resident in Serbia, an individual must have a permanent home in the country, or spend more than 183 days in a calendar year in Serbia. The tax system is administered by the Ministry of Finance and the Tax Administration, which is responsible for collecting taxes and enforcing tax laws.
The tax year in Serbia runs from January to December, and taxpayers are required to file their tax returns by March 15th of the following year. The tax authorities in Serbia also have a network of tax treaties with over 60 countries, which helps to prevent double taxation and fiscal evasion. These treaties provide a framework for the exchange of information and cooperation between tax authorities, and can provide relief from taxation in certain circumstances.
Personal Income Tax
| Income Bracket (RSD) | Tax Rate |
|---|---|
| 0 - 270,000 | 10% |
| 270,001 - 540,000 | 15% |
| 540,001 - 810,000 | 18% |
| 810,001 and above | 20% |
Taxpayers in Serbia are entitled to various deductions and allowances, including a personal allowance of RSD 540,000, and deductions for mortgage interest, charitable donations, and education expenses. Tax returns must be filed electronically, and taxpayers are required to keep records of their income and expenses for at least five years. The tax authorities in Serbia also provide a range of services and support to taxpayers, including online filing and payment options, and a network of tax offices and contact centers.
Corporate & Business Tax
- The corporate tax rate in Serbia is 15%, which applies to the taxable profits of companies.
- Small businesses and start-ups may be eligible for small business incentives, such as reduced tax rates or tax holidays.
- Serbia has a number of free zones, which offer tax exemptions and other benefits to companies that operate within them.
- Companies must register with the Tax Administration and obtain a tax identification number before commencing business activities.
- The Tax Administration also requires companies to file annual tax returns and make regular tax payments throughout the year.
VAT / Sales Tax
- The standard VAT rate in Serbia is 20%, which applies to most goods and services.
- A reduced VAT rate of 10% applies to certain goods and services, such as food, books, and pharmaceuticals.
- Some goods and services are exempt from VAT, such as healthcare and education services.
- Tourists may be eligible for a tourist refund scheme, which allows them to claim a refund of VAT on certain purchases.
For Expats & Foreign Workers
- Expats and foreign workers are considered tax residents in Serbia if they spend more than 183 days in a calendar year in the country.
- Serbia has a network of double taxation treaties with over 60 countries, which helps to prevent double taxation and fiscal evasion.
- Expats and foreign workers may be eligible for tax relief under these treaties, which can provide relief from taxation in certain circumstances.
- Expats and foreign workers are also required to register with the Tax Administration and obtain a tax identification number.
- They may also be required to make social security contributions, which are used to fund public healthcare and pension schemes.
- The Tax Administration also requires expats and foreign workers to file annual tax returns and make regular tax payments throughout the year.
Crypto & Investment Income
- Investment income, such as dividends and interest, is subject to a withholding tax of 20%.
- Capital gains are taxed at a rate of 15%, or may be included in income and taxed at the individual's marginal tax rate.
- Cryptocurrency is considered a form of property in Serbia, and gains from the sale of cryptocurrency are subject to capital gains tax.
- The Tax Administration has issued guidelines on the taxation of cryptocurrency, which provide clarity on the tax treatment of cryptocurrency transactions.