Taxes in Serbia

People who live and work in Serbia are required to pay taxes and contributions. Under Serbian legislation, tax obligations apply to both residents and non-residents.

In this article, we explain what taxes exist in Serbia, how to pay them correctly to avoid penalties, and how taxpayers can avoid double taxation.

Both residents and non-residents are required to pay taxes in Serbia. Individuals are considered tax residents if they meet one or both of the following conditions:

Tax residency in Serbia means that a person must pay taxes on their worldwide income, regardless of where it is earned.

Non-residents are individuals who stay in the country for less than 183 days per year. They are taxed only on income earned within Serbia, while income received from abroad is not included in the taxable base.

Personal income tax (PIT) in Serbia is regulated by national legislation. The following types of income are subject to taxation:

The taxable base is calculated as income minus the non-taxable threshold. Serbia uses a two-tier progressive system, where the tax rate depends on the level of income.

Important: the higher rate applies only to the portion exceeding the threshold. For example, if a resident earns 15 million RSD per year, the first 9.7 million is taxed at 10%, and the remaining amount at 15%.

In addition to income tax, residents must pay mandatory social contributions. These are typically split roughly equally between the employee and the employer.

In total, social contributions in Serbia amount to approximately 38–39%. They are calculated based on income after PIT is applied and cover:

A freelancer in Serbia is an individual who provides services without formal employment. This includes copywriters, designers, web developers, tutors, nail technicians, and other professionals.

Answers to all questions related to freelancing can be found on the official online platform. Freelance taxes in Serbia can also be paid there. The tax rate starts from 6.6%, depending on income level. A dedicated tax calculator is available to estimate total taxes and contributions. Fill out a short form to find out the total amount of taxes and contributions.

Freelancers are also required to pay health insurance contributions of 10.3%, unless they already have separate coverage. If a freelancer earns less than 96,000 RSD per quarter, they are exempt from pension and disability insurance contributions. If income exceeds this threshold, an additional 2% contribution applies.

All owners of vehicles and real estate in Serbia are required to pay property taxes annually. The amount of vehicle tax depends on factors such as the age of the vehicle and engine capacity. Electric vehicles are eligible for tax benefits.

Real estate tax in Serbia is based on the assessed value of the property, as well as its location and type. On average, owners of apartments, houses, and other residential properties pay 0.4% to 2% of the property value, as established by law. If a person has owned a property for more than 10 years, they may be exempt from paying this tax.

When selling property on the secondary market, the seller is required to pay 2.5% of the property value stated in the contract. In practice, this tax is often added to the price, meaning it is effectively paid by the buyer.

Some parties attempt to reduce costs by declaring a lower property value in the contract, but this is a violation. If tax authorities suspect underreporting, they may reassess the value using official databases or by sending an inspection commission.

For newly built properties, taxation works differently. Instead of the transfer tax, VAT applies:

In most cases, developers include VAT in the final price to simplify the transaction process.

Sole proprietors in Serbia operate under relatively simple tax rules. The tax regime depends on the system chosen at the time of registration.

The most common option is the simplified (lump-sum) system. It is widely used by builders, repair technicians, hairdressers, and other small business owners. Under this system, tax is calculated as a fixed amount based on turnover and depends on the type of activity and business location. In addition, entrepreneurs are required to pay fixed social contributions. VAT is not applicable under this regime.

If a business does not qualify for the lump-sum system, the entrepreneur must pay tax on actual profit using the “income minus expenses” model. For example, if a business earns 500,000 RSD per month and spends 80,000 RSD on rent and fuel, the taxable base is 420,000 RSD. The applicable tax rate is 15%.

Individuals who move to Serbia to live and work are required to obtain a PIB (tax identification number). This number is necessary for filing tax returns.

The rules for submitting a tax declaration depend on the taxpayer’s status. However, there is a general requirement that applies to everyone: a declaration must be filed if annual income exceeds the threshold set by the government. In Serbia, this threshold equals three average annual salaries in the country. The exact figure changes each year. As of November 2025, the average salary was 149,400 RSD per month. More details about salaries in Serbia are covered in this article.

The deadline for filing is May 15 of the following year. For example, income earned in 2025 must be reported by May 15, 2026.

Compared to some other European countries, tax rates in Serbia are relatively low. However, both residents and non-residents must strictly comply with tax regulations. Authorities also maintain strict currency control. Frequent transfers of large sums abroad by an individual or legal entity without proof of origin may trigger a tax audit.

Double taxation occurs when the same income is taxed twice in different countries. To prevent this, many countries sign double taxation avoidance agreements (DTAs). Serbia is among them and has agreements with multiple countries to ensure that income earned in Serbia is taxed only once.

If tax has been withheld twice, the taxpayer can apply for a tax refund or credit to recover the improperly withheld amount either in Serbia or in the taxpayer’s home country. To do this, it is necessary to provide documents confirming tax residency. For example, a foreigner working in Serbia can obtain a certificate from the tax authority confirming that income tax has already been paid in Serbia. This document is then submitted to the tax authority in the home country along with a refund application.

Individuals living and working in Serbia are eligible for certain tax deductions, including education expenses, medical expenses, voluntary pension contributions, commuting costs (travel to and from work). To claim deductions, supporting documents must be submitted to the tax authority. After verification, the tax amount is recalculated.

Paying taxes on income in Serbia is a legal obligation for both residents and non-residents. After that, individuals are free to decide how to use their remaining funds — there is no requirement to report personal spending. Many foreigners allocate part of their income not only to rent, groceries, and investments, but also to sending money to their home countries.

One of the most popular ways to transfer money internationally is through mobile apps, which allow users to send funds in just a few clicks without leaving home. This is how the Korona app works: simply log in using your phone number, enter the recipient’s details, and provide your bank card information.

Users choose Korona for its fast transfers, low fees, and favorable exchange conditions. The app is available for download on the App Store and Google Play.