Taxes in Serbia
Serbian tax system belongs to the group of jurisdictions with the lowest tax rates in Europe and remained well below Europe average corporate and personal tax rate.
What are the taxes
Serbia has over 60 double-taxation restraint agreements with different countries over the world. There isn’t capital duty or payroll tax. Regarding individuals, it imposes the income tax on income, autonomous business income, authors’ rights, capital, real estate, capital gain and other types of income. Non-citizens are taxed only on income generated in Serbia. For income tax purposes, an individual is considered resident if taxpayer has a residence or center of business or stays in Serbia for at least 183 days in the total during the tax year. Apostolate tax residence certificate can be obtained 365 days after temporary residence is granted.
Tax rates
The table below provides an overview of several frequently encountered tax types along with their corresponding rates.
| Tax | Tax Rate |
|---|---|
| VAT | 20% |
| Corporate income tax | 15% |
| Personal income tax | 10%-20% |
| Dividend tax | 15% (residents); 20% (non-residents) |
| Capital Gains tax | 15% – 20% |
| Property tax | 0.3% – 0.4% (legal entities); 0.3% – 2% (individuals) |
| Inheritance tax | 1.5% – 2.5% |
| International tax | 15% – 20% |
| Cryptocurrency tax | 15% |
Request bookkeeping solution
If you have a company in Serbia jurisdiction, it is mandatory to do accounting and complete all taxation rules according to Serbian laws. Our experts also offer bookkeeping solutions, please read more information about accountancy below.
Tax system
There are two stages of taxation of individuals in Serbia – taxation of income at the moment of generation and additional annual taxation. Serbia divides income into schedules and each schedule has its own tax rate, which applies on gross income. On an annual level income is aggregated on a net level and new progressive tax is introduced.
Direct tax
Direct tax is one that is assessed on an individual (legal or natural) or property (i.e. real and personal property, livestock, crops, salaries, etc.) as distinct from the transaction tax.
Indirect tax
An indirect tax is a tax imposed by an agent (such as a retail store) on a person who carries the ultimate economic tax burden (such as the consumer). Subsequently, the intermediary issues a tax return and returns the tax proceeds to the nation.
Net income
In any of the aforementioned groups, net income is calculated on all total earnings earned over the fiscal year and decreased by revenue-related expenditures for the same time. Losses from one of the seven types of basic income (except capital investment) should be entirely compensated against positive income from another category of income (exceptions which apply to other income').
Business in Serbia
Our company provides services for setting up a company in Serbia. The specialists of our company have the necessary knowledge, experience and qualifications. We can offer a consultation with taxes in Serbia. In addition, we also provide business support, accounting and other services necessary for your business. Our specialists have vast experience in this field of activity. We will be happy to help you successfully open a business in Serbia.
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Disclaimer
Tax laws and regulations are frequently updated and can differ depending on personal situations. The information presented here is intended for general guidance and may not represent the latest changes. It is strongly advised to seek the assistance of a qualified tax professional for specific and current advice tailored to your circumstances.