Serbia taxes residents on their worldwide income and non-residents on Serbian-source income, and employment income is subject to a flat personal income tax plus mandatory social contributions. Rates, thresholds, allowances and deadlines change often, so use this guide to understand the structure and confirm every figure with the Tax Administration or a local accountant.
Tax Residence
Tax residence depends on Serbian tax law, not on your immigration status. In general, you can be a Serbian tax resident if your permanent home or the centre of your economic interests is in Serbia, or if you spend more than 183 days in Serbia in a twelve-month period. Tax residents are taxed on income from all sources, and non-residents are taxed on income from Serbian sources. If you also have ties to another country, the tax treaty between Serbia and that country decides which one can tax each kind of income. Serbia has treaties with many countries. See our residence permit guide for the immigration side.
Employment Income
Employees pay personal income tax at a flat rate, currently 10% on salary above a tax-free allowance, as far as I know. On top of that, mandatory contributions for pension and disability insurance, health insurance and unemployment insurance are paid both by the employee and by the employer. The employer calculates and pays these through payroll, so employees do not normally file a return for salary alone. Rates, the tax-free amount and the minimum and maximum contribution bases change every year, so check your employer’s payslip or the Tax Administration.
Freelancers and Business Owners
Self-employed people can register as entrepreneurs, and some choose flat-rate taxation, where a fixed tax and contribution amount is set by the authorities based on your activity. Entrepreneurs also pay pension, health and unemployment contributions, and can face monthly contribution minimums. Companies pay corporate profit tax at 15%. Which form suits you depends on your income and clients, and non-residents or people on specific permits may face restrictions, so see an accountant before you register. Our work permit guide covers the immigration side of self-employment.
Foreign Income and Remote Work
If you become a Serbian tax resident, income from a foreign employer or foreign clients can be taxable in Serbia, subject to treaties and credits for tax paid abroad. If you are not a tax resident, Serbia generally taxes only income with a Serbian source, but the rules on what counts as Serbian-source work are technical. Do not assume that foreign income is tax-free just because the money arrives in a foreign account. Ask a Serbian accountant to look at your specific case.
US Citizens
US citizens must continue to file US tax returns on worldwide income while living in Serbia. Two mechanisms can reduce or eliminate double taxation: the Foreign Earned Income Exclusion, which requires meeting the bona fide residence or physical presence test, and the Foreign Tax Credit for tax paid to Serbia. There are also US reporting rules for foreign bank accounts. Use a tax professional familiar with US expat filing, and see our banking guide for account issues.
Property Taxes
Owners of property in Serbia pay an annual property tax, which depends on the municipality and on the assessed value of the property. When a property is sold, there is a transfer tax of 2.5% on the sale price for most resale transactions, which is generally paid by the seller, although the contract can allocate it differently. New-build purchases are usually subject to VAT instead. Rental income and capital gains from property are taxable, and rules differ for residents and non-residents. See our property buying guide. Check current rates and who pays with a notary or lawyer before you sign.
Filing and Deadlines
Whether you must file a personal tax return depends on your income types. Employees whose employer withholds tax usually do not file. People with other income, such as foreign income, rental income or income above the thresholds for annual income tax, may have to file. Deadlines depend on the type of return, so confirm them on the Tax Administration website (poreska.gov.rs) or with an accountant. Penalties and interest apply to late filing and late payment.
Practical Tips
- Keep records of how many days you spend in Serbia each year.
- Keep copies of contracts, invoices and proof of tax paid abroad.
- Ask for payslips that show tax and contributions.
- Use an accountant for the first year, especially if you have income from outside Serbia.
- Check the tax treaty between Serbia and your home country.
Frequently Asked Questions
Do I pay tax in Serbia if I live there?
If you are a Serbian tax resident, yes, on income from all sources, subject to tax treaties. Non-residents generally pay tax on Serbian-source income.
Does the 183-day rule decide everything?
No. It is one test, and your permanent home or the centre of your economic interests can also make you a resident.
Is there a wealth tax in Serbia?
There is no general wealth tax, but there is an annual property tax and a gift and inheritance tax, with exemptions for close relatives.
I’m Nevena, a writer and Belgrade native who now splits my time between Serbia and the UK. I’ve been living between two countries for 8 years, which means I understand Belgrade from both sides: as someone who grew up here, and as someone who had to rediscover it through expat eyes.
That dual perspective shapes everything I write. I cover expat life in Belgrade in depth, the things no guidebook tells you, like how to navigate the healthcare system, where to find reliable childcare, what property buying actually involves for foreigners, and how much things really cost when you live here rather than just visiting. I’ve done most of this myself, which means my guides are based on real experience, not research from a distance.
I also write about Serbia and the wider Balkans as a travel destination, a region that still surprises people with how much it offers. I’ve taken 35+ solo trips across Serbia, Bosnia & Herzegovina, North Macedonia, Montenegro, Croatia and Romania, and I speak Serbian, English and conversational Romanian.
Belgrade is one of Europe’s most underrated cities, and I’ve made it my mission to change that, one honest, practical guide at a time.