If you are a foreign citizen working in Serbia, this text serves to familiarize you with your tax rights and obligations. Whether you are employed, self-employed, or a digital nomad, timely settlement of your income tax obligations is an integral part of your stay in Serbia.

Personal income tax is calculated and paid in accordance with the Personal Income Tax Law .

If you are a foreign citizen employed in Serbia

For tax purposes, earnings are considered income earned through employment, as defined by the Labor Law and other regulations governing employment relationships and other employee income.

Income tax is calculated and paid at a rate of 10%. The tax base is the income less the monthly non-taxable amount. For 2024, the non-taxable amount is 25,000 dinars per month. This amount is adjusted with the annual consumer price index in the calendar year preceding the year in which the adjustment is made, according to data from the republican authority responsible for statistics.

The employer, as the payer of income, calculates and pays withholding tax by calculating, withholding and paying tax to the prescribed single payment account for each taxpayer and for each individually paid income at the time of payment of income, in accordance with the regulations in force on the date of payment of income, unless otherwise prescribed by the Personal Income Tax Law.

Contributions for mandatory social insurance (pension and disability insurance, health insurance, and unemployment insurance) are calculated and paid based on earnings.

The rates at which contributions are calculated and paid are:

• for mandatory pension and disability insurance – 24% (paid by the employer at a rate of 10%, and by the employee at a rate of 14%);
• for mandatory health insurance – 10.3% (paid by the employer and the employee at a rate of 5.15%);
• for unemployment insurance – 0.75% (paid at the expense of the employee).

We would like to point out that an employment relief has been prescribed for a newly settled taxpayer, in the form of a 70% reduction in the tax base and mandatory social security contributions based on the salary of the newly settled taxpayer, who in the period of 24 months preceding the date of conclusion of the employment contract with a qualified employer did not reside predominantly on the territory of the Republic of Serbia or who at the time of conclusion of the employment contract with a qualified employer is less than 40 years old, and who in the period of 12 months preceding the conclusion of the employment contract with a qualified employer resided predominantly outside the territory of the Republic of Serbia for the purpose of further education, i.e. professional training. The relief has been in effect since March 1, 2020, and is realized for a period of 5 years from the date of conclusion of the employment contract. The right to a reduction in the tax base and contributions for mandatory social insurance based on earnings is granted to a newly settled taxpayer who, at the same time as establishing an employment relationship or within a reasonable period after establishing an employment relationship, settles in the territory of the Republic of Serbia and who meets the condition to be considered its tax resident and insured.

If you are a foreign citizen who is self-employed in Serbia

Persons who register their independent activities as entrepreneurs in the Republic of Serbia are subject to income taxation at a rate of 10%.

The tax base consists of taxable profit or flat-rate income, depending on the taxpayer’s choice and fulfillment of the prescribed conditions. Self-employment income tax on taxable profit is paid through self-assessment, while tax on flat-rate income is paid upon a decision of the Tax Administration.

Based on their income from self-employment, entrepreneurs pay contributions for mandatory social insurance (pension and disability insurance, health insurance, and unemployment insurance).

The rates at which contributions are calculated and paid are:

• for mandatory pension and disability insurance – 24%;
• for compulsory health insurance – 10.3%;
• for unemployment insurance – 0.75%.

Detailed information on tax obligations for the self-employed is available on the Tax Administration website and in the Tax Information for Individuals Performing Self-Employment, which you can download here .

If you are a digital nomad or work in the territory of the Republic of Serbia as an employee of a foreign company (referred person)

If you are a foreign individual – non-resident, and you earn income from copyright and related rights and based on a contractual fee for work on the territory of the Republic of Serbia from a payer of income from abroad (legal entity, entrepreneur or individual) or a domestic individual, or from another person who, when paying income, does not calculate and pay obligations based on taxes and contributions in the Republic of Serbia, you are obliged to independently calculate and pay income tax and contributions for mandatory social insurance (pension and disability insurance contributions and health insurance contributions).

Taxes and contributions on income from copyright and related rights and contracted fees for work performed, on which tax is paid through self-assessment, are paid quarterly based on income generated in that period.

You can choose one of two alternative methods of recognizing standardized costs in dinar amounts and determining the personal income tax base and the contribution base for pension, disability and health insurance.

First model

• Standardized costs of 103,296 dinars are recognized quarterly;
• Tax is paid at a rate of 20%;
• The contribution base for pension and disability insurance for the quarter is taxable income;
• The contribution base for mandatory health insurance for a quarter is at least three times the base amount of 15% of the average monthly salary in the Republic of Serbia.

Another model

• Standardized costs of 62,300 dinars are recognized quarterly, increased by 34% of the gross income generated in the quarter;
• Tax is paid at a rate of 10%;
• The contribution base for pension and disability insurance for a quarter is at least three times the amount of the lowest monthly contribution base;
• The contribution base for mandatory health insurance is the same as for the previous group of taxpayers.

For each quarter, there is the option of choosing a different tax base, where taxpayers determine and pay tax for each quarter, and the tax return is submitted within 30 days of the end of the quarter, which is also the deadline for paying the tax. Information regarding taxation and the necessary forms are available at this link .

If you are sent to work in Serbia by a foreign employer, taxes and mandatory social security contributions are calculated and paid on your earnings, unless international agreements provide for a different regulation of these obligations.