Taxation in Serbia: Overview of Key Provisions for Businesses and Individuals

01.10.2025

Serbia offers a competitive tax system, attractive for international investors, IT companies, and individual entrepreneurs. Below are the main provisions of tax legislation applicable in 2024.

Corporate Income Tax

• Rate: 15%
• Profit = income – expenses
• Filing: annually
• From the second year, an advance tax payment is required in the amount of the tax due for the previous year
• Incentives in the IT sector

Value Added Tax (VAT)

• Standard rate: 20%
• Reduced rate: 10% for certain types of activities
• Deduction and refund available in accordance with the law
• Filing: monthly/quarterly

Withholding Tax

• Standard rate: 20%
• 25% rate applies to payments made to offshore structures
• The scope of taxable rights and services is determined by law

Dividend Tax

• Standard rate: 15%
• The applicable rate depends on the existence of a double taxation treaty

Capital Gains Tax

• Rate: 15% / 20% (resident / non-resident)
• Exemption applies if the asset has been held for more than 10 years

Transfer Tax on Absolute Rights

• Rate: 2.5%
• Statutory obligation of the seller, but in practice usually paid by the buyer

Property Tax

• Rate: 0.2–0.4%

Personal Income Tax (PIT)

• Annual non-taxable amount: approx. EUR 36,300
• Rate 10% if income does not exceed approx. EUR 72,600
• Rate 15% if income exceeds approx. EUR 72,600
• Taxpayers under the age of 40 are exempt from PIT if income does not exceed approx. EUR 72,600
• Personal allowance: EUR 4,800
• Family allowance: EUR 1,800 per dependent

Taxation of Sole Proprietors (Entrepreneurs)

1. Lump-sum regime – if annual income does not exceed EUR 50,000, a fixed monthly amount of tax and social contributions is payable (on average EUR 250–400 per month).
2. Income – expenses regime – 10% tax rate on the difference between income and expenses (tax and social contributions are paid in the amount of 60% of the net salary, which is determined by the entrepreneur).

Incentives

• Reduction of the tax base by up to 70% for the payment of taxes and social contributions for highly qualified employees
• Reduction of the effective corporate income tax rate to 3% in the case of registration of intellectual property in Serbia (royalty income)
• Double deduction of recognised expenses related to research and development activities carried out in Serbia
• Founders of innovative companies employed in the company are exempt from taxes and social contributions on salary payments

Tax Changes as of 2024

• Until the end of the year, by-laws remain in force allowing for the refund of paid taxes and social contributions in case of employing foreign nationals
• Minimum salary raised to RSD 40,143 (approx. EUR 340)
• The PIT non-taxable threshold has been increased (see PIT information above)

Ready to Enter the Serbian Market?

The REVERA team supports international companies and entrepreneurs at all stages of entering the market: from tax planning to business registration and transaction support.

Authors: Bogić Sekulović, Anna Miritskaya 

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