If you're moving to Serbia, here's how taxes work
Serbia's tax system has some unique features that can work in your favour — or against you. Here's what to expect.
Tax System Overview
| Tax Component | Rate / Details |
|---|---|
| Tax System Type | Progressive |
| Top Personal Income Tax Rate | 20% |
| Effective Rate on €90,000 | 24% |
| Net Monthly on €90,000 Gross | €5,070 |
| VAT (Standard Rate) | 20.0% |
| Special Expat Regime | Yes — exempt. Return of Diaspora Tax Incentive: 10% income tax rate |
| Tax Revenue (% of GDP) | 19.7% |
Income Tax in Serbia
Serbia operates a progressive income tax system, meaning higher earners pay a higher percentage on their income above certain thresholds. The top marginal rate is 20%.
What Does This Mean in Practice?
On a gross annual salary of €90,000, you would pay an effective tax rate of approximately 24%, resulting in a net monthly income of approximately €5,070. This accounts for income tax and mandatory social contributions.
For context, the average monthly salary in Serbia is approximately €1,267.
Considering Serbia? Our decision engine scores your profile against real visa rules, salary data, and cost of living. Get Your Free Verdict →
VAT (Value Added Tax)
The standard VAT rate in Serbia is 20.0%. VAT is included in consumer prices and applies to most goods and services. Reduced rates typically apply to:
- Basic food items and groceries
- Medical supplies and pharmaceuticals
- Books and educational materials
- Public transport (in some cases)
Special Tax Regimes for Expats
Yes — exempt. Return of Diaspora Tax Incentive: 10% income tax rate
If eligible, these regimes can provide substantial savings during your initial years in Serbia. Always verify current requirements with a qualified tax professional, as rules change frequently.
Tax Filing Requirements
As a tax resident of Serbia, you are generally required to:
- Register with tax authorities upon establishing residence
- Obtain a tax identification number
- File an annual tax return (deadlines vary)
- Declare worldwide income if you are a tax resident
- Report foreign bank accounts if applicable
Double Taxation
Serbia has double taxation agreements (DTAs) with numerous countries. These treaties determine which country has the right to tax specific types of income and help prevent you from being taxed twice on the same income. Before moving, check whether a DTA exists between Serbia and your home country.
Tax Tips for Expats
- Hire a local tax adviser familiar with expat situations during your first year
- Keep records of all income, deductions, and tax payments from day one
- Understand residency rules: most countries consider you a tax resident after 183 days
- Check for exit tax: some countries impose tax on unrealised gains when you leave
- Social security contributions are often separate from income tax and can add 10-20% to your total burden
Frequently Asked Questions
What deductions can expats claim in Serbia?
Common deductions in Serbia include pension contributions, health insurance premiums, mortgage interest (in some cases), charitable donations, and work-related expenses. Moving costs may also be deductible in some jurisdictions. A local tax adviser can maximise your deductions.
How does Serbia's tax compare to other countries?
With an effective rate of 24% on €90k income and a top rate of 20%, Serbia's tax burden is Moderate by European standards. The tax revenue as a share of GDP is 19.7%. Compare with other countries using our assessment tool.
Can I avoid double taxation when moving to Serbia?
Serbia has double taxation agreements (DTAs) with many countries. These treaties prevent you from paying tax on the same income twice. Check whether a DTA exists between Serbia and your home country, and which income types are covered.
What social security contributions do expats pay in Serbia?
Social security contributions in Serbia are typically mandatory for employed residents and cover healthcare, pensions, and unemployment insurance. Combined employer-employee rates vary from 15-45% of gross salary depending on the country. These are separate from income tax.
Are there special tax regimes for expats in Serbia?
Yes — exempt. Return of Diaspora Tax Incentive: 10% income tax rate. Special tax regimes can significantly reduce your tax burden during the initial years of relocation. Consult a local tax adviser to determine your eligibility.
Planning to move to Serbia?
Get your personalised emigration verdict covering visa eligibility, cost of living, and career prospects across 200+ countries.
Get Your Free Verdict