Qualifying relocated employees benefit from a 70% reduction in the taxable base. Who is eligible, for how long, and what the relief does to relocation cost modelling.
- Flat-rate (paušal) regime cap
- Newly settled taxpayer relief
- What is the paušal (flat-rate) regime?
Operating in Serbia combines one of Europe's simplest and lowest corporate tax structures with a contractor-classification framework that companies engaging local freelancers — particularly in IT and remote services — must navigate carefully to avoid retroactive reclassification.
Companies treating Serbia purely as a low-cost contractor base without assessing the independence test exposure are taking on retroactive reclassification risk that can be substantial once a relationship is examined closely — particularly for long-tenured, single-client arrangements common in IT outsourcing. Structuring the relationship correctly from the outset is materially cheaper than correcting it after a tax authority review.
What a company pays in Serbia. Every figure below is published on the Serbia country page.
| Serbia | |
|---|---|
| Corporate tax rate | 15% flat, no surcharges, no minimum tax |
| VAT reduced rates | 10% |
| Dividend tax | 15% |
| Minimum share capital | D.o.o.: RSD 100 (~€1) |
| Incorporation timeline | As little as 3–5 business days |
What makes it complex in Serbia
- Flat-rate (paušal) regime cap — at RSD 6,000,000 annual income for sole traders — exceeding it requires moving to standard double-entry bookkeeping and taxation.
- Newly settled taxpayer relief — — a 70% reduction in tax base and social security contributions for qualifying employees relocating to Serbia, available for five years.
What is the paušal (flat-rate) regime?
Paušal is a simplified tax regime for Serbian sole traders, where a fixed monthly tax and social contribution amount — set by activity code and municipality, not actual income — applies instead of standard bookkeeping. It is available while annual income remains under RSD 6,000,000, making it popular among independent IT contractors and consultants.
Flat-rate (paušal) regime cap is one of the points HTLC Network handles for clients operating in Serbia, within a single engagement that covers every other country they operate in — executed locally, governed centrally.
In Serbia the scope is: Statutory accounts under IFRS-aligned standards, VAT returns, and corporate tax filings aligned with Serbian requirements, including transfer pricing documentation for related-party transactions.
See Accounting & Tax Compliance in Serbia for the full scope, or the Serbia country page for the statutory framework across every service.
Figures as published on the HTLC Network country pages, reviewed September 2026 and collected from public sources. They are not a substitute for advice on a specific case and should be verified before being relied on.