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Serbia
We have a dedicated team of professionals ready to support all your business needs, so you can focus on driving growth and expanding your operations in Serbia.
Why Serbia?
- Strategic Location
Serbia’s position at the crossroads of Central and Southeast Europe makes it an essential logistics hub. Its proximity to key European markets, supported by a comprehensive transport network—roadways, railways, and inland waterways—offers seamless connectivity for regional and international trade.
- Open and Growing Economy
Serbia maintains a stable macroeconomic environment supported by fiscal reforms and international cooperation. With a forecasted GDP growth of 3% in 2025 and consistent foreign direct investment inflows, Serbia offers a dynamic and forward-looking business climate.
- Business-Friendly Environment
The Serbian government continues to implement structural reforms to simplify business processes, reduce bureaucracy, and enhance transparency. Entrepreneurs benefit from digitalized company registration, efficient licensing, and streamlined tax administration, all contributing to an attractive investment ecosystem.
- Competitive Tax and Incentive Framework Serbia levies a flat corporate income tax rate of 15%, complemented by various incentive schemes such as tax holidays, customs exemptions, cash grants, and subsidised land. Companies operating within Free Zones enjoy further tax relief and administrative advantages.
- Preferential Market Access Through a network of free trade agreements including with the EU, CEFTA, EAEU (including Russia), and Turkey – Serbia provides preferential or duty-free access to a market of over one billion consumers, enhancing its appeal as a regional manufacturing and export base.
- Investor Protection and Legal Certainty Serbia guarantees national treatment to foreign investors and provides strong legal protections through national laws and over 60 bilateral investment treaties. Access to international arbitration, including ICSID, further enhances investor confidence.
Taxation Regime
Individual Taxation
Residents are taxed on their global income, while non-residents are liable only on Serbian-sourced income. A flat personal income tax rate of 10% applies to most income categories, including salaries, dividends, and capital gains. A monthly non-taxable allowance of RSD 28,423 (as of 2025) offers relief to lower earners.
Tax Overview:
- Personal Income Tax:10% flat rate
- Corporate Income Tax:15% on distributed profits; undistributed profits are tax-deferred
- Value Added Tax (VAT):20% standard rate; 10% on essential goods (e.g., food, medicines, books)
- Withholding Tax:20% on dividends, interest, and royalties paid to non-residents (subject to treaty relief)
- Property Tax (municipal):Up to 0.40% of property value, determined locally
There are no municipal or local income taxes imposed on personal or corporate income in Serbia.
Corporate Taxation
Resident companies are taxed on worldwide income, while non-residents are taxed only on Serbian-source income. The corporate income tax is a flat 15%, primarily applied to distributed profits. Undistributed profits generally benefit from tax deferral.
Types of Business Entities in Serbia
- Limited Liability Company (Društvo sa Ograničenom Odgovornošću – DOO)
The most commonly used entity types in Serbia, ideal for small and medium-sized enterprises.
- Can be incorporated by individuals or legal entities (including 100% foreign ownership)
- Minimum capital: RSD 100 (less than €1)
- Liability limited to capital contributions
- Simple governance structure with one or more directors
- Joint Stock Company (Akcionarsko Društvo – AD)
Suitable for larger businesses or entities seeking capital through public or private investment.
- Minimum capital: RSD 3,000,000 (approx. €25,000)
- Can be public or private
- Permits public trading of shares
- More complex governance and reporting requirements
- Branch Office
A foreign company may operate in Serbia through a registered branch.
- Not a separate legal entity; parent company remains fully liable
- Must register with the Serbian Business Registers Agency (SBRA)
- Can engage in commercial activities on behalf of the parent company
- Representative Office
Used for non-commercial functions such as market research, promotion, or liaison.
- Cannot perform income-generating activities
- Must register with the SBRA
- Acts as an extension of the foreign parent company
- General Partnership (Ortačko Društvo – OD)
- All partners share unlimited liability
- Suitable for small, professional firms
- No minimum capital required
- Limited Partnership (Komanditno Društvo – KD)
- Includes at least one general partner with unlimited liability
- Limited partners’ liability restricted to their capital contributions
No capital minimums apply
Conclusion
Serbia offers a stable, transparent, and cost-efficient business environment with access to a vast network of regional and global markets. Its competitive tax regime, modern infrastructure, and pro-investment policies make it an ideal destination for companies seeking to establish or expand their presence in Europe.
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