Tax Aspects of a “Visa Run”
The practice of a “visa run” carries serious risks – not only can you be deported, but there is a real danger of losing a significant portion of the income you earned abroad.
When do you become a tax resident of Serbia?
According to the Law on Personal Income Tax, you are recognized as a tax resident of Serbia if:
You spend more than 183 days in Serbia during a calendar year, or
Your center of vital interests is in Serbia – this includes residence, children’s education, earnings, and income.
As a tax resident, you are obliged to report all income, both domestic and foreign. This includes: salaries earned abroad, dividends, capital gains from securities, and income from self-employment.
TAX EVASION: Failing to report income constitutes tax evasion and can have catastrophic consequences!
Monetary fines and interest that can exceed the amount of the tax debt
Imprisonment if the amount of evaded tax exceeds certain thresholds
To avoid serious problems, it is recommended to report all income as soon as possible and pay taxes to the Republic of Serbia.
LAWSUIT: Keep in mind that if you suffer losses due to someone else’s advice regarding the legality of a “visa run,” you have the right to sue those who misled you down a risky and illegal path. This includes financial losses and any legal consequences that may arise.
