Freelancer Taxes in Serbia: Self-Taxation Models for 2025
Freelancers in Serbia submit their tax returns quarterly through the Freelancers portal, regardless of their income level. In 2024, the state collected 887 million dinars in freelancer income taxes, an increase of 262.4 million dinars compared to 2023.
As of February 1, 2025, the tax-free threshold for the first self-taxation model has increased to 107,738 dinars, while for the second model, it has risen to 64,979 dinars.
Taxation of Seafarers’ Income from 2025
From January 1, 2025, under Article 84v of the Personal Income Tax Law, seafarers are included in the self-taxation system. However, seafarers who spend more than 174 days per year on a foreign-flagged ship are exempt from paying taxes in Serbia.
Two Freelancer Taxation Models – Which is Better?
Model A (Better for Lower Incomes)
- Tax-free income threshold: 107,738 dinars
- Income above this amount: 20% tax + 24% pension and disability insurance (PIO) contribution
- More suitable for freelancers with lower incomes
Model B (Better for Higher Incomes)
- Tax-free income threshold: 64,979 dinars + 34% of total income
- Income above this amount: 10% tax + 24% PIO contribution
- More suitable for freelancers with higher incomes
Practical Taxation Examples
Freelancer with lower income (€300 per month / 105,000 dinars quarterly)
- Model A: Net earnings after tax and contributions: 96,250 dinars
- Model B: Net earnings after tax and contributions: 73,850 dinars
- Conclusion: Model A is more beneficial for lower incomes.
Freelancer with higher income (€1,000 per month / 352,000 dinars quarterly)
- Model A: Net earnings after tax and contributions: 212,535 dinars
- Model B: Net earnings after tax and contributions: 274,024 dinars
- Conclusion: Model B is more beneficial for higher incomes.
Deadline for Filing Tax Returns
Freelancers must submit their tax returns from April 1 to April 30 for the first quarter of the year. Those who miss the deadline may face misdemeanor sanctions.
The Tax Administration does not have precise data on the number of freelancers who have been prosecuted so far.
