What do “foreigners” have to pay in Serbia?
Serbia has been working on the improvement of investment opportunities for years and, in terms of that, it has introduced numerous amendments to different laws to attract foreign investors. In that context, there have been some significant changes that have put Serbia high on the list of countries that many foreign nationals opt for when making decisions on living and working on its territory.
This is also supported by statistical data, which show that the number of foreigners, who have come to Serbia to work, has increased almost two and a half times in just one year, i.e. slightly over 11 thousand foreign nationals have obtained temporary residence permit, while almost 8 thousand of them have come here for employment. We are talking about people from 133 different world countries.
Serbian tax system includes consumption, income and property. Subsequently, foreign natural persons in Serbia deal with:
– VAT, as a general consumption tax,
– individual income tax,
– property tax,
– inheritance and gift tax,
– absolute rights transfer tax,
– annual individual income tax,
– double taxation agreements,
After buying real estate, foreign nationals, who have decided to invest in real estate in Serbia, are going to face the obligation to transfer that real estate into their own name. In other words, when buying real estate, it is necessary to pay the absolute rights transfer tax.
Property tax refers to natural persons (non-residents), who own real estate on the territory of the Republic of Serbia, the value of which exceeds 400,000 dinars.
In those cases, when you are hired based on executive employment contracts, employment agreements or you are just the founder of a company registered in Serbia, your liabilities are regulated by the individual income tax.
If you are one of many foreigners, who have chosen Serbia as a place to invest, live and work in, you have come to the right place, where you can find out what are your tax liabilities and how to settle them.