Serbia (RS)
A low-cost Western Balkan EU-candidate country with a lively Belgrade expat scene, strong IT and gaming sectors, cafe culture, good regional travel links, private healthcare options and a fast-moving residence/work permit system.
Capital: Belgrade
Region: Europe
Language: Serbian
Currency: RSD (din)
Cost of living: Very affordable (index 32)
Emergency: 112
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Business Setup
Start a business or go freelance in Serbia.
🧑💻 Freelancer / Self-Employed Guide
Steps to register:
- 1 Choose between paušal (flat-tax entrepreneur), personal-salary entrepreneur, DOO, or foreign-company employment based on clients, revenue, liability needs, and visa status.
- 2 Register activity with APR (Agency for Business Registers) using the correct activity code (šifra delatnosti).
- 3 Open a Serbian business bank account and keep personal and business funds strictly separate.
- 4 Register tax obligations and ePorezi (e-tax portal) access — work with an accountant for initial setup.
- 5 Issue compliant invoices in Serbian dinars where required; maintain contracts for foreign clients.
- 6 Track the VAT threshold, independence-test risk (reklasifikacija), and foreign-exchange documentation requirements.
Tax registration
APR registration flows to the Tax Administration (Poreska Uprava), but entrepreneurs and companies still need ePorezi access, accountant setup, contribution payments, and monthly/quarterly filings depending on regime.
VAT threshold
VAT (PDV) registration mandatory when turnover exceeds RSD 8,000,000 in any preceding 12-month period. Voluntary registration before this threshold has consequences — review with an accountant.
Invoicing
Invoices must include: legal name, address, PIB (tax ID), MB (company registration number), bank account, service description, date, amount, VAT status, and foreign-currency/RSD treatment where applicable. E-invoicing (eFaktura) is mandatory for all B2B transactions.
Social security
Entrepreneurs pay pension, health, and unemployment contributions based on their chosen or tax-assessed contribution base. DOO director salary/dividend structures require payroll and contribution planning with an accountant.
💡 The Serbian self-employment independence test (test samostalnosti) can reclassify disguised employment — if you work predominantly for one client under their direction, you may be re-classified as an employee, triggering back-taxes. Remote workers invoicing a single foreign client should get specialist advice before choosing paušal status.
🏢 Business Structures
Preduzetnik · Entrepreneur / sole trader
Sole proprietor
None
Min. capital
1–7 days online or through APR
Setup time
Liability: Unlimited personal liability
Setup cost: RSD 1,500–5,000 (APR registration + accountant setup)
Best for: Freelancers, consultants, and small service businesses with manageable liability risk.
Pausalni preduzetnik · Flat-tax entrepreneur
Flat-tax sole proprietor
None
Min. capital
1–7 days plus Tax Administration decision (issued within 30 days)
Setup time
Liability: Unlimited personal liability
Setup cost: APR registration RSD 1,500; monthly lump-sum taxes and contributions set by Tax Administration (typically RSD 5,000–25,000/month total depending on activity and location)
Best for: Small freelancers under turnover and activity limits who want predictable monthly tax obligations with minimal accounting.
Preduzetnik licna zarada · Entrepreneur with personal salary
Sole proprietor with salary model
None
Min. capital
1–2 weeks to structure correctly
Setup time
Liability: Unlimited personal liability
Setup cost: APR registration RSD 1,500; accountant RSD 5,000–15,000/month strongly recommended
Best for: Higher-earning freelancers who need expense deductions and a more flexible tax base. Contributions paid on declared personal salary rather than total business profit.
DOO · Društvo sa ograničenom odgovornošću
Limited liability company
RSD 100 minimum share capital
Min. capital
3–10 working days basic registration
Setup time
Liability: Limited to company assets except in cases of director or tax misconduct
Setup cost: RSD 5,000–20,000 (APR registration, notary if needed, accountant setup)
Best for: Serious business operations requiring liability separation, hiring employees, local client invoicing, VAT registration, and investor structures.
Ogranak · Branch of foreign company
Branch office
No separate capital; backed by foreign parent company
Min. capital
2–4 weeks
Setup time
Liability: Foreign parent company fully liable for all branch obligations
Setup cost: RSD 15,000–40,000+ (APR registration, legalised and translated parent documents, legal fees)
Best for: Foreign companies opening Serbian operations without a separate subsidiary. Taxed on Serbia-source income at 15% corporate tax.
Predstavništvo · Representative office
Representative office
None
Min. capital
2–4 weeks
Setup time
Liability: Foreign founder responsible for all representative office obligations
Setup cost: RSD 10,000–30,000+ (APR registration, legalised and translated parent documents)
Best for: Market research, promotion, and liaison activities only — cannot conduct direct commercial trading or generate revenue in Serbia.
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