Doing business in Serbia for migrants: registration, taxes, and benefits

Serbia is becoming an increasingly attractive jurisdiction for foreign entrepreneurs seeking to establish a business in Europe. This is due to its combination of low taxes, simple registration procedures, affordable operating costs, and strategic geographic location — offering access to the markets of the EU, Russia, Turkey, and the Middle East. The country is particularly appealing for migrants who wish not only to start a business but also to obtain a residence permit.
This article covers the key steps for business registration, the tax system, and available incentives for foreign investors and entrepreneurs.

1. Choosing the Legal Form
The main legal forms of business in Serbia are:

• DOO (Drustvo sa Ogranicenom Odgovornoscu) — equivalent to an LLC. Minimum share capital: 100 Serbian dinars (~€1). The most common form for small and medium-sized businesses.
• Preduzetnik (Sole Proprietor) — suitable for freelancers, self-employed individuals, and small traders.
• AD (Akcionarsko Drustvo) — joint-stock company, requiring larger capital and typically used for medium to large enterprises.

2. Registration with the Business Registers Agency (APR)
The registration process takes 5–10 working days:

• Prepare the company’s Articles of Association, founding decision, and identification documents of the founders.
• Submit documents online via the APR portal or in person.
• Pay the registration fee (approx. 4,900 RSD).
• Obtain the company ID number (MB) and tax identification number (PIB).

3. Opening a Bank Account
After registration, a business account must be opened in a Serbian bank. Foreigners must be present in person and provide company documents along with a passport.

4. Registration with Tax and Social Insurance Authorities

• Register for VAT (mandatory for annual turnover above 8 million RSD, ~€68,000).
• Register with the Social Insurance Fund if employees are hired.

5. Obtaining a Residence Permit Based on Entrepreneurship
Registering a company serves as a valid basis for obtaining a temporary residence permit in Serbia. Applicants must provide a business plan, proof of company activity, a bank account, and a registered office address.

1. Corporate Income Tax (CIT)

• Rate: 15% on net profit.
• All income minus justified and documented expenses is considered taxable.

2. Value Added Tax (VAT / PDV)

• Standard rate: 20%.
• Reduced rate: 10% for food, medicines, books, and utilities.
• VAT registration required for turnover exceeding 8 million RSD (~€68,000) per year.

3. Withholding Tax on Dividends and Royalties

• 20% standard rate for non-residents; can be reduced to 5–15% under a double taxation treaty.

4. Payroll Contributions

• Employer contributions: approx. 17.9% of the employee’s gross salary.
• Employee contributions: approx. 19.9% withheld from salary.

5. Personal Taxation (for Sole Proprietors)
Flat rate: starting from 10% under simplified taxation.
Option to use a fixed tax regime for specific types of activities.

1. Tax Holidays

• Companies investing at least €8.5 million and creating 100+ jobs are exempt from corporate income tax for up to 10 years.

2. IP Box Regime

• Income derived from intellectual property is taxed at a reduced effective rate of around 3%.

3. Double R&D Deduction

• All research and development (R&D) expenses incurred in Serbia can be deducted twice when calculating taxable income.

4. Subsidies and Grants

• State subsidies for hiring unemployed workers.
• Additional grants for establishing businesses in underdeveloped regions.

5. Free Economic Zones
Serbia operates 15 free zones, offering tax and customs benefits, including:

• No VAT,
• Exemption from customs duties,
• Simplified export procedures.

Serbia offers a wide range of opportunities for foreign entrepreneurs — from straightforward registration procedures to an attractive tax system and generous investment incentives. Doing business here can not only generate income but also serve as a pathway to a residence permit and, ultimately, citizenship.
However, it’s essential to account for all legal and tax details. We recommend seeking professional support when registering a business and applying for residency.

If you plan to open a business in Serbia and need expert guidance — contact Visa Dan.

Visa Dan is an international company with a strong legal team and experience in assisting more than 1,000 clients. We offer:

• Individual selection of solutions and strategies for obtaining a residence permit.
• Complete transparency and support at every stage.
• A strong team in Europe: lawyers, translators, operators, notaries.
• Support until you receive your ID card, as well as assistance with renewal and integration in the country.

The Visa Dan team will help you navigate this journey from start to finish. Get personalized advice and start your new life in 2025!