Serbia: residency, company and tax

An entrepreneur (preduzetnik) is not a separate legal entity: you trade in your own name and are liable with your own assets. Registration is quicker and cheaper than for a company. Income is taxed at 10%, either on taxable profit from your books or as flat-rate (lump-sum) income, which the Tax Administration sets as a fixed amount. Flat-rate status is open to entrepreneurs with annual turnover below RSD 6 million who meet the independence criteria.

A limited liability company has its own legal personality, and its members are not liable for its debts. It pays 15% profit tax. Dividends paid to resident individuals are taxed at 15%, and dividends paid to non-residents carry 20% withholding tax unless a tax treaty reduces the rate.

Both forms are registered with the Serbian Business Registers Agency, electronically and with a qualified electronic signature or through a representative. The registrar decides within five working days. The same filing can request VAT registration, flat-rate taxation and social security registration, and companies record their beneficial owner within 15 days of formation.

Running a business is a recognised basis for residence in Serbia. Founders and entrepreneurs apply for a single permit for self-employment, and the National Employment Service checks that the business is genuine. Because extensions depend on the ground still existing, the company should have real activity and keep its filings up to date.

Bookkeeping, tax returns and contracts are handled by licensed Serbian accountants and lawyers; Redomiciled sets up the structure with them and keeps the timeline.

The Ministry of Interior grants residence under the Law on Foreigners. Founders and entrepreneurs apply for a single permit for self-employment, which combines the right to live and the right to work in Serbia. The National Employment Service assesses the business within 10 days, and the ministry decides within 15 days of a complete application. Single permit applications are filed only online, from Serbia or from abroad, and the biometric card is collected in person.

Owners of residential property use a separate ground. The law covers flats and houses in Serbia that the foreigner owns and actually lives in, and it sets no minimum value. A permit on this ground is limited to its purpose and does not include the right to work; anyone who also wants to work or run a business in Serbia needs a single permit.

Spouses and children can join through family reunification, and adults who receive a permit on that basis may work. Every applicant provides a valid passport, evidence of means of subsistence, a registered address in Serbia, health insurance and proof of the chosen ground. The ministry decides on ordinary temporary residence applications within 30 days.

Permits are renewed for the same period while the ground still exists, and the extension can be filed from three months before expiry until the last day of validity. After three years of continuous residence, with absences of no more than ten months in total or six months at a time, you can apply for permanent residence. Permanent residents have largely the same rights and duties as Serbian citizens.

Serbian immigration lawyers prepare and defend each application, and licensed Serbian tax advisers handle the tax side; we coordinate the steps and the introductions.