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BELGRADE – Serbia is attracting many entrepreneurs, digital nomads, and global investors in 2025 thanks to its favorable tax regime, streamlined residency options, and strategic European location.
With no wealth tax, flat 15% corporate tax, and personal income tax capped at 20%, Serbia is fast becoming a prime destination for those seeking tax residency within Europe. Newcomers can establish tax residency via simple routes such as company formation or real estate investment—without any minimum capital threshold.
Why Serbia is Gaining Momentum Among Global Tax Planners
Once part of Yugoslavia, Serbia has spent the past two decades rebuilding itself into a dynamic European hub. Its EU candidate status, business-friendly environment, and relatively low cost of living have made it an attractive jurisdiction for tax optimization and lifestyle relocation.
The Serbian government offers flexible residency pathways for investors, entrepreneurs, and remote professionals—allowing tax residents to benefit from:
- Global tax treaties with 60+ countries
- No wealth or inheritance taxes
- Access to a fast-growing European market
Understanding Tax Residency in Serbia
Before relocating, it’s critical to grasp the distinction between tax residency and non-residency:
- Tax Residents: Taxed on worldwide income.
- Tax Non-Residents: Only taxed on Serbia-sourced income.
In Serbia, you qualify as a tax resident if you meet any of the following:
- Spend more than 183 days per year in Serbia
- Have a permanent residence (personal base) in Serbia
- Maintain an economic base such as a business
Note: Acquiring residency or citizenship does not automatically confer tax residency—you must meet one of the statutory criteria.
Two Main Paths to Residency in Serbia for Tax Purposes
Residency by Company Formation
Serbia allows foreign nationals to acquire residency by establishing a local company, typically a limited liability company (LLC):
- Minimum capital requirement: €1
- Incorporation time: 5–7 days
- Residency application: After company registration
- Bank account setup: Fast and flexible (Serbia not in CRS yet)
✅ After six months, the temporary residence permit is renewable for up to three years. Permanent residency is available after five years, provided the applicant resides in Serbia at least 2.5 years during that time.
Residency by Real Estate Investment
Foreign nationals can also apply for temporary residency by purchasing real estate—though land ownership is restricted:
- No minimum investment threshold
- Must come from a country with a reciprocal real estate agreement
- Permit duration: Renewable yearly
- Stay requirement: Must spend 6+ months per year in Serbia
The real estate route is slower than company formation, often taking up to 35+ days, including property acquisition.
From Temporary to Permanent Residence—and Citizenship
After 5 years of legal, continuous temporary residency, applicants can apply for permanent residence, including family members.
Once permanent residency is granted and maintained for 5 more years, applicants can qualify for Serbian citizenship.
Tax Benefits of Serbian Residency in 2025
Serbia’s tax system continues to appeal to international professionals and investors seeking lower burdens:
- Corporate tax: Flat 15%
- Personal income tax: 10–20%, depending on income type
- No wealth tax or inheritance tax
- Double Taxation Avoidance Agreements (DTAAs): 60+ countries
Business-Friendly Environment
Serbia’s government actively supports entrepreneurship:
- No restriction on foreign business ownership
- No local hiring requirement
- Easy access to skilled talent, especially in Belgrade
- Central European location ideal for cross-border operations
Passport Potential: A Strategic Advantage
Residency in Serbia can ultimately lead to a Serbian passport, currently ranked 28th globally by the Nomad Passport Index:
- Visa-free travel to 134 countries, including the EU, Japan, China, Russia, UAE
- Strong geopolitical neutrality, with cultural ties to both Europe and Russia
Is Serbian Tax Residency Right for You?
Serbia is a top-tier jurisdiction for those seeking a middle ground between low taxes and high quality of life within Europe.
- Favorable tax environment
- Strategic investment pathways
- Straightforward legal framework
- Strong gateway to EU and Eastern markets
However, if your primary goal is zero taxation, jurisdictions like the Caribbean or the UAE may offer more aggressive strategies.
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