Quick answer — company setup in Serbia. Foreigners can register a Serbian d.o.o. with the Serbian Business Registers Agency (APR), usually within a few working days, with minimum share capital of RSD 100. Corporate tax is 15%. Freelancers often prefer the flat-rate entrepreneur (paušal) regime, but the independence test can reclassify their income as employment if they work mainly for one client. Serbia also offers an IP box and incentives for relocated tech workers.
Serbia, and Belgrade in particular, has become a popular base for remote developers and tech founders, helped by low living costs, a large IT talent pool, a simple company registration process and visa-free entry for many nationalities. It sits outside the EU, so a Serbian company has no EU VAT number, but for B2B services to international clients that is rarely a problem.
Freelancers face a real choice between two forms. The flat-rate entrepreneur (preduzetnik paušalac) pays low, fixed taxes based on deemed income, but since 2020 the independence test can turn a freelancer working for one main client into a disguised employee. A d.o.o. avoids that test, pays 15% on profits and 15% on dividends, and is more flexible as the business grows.
It does not suit founders who need an EU VAT number, or founders who stay tax resident elsewhere. It is not designed for locally employed expats.
Comparing options outside the EU? See our guide to low-tax countries in Europe outside the EU.
If a flat-rate entrepreneur works mainly for one client, the tax authority applies a set of criteria (such as working hours set by the client, using the client's equipment, or the client being the main source of income). If enough criteria are met, the income is reclassified as employment income and taxed accordingly. The test is a key reason many freelancers with one main client choose a d.o.o.
If you are comparing destinations, see the Montenegro d.o.o. with a nomad visa and Georgian individual entrepreneur status.
Foreigners usually need a temporary residence permit to live in Serbia beyond visa-free stays; owning or working for a Serbian company is a common basis. You become Serbian tax resident if you have a residence or centre of interests in Serbia, or spend more than 183 days there in a 12-month period.
A d.o.o. is resident in Serbia by registration. If you run it from another country, that country may claim it is managed there.
Amounts are indicative.
For freelancers with several clients, the flat-rate regime is hard to beat. For one main client or a growing business, the d.o.o. is safer.
Serbian banks open accounts for foreign-owned companies and entrepreneurs relatively easily, with foreign-currency accounts available. Expect KYC on the owner and the registration documents.
The Serbia Business Bank Comparison Guide compares the main options for new companies and entrepreneurs — get it when you start your Serbian setup with Heavnn.
Yes. Foreigners can own 100% of a d.o.o. or register as an entrepreneur. Registration with the APR usually takes a few working days.
Serbia's corporate income tax rate is 15%. Dividends paid to resident individuals are also taxed at 15%.
It lets small entrepreneurs pay fixed monthly tax and contributions based on deemed income, rather than on actual profit, as long as turnover stays under the cap and they pass the independence test.
It is a set of criteria used to check whether a flat-rate entrepreneur is really an employee of their main client. If enough criteria are met, the income is reclassified as employment income.
Serbia is outside the EU, so Serbian companies cannot get an EU VAT number. B2B services to EU clients are usually handled through reverse charge by the client.
In Serbia, the independence test decides your structure. Heavnn runs it on your client base before you register.
Start your Serbian setup with Heavnn →
This guide is general information, not tax or legal advice. Rates and fees are indicative as of October 2026.
