# Taxes in Serbia > Serbia's 2026 tax system: flat 10% salary tax, 15% corporate tax, 15% final dividend tax, annual surtax 10–15%. Residency triggers and the Russia treaty. Author: Мария Плотникова — юрист, Family Office (https://wiki.private.law/authors/plotnikova) Last modified: 2026-07-16T09:24:00.000Z Canonical: https://wiki.private.law/en/serbia-tax Topics: investments Jurisdictions: serbia Semantic tags: tax-regime --- Against the European backdrop Serbia's tax system looks ascetic: a flat 10% on salaries, 15% on profits and dividends. For internationally mobile clients it is one of the few jurisdictions in continental Europe where a functioning tax treaty with Russia coexists with a moderate burden. Data as of July 2026. ## Headline rates Salary PIT is a flat 10%; from January 2026 the monthly tax-free allowance is RSD 34,221 — a 20% uplift on the previous figure ([PwC](https://taxsummaries.pwc.com/serbia/individual/taxes-on-personal-income)). The full cost of an employee deserves separate arithmetic: social contributions accrue on top, so the total payroll burden is materially higher than the headline rate. CIT (porez na dobit) is 15% ([zuniclaw.com](https://zuniclaw.com/en/corporate-income-tax-in-serbia-2026/)). Dividends paid to individuals bear a 15% withholding, and the taxation is final — dividends do not enter the annual surtax base ([PwC](https://taxsummaries.pwc.com/serbia/individual/income-determination)). The classic owner's formula for a d.o.o.: 15% on profit plus 15% on distribution. | Tax | 2026 rate | | --- | --- | | PIT (salary) | 10% flat; tax-free allowance RSD 34,221/month | | CIT | 15% | | Dividend withholding | 15%, final | | Annual surtax (godišnji porez) | 10% above 3× the average annual salary; 15% above 6× | > 🍓 The working formula for a d.o.o. owner: 15% CIT + 15% dividend withholding, with no annual surtax on dividends. Salary income costs more than the 10% headline suggests — contributions come on top. And residency can arise without 183 days: a permanent home or a centre of vital interests is enough. ## The annual surtax Godišnji porez is a top-up for high personal incomes: 10% on the slice of annual income above three national average annual salaries, 15% above six ([PwC](https://taxsummaries.pwc.com/serbia/individual/taxes-on-personal-income)). Individuals under 40 receive an extra deduction of three average annual salaries. Dividends stay outside this base — another argument for the dividend model over salary. ## Tax residency Serbia treats as resident anyone with a permanent home or a centre of vital interests in the country, or presence of 183+ days in a 12-month period beginning or ending in the tax year; transit days do not count ([PwC](https://taxsummaries.pwc.com/serbia/individual/residence)). Residents are taxed on worldwide income. The practical implication: an apartment bought for a [residence permit](https://wiki.private.law/en/serbia-residence) is a potential residency trigger well before 183 days, and it pays to plan for that in advance. ## The Russia treaty The double tax treaty between Russia and Yugoslavia, signed on 12 October 1995 and in force since 6 May 1996, continues to apply to Serbia in 2026: Russia has not suspended it, as Serbia is not on the “unfriendly jurisdictions” list ([consultant.ru](https://www.consultant.ru/document/cons_doc_LAW_13489/)). Against the backdrop of suspended treaties with most of Europe, this is a rare working mechanism for relieving double taxation. ## Entrepreneur regimes Small businesses can use the paušal (lump-sum) regime for preduzetnik status — a fixed tax whose amount depends on the municipality and the type of activity. There is no universal rate: parameters are confirmed locally for the specific profile. ## Who it fits The Serbian setup makes sense for a relocated professional living in the country and earning through a local d.o.o. or employment, and for a capital owner who needs predictable residency with a functioning Russia treaty. The weak spot is the absence of special regimes: Serbia offers no non-dom-style shelter for foreign passive income — a resident's entire worldwide income is in the base. Banking infrastructure is reviewed in [Serbian banks](https://wiki.private.law/en/serbia-banks); mobile professionals may compare the route with [digital nomad visas](https://wiki.private.law/en/digital-nomad-visas). ## FAQ ### **When does Serbian tax residency arise?** Under any of the criteria: a permanent home, a centre of vital interests, or 183+ days in a 12-month period beginning or ending in the tax year. Transit days are excluded. ### **Is the Russia–Serbia tax treaty still in force in 2026?** Yes. Russia has not suspended the 1995 treaty — Serbia is not on the “unfriendly” list. Among European jurisdictions this is now a rare exception. ### **What does a d.o.o. owner pay on profit extraction?** 15% CIT at company level, then a final 15% withholding on dividend distribution. Dividends do not enter the annual surtax base. ### **How are high salaries taxed?** Above three national average annual salaries the godišnji porez kicks in at 10%, above six — 15%. Under-40s receive an additional deduction of three average annual salaries. ### **Are there fixed regimes for small business?** Yes — the paušal lump-sum tax for preduzetnik. Rates are municipality- and activity-specific and are confirmed locally. --- ## FAQ ### When does Serbian tax residency arise? Under any of the criteria: a permanent home, a centre of vital interests, or 183+ days in a 12-month period beginning or ending in the tax year. Transit days are excluded. ### Is the Russia–Serbia tax treaty still in force in 2026? Yes. Russia has not suspended the 1995 treaty — Serbia is not on the “unfriendly” list. Among European jurisdictions this is now a rare exception. ### What does a d.o.o. owner pay on profit extraction? 15% CIT at company level, then a final 15% withholding on dividend distribution. Dividends do not enter the annual surtax base. ### How are high salaries taxed? Above three national average annual salaries the godišnji porez kicks in at 10%, above six — 15%. Under-40s receive an additional deduction of three average annual salaries. ### Are there fixed regimes for small business? Yes — the paušal lump-sum tax for preduzetnik. Rates are municipality- and activity-specific and are confirmed locally. --- ## Factual claims - Against the European backdrop Serbia's tax system looks ascetic: a flat 10% on salaries, 15% on profits and dividends. - Salary PIT is a flat 10%; from January 2026 the monthly tax-free allowance is RSD 34,221 — a 20% uplift on the previous figure (PwC). - CIT (porez na dobit) is 15% (zuniclaw.com). - Godišnji porez is a top-up for high personal incomes: 10% on the slice of annual income above three national average annual salaries, 15% above six (PwC). - Serbia treats as resident anyone with a permanent home or a centre of vital interests in the country, or presence of 183+ days in a 12-month period beginning or ending in the tax year; transit days do not count (PwC).