Personal Income Tax 2026 – Serbia
Serbia uses a flat 10% tax on employment income plus supplementary progressive tax for high earners. Different rates apply to various income types (capital gains 15%, rental 20%, royalties 20%). Administered by Tax Administration (Poreska uprava).
Personal Income Tax 2026
Serbia uses a flat 10% tax on employment income plus supplementary progressive tax for high earners. Different rates apply to various income types (capital gains 15%, rental 20%, royalties 20%). Administered by Tax Administration (Poreska uprava).
Employment Income Tax
Applied to salary after deducting employee social contributions and non-taxable amount. Employer withholds monthly. Taxable base = Gross salary - Social contributions (19.9%) - Non-taxable amount (RSD 34,221 in 2026).
Increased from RSD 28,423 in 2025. Approximately €290 per month. Applied automatically to all employees. Results in net salary increase of approximately RSD 580 per month compared to 2025 with same gross.
Foreign workers under 40 who haven't resided in Serbia for 2 years before employment: 70% reduction on tax base and social contributions. Significant incentive for attracting young foreign talent.
Supplementary Annual Tax
Approximately €42,000-€84,000 annual income (based on 2026 average salary). Total effective rate: 20% (10% monthly + 10% annual). For those under 40, base reduced by 3× average salary before calculation.
Above approximately €84,000 annual income. Total effective rate: 25% (10% monthly + 10% on 3-6× + 15% above 6×). This supplementary tax applies to employment and self-employment income, not capital gains.
Dividends, interest, and capital gains excluded from supplementary annual tax calculation. Creates incentive to structure compensation through capital rather than salary.
Other Income Types
Shares, property, cryptocurrency. Exemption if held 10+ years continuously. Report within 120 days after quarter. 50% tax relief available if reinvested in Serbian company within 90 days-12 months.
Tax on gross rental income. Deductions allowed for documented expenses (maintenance, mortgage interest). Significantly higher rate than employment income. Consider expense optimization.
Copyright, related rights, industrial property. Standard costs deductible: 50%, 43%, or 34% of gross depending on type. Effective rate ranges from 10-13.2% when considering standard deductions.
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