Quick answer
Serbia has almost no itemised personal deductions in 2026. Relief is built into each income type. Key items: a non-taxable salary slice (RSD 34,221 a month from January 2026) and 25% standard costs on rent. Freelancers get quarterly standard costs, and newcomers earning above RSD 439,692 a month get a 70% salary base cut.
Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad
Heavnn
Stay tax compliant, wherever you work
Answer a few questions and get a clear plan for your own situation.
Find my savings →You earn a salary, freelance fees or rent in Serbia and want to know what actually lowers your bill. This guide lists the reliefs that matter in 2026, with exact dinar amounts and the conditions for newcomers.
Serbia personal deductions and benefits in 2026: the key figures
| Item | 2026 rule | Legal basis |
|---|---|---|
| Non-taxable salary amount | RSD 34,221 per month for most of 2026; RSD 37,369 in the latest consolidated text | Art. 15a(2) ZPDG (Personal Income Tax Law) |
| Newly settled employees | Salary tax base cut by 70% for 5 years on an indefinite contract if salary exceeds RSD 439,692 a month (RSD 293,128 for under-40s returning from study or training abroad) | Art. 15v ZPDG |
| Tax-free commuting and foreign per diem | Commuting up to RSD 5,782 a month; per diem abroad up to EUR 90 a day | Art. 18 ZPDG |
| Voluntary pension and health premiums withheld through payroll | Free of salary tax up to RSD 8,677 a month combined | Art. 21a(2) ZPDG |
| Founders of innovative start-ups | Salary up to RSD 150,000 a month relieved for 36 months | Art. 21e ZPDG |
| Freelancers with foreign clients | Quarterly standard costs of RSD 110,647 (option 1) or RSD 66,733 plus 34% of income (option 2) | ZPDG, consolidated text |
| Rental income | 25% standard costs or actual costs, then 20% tax | Tax Administration guidance |
| Annual income tax allowances | 40% of the average annual salary for you, 15% per dependant, capped at 50% of taxable income | ZPDG, annual tax chapter |
What changed for 2026
- The monthly non-taxable salary amount is RSD 34,221, up from RSD 28,423 at the start of 2025, according to PwC's Serbia summary (secondary).
- The Personal Income Tax Law was amended again in Official Gazette 80/2026. The consolidated text of art. 15a now shows RSD 37,369 a month. Check from which payroll month it applies on the Tax Administration site.
- Indexed dinar amounts were republished in Official Gazette 115/2025 and 6/2026. So freelancer standard costs are now RSD 110,647 and RSD 66,733. The 2023 launch figures were RSD 96,000 and RSD 57,900.
Is this guide for you?
Read on if you…
- are a Serbian tax resident with salary, freelance or rental income and want every legal relief;
- are moving to Serbia for a local job and want to know if the newcomer regime applies;
- invoice foreign clients as a private individual and must pick a quarterly tax option.
Probably not your case if you…
- are a non-resident with only Serbian dividends or interest, taxed at source with no personal deductions;
- want corporate incentives such as the IP box. See corporate income taxes in Serbia.
Why does Serbia have so few personal deductions?
Serbia uses a schedular income tax: each income type has its own base and flat rate. Salary and self-employment pay 10%, investment income 15%, rent and royalties 20%. No annual return lets you list mortgage interest, school fees or donations.
Relief therefore comes as fixed slices or standard costs, tax-free employer benefits within caps, targeted regimes for newcomers and founders, and allowances inside the annual personal income tax (godišnji porez na dohodak građana), which only hits higher earners.
What can employees deduct from salary in Serbia?
The monthly non-taxable amount
Your employer withholds 10% salary tax on gross salary minus a fixed monthly amount. Under art. 15a(2) ZPDG that amount applies to full-time employees. For most of 2026 it was RSD 34,221. The current consolidated text shows RSD 37,369.
Here's the catch: the slice only reduces salary tax. Social contributions still apply to the full gross salary. Employees pay 19.9% (14% pension, 5.15% health, 0.75% unemployment). Employers add 15.15%. The contribution base is capped at five average monthly salaries, according to PwC (secondary).
Benefits your employer can pay tax-free
| Benefit | Tax-free cap (2026) | Basis |
|---|---|---|
| Commuting to work | Up to the public transport cost, max RSD 5,782 a month | Art. 18 ZPDG |
| Per diem on business trips abroad | Up to EUR 90 a day | Art. 18 ZPDG |
| Voluntary pension fund and voluntary health insurance premiums your employer withholds from your salary and pays over | RSD 8,677 a month in total | Art. 21a(2) ZPDG |
| Employee recreation and sport organised by the employer | Exempt if all staff have equal access under internal rules | Art. 18a ZPDG |
Good news: ask payroll to withhold your voluntary pension or health premium from your salary. Within the cap, that slice escapes the 10% salary tax.
What you cannot deduct
Employees cannot deduct home-office costs, equipment, rent, mortgage interest, school fees or donations. Voluntary pension premiums you pay privately, outside payroll, do not help either.
How does the annual personal income tax work, and which allowances cut it?
On top of the flat schedular taxes, Serbia levies an annual tax on high earners. It applies when your net income for the year exceeds three times the average annual salary, as published by the Statistical Office.
How it is calculated
- Income between three and six average annual salaries is taxed at 10%.
- Income above six average annual salaries is taxed at 15%.
- Investment income and capital gains are excluded, so a pure investor rarely pays it.
The Tax Administration generates the return in its system by 1 April. You then have until 15 May to check and amend it, according to PwC's tax administration summary (secondary). The official filing guide walks you through the ePorezi portal.
The allowances
| Allowance | Amount |
|---|---|
| Personal allowance | 40% of the average annual salary |
| Each dependent family member | 15% of the average annual salary |
| Overall cap | 50% of taxable income |
| Under 40 | Income reduced by three average annual salaries |
The under-40 relief is the big one: it doubles the starting point for a young professional.
The dinar threshold for 2025 income follows the 2025 average annual salary published by the Statistical Office.
Which deductions apply to freelancers and self-employed people?
Freelancers paid by foreign clients
If foreign clients pay you directly and you have no Serbian business registration, you self-assess each quarter on the Tax Administration's freelancer portal. You file form PP OPO-K once the quarter closes. For Q3 2026 the deadline was 30 October 2026, per the Tax Administration notice.
You choose one of two options each quarter:
| Option | Standard costs per quarter (current amounts) | Income tax | Pension contribution |
|---|---|---|---|
| Option 1 | RSD 110,647 | 20% | 24% on the same base |
| Option 2 | RSD 66,733 plus 34% of gross income | 10% | 24%, with a quarterly minimum |
Health contributions of 10.3% apply on top, unless you are already insured on another basis. Option 1 tends to win at low quarterly income, option 2 at higher income. Run both in the portal's calculator before you file.
Registered entrepreneurs
A preduzetnik (sole trader) on actual profit pays 10% on net profit after real business expenses. You can also elect a personal salary (art. 33a ZPDG), which is deductible for the business. Flat-rate entrepreneurs (paušalci) deduct nothing: they pay a lump sum set by the Tax Administration. The trade-offs are covered in legal forms of business in Serbia.
Rental income
You deduct 25% standard costs, or actual documented costs on request, then pay 20% on the rest. If you self-assess, you file form PP OPO and pay within 30 days of receiving the rent. See the Tax Administration's rental calculator. The effective rate on gross rent is therefore 15%.
What benefits exist for newcomers and founders?
The newly settled taxpayer regime
This is Serbia's main relief for people who relocate for a job. Under art. 15v ZPDG, the salary tax base (gross minus the non-taxable amount) is cut by 70% for five years from the employment contract. The conditions:
- you did not mainly stay in Serbia during the 24 months before the contract, or you are under 40 and mainly lived abroad in the previous 12 months for study or professional training;
- you sign an indefinite-term contract with a Serbian-resident employer that is not related to your previous employer;
- your monthly salary is above RSD 439,692, or above RSD 293,128 in the under-40 case;
- you become Serbian tax resident under the centre-of-vital-interests test and any applicable treaty.
The cut starts with the salary for the month in which the authority issues proof that you qualify. Changing employer later does not end it.
Details and the other regimes are in tax incentives for expats and digital nomads in Serbia.
Founders of innovative start-ups
Art. 21e ZPDG relieves a founder's salary of up to RSD 150,000 a month for the first 36 months after the company is founded. An older RSD 37,000 founder relief only covers companies registered by 31 December 2020.
Example – Ana, 36, data scientist moving from Vienna to Belgrade
In 2026 Ana signs an indefinite contract with a Serbian employer at RSD 500,000 gross a month. She has not lived in Serbia in the last 24 months, so she qualifies as newly settled. Normal salary tax: (500,000 − 34,221) × 10% = RSD 46,578. With the 70% cut: 465,779 × 30% × 10% = RSD 13,973. She saves RSD 32,605 a month, or RSD 391,254 over twelve months, in salary tax alone. Contributions follow separate rules, so her payroll provider must check them too.
Ana's relief hinged on three dates and one threshold. Yours probably does too.
Tell us how you earn in Serbia and we will check which reliefs you are leaving unused.
Find my savings →Common mistakes (and what they cost)
- Assuming you can deduct rent, mortgage interest or donations. No such personal deduction exists. Cost: a budget built on relief that never arrives.
- Paying voluntary pension premiums privately. Premiums paid from your own account get no relief. Withheld through payroll, up to RSD 8,677 a month, they are free of the 10% salary tax. Cost: up to RSD 868 a month.
- Staying on freelancer option 1 as income grows. At higher quarterly income, 20% on a small standard cost costs far more than option 2. Cost: thousands of dinars every quarter.
- Signing the job contract too early. The newly settled test looks at the 24 months before the contract. Cost: losing a five-year 70% base cut.
- Ignoring the pre-filled annual return. You must check and correct it by 15 May. Cost: missed dependant allowances, plus exposure under the tax fraud regulations of Serbia.
Frequently asked questions
What is the tax-free salary amount in Serbia in 2026?
For most of 2026 the monthly non-taxable amount was RSD 34,221 for a full-time employee. The consolidated art. 15a ZPDG, after the 80/2026 amendment, shows RSD 37,369, so check which figure your payroll month uses. The amount only reduces the 10% salary tax. Social contributions still apply to the full gross salary.
Does Serbia have a child tax deduction?
Not in monthly salary tax. In the annual personal income tax, which only applies above three average annual salaries, you deduct 15% of the average annual salary per dependant. Together with your own 40% allowance, the total cannot exceed 50% of taxable income. Family benefits are paid through the social system, not the tax return.
Can remote employees deduct home office costs in Serbia?
No. Employees have no deduction for work expenses. Your employer can pay some items tax-free within caps, such as commuting up to RSD 5,782 a month. If you trade as an entrepreneur on actual profit, documented business costs, including a share of a home office, reduce your taxable profit.
Who qualifies as a newly settled taxpayer in Serbia?
Someone who did not mainly stay in Serbia during the 24 months before signing an employment contract with a qualifying Serbian employer. An under-40 who mainly lived abroad in the previous 12 months for study or training also qualifies. The salary must exceed RSD 439,692 a month, or RSD 293,128 in the under-40 case. The salary tax base is then cut by 70% for five years.
Which freelancer option is better in Serbia?
Option 1 deducts RSD 110,647 per quarter and taxes the rest at 20%. Option 2 deducts RSD 66,733 plus 34% of income and taxes the rest at 10%. Low quarterly income usually favours option 1, higher income option 2. You can switch every quarter, so compare both in the portal calculator.
Related guides
- Tax incentives for expats and digital nomads in Serbia
- Legal forms of business in Serbia: preduzetnik, paušal or d.o.o.
- How to become tax resident in Serbia
- Serbia tax landscape overview
- Personal tax deductions and benefits in Austria
- Personal tax deductions in Malta
- All country tax guides
Sources
- Law on Personal Income Tax, gazette history – Tax Administration of Serbia
- Two self-assessment options for freelancers – Tax Administration of Serbia
- Rental income tax calculator – Tax Administration of Serbia
- Freelancer Q3 2026 filing deadline – Tax Administration of Serbia
- Law on Personal Income Tax, consolidated text – Paragraf
- Serbia: Individual income determination – PwC (secondary)
- Serbia: Individual deductions – PwC (secondary)
This guide is general information, not personalised tax advice. See how we research and review.
Find the Serbian reliefs you are missing
Share your income mix and we will check it against every Serbian relief, from payroll benefits to the newcomer regime.
Start with Heavnn →
