Quick answer
Beyond income tax, Serbia's main specific taxes in 2026 are 20% VAT (10% reduced) and a 2.5% property transfer tax owed by the seller. Annual property tax is capped at 0.4% for companies and runs 0.4%–2% for individuals. Inheritance and gift tax is 1.5% or 2.5%, with close family exempt. Excise covers fuel, tobacco, alcohol, coffee and energy.
Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad
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Find my savings →You have your Serbian income tax figured out. Now you want to know what else lands on the bill: VAT on your invoices, the tax on the flat you are buying, the yearly property bill, an inheritance from abroad. This guide covers each of them with the 2026 rates written in the law.
Serbia specific taxes in 2026: the key figures
| Tax | 2026 rule | Legal basis |
|---|---|---|
| VAT (PDV) | 20% standard, 10% reduced | Art. 23 ZPDV (VAT Law) |
| VAT on B2B services to foreign businesses | Supplied where the client is established, so no Serbian VAT | Art. 12(4) ZPDV |
| Property transfer tax | 2.5%; the legal taxpayer is the seller | Rate: PwC (secondary); taxpayer: art. 25 ZPI (Law on Property Taxes) |
| Annual property tax, bookkeeping taxpayers | Up to 0.4% | Art. 11 ZPI |
| Annual property tax, individuals | Up to 0.4% to RSD 10m, 0.6% to RSD 25m, 1.0% to RSD 50m, 2.0% above | Art. 11 ZPI |
| Owner-occupied home | Property tax cut by 50%, max RSD 20,000 a year | Art. 13 ZPI |
| Inheritance and gift tax | First line and spouse exempt (parents too, on inheritances only); 1.5% second line; 2.5% others | Arts. 19 and 21 ZPI |
| Excise duties | Fuel, biofuels, tobacco, nicotine pouches, alcohol, coffee, e-liquids, electricity and natural gas | Law on Excise Duties |
What changed for 2026
- Serbia adopted a Law on the Tax on Greenhouse Gas Emissions and a Law on the Tax on Imports of Carbon-Intensive Products. Both were published in Official Gazette 109/2025 and amended in 80/2026, per the Ministry of Finance law register. They target emitters and importers, not typical freelancers.
- The VAT Law, the Law on Excise Duties and the Law on Electronic Invoicing were all amended in 109/2025 and again in 80/2026. The Ministry of Finance publishes the consolidated texts.
- The Law on Fiscalisation, which governs electronic cash registers, was amended in 80/2026.
Is this guide for you?
Read on if you…
- invoice clients from Serbia and need to know when VAT applies;
- are buying, inheriting or letting property in Serbia;
- run a Serbian d.o.o. or sole-trader business and want the full list of levies beyond profit tax.
Probably not your case if you…
- only want income tax rates. Start with the tax landscape overview of Serbia;
- are a short-term visitor with no Serbian income, property or business.
How does VAT work in Serbia?
Serbia's VAT Law (Zakon o porezu na dodatu vrednost, ZPDV) follows the EU model, although Serbia is not an EU member. The Tax Administration's VAT overview confirms the two rates: 20% general and 10% special.
What gets the 10% rate
Under art. 23, the reduced rate covers, among others, accommodation in hotels and other accommodation facilities, and transfers of residential buildings that fall within VAT. PwC adds basic food, daily newspapers, medicines, publications, public transport and utilities (secondary).
When you must register
Serbian businesses must register once their turnover passes the threshold in art. 33 ZPDV. Check the current figure in the VAT section of the Tax Administration site before you plan around it.
Two firm rules:
- Foreign businesses supplying taxable goods or services in Serbia must appoint a tax representative and register, whatever their turnover (art. 10a).
- Flat-rate sole traders cannot be VAT-registered. Registering ends the flat-rate regime, as covered in legal forms of business in Serbia.
Services to foreign clients
Good news for service exporters. When you supply services to a business client, the place of supply is where that client has its seat or permanent establishment (art. 12(4)). Consulting, development or design for a German or US company is therefore outside Serbian VAT. Selling to private consumers abroad follows different rules, so check each case.
Filing and e-invoicing
The tax period is a calendar month or a calendar quarter. The return is due within 15 days after the period ends. PwC notes that a RSD 50 million turnover line decides between monthly and quarterly filing (secondary). Quarterly filers can ask to switch to monthly between 20 and 31 December for the next year.
Invoices between Serbian businesses go through the state e-invoicing system (SEF) under the Law on Electronic Invoicing. Retail sales must run through fiscal cash registers under the Law on Fiscalisation.
What taxes do you pay when buying, owning and selling property?
Buying: 2.5% transfer tax
A transfer of real estate triggers property transfer tax at 2.5% (PwC, secondary). Here's the catch: under art. 25 of the Law on Property Taxes, the legal taxpayer is generally the seller. Who bears the cost in practice is a contract question, so read the clause before you sign. If the agreed price is below market value, the Tax Administration can adjust the base (art. 27).
Purchases that fall within VAT carry VAT instead, at 10% for residential buildings.
Owning: annual property tax
Every owner pays annual property tax (porez na imovinu) to the municipality. Each local assembly sets its own rate by decision, up to the legal maximums in art. 11 ZPI.
| Taxpayer or band | Maximum rate |
|---|---|
| Taxpayers who keep books (companies, sole traders on books) | 0.4% |
| Individuals, land | 0.3% |
| Individuals, other property up to RSD 10,000,000 | 0.4% |
| RSD 10,000,000 to 25,000,000 | 0.6% on that band |
| RSD 25,000,000 to 50,000,000 | 1.0% on that band |
| Above RSD 50,000,000 | 2.0% on that band |
Art. 13 cuts the tax by 50%, up to RSD 20,000 a year, on the home where you live and have registered residence. A 75% cut applies to qualifying homes where only people over 65 live. Property tax is payable in quarterly instalments (PwC, secondary).
There is no annual tax on bank balances, shares or crypto. The recurring asset tax only targets real estate rights.
Letting: 20% after a 25% cost allowance
Rental income is taxed at 20% after 25% standard costs, or actual costs on request. Where you self-assess, you file form PP OPO and pay within 30 days, per the Tax Administration's rental calculator.
Selling: 15% capital gains
Gains on property are taxed at 15%. PwC (secondary) describes a residents' exemption for capital assets held more than ten consecutive years. Confirm in the current Personal Income Tax Law that your property is covered before you rely on it. The details are in capital gains tax in Serbia.
How are inheritances and gifts taxed in Serbia?
The Law on Property Taxes taxes inheritances and gifts in one chapter, with the same rates for both.
| Recipient | Rate | Basis |
|---|---|---|
| First line (children, descendants) and spouse | Exempt | Art. 21 ZPI |
| Parents | Exempt on inheritances; taxed as second line on gifts | Arts. 19 and 21 ZPI |
| Second line (e.g. siblings) | 1.5% | Art. 19(1) ZPI |
| Third line and beyond (e.g. grandparents, aunts), or unrelated | 2.5% | Art. 19(2) ZPI |
Art. 14 extends the tax beyond real estate to cash, deposits, claims, digital assets, IP rights and used vehicles. For these, the first RSD 100,000 received in a calendar year from the same person is exempt, per category. Real estate gets no such slice. Crypto gifts are covered in cryptocurrency taxes in Serbia.
Which other levies hit businesses and daily life?
Excise duties
Excise (akcize) applies to oil derivatives, biofuels, tobacco products, nicotine pouches, alcoholic drinks, coffee, e-cigarette liquids, and electricity and natural gas for final consumption. You never file it yourself; it is built into the price. The rates sit in the Law on Excise Duties, consolidated by the Ministry of Finance.
Fees for using public goods
Environmental, municipal and resource fees sit in the Law on Fees for Use of Public Goods, last amended in 35/2026. Your municipality and activity decide which ones you pay.
Withholding on payments abroad
A Serbian company paying a non-resident dividends, interest, royalties, rent or certain services withholds 20%. Royalties, interest, rent and service fees to listed tax havens bear 25% (PwC, secondary). Treaties can reduce the rate. The company side is in corporate income taxes in Serbia.
Example – Lena, 38, German data consultant in Belgrade
Lena invoices only EU companies, so her services fall outside Serbian VAT (art. 12(4)). She buys a second-hand flat for RSD 18,000,000. Transfer tax: 2.5% = RSD 450,000, legally owed by the seller. Assume an assessed base of RSD 18 million and maximum rates: 0.4% × 10,000,000 + 0.6% × 8,000,000 = RSD 88,000. Her owner-occupier cut is capped at RSD 20,000, so she pays RSD 68,000. She inherits RSD 5,000,000 in cash from an aunt (third line): (5,000,000 − 100,000) × 2.5% = RSD 122,500.
Lena's year touched VAT, property and inheritance rules. Yours probably will too.
Tell us what you sell, own and expect to inherit, and we will check every Serbian levy that applies.
Find my savings →Common mistakes (and what they cost)
- Charging Serbian VAT to foreign business clients. The supply is outside Serbian VAT. Cost: 20% of your price handed over, or a credit note to fix it.
- Registering for VAT while flat-rate. Cost: losing the lump-sum regime and moving to bookkeeping and actual-profit tax.
- Assuming the buyer always pays transfer tax. The law names the seller. Cost: a 2.5% surprise for whoever the contract leaves exposed.
- Not registering residence at the flat you live in. The 50% owner-occupier cut requires it. Cost: up to RSD 20,000 extra property tax every year.
- Ignoring SEF e-invoicing. Cost: invoices that do not fit the system, input VAT disputes and fines under the tax fraud regulations of Serbia.
Frequently asked questions
What is the VAT rate in Serbia in 2026?
The general rate is 20% and the special rate is 10% (art. 23 of the VAT Law). The 10% rate covers items such as hotel accommodation, residential buildings within VAT, basic food, medicines and utilities. B2B services to clients established abroad are supplied where the client is, so they carry no Serbian VAT.
Does Serbia have a wealth tax?
No. Serbia has no annual tax on net worth, bank balances, shares or crypto. The only recurring asset tax is the municipal property tax on real estate. Rates are set locally: up to 0.4% for bookkeeping taxpayers and up to 2% on the top band for individuals. Your own home gets a 50% cut.
Who pays property transfer tax in Serbia, buyer or seller?
The Law on Property Taxes names the seller as the taxpayer for most real estate transfers, at 2.5%. Who bears it economically is a matter for the contract, so check the clause before signing. Purchases that fall within VAT carry VAT instead of transfer tax, at 10% for residential buildings.
Is there inheritance tax in Serbia?
Yes, but not within the close family. First-line heirs, the spouse and parents are exempt; on gifts, parents are not. Second-line relatives such as siblings pay 1.5%, third-line relatives and unrelated people 2.5%. For cash and movable assets, the first RSD 100,000 a year from the same person is exempt.
Do freelancers in Serbia charge VAT to foreign clients?
Usually not. Services to a business client are taxed where that client has its seat or permanent establishment, so they fall outside Serbian VAT. Flat-rate sole traders cannot be VAT-registered anyway. If you sell to private consumers abroad, check the place-of-supply rules case by case before invoicing.
Related guides
- Capital gains tax in Serbia: 15% and the 10-year exemption
- Corporate income taxes in Serbia and withholding on cross-border payments
- Legal forms of business in Serbia
- Cryptocurrency taxes in Serbia
- Serbia tax landscape overview
- Specific taxes in Austria
- Specific taxes applicable in Malta
- All country tax guides
Sources
- General VAT information – Tax Administration of Serbia
- Rental income tax calculator – Tax Administration of Serbia
- Laws register (VAT, Excise, e-invoicing) – Ministry of Finance of Serbia
- Laws register (greenhouse gas and carbon import taxes) – Ministry of Finance of Serbia
- Law on Property Taxes, consolidated text – Paragraf
- Law on VAT, consolidated text – Paragraf
- Serbia: Other taxes – PwC (secondary)
This guide is general information, not personalised tax advice. See how we research and review.
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