Tax Incentives for Expatriates and Digital Nomads in Serbia
Serbia recognizes the growing trend of remote work and the influx of expatriates and digital nomads. To attract and retain skilled professionals, the country offers a range of tax incentives tailored to these individuals.
Eligibility Criteria
To qualify for tax breaks, expatriates and digital nomads must meet specific criteria:
- Expatriates: Individuals who are not Serbian citizens or permanent residents but reside in Serbia for at least 183 days per year.
- Digital Nomads: Individuals who work remotely for companies outside Serbia and have no permanent residence in the country.
Types of Tax Breaks
Expatriates and digital nomads can benefit from the following tax breaks:
- Personal Income Tax Exemption: Expatriates who earn income from foreign sources are exempt from personal income tax on that income for up to five years.
- Reduced Tax Rate: Digital nomads who earn income from remote work performed for non-Serbian companies are eligible for a reduced tax rate of 10% on their income.
- Social Security Contribution Exemption: Expatriates and digital nomads are exempt from paying social security contributions on their foreign-sourced income.
Application Process
To claim these tax breaks, individuals must apply to the Serbian Tax Administration. The application process involves submitting the following documents:
- Proof of residency (e.g., residence permit, utility bills)
- Employment contract or proof of remote work
- Income statements from foreign sources
Legal Framework
The tax incentives for expatriates and digital nomads are established in the following legal documents:
- Law on Personal Income Tax (Article 10)
- Law on Social Security Contributions (Article 11)
- Decree on the Implementation of the Law on Personal Income Tax (Article 12)
Rationale and Objectives
These tax policies aim to:
- Attract and retain skilled professionals and digital nomads
- Promote remote work and innovation
- Support the growth of Serbia's knowledge economy
If navigating Serbia's tax regulations seems daunting, consider partnering with Heavnn. Our team of experts can guide you through the application process and ensure you maximize your tax savings.
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