Company Formation & Tax in Serbia
A near-EU base outside the single market — the d.o.o., a flat 15% corporate tax, low operating costs and a wide treaty network.
Serbia is an EU candidate with a Stabilisation and Association Agreement, so it sits close to the European market without being inside the single market. For internationally minded founders it offers a flat 15% corporate tax, low labour costs and fast, fully remote incorporation.
Choosing an entity
The standard vehicle is the d.o.o. (društvo s ograničenom odgovornošću, private limited company), which can be formed with nominal share capital (from RSD 100, around €1). Registration is filed with the APR (Serbian Business Registers Agency / Agencija za privredne registre), which is required to decide within five business days and assigns the company a tax number (PIB); tax matters are then administered by the Tax Administration (Poreska uprava). The whole process can be completed remotely by power of attorney or qualified e-signature, with no requirement for the owner to be present.
Corporate tax and VAT
| Tax | Rate |
|---|---|
| Corporate income tax | 15% |
| VAT (standard) | 20% |
| VAT (reduced) | 10% |
| VAT registration threshold | RSD 8,000,000 (~€68,000) |
| Dividend withholding (non-resident) | 20% (treaty-reducible) |
Corporate income tax is a flat 15%, with no surcharges and no minimum tax — among the lowest rates in Europe. VAT is 20% standard with a 10% reduced rate; registration becomes mandatory once turnover exceeds RSD 8,000,000 (about €68,000) over twelve months. Dividends paid to non-residents carry a 20% withholding tax, typically reduced to 5% or 10% under one of Serbia's 60-plus double-tax treaties where a residence certificate is held. Serbia also offers an IP box (an effective 3% on qualifying IP income) and a double deduction for qualifying R&D.
Frequently asked questions
What is the corporate tax rate in Serbia?
A flat 15% on profits, with no surcharges or minimum tax.
How much capital do I need for a Serbian d.o.o.?
Nominal — from RSD 100 (about €1).
What is the Serbian VAT rate?
20% standard with a 10% reduced rate; registration applies above RSD 8,000,000 (about €68,000) turnover.
Official sources
This guide is general information prepared by ARM Management and is current as at June 2026. It is not legal or tax advice; rules and thresholds change. Confirm against the Tax Administration (Poreska uprava), or with an advisor, before acting.
Set up in Serbia with confidence.
ARM Management advises international companies on Serbian entity formation, registration and tax compliance, alongside wider Balkan and EU structuring. Begin with a confidential conversation.