Abolition of contributions and the reduction of taxes for the foreign nationals in Serbia earning more than RSD 300,000 (EUR 2,500) » Welcome to Serbia

Abolition of contributions and the reduction of taxes for the foreign nationals in Serbia earning more than RSD 300,000 (EUR 2,500)

In June 2022, the Government of the Republic of Serbia adopted a directive encouraging employers to hire people newly arrived to Serbia, including foreign nationals.

 

People newly arrived to Serbia are those in demand and that demand that cannot be easily fulfilled in the domestic work market. They are natural persons, who did not reside in the territory of the Republic of Serbia for more than 180 days during the 24-month period preceding the date of the conclusion of an employment agreement with their employer; they are people who concluded a permanent, full-time employment contract with their employer, who work for an agreed monthly basic salary in compliance with the regulation governing earnings in the minimum amount of 300,000.00 dinars.

 

Only the newly arrived people hired by their employer by December 31, 2023 obtain the incentives right.

 

The incentives are obtained by applying refund principle once a year, by returning 70% of calculated and paid salaries tax for one or more employed newly arrived people and 100% of calculated and paid mandatory pension and disability insurance contributions, for the salaries paid to an employed newly arrived person within 60 months as of July 1, 2022, until and including December 31, 2028.

 

The employer who pays dividends, i.e. gained income, except from the dividends or income payable based on the part of income that is higher than the amount received as an incentive, during the period from the submission of the first application and until (and including) the end of a calendar year in which he receives the last incentive pay, does not have the right to use incentives.

 

Should you need additional information, feel free to contact us.

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