Serbia residence: an accessible Balkan base for entrepreneurs and property owners

Serbia is the largest economy of the Western Balkans and an EU candidate country with free-trade arrangements reaching the EU, EFTA, CEFTA and the Eurasian Economic Union. For entrepreneurs, technology founders and families seeking an affordable, well-connected base, Belgrade and Novi Sad offer a growing professional services sector and a cost of living well below Western European levels.

The Law on Foreigners allows temporary residence on a range of grounds. Ownership of real estate in Serbia is an accepted ground, and foreigners may acquire property where their country has reciprocity with Serbia. Founders, directors and owners of Serbian companies — including branches and representative offices — may obtain residence linked to the business, and employees obtain residence through employment. Accompanying spouses and minor children apply through family reunification.

Amendments adopted in 2023 and in force since February 2024 introduced a unified permit that combines residence and work authorisation in a single procedure, with applications submitted electronically through the government's online portal. Temporary residence is granted for up to three years and can be renewed. After three years of continuous temporary residence, foreigners may apply for permanent residence, which can later support an application for Serbian citizenship, where release from the previous nationality is normally required.

Serbia taxes residents on worldwide income. Salaries are taxed at a flat 10% rate (with social contributions on top), corporate profits at 15%, and dividends, interest and capital gains generally at 15%. These rates, combined with modest company running costs, make Serbia attractive for owner-managed businesses, provided substance and transfer-pricing rules are respected.