Work for foreign clients from Serbia

Freelance Taxation in Serbia: Conditions and Limitations

Paušalni režим is a simplified taxation system for individuals without employees. In 2026, the income threshold is 15,000 EUR per year (approximately 1,785,000 RSD at the NBS exchange rate in June 2026). If this limit is exceeded, the general taxation system (Opšti poreski režim) applies.

The tax rate depends on the type of activity:

• IT services, programming, design - 20% of gross income
• Consulting, marketing, translations - 25%
• Tourism, real estate rental - 30%

Registration is done through the local tax office. The application is reviewed within 15 days, after which a confirmation is obtained, and invoices can be issued. A simplified PDV form is not required.

How to Issue an Invoice to a Foreign Client: 2026 Requirements

Since 2024, invoices in foreign currency must meet the following rules:

Currency - EUR, USD, or other foreign currency (RSD only for Serbian clients).

Mandatory details:

• Your data (name, address, JMBG)
• Client's data (company name, address, P.I.B. for foreigners)
• Date and invoice number
• Service description (e.g., "Web development for a client from Germany")
• Amount in foreign currency and RSD equivalent (at the NBS exchange rate on the invoice date)
• Payment terms (e.g., "VAT-free, payment within 14 days")

Example:

Invoice #2026-05-145
Date: 15.06.2026
From: Ivan Petrov, JMBG 123456789, Belgrade, Serbia
To: XYZ GmbH, Berlin, Germany (P.I.B. DE123456789)
Service: Web development (50 hours @ 50 EUR/hour)
Amount in EUR: 2,500.00
Amount in RSD (NBS rate 119.00): 297,500.00 RSD
Payment terms: Net 14

Income Conversion: Avoiding Issues with Banks and Tax Authorities

Banks strictly control currency transfers. When receiving funds, prepare:

• Invoice (original or copy)
• Client agreement (mandatory if the amount > 10,000 EUR)
• Payment confirmation (bank statement)

The conversion rate is taken from the NBS on the date of crediting. If money is received into a foreign bank account, clarify with your bank which rate will be applied when transferring to Serbia.

For amounts > 10,000 EUR, a declaration of the origin of funds is required. Banks may block a transaction if the amount on the invoice does not match the received payment.

Practical advice: open an account in a bank friendly to freelancers (AIK Banka, OTP Banka). Transfers via Wise or Revolut work, but without documentary evidence, they may raise questions from the tax authorities.

Taxes on Income from Foreign Clients: What to Pay and When

Paušalni Režim

• Tax - 20-30% of gross income (depending on the activity)
• Payment - monthly by the 15th of the following month
• Reporting - quarterly declaration (by the 15th of the month following the quarter)

General Taxation System (Opšti Poreski Režim)

• Progressive income tax: 10% up to 84,000 RSD, 20% up to 1,200,000 RSD, 25% above
• VAT (PDV) - 20% with income > 8,800,000 RSD per year
• Payment terms - by choice: monthly or quarterly
• Reporting - corresponding declaration

Double Taxation

Serbia has agreements with most EU countries, the USA, and Russia. When paying taxes in Serbia, you can avoid double taxation by requesting a Certificate of Tax Residency from the tax authorities.

Contract with a Foreign Client: What Should Be Specified

Minimum set of points:

1. Full details of the parties
2. Subject of the contract (specific service description)
3. Terms and stages of work
4. Cost and currency (EUR or other)
5. Payment terms (prepayment, advance, final settlement)
6. Liability of the parties (penalties for delays)
7. Applicable law - Serbian

Example wording:

"In case of failure to fulfill obligations by one of the parties, the guilty party pays a penalty of 0.1% of the contract amount for each day of delay."

Bank Accounts for Freelancers: Where to Open and How to Avoid Blocks

Bank	Account currency	Transfer fee	Notes
AIK Banka	EUR, USD, RSD	0.2-0.5%	Quick invoice processing, freelancer support
OTP Banka	EUR, USD, RSD	0.3-0.7%	Requires income confirmation
UniCredit	EUR, USD, RSD	0.4-0.8%	Suitable for large amounts
Revolut (EU)	EUR, USD	0% (up to limit)	Convenient for EU clients, but sometimes requires documents
Wise	EUR, USD	0.4-1%	Alternative for international transfers

Important: when receiving funds into a foreign bank account, specify "Payment for services rendered" in the payment purpose and attach the invoice. Banks may request additional documents.

Common Mistakes and How to Avoid Them

1. Mismatch of amounts on the invoice and payment - banks block the transaction.

Solution: agree on the exact amount and currency with the client before issuing the invoice.

1. Lack of contract - difficult to prove the fact of service provision.

Solution: formalize the contract even for small projects.

1. Incorrect conversion - the bank uses the NBS rate on the date of crediting, not on the date of the invoice.

Solution: specify the amount in RSD at the rate on the date of issuance and keep a copy of the statement.

1. Late tax reporting - fines up to 50,000 RSD.

Solution: use accounting services (Fono, Accountable) and set reminders.

1. Lack of tax residency certificate - double taxation.

Solution: request a Certificate of Tax Residency from Poreska uprava and store it in your archive.