Hiring a foreign employee in Serbia

Hiring a Foreign Employee in Serbia - A 2026 Guide =====================================================

Hiring a foreign employee in Serbia requires knowledge of local legislation, tax obligations, and procedures. In 2026, the rules remain strict, but with changes in migration legislation and the tax code. Below is a step-by-step guide on how to obtain a work permit, what taxes the employer pays, how to conclude an employment contract, and avoid typical mistakes.

Who Needs a Work Permit in Serbia

A work permit (Radno uverenje) is required for citizens of non-EU/EFTA countries if they plan to work more than 90 days within six months. EU/EFTA and Swiss citizens register with local authorities after 90 days, but a permit is not required.

Exceptions

• Highly qualified specialists (IT, engineering, medicine) - simplified procedure.
• Students with a study visa can work up to 20 hours a week without an additional permit.
• Family members of Serbian or EU/EFTA citizens.

Procedure for Others

1. The employer submits an application to the Republican Employment Agency (Републичка управа за запошљавање) before the start of employment.
2. The application is accompanied by: a copy of the passport, diploma/certificate (if required), job offer, certificate of no criminal record (translated and apostilled), and a medical certificate.
3. The processing period is up to 30 days, and the state fee is 15 EUR.

After obtaining the permit, the foreigner registers for temporary residence with the Ministry of Interior (Министарство унутрашњих послова) within 30 days.

Hiring Procedure: Step-by-Step Algorithm

1. Candidate Search and Selection

The employer can only hire a foreigner if there are no suitable local candidates. For most professions, a request to the Republican Employment Agency is required (15-day term). Exceptions: IT specialists, engineers, doctors, and teachers - no request is necessary. If there are no suitable candidates, the agency issues a permit to hire.

2. Employment Contract Conclusion

The contract must comply with Serbian legislation and include: the employer's full name and address, employee's data (name, passport, address), position and responsibilities, salary amount (not less than 450 EUR gross in 2026), contract term (permanent or fixed-term), probationary period conditions (maximum 6 months), and grounds for termination. It is drawn up in Serbian, signed by both parties, and a copy is given to the employee.

3. Work Permit Issuance

After signing the contract, the employer applies again to the Republican Employment Agency. Required documents: application, contract copy, payment receipt (15 EUR), qualification confirmation (if necessary), and employer's tax obligations certificate. The processing period is up to 30 days. The permit is issued for the contract term, but not more than 1 year, with the possibility of extension.

4. Foreigner Registration with Tax Authorities

Within 8 days after starting work, the employer registers the employee with the Republican Tax Administration (ПДВ). Submitted documents: application, passport copy, permit copy, contract copy, and bank details. The foreigner receives a tax identification number (ПИБ), necessary for opening an account and receiving a salary.

5. Temporary Residence Permit (if necessary)

If the employee does not already reside in Serbia, they submit an application for temporary residence to the Ministry of Interior, along with a permit copy, contract, health insurance, accommodation confirmation, and payment receipt (60 EUR). The processing period is up to 30 days, and the visa is issued for up to 1 year with the possibility of extension.

Employer Taxes and Contributions in 2026

Payment Type	Rate	Notes
Social Contributions (pension, medical, unemployment)	17.9% of salary	Employer - 12%, employee - 5.9%
Personal Income Tax (ПДФЛ)	10%	Withheld from salary
Profit Tax (for individual entrepreneurs)	10%	Applies to individual entrepreneurs
Mandatory Accident Insurance Contributions	0.7%	Only for hazardous professions
Payroll Tax (when exceeding 8 average salaries)	15%	Paid on the amount exceeding 3,600 EUR (8 × 450 EUR)

Example: employee with a gross salary of 1,500 EUR.

• Social contributions - 268.5 EUR (employer 180 EUR, employee 88.5 EUR)
• Personal income tax - 150 EUR
• Net salary - 1,261.5 EUR

Total hiring cost for the employer: 1,500 EUR + 180 EUR = 1,680 EUR. For EU/EFTA citizens, taxes are the same as for local workers.

Hiring Features Depending on Country of Origin

Citizens of Russia and Belarus

A permit is mandatory, state fee 15 EUR, processing period up to 30 days. After obtaining the permit, temporary residence is registered.

Citizens of Ukraine

Refugees have a simplified procedure: a permit is issued automatically when applying for temporary residence. The employer must provide housing or compensate for rent.

Citizens of the USA, Canada, Australia

A permit is required - 15 EUR, term up to 30 days. IT specialists can work remotely, registering as freelancers (individual entrepreneurs).

Citizens of Former Yugoslavia Countries (Bosnia, Macedonia, Montenegro)

No permit is required if they are in Serbia on legitimate grounds; it is enough to register with local authorities. Taxes are the same as for local employees.

Common Employer Mistakes

1. Did not check the labor market - without confirming the absence of local candidates, a permit is not issued (exceptions only for highly qualified specialists).
2. Omissions in the employment contract - the contract must be entirely in Serbian, include all mandatory clauses; otherwise, it may be deemed invalid.
3. Late registration with tax authorities - registration must be completed within 8 days after starting work, otherwise, fines may be imposed.
4. Ignoring visa and residence permit deadlines - delays in obtaining temporary residence lead to fines and possible deportation.
5. Incorrect calculation of social contributions - the employer pays 12% of the salary, and the employee 5.9%; incorrect calculation increases the tax burden and may cause an audit.

By following these recommendations, you can quickly and without extra problems hire a qualified foreign employee in Serbia. [[widget:имя]]