Work and payroll - expats' experience

# Work and Paushalac in Serbia: A Comprehensive Guide for Expats

Work and entrepreneur status (self-employment) are key to obtaining visas, extending residence permits, and living comfortably. Below are practical details verified by the Russian-speaking community.

## Types of Employment

### Official Employment
The most reliable path: the employer issues a **劳动合同** (ugovor o radu), registers you in the social insurance system, provides a employment certificate (potvrda o zaposlenju), and monthly payslips (obračunski listovi).

### Self-Employment (Preduzetnik)
Allows freelancing or running a small business. Two regimes:

- **Paushalac** - a fixed tax of approximately 16,500 dinars per month (minimum rate).
- **Ordinary taxation** - a percentage of turnover (10-20% depending on the activity).

### DOO (LLC)
For more serious business. Requires a minimum capital of 100 dinars, full reporting, and accountant services.

## Documents for Visa Applications

### For Employment
-劳动合同 (ugovor o radu)
- Employment certificate (potvrda o zaposlenju) and income statement
- Payslips for the last 3-6 months (obračunski listovi)
- Bank statement for 3 months
- Account balance statement

### For Self-Employment
- Registration decision or extract from APR (Agenсija za privredne registre)
- Certificate of tax payment from Poreska uprava (Tax Administration)
- Business account statement for 3 months (with transactions)
- Client contracts and invoices (upon consulate request)

> **Important:** Poštanska banka only provides general turnover without details; for visas, it's better to use other banks.

### For DOO Owners
- Extract from APR on DOO registration
- Certificate of no tax debt
- Company business account statement
- If necessary, accountant's certificate of income

## Submission to Different Consulates

| Country | Requirements | Processing Time |
|--------|------------|-------------------|
| Spain | Documents in Serbian, strict control of turnover | - |
| Germany | Translations into English/German, possible requests for additional information | 4-6 weeks |
| Italy | Often without translations, multi-entry visa for multiple trips | - |
| Hungary | Loyal to sponsorship letters, fast process | 1-2 weeks |

## Sponsorship Letters

If there is no official income, a sponsor can be involved:

- A spouse with official employment
- A family member with Serbian residence permit/permanent residence
- The inviting party from the destination country

The letter must include a commitment to cover expenses, confirmation of relationships, and sponsor's income documents.

## Working with Russian Income

When submitting documents, it's better:

- Not to focus on Russian employment, present it as additional income to Serbian self-employment
- Translate certificates into English
- Indicate a Serbian address as the primary place of residence

## Common Mistakes

### When Registering as Self-Employed
- Incorrect choice of activity codes
- Failure to renew paushalac status
- Lack of income and expense accounting

### When Applying for Visas
- APR extract older than 6 months
- Lack of required translations
- Showing minimal turnover when a multi-entry visa is needed
- Outdated data after changing jobs/status

### When Working with Banks
- Not requesting detailed statements in advance
- Mixing personal and business accounts in documents
- Not considering the terms of preparing certificates with seals

## Taxation and Social Contributions

### Paushalac Self-Employed
- Fixed monthly contribution of approximately 16,500 dinars (all taxes and social contributions included)
- No detailed reporting required

### Self-Employed with Ordinary Taxation
- Turnover tax 10-20% depending on the type of activity
- Social contributions calculated from income, income and expense book required

### Official Employment
- Income tax 10%
- Social contributions approximately 37% (shared between employee and employer)
- All calculated and paid by the employer

## Status Change and Residence Permit Extension

To extend a residence permit for employment, a stable income for the previous period must be confirmed, a certificate of tax payment provided, and continuous employment demonstrated. Transition from self-employment to employment (and back) is possible but requires notification of MUP and submission of new supporting documents on time.

## Useful Links and Contacts

**Self-Employment Registration**
- APR (Agenсija za privredne registere): [www.apr.gov.rs](http://www.apr.gov.rs)
- Document submission: eRegistracija portal

**Tax Administration**
- Poreska uprava: [www.purs.gov.rs](http://www.purs.gov.rs)
- Electronic reporting: ePorezi portal

**Banking Services**
- Raiffeisen Bank - detailed statements, certificates with seals
- Poštanska banka - basic turnover certificates
- Komercijalna banka - full range of business services

**Consultations**
- Accounting services: from 3,000 dinars per month for self-employed
- Legal consultations: 50-100 EUR per consultation
- Translation services: court translators for official documents