Serbia: Taxes and Costs

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Serbian rental income taxes are moderate

Effective Tax Rate on Rental Income
Monthly Income	€1,500	€6,000	€12,000
Tax Rate	16%	16%	16%
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Rental Income Tax

Gross rental income can be reduced through deduction of actual expenses, including depreciation costs, or a 20% lump-sum deduction. Net rental income in Serbia is taxed at 20%, withheld by the tenant.

If the rent is paid in advance for a period of more than a year, the income may be spread over in equal parts to a maximum period of five years.

Real Estate Tax

Property tax in Serbia is paid by the individual owner of the property rights. Properties valued at RSD400,000 (€5,031) or less are exempt from property tax. Property tax is levied on the property value at the following progressive rates:

Corporate Route

Corporate entities earning rental income in Serbia are taxed at the standard rate of 10%.

Property Tax

Corporate property owners are liable for property tax at a flat rate of 0.4%.

Capital Gains Tax

Nonresidents earning capital gains realized through sale of Serbian real estate is subject to a flat 20% withholding tax rate. The taxable gain is the selling price less the acquisition price (as revalued by the consumer price index) and depreciation costs.

If the capital gain is invested in housing within a 60-day period, the gain is exempt from tax. Any capital gain realized through a sale of property obtained before 24 January 1994 is also exempt from capital gains tax.

Corporate Route

Capital gains realized through sale of real estate are deemed to be income and are taxed at the main rate of 10%.

Serbia - more data and information

• Guide to buying houses and registering property sales in Serbia

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