Serbian rental income taxes are moderate

December 15, 2017

INDIVIDUAL TAXATION

Nonresidents are taxed on their income from Serbian sources. Married couples are taxed separately.

INCOME TAX

Rental income and capital gains earned by nonresidents are taxed at a flat rate of 20%. Income-generating expenses are deductible when computing for the taxable income.

RENTAL INCOME
Rental income earned by nonresidents is subject to provisional withholding tax at a flat rate of 20%. A fixed lump-sum deduction from the gross income is available for income-generating expenses. A 25% fixed lump-sum deduction applies for a lease, and a 20% fixed lump-sum deduction applies for a sublease.

CAPITAL GAINS
Serbia Belgrade properties for saleCapital gains realized by nonresidents from the sale of Serbian property are taxed at a flat rate of 20%. The taxable gain is the selling price less the acquisition price (as revalued by the consumer price index) and depreciation costs.

Any capital gain realized through a sale of property obtained before 24 January 1994 is exempt from capital gains tax.

Transfers of property between relatives are exempted from capital gains tax. In addition, if the capital gain is invested in housing within a 60-day period, the gain is also exempt from tax.


PROPERTY TAX


Real Estate Tax

Property tax is levied on the property value at a maximum rate of 0.40%. Property tax in Serbia is paid by the individual owner of the property or property rights.

INCOME TAX 2015

TAX BASE, RSD (€) TAX RATE
Up to 10 million (€83,333) 0.40%
10 million - 25 million (€208,333) 0.60% on band over €83,333
25 million - 50 million (€416,667) 1% on band over €208,333
Over 50 million (€416,667) 2% on all value over €416,667
Source: Global Property Guide

INCOME TAX 2014

TAX BASE, RSD (€) TAX RATE
Up to 6 million (€50,000) 0.40%
6 million - 15 million (€125,000) 0.80% on band over €50,000
15 million - 30 million (€250,000) 1.50% on band over €125,000
Over 30 million (€250,000) 3% on all value over €250,000
Source: Global Property Guide

Property tax is levied on the property value at a flat rate of 0.40% for businesses.

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