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Serbia lump-sum tax for sole proprietors

The Serbia lump-sum tax is a fixed monthly amount set before you earn anything, which is exactly why it suits some freelancers and quietly penalises others.

In short

Under the paušal regime a sole proprietor pays a fixed monthly sum decided by activity code and municipality, not by income. No full books are required. The turnover ceiling is 6,000,000 RSD a year, and some activity codes are excluded outright.

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How the monthly figure is decided

The Tax Administration sets the amount from your registered activity code, your municipality and a handful of coefficients. Your actual revenue does not enter the calculation, so two people invoicing wildly different sums can owe the same amount.

That cuts both ways. A developer billing well above the average pays a fraction of what real taxation would take. Someone earning little pays the same fixed sum in a quiet month as in a busy one, and the obligation does not pause because the work did.

Who it fits, and who it does not

The regime rewards high revenue per person and low costs. It punishes irregular income and anyone whose expenses are genuinely large, because there is nothing to deduct against.

  • Fits: remote developers, designers and consultants invoicing foreign clients at a steady rate.
  • Fits poorly: anyone with heavy pass-through costs, since the fixed sum ignores them entirely.
  • Does not fit: activity codes excluded from the regime, which is decided by the code and not negotiable.

The ceiling, and what crossing it triggers

Turnover above 6,000,000 dinars in a year ends eligibility, and the move to full double-entry bookkeeping is not automatic or free. Plan the transition before the invoice that crosses the line rather than after it.

The switch is manageable when it is anticipated. It is expensive when it is discovered a year late, because the books then have to be reconstructed backwards.

The mistake that costs the most

Choosing an activity code because it sounds like the work, rather than because it produces a sensible monthly figure and stays inside the regime. The code drives both eligibility and price, it is set at registration, and changing it later is a separate procedure with its own consequences.

What it costs

Activity code reviewBefore you register, not afterincluded
Sole proprietor registrationFree with twelve months of registered address or virtual office paid upfrontFree
Monthly tax itselfSet by the Tax Administration, not by usvaries
Monthly accountingfrom €50 / month

Frequently asked questions

It depends on your activity code and municipality rather than on what you earn, so there is no single number. We model the figure for your specific code before you register, because after registration it is what it is.

When this is not the right route for you

  • Your activity code is excluded from the regime. No amount of structuring changes that; the code decides it.
  • Your income is irregular. The fixed sum falls due in quiet months exactly as in busy ones.
  • Your real costs are substantial. A regime that ignores expenses is the wrong one when expenses are the point.
  • You are already close to the turnover ceiling. Registering into a regime you will exit within a year buys you a transition rather than a benefit.

This page is general information about Serbian procedure, not legal advice for your situation. Rules and fees change. Confirm anything time-sensitive with us or another qualified adviser before acting on it.