Tax Advantages and Benefits of Investing in Serbia and Montenegro
1. Low Corporate Tax
Serbia has one of the lowest corporate tax rates in Europe: 15%.
There are no regional or municipal surcharges as in Spain.
Businesses can deduct many expenses (rent, services, travel, consultancy, etc.).
2. Partial or Total Exemption for New Companies
Startups and new foreign investments may receive tax exemptions of up to 10 years in certain municipalities.
Special Economic Zones offer temporary reductions or elimination of profit tax.
3. Dividend and Withholding Taxes
Dividend tax: 15%, which can be reduced to 0–5% under double taxation treaties (Serbia has agreements with Spain and over 60 countries).
No additional tax on repatriated profits.
4. Low Labor Costs and Reduced Contributions
Average salaries are much lower than in Western Europe, reducing personnel costs.
Total social contributions are around 37%, much lower than Spain’s (over 45%).
Incentives exist for hiring local staff, especially young or tech professionals.
5. Stable and Favorable Regime for Foreigners
Serbia allows 100% foreign ownership of local companies (DOO or SRL).
Possible to open business and personal bank accounts without prior residence (with proper guidance).
No restrictive currency controls: funds can be moved freely to and from the EU.
6. Strategic Location and Trade Agreements
Although not part of the EU, Serbia has free trade agreements with:
The European Union (duty-free exports on many products).
Russia, Turkey, China, EFTA, and CEFTA countries.
This allows companies to sell to multiple markets without paying customs duties.
7. Moderate Income Tax
10% for self-employed or small businesses, with options for direct or lump-sum taxation.
Personal dividends and profits taxed at a flat 15%, significantly lower than Spain’s income tax.
8. International Tax Optimization
Serbia is not a tax haven, but offers a transparent and efficient fiscal environment.
Ideal for those seeking to legally and sustainably reduce their tax burden with a solid legal framework.
9. Support for Foreign Investment
The Serbian government offers grants and financial support for investments in technology, manufacturing, tourism, or energy.
Possibility of obtaining legal residency through investment or company creation, without the need for large initial capital.
10. Advantageous Tax Residency
Residents in Serbia can be taxed at 10–15% on worldwide income — instead of the much higher rates in Spain.
Serbia does not tax wealth, inheritances, or international donations.
