Annual Personal Income Tax for 2025

The officially published average annual salary in Serbia for 2025 amounts to RSD 1,813,032. This figure serves as the basis for determining the annual personal income tax threshold.

Individuals liable for annual personal income tax in Serbia for 2025 include:

• Serbian residents, in respect of income earned both domestically and abroad during 2025; and
• non-residents, in respect of income earned within Serbia during the same period,

provided that their total net income exceeds RSD 5,439,096.

Taxable income comprises earnings derived from employment, self-employment, copyrights and related rights, industrial property rights, leasing of movable and immovable assets, hospitality services, as well as income earned by athletes and sports professionals, together with other forms of income as defined under Article 85 of the Personal Income Tax Law.

Total net income is subject to progressive taxation, as follows:

• income up to RSD 5,439,096 is not subject to tax;
• income between RSD 5,439,096 and RSD 10,878,192 is taxed at a rate of 10%;
• income exceeding RSD 10,878,192 is taxed at a rate of 15%.

The taxable base may be reduced by personal allowances, with the total reduction capped at 50% of the taxable income:

• RSD 725,213 for the taxpayer;
• RSD 271,955 for each dependent family member.

Taxpayers who are under 40 as of 31 December of the relevant tax year are entitled to an additional reduction equal to three average annual salaries in Serbia for that year, i.e., RSD 5,439,096.

Individuals investing in alternative investment funds (through the acquisition of fund units) may claim a tax credit of up to 50% of the amount invested in the relevant calendar year.

Starting from the 2024 tax year, this relief is subject to a retention condition. If the taxpayer disposes of the investment in the year it was made, or within the following 2 years, they must notify the Tax Administration within 30 days and repay the previously granted tax credit, together with applicable interest.

The tax return must be submitted electronically. The deadline for both filing and payment is 15 May 2026.