What is a preduzetnik?
A preduzetnik (sole proprietorship) is the simplest business form in Serbia. It's equivalent to a sole trader in the UK or Einzelunternehmen in Germany.
With the flat-tax option (pausalac), you pay a fixed monthly tax without any bookkeeping requirements. This makes it ideal for freelancers, IT professionals, consultants, and service providers.
Key facts: Registration takes 1 day, costs ~14 EUR, and the annual revenue limit is 6 million RSD (~51,000 EUR).
Step-by-step registration process
Here's how to register a preduzetnik at APR (Serbian Business Registers Agency):
- Choose your NACE activity code — this determines your tax bracket. Common codes: 62.01 (software development), 70.22 (consulting), 73.11 (advertising)
- Get a Serbian address — you need a registered business address. A virtual office from 30 EUR/month works.
- Apply at APR — online at apr.gov.rs or in person. You need your passport and chosen activity code.
- Get your PIB (tax number) — issued automatically within 1 day
- Open a bank account — any Serbian bank (Raiffeisen, Banca Intesa, UniCredit)
- Register for eFaktura — mandatory electronic invoicing system
- Start filing PPP-PD — monthly tax return due by the 15th
Tax obligations for foreign preduzetnik owners
| Obligation | Deadline | Penalty |
|---|---|---|
| PPP-PD tax return | 15th of each month | 25,000-500,000 RSD |
| Tax + contribution payment | 15th of each month | Interest from day 1 |
| eFaktura registration | Before first invoice | 50,000-500,000 RSD |
| Annual return (PPDG-1S) | April 15 | Up to 2,000,000 RSD |
Monthly tax burden for IT activities in Belgrade: approximately 250-350 EUR (income tax + PIO pension + health insurance + unemployment).
Residence permit through preduzetnik
As a preduzetnik owner, you can apply for a temporary residence permit (boravisna dozvola) in Serbia. Requirements:
- Active, tax-compliant business (no PIO/ZSO debt)
- Poresko uverenje (tax compliance certificate) from the tax office
- Health insurance valid in Serbia
- Proof of accommodation (rental contract or property ownership)
- Valid passport with at least 6 months remaining
Critical: Any tax debt can result in your residence permit being denied. EXT ensures your business stays fully compliant. Learn more about residence permits →
How much does it cost?
| Cost | Amount | Frequency |
|---|---|---|
| APR registration | ~14 EUR | One-time |
| Monthly taxes (IT, Belgrade) | ~250-350 EUR | Monthly |
| Virtual office (optional) | 30-50 EUR | Monthly |
| EXT admin support | 29-99 EUR | Monthly |
| Bank account | Free-10 EUR | Monthly |
Total monthly cost: approximately 300-500 EUR depending on your activity and municipality.
Why use EXT Technologies?
The ePorezi tax portal is entirely in Serbian. Payment slips use Cyrillic script. Tax office communications are only in Serbian. As a foreigner, navigating this system alone is risky — one missed deadline means fines.
EXT handles everything in English:
- Monthly PPP-PD filing and tax payments
- eFaktura registration and management
- PIO/ZSO tracking and reminders
- Residence permit document preparation
- Communication with tax authorities
From 29 EUR/month. View packages →
Frequently Asked Questions
Can a foreigner open a preduzetnik in Serbia?
+Yes. Foreign nationals can register a preduzetnik at APR under the same conditions as Serbian citizens. You need a passport, Serbian address, and activity code.
How long does registration take?
+1 business day if done in person, 2-3 days online. You receive your PIB (tax number) immediately.
Do I need a work permit?
+As a preduzetnik owner, your residence permit covers your right to work. You don't need a separate work permit.
What happens if I don't pay taxes on time?
+Fines from 25,000 RSD, interest charges from day 1, and potential residence permit denial if PIO/ZSO contributions are unpaid.
Can I hire employees as a preduzetnik?
+Yes, but it increases your tax obligations significantly. For hiring, consider a DOO (LLC) structure instead, or use EXT's payroll/EOR service.