Serbian authorities are doing everything possible to attract citizens from other countries to the nation. The adoption of a new law regarding foreign nationals allows for the issuance of residency permits for up to three years, after which one can apply for permanent residency, and subsequently, citizenship. There is an option for obtaining a standard residency permit and registering legal entities and opening bank accounts is straightforward.

For budding entrepreneurs, Serbia offers a significant advantage — the special IP Box regime, which allows corporate income tax to be set at just 3%. This is a very low tax rate.

However, the IP Box applies only if you earn income from using your registered intellectual property. Before this, it must be properly registered, which is not a quick process.

Another benefit is the attractive deduction for R&D (research and development) activities. If you, as a legal entity, spend money on R&D, those expenses are doubled and can be applied as deductions against taxes. This applies to any area of activity that involves R&D.

The third advantage, which has led to a recent influx of new IT company offices, is the ability to avoid paying employee contributions, social security, and pension contributions for three years. However, this benefit is more appealing to larger players. Startups may not qualify for this due to their smaller scale.

Serbia has a low basic tax rate. If you register as an individual entrepreneur under a simplified scheme, the fixed tax is calculated based on the location of the legal entity and the type of activity.

The tax can range from €200 to €300 per month — a fixed amount regardless of income. However, if you exceed an annual turnover of 6 million RSD (around €50,000) under the simplified regime, the tax regime or legal entity form will change to D.O.O. (equivalent to LLC).

For D.O.O. in Serbia, the profit tax is 15%, and the VAT is 20%. Additionally, if the D.O.O. has employees, all standard insurance and pension contributions are quite substantial. The tax burden is around 40-50%, which is the standard European rate.

Serbia is a super English-speaking country, so there are no language barrier issues. However, when interacting with government agencies, the Serbian language may be required, and they might refuse to speak English. In the business environment, legal firms, and on the streets, everyone speaks English well, making it even difficult to learn Serbian.

Life in Serbia
Serbia is a small Eastern European country with a population of over 6.8 million people, about one and a half million of whom live in Belgrade.

There are two industrial centers here: Belgrade and Novi Sad, while the rest consists of municipalities, which play a significant role. Each municipality has broad regulatory powers, including the establishment of free economic zones, the construction of technology parks, and social support for residents and immigrants.

For example, the municipality of Novi Sad decided in 2022 to provide child benefits for all preschoolers, regardless of citizenship. Such a program does not yet exist in Belgrade.

The National Character of Serbians
Serbians are closer to Italians than to Eastern Slavs. This is reflected in their pace of work: there is no rush in Serbia, as in Italy. But there is also no Spanish extreme like "mañana," where "tomorrow" never comes. Opening a bank account can take two to three weeks simply because the specialist was busy with other matters. The key word that can describe the Serbian attitude is "polako," which means "slowly, unhurriedly." This "polako" is a characteristic feature of Serbian culture, and one might say it is part of its DNA.

The workday in Serbia lasts from 8 AM to 3 PM: during this time, government agencies finish their work, notaries work until 4:30 PM, and by 5 PM in Belgrade, no one is working anymore. In smaller towns, life ends even earlier.

There is no virtue in working around the clock here; people understand that life is short. In Serbia, they work no more than eight hours, sometimes six, after which they spend time with family and children or relax. There are no 24-hour services; even bank support operates until 8 PM. If your card is blocked at 9 PM, at best, you will receive a response the next day about what to do.

Deviating from a contract here is not considered a problem, as it might be in Germany or the UK: the concept of a gentleman's word, agreements sealed with a handshake or rakija, can be more important.

Forcing Serbians to work strictly by the contract raises a legitimate question about one's own adequacy. If a bank employee is talking to a colleague on the phone, drinking coffee, or s/he has stepped outside for a smoke instead of serving you, and you tell him you've been waiting for twenty minutes, you might not be understood.

People stand patiently in lines for a long time; the sense of time here is different. The likelihood of accomplishing many tasks in one day is low — not due to traffic jams, but because of the unpredictable human factor.

Although English is effectively the second language of Serbians, some citizens feel uncomfortable speaking it due to NATO's invasion 23 years ago.

Cost of Living in Serbia
Today, renting a one-bedroom apartment in Belgrade averages from €500 per month; before the first wave of relocation, housing costs started at €200. "Renting a 50 sq. m apartment in the center of Belgrade costs us about €750 plus utilities of €120-130. In Serbia, utility costs are reasonable. Grocery prices are roughly comparable to neighboring countries, and you can budget up to €70 for a week," notes one recent immigrant.

The quality of food in Serbia dramatically differs for the better: the government is fighting against antibiotics, pesticides, and chemical additives. All products are organic food, but it is difficult to stock up in advance because they spoil quickly due to their natural qualities.

The cost of private kindergarten is around €350. There are private schools, but one can also attend public schools, which experts believe offer a decent level of education. Children receive help in adapting and learning the language.

It is important to note that fuel prices in Serbia are relatively high: €1.7-1.8 per liter of gasoline or diesel, considering that the average salary in Serbia is less than €1,000. However, distances are short: from the center of Belgrade to the outskirts is no more than 20 km.

Conclusion
Moving to Serbia offers a unique opportunity for entrepreneurs and individuals alike, with favorable regulations, low taxes, and a welcoming environment for foreign nationals. The combination of affordable living, a supportive business climate, and ease of communication makes Serbia an attractive destination for those looking to start anew. As more people consider relocating to this vibrant country, the potential for growth and opportunity continues to expand, making it a promising choice for the future.