Serbia Investment Income Tax Guide 2026

Overview — Investment Income

Investment income in Serbia is taxed through a combination of withholding tax (WHT) on passive income and capital gains tax on disposals. The tax treatment depends on the type of investment, the residency status of the recipient, and applicable double tax treaties.

Dividend Taxation

Dividends paid by Serbian companies are subject to WHT:

• Standard WHT rate: 20% on gross dividends
• EU/FATF residents: 0% WHT (exemption applies)
• DTT relief: 0% WHT for residents of countries with which Serbia has a DTT
• Dividends received by Serbian tax residents are included in annual IIT return and taxed at 10% (with credit for WHT paid)

Interest Taxation

Interest income is subject to WHT:

• Standard WHT rate: 20% on gross interest
• EU residents: 0% WHT
• DTT relief: 0% WHT for residents of countries with DTT
• Interest on Serbian government bonds may be exempt or subject to reduced rates

Royalty Taxation

• Standard WHT rate: 20% on gross royalties
• DTT relief: 0% to 10% depending on the treaty

Capital Gains on Investments

Gains from the sale of shares, securities, and other investment assets are taxed at 15% under the personal income tax regime. Key exemptions include:

• 0% CGT on shares held for more than 10 years
• Gains on Serbian government securities may be exempt

Double Tax Treaty Network

Serbia has over 65 double tax treaties, including with the EU, US, Canada, China, Russia, UAE, India, Turkey, and many others. These treaties typically reduce WHT rates on dividends, interest, and royalties, often to 0% or 5-10%. The DTT network makes Serbia a competitive jurisdiction for holding companies and investment structures.

FAQs

What is the WHT rate on dividends in Serbia?

The standard rate is 20%, but this is reduced to 0% for EU/FATF residents and under most DTTs.

Is interest income taxable?

Yes, interest is subject to 20% WHT, but EU residents and residents of DTT countries benefit from 0% WHT.

How are foreign investment gains taxed?

Serbian tax residents are taxed on worldwide capital gains at 15%. A foreign tax credit is available for taxes paid abroad subject to DTT limitations.

Disclaimer

This guide provides general information about Serbian investment income tax for 2026. Tax laws and rates may change. Always consult with a qualified Serbian tax advisor. InvestmentKit does not provide tax advice.