SerbiaA Comprehensive Guide to Obtaining a Serbia Residence Permit

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  • Serbia, an enchanting nation situated in the heart of the Balkan Peninsula, extends a warm invitation to foreigners who wish to establish their residency within its borders by offering Serbia residence permit. With its abundant cultural heritage, awe-inspiring landscapes, and vibrant blend of traditional and contemporary elements, Serbia has emerged as a sought-after destination for individuals from across the globe. The Serbia residence permit offers a legal pathway for foreigners to reside in the country, granting them the opportunity to explore its diverse attractions, pursue professional prospects, or reunite with loved ones. Whether you are an aspiring entrepreneur eager to establish a business, a skilled professional seeking employment, a student with educational aspirations, or an individual yearning for a change of scenery, the Serbia residence permit opens up a multitude of possibilities.
  • Recognizing the valuable contributions that foreigners can bring to the country’s development and progress, the Serbian government has implemented an efficient and transparent immigration system, aiming to streamline the process of obtaining a residence permit and ensure a seamless transition for those who choose to call Serbia their new home. The residence permit offers a range of advantages, including access to essential services like healthcare and education, as well as the freedom to travel within the Schengen Area for short durations. Moreover, it provides a sense of security and stability, enabling permit holders to establish roots in a nation renowned for its warm hospitality and thriving communities.
  • Tetra Consultants is an international consulting firm that assists clients with the process of offshore company incorporation and mainland company incorporation in countries like Serbia. Our comprehensive service package includes services concerning corporate bank account opening, provision of nominee director services, assistance as a company secretarial as well as securing offshore financial licenses and work/residence permits for foreigners. In this guide, our team of immigration experts has delved into the ways of securing a Serbia residence permit for foreigners and the benefits of the same. 

Ways of securing Serbia residence permit for foreigners 

There are several ways for business investors to secure a residence permit in Serbia. Here are some of the most common avenues:

  • Investment in a Serbian Company: One option is to establish or invest in a Serbian company. By making a significant capital investment or owning a substantial portion of the company, foreign investors can qualify for a residence permit. The investment should contribute to the development and growth of the Serbian economy.
  • Start-up Business: Serbia encourages entrepreneurship and innovation. Foreign investors can apply for a residence permit by launching a start-up business in Serbia. The business should demonstrate potential for growth, job creation, and economic impact. It is advisable to have a well-prepared business plan and financial projections to support the application.
  • Real Estate Investment: Another route to obtaining a residence permit in Serbia is through real estate investment. Foreign investors who purchase property, such as residential or commercial buildings, meet the specified investment threshold, and fulfill legal requirements can be eligible for a residence permit. The investment should be significant and contribute to the development of the Serbian real estate market
  • Serbia imposes an annual property tax on the market value of the real estate. The tax rates vary depending on the location and type of property. However, residential properties owned by individuals are often subject to relatively low property tax rates. This contributes to a favorable tax environment for real estate owners in Serbia. Other benefits of investing in real estate include a minimum average investment in Belgrade is €80.000,00 and €50.000,00 in other cities, the right to apply for a Schengen visa in Serbia, no strict stay-requirement, along with the reasoning that real estate can be bought directly from the foreign bank without opening a local bank account.
  • Strategic Investments: Serbia also offers residence permits to foreign investors who make strategic investments in specific sectors of the economy. These sectors may include manufacturing, technology, tourism, agriculture, and infrastructure. The investment should align with the country’s development goals and contribute to job creation and economic advancement.
  • Employment of Local Workforce: Foreign investors who establish businesses in Serbia and employ a certain number of local Serbian citizens may be eligible for a residence permit. The investment should generate employment opportunities and contribute to the growth of the local economy.

Types of Residence Permits in Serbia

  • Temporary Residence Permit (for Employment): The initial temporary residence permit for employment is typically issued for one year, renewable annually based on the duration of the employment contract. After five consecutive years of temporary residence, an individual may be eligible to apply for permanent residence.
  • Temporary Residence Permit (for Business): The initial temporary residence permit for business is usually granted for one year. Renewals can be requested, typically for one to three-year periods, based on ongoing business activities and compliance with legal requirements.
  • Temporary Residence Permit (for Education): The temporary residence permit for education is typically aligned with the duration of the study program or course. It is granted for the academic year or semester and can be renewed accordingly.
  • Temporary Residence Permit (for Family Reunification): The temporary residence permit for family reunification is generally issued for one year, with the possibility of renewal. It allows family members to reside with their qualifying family member in Serbia.
  • Permanent Residence Permit: The permanent residence permit can be obtained after residing in Serbia under a temporary residence permit for five consecutive years. Once approved, it grants indefinite stay and work rights in the country.

Benefits of securing a residence permit in Serbia by setting up a company

There are several benefits of company formation when obtaining a residence permit in Serbia as an investor. Here are some key advantages:

  • Long-Term Residency: By establishing a company in Serbia, investors can obtain a residence permit that allows for long-term residency. This provides stability and the opportunity to actively participate in the management and growth of their business ventures.
  • Business Ownership and Control: Company formation grants investors ownership and control over their Serbian business. They have the authority to make strategic decisions, shape the company’s direction, and implement their entrepreneurial vision.
  • Access to Serbian Market: Establishing a company in Serbia enables investors to tap into the domestic market. They can take advantage of the country’s strategic location, growing economy, and favorable business environment to develop their products or services, attract customers, and expand their operations.
  • Corporate Income Tax: Serbia offers a competitive corporate income tax rate of 15%. This rate applies to the taxable profit generated by the Serbian company. Compared to many other European countries, Serbia’s corporate tax rate is relatively low, making it an attractive destination for business investment.
  • Double Taxation Treaties: Serbia has an extensive network of double taxation treaties with over 60 countries, including many major economies. These treaties aim to prevent the double taxation of income earned in both Serbia and the investor’s home country. By leveraging these treaties, investors can avoid or minimize the tax burden on their cross-border business activities.
  • Dividend Taxation: Dividends distributed by a Serbian company to foreign shareholders are generally subject to a 20% withholding tax. However, Serbia has a network of double taxation treaties that often reduce this rate. In some cases, the dividend withholding tax can be reduced to as low as 5% or even exempted entirely, depending on the specific treaty provisions.
  • Capital Gains Tax: Capital gains derived from the sale of shares in a Serbian company are generally subject to a 15% capital gains tax. However, if the shares have been held for more than two years, the capital gains may be tax-exempt. This exemption provides an incentive for long-term investment in Serbian businesses.
  • Employment Opportunities: Company formation in Serbia contributes to job creation and employment opportunities. By establishing and growing their businesses, investors can hire local employees, thereby positively impacting the local economy and fostering economic development.
  • Business Network and Partnerships: Through company formation, investors can establish connections and build relationships with local business networks and partners. This can lead to collaborations, joint ventures, and access to valuable resources, expertise, and distribution channels.
  • Access to EU Market: Serbia is not a member of the European Union (EU) but is a candidate country. However, through company formation and meeting certain criteria, investors can position themselves strategically to access the EU market. Serbia has free trade agreements with numerous EU countries, providing opportunities for business expansion and trade.

Looking for assistance with securing a Serbia residence permit?

  • As a business consulting firm and provider of corporate services, including company formation in Serbia, nominee director services, and bank account opening, we understand the significance of securing a Serbia residence permit for foreign investors. The process of obtaining a residence permit can open doors to a world of opportunities, allowing individuals to establish their presence in a country renowned for its rich heritage, growing economy, and welcoming environment.
  • By offering comprehensive services tailored to the needs of our clients, we aim to simplify and streamline the process of securing a Serbia residence permit. Our expertise in company formation ensures that investors can navigate legal and administrative requirements with ease. We guide you throughout the application process, ensuring compliance with regulations and optimizing the chances of a successful outcome. Through our nominee director services, we offer additional support and expertise, enabling investors to establish and manage their Serbian companies effectively. Our team of professionals brings a wealth of experience and knowledge to assist clients in making informed decisions and maximizing the benefits of their investments. Furthermore, our assistance in bank account opening facilitates the seamless integration of investors into the Serbian business landscape. We guide clients through the process of selecting the most suitable banking institutions and ensure a smooth account opening procedure, allowing for efficient financial operations within Serbia.
  • Tetra Consultants is committed to providing exceptional services, ensuring a smooth and successful process for securing a Serbia residence permit. Our team is dedicated to building long-lasting relationships with our clients, guiding them every step of the way, and assisting them in achieving their goals in Serbia.

Contact us today to embark on your journey toward securing a Serbia residence permit and explore the endless possibilities that await you in this captivating country.

Tetra Consultants

Tetra Consultants is the consulting firm that works as your advisor and trusted partner in your business expansion. We tell our clients what they need to know, instead of what they want to hear. Most importantly, we are known for being a one-stop solution for our valued clients. Contact us now at enquiry@tetraconsultants.com for a non-obligatory free consultation. Our team of experts will be in touch with you within the next 24 hours.

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