Freelancers in Serbia: How to properly report your income and avoid penalties

In recent years, freelance work has become increasingly common in Serbia. Programmers, designers, translators, educators, marketers, and many other professionals often provide services to both domestic and foreign clients—without being formally employed and most often without registering a business.

Freelancing offers freedom and flexibility, but it also brings tax obligations that should not be ignored. Due to the growing number of individuals earning income from abroad, the Serbian Tax Administration has developed a special system for reporting and taxing this type of income. If a freelancer fails to report their income, they risk facing high penalties.

Who is considered a freelancer under Serbian law?

A freelancer is a natural person who earns income from abroad (or from domestic individuals) based on services provided, intellectual property rights, rent, online education, etc. It is important to note that freelancers are not registered entrepreneurs (sole proprietors or LLCs), but individuals who independently report their income and pay taxes through the official Freelancer Portal.

How is freelance income reported?

Freelancers report income quarterly, through the portal frilenseri.purs.gov.rs. There are two taxation models available:

Model A – for lower incomes: includes fixed deductions and higher tax and contribution rates.
Model B – for higher incomes: allows for greater recognized expenses and lower rates.

The tax report must be submitted no later than 30 days after the end of each quarter, followed by payment of due taxes and contributions.

What happens if income is not reported?

Failing to report freelance income within the legal deadline exposes individuals to the following penalties and consequences:

A fine ranging from 50,000 to 150,000 RSD for individuals.
If the Tax Administration discovers unreported income during a control procedure, they may assess additional taxes, along with interest and a penalty of 30% to even 100% of the assessed tax debt.
In more serious cases, misdemeanor or even criminal proceedings for tax evasion may be initiated.

In addition, unreported income can lead to complications when applying for loans, visas, property verification, or other legal and financial procedures.

Conclusion

Freelance work is increasingly popular, but without proper income tracking and timely tax compliance, it can easily turn into a legal and financial issue. Accurate tax reporting not only protects you from penalties, but also ensures financial stability and peace of mind.

If you’re a freelancer and unsure how to report income, which taxation model to choose, or you simply want professional support—contact an experienced accounting agency as ours.

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