Tax breaks for employers in Serbia in 2025

In 2025, employers in Serbia can take advantage of several tax incentives designed to reduce business costs and encourage hiring. These measures are especially beneficial for companies looking to expand their workforce, invest in research and development, or attract skilled professionals from abroad.

1. Refunds on taxes and contributions for new hires

Employers hiring new employees are entitled to refunds of 65%, 70%, or 75% of paid payroll taxes and contributions, depending on the number of newly employed workers.
This incentive applies to salary payments made up to December 31st, 2025.

2. Incentives for founders of innovative startups

Founders of newly established companies engaged in innovative activities—who are also employed by these firms—are exempt from 100% of payroll taxes and contributions for gross salaries up to RSD 150,000 per month.
This tax break is valid for 36 months from the date the company is founded.

3. R&D employment tax benefits

Companies employing staff on research and development projects are eligible for a 70% payroll tax exemption and a 100% exemption from pension and disability insurance contributions.
These benefits apply proportionally to the time the employee spends on R&D and last for the duration of the project.

4. Incentives for returnees and highly skilled foreign professionals

Highly educated individuals relocating to Serbia for work—who have not predominantly resided in the country for the past two years—can benefit from a 70% reduction in the taxable base for salary taxes and contributions.
Minimum gross salary requirements:

General returnees: RSD 393,855/month
Young returnees (under 40, educated abroad): RSD 262,570/month
The incentive is valid for 5 years from the employment contract start date.

5. Hiring people with disabilities

Employers hiring people with disabilities on a permanent basis are entitled to a 100% exemption from payroll taxes and contributions for a period of three years.
Note: This does not apply to the public sector.

6. Increased non-taxable salary threshold

As of January 1st, 2025, the non-taxable portion of wages in Serbia has been increased from RSD 25,000 to RSD 28,423 per month.
This change directly increases employees’ net income and reduces the tax burden on employers.

Conclusion

The tax incentives available in Serbia throughout 2025 offer meaningful financial support for employers—especially those investing in innovation, creating new jobs, or bringing back talented professionals from abroad.
By leveraging these measures, companies can significantly lower operating costs and accelerate growth.

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