Serbia uses an independence test (test samostalnosti) to check whether a registered freelancer is genuinely self-employed or really an employee in disguise. Fail it, and your income is taxed far more heavily. For freelancers who work mostly for one client, this is the single biggest tax risk — and the easiest to plan around if you understand it.
Why the test exists
Serbia's paušalac regime gives freelancers very low, flat taxes. The tax authority introduced the independence test to stop companies from dressing up ordinary employees as "freelancers" purely to pay less. If your working relationship looks and behaves like employment, the test treats it as employment — and taxes it accordingly.
How the test works
The test runs through a list of criteria that describe an employment-like relationship. The more of them apply to you and a given client, the more "dependent" you look. Cross the threshold — meeting several of the criteria — and that client's income falls into the heavily-taxed category instead of the favourable freelancer one.
The criteria look at things like:
- Whether the client sets your working hours and holidays
- Whether the client provides your workspace, tools or equipment
- Whether the client trains, directs or supervises how you work
- Whether most of your income comes from one client over a 12-month period
- Whether your contract stops you working for others or for the general market
- Whether the engagement is open-ended and continuous, like a job
What happens if you fail
Failing the test doesn't just nudge your rate up — income from that client is taxed under a much less favourable self-taxation regime, with higher effective tax and contributions. If the authorities reclassify a relationship after the fact, you can be looking at back-taxes and penalties for the period involved. For a single-client freelancer, that exposure can be significant.
How genuine freelancers stay safe
- Keep more than one client — and avoid having one client dominate your income over a 12-month window.
- Control your own work — your hours, your methods, your schedule.
- Use your own equipment and workspace rather than the client's.
- Get the contract wording right — a services agreement should read like a contract between two businesses, not an employment contract.
- Don't accept clauses that ban you from working for others or that make you part of the client's internal structure.
For most genuine freelancers with several clients, the test is a non-issue. The people who need to pay attention are those working full-time for a single company that used to (or wants to) employ them.
If you work for just one client
This is the high-risk profile — and a common one for remote workers who "went freelance" for the same employer. There are legitimate ways to structure it (including, in some cases, switching to a d.o.o. company), but the right answer depends on the numbers and the contract. Don't guess on this one.
This is general guidance, not legal or tax advice. The independence criteria, threshold and tax treatment change — always confirm your position with a licensed professional before relying on it.
Last updated: June 2026.
Official sources: Serbian Tax Administration