What is a pausalac?
A pausalac (pronounced "pow-sha-lats") is a type of self-employed registration in Serbia where instead of paying a percentage of what you earn, you pay a fixed amount every month — regardless of your income.
The Serbian Tax Authority looks at your profession, your location in Serbia, and your age — and sets a monthly figure you must pay. That amount covers everything: income tax, pension contributions, and health insurance in one payment.
How much is the tax?
It varies by profession and location. For most service-based freelancers (developers, designers, consultants, writers, marketers) based in Belgrade, the typical range is €80–300 per month total — covering all contributions combined.
Your exact amount is calculated by the Tax Authority after you register. A lawyer can give you a rough estimate for your specific situation before you commit.
Is there an income limit?
Yes. You can earn up to 6 million Serbian dinars per year through this system — roughly €50,000. If you consistently earn more than that, you would need to switch to a different accounting structure. Ask Marko if this applies to your situation.
What are the benefits of registering?
- Very low and predictable monthly tax — much less than most European countries
- Gives you a legal basis to apply for a residence permit
- Lets you open a Serbian business bank account (useful for receiving client payments)
- Includes health insurance contributions — you get access to public healthcare
- Simple to run — no complex bookkeeping required
- You can issue proper invoices to clients internationally
One important rule to know
There is a rule designed to prevent people using freelancer status to disguise what is actually an employment relationship. To pass this "independence test," you must not earn more than 70% of your total income from a single client. You also need to control your own working hours and methods.
In practice, this is a non-issue for most genuine freelancers with multiple clients. If you work exclusively for one employer, talk to Marko about how to structure things correctly.
How to register — step by step
How much does registration cost?
The government registration fee itself is small (under €30). Marko charges a flat fee to handle the whole process — typically around €200–300 for the pausalac registration alone, or as part of a package that includes the residence permit application. Ask him for a current quote.
Pausalac vs company (d.o.o.)
A pausalac is the simplest self-employed structure — essentially a sole trader. It is right for most individual freelancers and remote workers. If you want to hire employees, have business partners, or your income will exceed €50,000, a proper limited company (called a d.o.o. in Serbian) makes more sense. Marko handles both.