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.
Common questions
What is a paušalac in Serbia?
A paušalac is a flat-rate self-employed (sole-trader) registration in Serbia where you pay a fixed monthly tax set by the Tax Administration — covering income tax, pension and health contributions — instead of a percentage of your earnings. It suits freelancers and remote workers earning up to about 6 million RSD (~€50,000) per year.
How much tax does a paušalac pay?
For most service freelancers in Belgrade the all-in paušalac tax is roughly €80–300 per month (approximate, 2026), depending on profession, age and city. The amount is fixed regardless of income, so the more you earn the lower your effective rate. Your exact figure is set after registration.
What is the income limit for a paušalac?
The paušalac flat-rate system is capped at 6 million Serbian dinars per year (roughly €50,000). If your income consistently exceeds that, you switch to another structure such as a d.o.o. company.
Can a foreigner register as a paušalac?
Yes. Foreigners commonly register as a paušalac and use self-employment as the basis for a residence (single) permit. You first need an address registration (the White Card); a lawyer can complete the business registration in a few days.
Is a paušalac a residence permit?
No. Paušalac is a tax status governed by tax law, not immigration. Your right to live and work is the residence/single permit; paušalac is simply how your freelance income is taxed.