Rental Income Tax in Serbia: Rate, Deductions and How to File
If you rent out an apartment, house or office in Serbia, you owe rental income tax. The short answer: tax on rental income in Serbia is 20% of gross rent reduced by a 25% standard deduction, which works out to an effective 15% of the rent. Who files and pays depends on the tenant. When the tenant is a company, it withholds the tax at source. When the tenant is an individual, you as the landlord file a PP OPO return within 30 days. Below we explain the calculation, the filing, a worked example for 500 euros of monthly rent and the separate rules for short-term rentals.
Who pays and at what rate
Income from renting out real estate is taxed under the Personal Income Tax Law as income from immovable property. The taxpayer is the individual who rents out the property, whether or not they are a Serbian tax resident. The rate is 20%, and the tax base is gross income less a 25% standard deduction. The standard deduction is granted without any receipts and covers depreciation, maintenance and similar costs.
Instead of the standard deduction you can claim actual expenses, if you have invoices for repairs, appliances, insurance or improvements. This only pays off when actual expenses exceed 25% of annual rent.
| Item | Value |
|---|---|
| Tax rate | 20% |
| Standard deduction (real estate) | 25% of gross income |
| Effective burden | 15% of gross rent |
| Standard deduction (movable property, e.g. vehicle or equipment) | 20% of gross income |
| PP OPO deadline when the tenant is an individual | 30 days |
Worked example: 500 euros of monthly rent
Rent agreed in euros is converted to dinars at the National Bank of Serbia middle rate on the day the income is received. At roughly 117.40 dinars per euro, the rate in mid-September 2026, the calculation looks like this.
| Step | Amount (RSD) |
|---|---|
| Gross monthly rent (500 euros) | 58,700 |
| Standard deduction 25% | 14,675 |
| Tax base | 44,025 |
| Tax at 20% | 8,805 |
| Landlord keeps | 49,895 |
| Tax per year | 105,660 |
If the tenant is a company, it pays you 49,895 dinars and remits 8,805 dinars to the Tax Administration on your behalf. If the tenant is an individual, you receive the full 58,700 dinars and pay 8,805 dinars yourself after filing. If the lease says the tax is "borne by the tenant", the amount you receive is treated as net, the base is grossed up and the tax is somewhat higher.
Who files and when
The tenant is a company or sole trader
A company renting an apartment for an employee or an office for its business is the withholding agent. At each payment it calculates the tax, files a PPP-PD return through the ePorezi portal and pays the tax before paying you. You have no filing obligation as landlord, but check that the company actually does it, because the income is recorded under your personal ID number.
The tenant is an individual
When you rent to another individual, you self-assess the tax. You file a PP OPO return within 30 days of signing the lease or of receiving the income, through ePorezi or on paper at a branch of the Tax Administration. The tax is due within the same period. In practice the return covers the period for which rent is collected, so agree with your accountant whether to file monthly, quarterly or for the whole lease term.
The tenant is abroad
If you rent to a foreign company or a foreigner paying from an account abroad, the rule is the same as for an individual: you file PP OPO within 30 days. Read more in our post on PP OPO and foreign-source income.
The lease and notarization
A residential lease must be in writing. Notarization is not mandatory, but we recommend it for two reasons. First, a notarized lease with an enforcement clause allows fast collection or eviction without years of litigation. Second, a notarized lease is clear evidence for the Tax Administration of the start date and the rent amount. A security deposit is not taxed until you keep it, at which point it becomes income.
Short-term rentals through Airbnb and Booking
Renting to tourists by the night is not treated as a lease but as hospitality services in a private home. The rules differ:
- The property (apartment, house or room) must be categorized through the local municipality and registered in the eTurista system.
- Tax is a flat amount set by a Tax Administration decision, on a base of 5% of the average monthly salary in Serbia multiplied by the number of beds, at a 20% rate. It is payable regardless of occupancy.
- The return is filed on form PPDG-4R, as a rule within 15 days of starting the activity.
- Guests are charged a tourist tax and issued a receipt, and income above a certain volume may require registering as a sole trader.
If the same apartment is rented long-term for part of the year and to tourists for the rest, keep two separate records. Questions about the line between leasing and hospitality are common, so it is worth getting tax advice in that case.
Penalties for unreported rental income
The Tax Administration finds landlords through residence registrations, listings, bank transfers and neighbor reports. The consequences of not reporting are:
- Tax assessed retroactively for the whole period, with late-payment interest.
- A misdemeanor fine for individuals of 5,000 to 150,000 dinars for failing to file, under the Law on Tax Procedure and Tax Administration.
- For larger amounts of unreported tax, criminal liability for tax evasion is possible.
Rental income also counts toward the annual personal income tax base, which foreign owners often overlook. Our guide to accounting for foreign-owned companies covers related obligations for companies that rent from individuals.
Common mistakes
- Believing no tax is due until the lease is notarized. The obligation arises when income is received, not at notarization.
- Assuming a corporate tenant automatically pays the tax, without checking the PPP-PD filing.
- Reporting rent in euros without converting at the NBS middle rate.
- Treating nightly rentals as an ordinary lease, without categorization and PPDG-4R.
- Missing the 30-day deadline while waiting for the first payment.
Frequently asked questions
How much tax do I pay on 300 euros of rent
At 117.40 dinars per euro that is 35,220 dinars gross. The base is 26,415 dinars and the tax 5,283 dinars per month, or 15% of the rent.
Do I have to report rent if I only let a room or a garage
Yes. Any income from renting out immovable property is taxable, regardless of the type or size of the property.
What if I let a family member live there for free
If there is no rent, there is no income and no tax. If rent is paid, even a symbolic amount, it is taxable, and the Tax Administration may challenge a price far below market.
Can I deduct actual renovation costs
Yes, instead of the 25% standard deduction, if you have invoices in your name. The claim is made with the return and only pays off when costs exceed a quarter of annual rent.
How NOTA GROUP can help
We prepare and file PP OPO returns for landlords, check withholding by corporate tenants and advise apartment owners on categorization and the flat tax. Book a consultation or reach us through the contact page.
