{"id":6562,"date":"2023-02-28T19:54:40","date_gmt":"2023-02-28T19:54:40","guid":{"rendered":"https:\/\/rasiclaw.rs\/uncategorized\/employment-of-foreign-nationals-in-the-republic-of-serbia\/"},"modified":"2023-02-28T19:54:40","modified_gmt":"2023-02-28T19:54:40","slug":"employment-of-foreign-nationals-in-the-republic-of-serbia","status":"publish","type":"post","link":"https:\/\/rasiclaw.rs\/en\/advokat-en\/employment-of-foreign-nationals-in-the-republic-of-serbia\/","title":{"rendered":"Employment of Foreign Nationals in the Republic of Serbia"},"content":{"rendered":"

On our page, you will find all the necessary information regarding the process and procedures for the employment of foreign nationals in the Republic of Serbia.<\/p>\n

Our law firm, Ra\u0161i\u0107 & Partners, specializes in international law in the Republic of Serbia, predominantly representing clients from a wide variety of countries around the world. Recently, an increasing number of foreign nationals have been contacting us for assistance with employment in the Republic of Serbia. They come from various countries, including China, India, Bangladesh, Tunisia, Morocco, Russia, Ukraine, Pakistan, and Turkey.<\/p>\n

The Ra\u0161i\u0107 & Partners Law Firm is also your primary point of contact if you are a foreign national seeking employment in Serbia, as well as if you are an employer from the Republic of Serbia wishing to be informed about the conditions and incentives related to the employment of foreign nationals in the Republic of Serbia.<\/p>\n

INCENTIVES FOR EMPLOYERS REGARDING THE EMPLOYMENT OF FOREIGNERS IN SERBIA<\/strong><\/p><\/blockquote>\n

The Serbian tax system provides two types of incentives for employers who hire foreign nationals wishing to settle in Serbia and establish an employment relationship in Serbia:<\/p>\n

The first type of incentive consists of tax reliefs defined by:
\n1. Article 15v of the Personal Income Tax Law:<\/em>This article provides for a reduction of the wage tax base for a newly-settled taxpayer, concerning the salary earned on the basis of an employment relationship established for an indefinite period with a qualified employer, where such employment is established for a position requiring special professional education that cannot be easily met on the domestic labor market.
\n2. Article 15a of the Law on Contributions for Mandatory Social Security:<\/em>This article stipulates that the contribution base for employees and employers, for a newly-settled taxpayer on whose salary the right to a wage tax base reduction is exercised in accordance with the law governing personal income tax, is the salary reduced by 70%.<\/p>\n

The second type of incentive is the subsidy determined by:
\n“The Decree on Criteria for Granting Incentives to Employers Employing Foreign Nationals in the Republic of Serbia”<\/em><\/p>\n

As defined by the Decree, subsidies are paid in the amount of 70% of the calculated and paid wage tax for one or more employed newly-settled persons, and 100% of the calculated and paid contributions for mandatory pension and disability insurance\u2014within the meaning of regulations governing mandatory social security contributions\u2014for payments made to a newly-settled person over a period of up to 60 months, starting from July 1, 2022, until December 31, 2028. Applications submitted are decided upon by the ministry competent for economic affairs within 120 days from the expiration of the application deadline. The right to be granted subsidies based on the Decree is acquired by an employer who employs a newly-settled person no later than December 31, 2023. For applications starting from 2024, an employer may exercise the right to incentives if, in the period after December 31, 2023, and up to the expiration of the year in which contributions were last paid, they did not reduce the total number of full-time employees engaged for an indefinite period. An employer cannot use both types of incentives simultaneously. An employer who utilizes the right to a base reduction for newly-settled persons in accordance with Article 15v of the Personal Income Tax Law and Article 15a of the Law on Contributions for Mandatory Social Security for employees for whom they are already receiving incentives loses the right to the entire amount of subsidies for said persons and is obligated to refund those funds.<\/p>\n

The difference between the statutory reliefs and the subsidy determined by the Decree is that, based on the Law, the relief is realized\u2014provided that statutory conditions are met\u2014at the time of paying public revenues, by reducing the tax and contribution payment base. If an employer decides to utilize the incentive defined by the Decree, the taxes and contributions paid for the newly-employed person are subsequently refunded, upon fulfilling the required conditions, for a specific percentage of taxes and contributions.<\/p>\n

Bearing in mind the complexity of the procedure, the expert team of the Ra\u0161i\u0107 & Partners Law Firm is at your disposal throughout the application process and the exercise of rights to tax reliefs, as well as in resolving any uncertainties regarding the implementation of the process of employing foreign nationals in the Republic of Serbia.<\/p>\n

WORK PERMIT AND CONDITIONS FOR ITS ISSUANCE<\/strong><\/p><\/blockquote>\n

If you plan to come to the Republic of Serbia to work as a foreign national, it is necessary to obtain temporary or permanent residence approval, as well as a work permit, often referred to in practice as a work visa. The employment of foreign nationals in the Republic of Serbia is regulated by the Law on Employment of Foreigners.<\/p>\n

A work permit can be issued as:<\/p>\n