Freelancer Tax in Serbia 2026: Model A vs Model B Explained
If you earn income from foreign clients or platforms but are not registered as a sole trader, Serbia’s Tax Administration classifies you as a freelancer (frilenser). For you there is a dedicated self-taxation regime with two options — Model A and Model B — and you choose between them each quarter. The choice directly affects how much you pay, so it is worth understanding before you file.
This guide explains how each model works, the 2026 tax-free amounts and standardised costs, the tax and contribution rates, and — most importantly — how to pick the cheaper model for your income level.
Who counts as a “freelancer” for tax
These are individuals who earn contractual fees for work (author’s work, services, honoraria) where the payer has not withheld tax. Typically: developers, designers, translators, copywriters and consultants working for foreign platforms and clients. You report and pay the tax yourself — hence “self-taxation”. Returns are filed quarterly, through the Tax Administration’s freelancer portal, and you pick a model for that quarter.
The two models — the core logic
Both models start from the same principle: standardised costs (recognised as a lump sum, no proof required) are deducted from gross income, and tax plus contributions are charged on the remainder. The difference is how much cost is recognised and at what rates.
| Model A | Model B | |
|---|---|---|
| Standardised cost (quarterly) | higher fixed amount | lower fixed amount + 34% of income |
| Tax-free amount (2026) | RSD 107,738* | RSD 66,733 |
| Tax rate | 20% | 10% |
| Better for | lower income | higher income |
* The Model A standardised/tax-free figure shown is from the prior indexation; these amounts are adjusted on 1 February each year, so always confirm the current quarter’s figure on the official freelancer portal.
Model A — for lower income
Model A recognises a higher fixed standardised cost per quarter and taxes only the remainder at 20%, plus pension (PIO) and health contributions. Because the fixed deduction is large, low earners often end up with a small base or none at all. So Model A is better for freelancers with lower or irregular income.
Model B — for higher income
Model B recognises a lower fixed amount plus 34% of income as standardised cost (the percentage scales with income), with a 10% tax rate. The more you earn, the more that 34% works in your favour — so Model B is better for higher earners.
Contributions — the part people forget
Beyond tax, you pay mandatory social contributions: pension (PIO) and health. These are charged on the base (income minus standardised costs and the tax-free amount) and in practice often make up more of the total than the tax itself. So “10% or 20% tax” is not the full picture — always look at the total (tax + contributions).
Worked example — same income, two models
Assume a freelancer with RSD 600,000 income in a quarter (illustrative, rounded; exact figures depend on current amounts):
| Step | Model A | Model B |
|---|---|---|
| Gross income (quarter) | 600,000 | 600,000 |
| Standardised costs | higher fixed | lower fixed + 34% |
| Tax base | smaller | larger, but taxed at 10% |
| Tax rate | 20% | 10% |
At this income level Model B usually yields the lower total, because the 34% outweighs Model A’s fixed deduction. At, say, RSD 150,000 per quarter the opposite is true — Model A wins. The break-even point depends on the current amounts, so it is worth running both before each quarter.
Freelancer, sole trader (paušalac) or company?
Self-taxation suits occasional or moderate income. Once income becomes regular and larger, registering as a paušalac is often cheaper and “cleaner” — especially for predictability and how you look to clients. Compare the options in our flat-rate vs company guide and the tax guide for IT freelancers. If you work regularly for one foreign company, also read about the independence test in the tax guide for foreigners — it can decide which form is safe for you.
Frequently asked questions
Can I switch models from quarter to quarter? Yes. The choice is made per quarter, so you can use Model A in one quarter and Model B in the next, depending on what you earned.
What is the tax-free amount in 2026? For Model B it is RSD 66,733 per quarter (from 1 Feb 2026). The Model A amount is higher and also adjusts on 1 February — confirm the exact figure on the freelancer portal before filing.
Do I pay contributions if I’m also employed? The base and liability depend on whether you are already insured on another basis (e.g. employment). The contribution rules are specific — check your situation with an accountant.
When is the return filed? Quarterly, through the Tax Administration’s freelancer portal, within the prescribed deadline after each quarter ends.
How we help
We calculate both models for your income level, pick the cheaper one each quarter, file the returns and track deadlines — and when registering as a paušalac becomes worthwhile, we set that up too. Contact us for a free calculation.
Note: this article is informational and current as of June 2026. Confirm the current tax-free amounts and the exact calculation on the Tax Administration’s freelancer portal or with an accountant.