| Serbia | Cyprus | |
|---|---|---|
| Corporate income tax | 15% | 15% from 2026 (was 12.5%) |
| Dividends to a non-resident owner | 20%, lower under a treaty | 0% in most cases |
| VAT and threshold | 20%, threshold about €68k | 19%, threshold €15,600 |
| EU membership | Candidate | Member, not in Schengen |
| Residence through own company | Your Serbian d.o.o. with a real activity is the basis | "Company of foreign interest": €200,000 investment, a real office, salary at least €2,500 a month. Owning a company alone is not enough |
| Permit length | Up to 3 years | Up to 3 years, renewable |
| Permanent residence | After 3 years of temporary residence | Depends on the route, check with a Cypriot adviser |
| CRS | Not exchanging, no start date announced | Exchanging, as an EU member |
When Cyprus makes more sense
If you need an EU company, EU directives on dividends and royalties, or you will pay out most profits to yourself as a non-resident, Cyprus is a strong choice. It also works well for holding structures with an established adviser.
When Serbia makes more sense
- You don't have €200,000 to put in. In Cyprus residence through a company needs an investment, an office and a high salary. In Serbia your own company with a real activity is the basis, and the whole route costs a fraction of that.
- You want to live where you work, at lower cost. Rents and salaries in Belgrade are well below Nicosia and Limassol.
- Banking privacy. Cyprus exchanges under CRS as an EU member. Serbia does not yet. FATCA and normal bank checks apply in Serbia, and you declare income where you are tax resident.
Many clients combine them: a Cypriot company for EU clients and a Serbian company as the base for residence. We work with your Cypriot adviser on the Serbian side.
Sources for the other country: PwC Worldwide Tax Summaries (reviewed August to September 2026), official government sites and law-firm summaries. Rules change, so check the current position with an adviser in that country before you decide. For Serbia we confirm everything in writing for your case. Updated 30 October 2026.