Country overview

#50

Serbia

Country stats

Rating Points

190

This indicator describes the overall rating of a given jurisdiction on several parameters according to cryptocurrency operations - market volume, crypto regulation, business climate, taxation framework.

Crypto Penetration

1.8%

Estimated percentage of crypto users out of the country's total population based on public data.

Legal Entities

Number of crypto companies registered in the country based on regulator data if available or other types of public data.

Regulation Points

140

An overall assessment of the granularity of crypto regulation in a given country. A high score is also given to countries where cryptocurrency transactions are highly regulated.

Amount of crypto users

122 400

Total amount of crypto users out of the country's total population based on public data.

Taxation points

This figure, according to our analysts' calculations, indicates the overall level of tax burden for cryptocurrency transactions in a given country. The higher the indicator, the lower the burden.

Market volume points

71.3

A rough estimate of this jurisdiction's retail crypto market relative to the rest of the world. The higher the indicator, the higher the market potential.

Status of crypto

Legally allowed

General status of cryptocurrency regulation in this jurisdiction.

Crypto payments

No info

The legal status of cryptocurrency payments for goods and services in a given country based on information from regulators, public data and feedback from our community.

Security Level

Minor danger

The overall level of security in a given country based on open data.

Crypto Salaries

Only part

The legal status of cryptocurrency salaries to employers in a given country based on information from regulators, public data and feedback from our community.

Business Climate

Good

Overall assessment of the friendliness of this country for crypto-business. This indicator takes into account the cost of obtaining a license and the attitude towards crypto entities in the country.

Stablecoin Regulation

None

This indicator is evaluating the regulation of stablecoins in a given country. Complex regulation means that it is possible to issue steiblcoins and obtain a license for this activity. Basic regulation means that the issuance of stablecoins is possible, but not all legal aspects are defined in the law. Standard regulation means that there is a legal practice of steylcoin circulation in a given country.

Bad Factors

This section describes the unfavorable economic factors for crypto-business in a given country. These are countries that are under sanctions or on the FATF grey list and other factors.

Types of licenses

Crypto-to-crypto

This license type allows VASP to provide legal exchange from one cryptocurrency to another.

Crypto-to-fiat

This type of license regulates the exchange from cryptocurrency to fiat.

Wallet/Custody

This country has a legal licensing procedure for companies that store cryptocurrency - - crypto wallet providers and custodians.

Cryptofund

This indicator means that investment funds, trusts, and crypto funds can get regulator approval to provide their activity in the country.

ICO/STO

This indicator describes legal procedures for token sales and security token issuance. This country has a clear regulation framework and licensing procedures for entities that provide this activity.

Good

Medium

Bad

intro

Serbia enables innovations in its business legislation, including fintech and blockchain. In 2021, this country has legalised cryptocurrencies by accepting a particular legislation act. It also has excellent potential as a European jurisdiction and is closely connected to the EU. At the same time, it doesn't have a harsh AML restrictions standard for EU countries.

Security level

Serbia has a minor danger security level according to our rating. It has 61.5 points (from 100) for safety level in Numbeo crime rating (1). Homicide level (2) is 1.1 per 100,000 inhabitants a year. Story of firearm-related death (3) 3.23 per 100,000 inhabitants a year.

Crypto Payments

According to Gradskeinfo.rs (4), in 2021, the National Bank of Serbia (NBS) has yet to approve licenses for any activity related to crypto payments for goods and services. However, the situation later changed after new regulations came into power.

“In the case of digital assets acquired through ‘mining’ or from the employer through a share plan, acquisition value would be determined under specific rules. PIT Law prescribes a tax exemption for 50% of realized capital gains if the gain is invested into the share capital of a Serbian legal entity or investment fund.”

The taxation procedure (5) in Serbia charges Capital gain tax on crypto payments, which means they are legal.

Crypto Salaries

The same situation is with crypto salaries. It still isn't regulated by federal law, but it is taxable. That's why they are also legal, according to Welcome Serbia overview (6).

Legal

There are existing regulations for digital assets in Serbia. Federal law on Digital Assets (7) was approved in 2020. According to the law, types of digital asset services include:

Details

reception, transmission, and execution of orders relating to the purchase and sale of digital assets on behalf of third parties;

acquisition and sale of digital assets for cash and/or scriptural money and/or e-money;

exchange of digital assets for other digital assets;

custody (safekeeping) and administration of digital assets on behalf of digital asset users and the related services;

services on the issuing, offering, and placing of digital assets on a firm commitment basis (underwriting) or without a strong commitment basis (uncommitted placement/agent services);

maintaining a register of pledges on digital assets;

digital assets acceptance/transfer services;

digital asset portfolio management;

operation of a digital assets trading platform.

You may check more details in the English translation of the law (8).

The law defines two types of digital assets:

Virtual currencies (VC): used as a means of exchange, not as legal tender;

Digital tokens: a digital form of property rights

Nacional Bank of Serbia (NBS) is the primary regulator, which controls VC entities, while Digital tokens are regulated by the SEC of Serbia.

The list of requirements for license application includes the following:

Details

Digital asset service providers (DASPs) must obtain a license to operate. To apply for a permit, they have to provide:

A list of services the company plans to provide;

Company bylaws;

An activities program

An internal control plan;

A description of AML/CFT measures;

A description of the organization;

Information on qualified owners;

Information on related persons;

Proof of necessary capital amount;

An authority’s fee proof of payments

According to Coingeek, three exchanges already have regulator approval from NBS. The exchange ECD.rs (9) also has regulator approval (10) from NBS. Official information about crypto regulation can be found on the NBS site(10¹).

Based on Zunic Law (11), mining is allowed but not regulated in the country.

Taxation

Tax name	Index
PIT tax Min	10
PIT tax Max	20
Corporate tax (CIT)	15
Min Individual CGT (for crypto)	15
Max Individual CGT (for crypto)	15
Wealth tax Min	0
Wealth tax Max	0

Tax Authorities

PIT and CGT

According to the blog of local exchange ECD (12), after the convention, crypto to fiat 15% CGT must be paid. A 2,5% tax rate taxes crypto gifts. Also, according to PWC tax summaries (13), there are 10% to 15% PIT tax rates for personal income, which depend on income estimations.

CIT

Welcome Serbia (14) states that the CIT tax rate for digital assets of legal entities is between 15% and 20%.

Sale or other transfer against consideration of digital assets by legal companies will be subject to capital gains tax at the rate of 15%. If a taxpayer invests the funds generated by the sale of digital assets in the share capital of a resident company in Serbia within 90 days of the sale, 50% of the capital gains tax will be exempt. A refund of 50% of paid capital gains tax will be made within 12 months from the date of sale of the digital assets. Non-resident entities will be subject to a 20% tax on capital gains realized from the sale of digital assets unless there is an applicable double taxation treaty that exempts such gains from taxation in Serbia.

Links

1)Crime Index by Country 2023 Mid-Year

2)List of countries by intentional homicide rate

3)List of countries by firearm-related death rate

4)Градске инфо. ПЛАЋАЊЕ КРИПТОВАЛУТАМА У СРБИЈИ И ДАЉЕ НА ЦРНО. CRYPTOCURRENCY PAYMENTS IN SERBIA ARE STILL ILLEGAL. Article

5, 6, and 14)Welcome to Serbia. The Taxation of Cryptocurrency – Serbia 2021.

7) Federal law on Digital Assets. PDF-file

8)English translation of the law. PDF-file

9)Najlakši i najpovoljniji način za kupovinu, čuvanje i prodaju kriptovaluta

10)Народна банка Сербиjе. Регистар пружалаца услуга повезаних с виртуелним валутама. Registry of service providers related to virtual currencies

10¹)Дигитална имовина

11)CRYPTOCURRENCY AND DIGITAL ASSETS TAX IN SERBIA. What Else Remains (Un)Regulated? Article

12)Kako platiti porez na kriptovalute u Srbiji: detaljan vodič u nekoliko koraka. How to pay tax on cryptocurrencies in Serbia: a detailed step-by-step guide. Article

13)PWC. Serbia. Individual - Taxes on personal income

Articles

article

Latin America: Crypto Regulation Review and Recent Updates

This publication provides an overview of crypto regulation trends in Latin America in 2022-2023

article

The Binance Card Program is Done, What Do You Do Now?

We deal with what happened to Binance crypto cards and what alternatives exist

research

TON Community Research

In this research we’ve calculated an approximate audience of the TON community before adding wallet to Telegram based on public data

intro

Security level

Crypto Payments

The taxation procedure (5) in Serbia charges Capital gain tax on crypto payments, which means they are legal.

Crypto Salaries

The same situation is with crypto salaries. It still isn't regulated by federal law, but it is taxable. That's why they are also legal, according to Welcome Serbia overview (6).

Legal

There are existing regulations for digital assets in Serbia. Federal law on Digital Assets (7) was approved in 2020. According to the law, types of digital asset services include:

Details

reception, transmission, and execution of orders relating to the purchase and sale of digital assets on behalf of third parties;

acquisition and sale of digital assets for cash and/or scriptural money and/or e-money;

exchange of digital assets for other digital assets;

custody (safekeeping) and administration of digital assets on behalf of digital asset users and the related services;

services on the issuing, offering, and placing of digital assets on a firm commitment basis (underwriting) or without a strong commitment basis (uncommitted placement/agent services);

maintaining a register of pledges on digital assets;

digital assets acceptance/transfer services;

digital asset portfolio management;

operation of a digital assets trading platform.

You may check more details in the English translation of the law (8).

The law defines two types of digital assets:

Virtual currencies (VC): used as a means of exchange, not as legal tender;

Digital tokens: a digital form of property rights

Nacional Bank of Serbia (NBS) is the primary regulator, which controls VC entities, while Digital tokens are regulated by the SEC of Serbia.

The list of requirements for license application includes the following:

Details

Digital asset service providers (DASPs) must obtain a license to operate. To apply for a permit, they have to provide:

A list of services the company plans to provide;

Company bylaws;

An activities program

An internal control plan;

A description of AML/CFT measures;

A description of the organization;

Information on qualified owners;

Information on related persons;

Proof of necessary capital amount;

An authority’s fee proof of payments

Based on Zunic Law (11), mining is allowed but not regulated in the country.

Taxation

Tax name	Index
PIT tax Min	10
PIT tax Max	20
Corporate tax (CIT)	15
Min Individual CGT (for crypto)	15
Max Individual CGT (for crypto)	15
Wealth tax Min	0
Wealth tax Max	0

Tax Authorities

PIT and CGT

CIT

Welcome Serbia (14) states that the CIT tax rate for digital assets of legal entities is between 15% and 20%.

Links

1)Crime Index by Country 2023 Mid-Year

2)List of countries by intentional homicide rate

3)List of countries by firearm-related death rate

4)Градске инфо. ПЛАЋАЊЕ КРИПТОВАЛУТАМА У СРБИЈИ И ДАЉЕ НА ЦРНО. CRYPTOCURRENCY PAYMENTS IN SERBIA ARE STILL ILLEGAL. Article

5, 6, and 14)Welcome to Serbia. The Taxation of Cryptocurrency – Serbia 2021.

7) Federal law on Digital Assets. PDF-file

8)English translation of the law. PDF-file

9)Najlakši i najpovoljniji način za kupovinu, čuvanje i prodaju kriptovaluta

10¹)Дигитална имовина

11)CRYPTOCURRENCY AND DIGITAL ASSETS TAX IN SERBIA. What Else Remains (Un)Regulated? Article

12)Kako platiti porez na kriptovalute u Srbiji: detaljan vodič u nekoliko koraka. How to pay tax on cryptocurrencies in Serbia: a detailed step-by-step guide. Article

13)PWC. Serbia. Individual - Taxes on personal income