Gift Tax in Serbia
Gifting money or property to another person is a common way to show love and respect. In Serbia, a gift tax applies to money or property given without compensation. The person who receives the gift is responsible for paying the tax.
What Is Gift Tax?
Gift tax applies to any gift valued over 100,000 dinars. Gifts worth 100,000 dinars or less are not taxed. However, if the gift exceeds this amount, a tax of 2.5% is payable on the value above 100,000 dinars.
Gift tax applies to any gift whose value is greater than 100,000 dinars. If the gift is worth 100,000 dinars or less, it is not taxed. However, if the value of the gift is greater than 100,000 dinars, then a tax of 2.5% of the value of the gift is payable on that amount.
Exceptions to Gift Tax
There are exceptions to this taxation, especially since gifts are often exchanged among close relatives:
| First-Line Heirs (Children and Spouse) | Exempt from taxes |
| Second-Line Heirs (Parents, Siblings) | Pay a 1.5% tax on the gift’s value. |
|
Third-Line Heirs and Distant Relatives: Pay a 2.5% tax on the gift’s value. |
Pay a 2.5% tax on the gift’s value. |
Tax Return Submission
Regardless of whether you are exempt from taxes, you must submit a Tax Return to the Tax Administration within 30 days of receiving the gift. This submission allows the authorities to determine if you are taxed or exempt. When certifying a Gift Agreement, the Notary Public forwards the tax return to the Tax Administration. You will then receive a Decision outlining your obligation. If eligible for tax reduction or exemption, you must provide documentation proving your relationship with the donor or other legal grounds for the exemption as per the Law on Property Taxes.
If you have any additional questions, Gnjatić Law office is at your disposal.