Serbia Implements 15% Crypto Capital Gains Tax

Serbia has emerged as a significant hub for bitcoin activity in the Balkans, with a surge in licensed exchanges, initial coin offerings (ICOs), and mining operations since the implementation of the Law on Digital Assets (LDA) in 2021. However, daily payments in crypto remain prohibited. For resident investors and foreign businesses operating through a Serbian entity, understanding the taxation of crypto profits is crucial.

The taxation of crypto assets in Serbia is overseen by the Tax Administration (Poreska uprava), in collaboration with the National Bank of Serbia (NBS) and the Securities Commission (SEC). Non-compliance can result in substantial fines. The crypto-tax system is governed by four key laws: the Law on Digital Assets 2021, the Personal Income Tax Law, the Corporate Income Tax Law, and the Value-Added Tax Law (amended in July 2021).

The Tax Administration is responsible for calculating and receiving all income, capital gains, and VAT. The National Bank of Serbia controls service providers and anti-money laundering (AML) measures in the virtual currency sector. Secondary-market platforms and token issuers are licensed by the Securities and Exchange Commission. Cryptocurrency, including BTC and ETH, is classified as an intangible asset and not legal tender. Intangible property also encompasses property rights to ownership, profit sharing, or admission rights in the form of digital tokens. Both types are taxed upon sale or use to acquire goods or services.

Serbia imposes several types of crypto taxes, including Capital Gains Tax (CGT), Income Tax, Value-Added Tax (VAT), and other taxes such as a 2.5% crypto inheritance and gift transfer tax. There is no wealth tax. The CGT rate is a flat 15% on net gains for individuals, while personal income tax on mining, staking, or salary income in crypto is also 15%. For businesses, CGT is integrated into the 15% corporate income tax base. Exemptions include a 50% CGT rebate if disposal proceeds are reinvested in a Serbian company or fund within 90 days, and virtual-currency exchanges, custodians, and dealers licensed under the LDA are exempt from CGT on inventory coins acquired solely for onward sale.

Crypto transactions are taxed based on specific criteria. Buying and holding crypto is not taxable until disposal. Selling for fiat triggers CGT, with the gain calculated as the sale price minus the acquisition cost. Mining and staking rewards are taxed as ordinary income upon receipt, with later sales incurring CGT on further appreciation. Salary or services paid in crypto are treated as employment or business income on the payday. Crypto-to-crypto swaps are considered two taxable disposals at fair-market value, with CGT due. DeFi lending and yield farming result in token interest being treated as income, with impermanent-loss recoveries affecting CGT. NFT mints and trades are subject to income tax on primary sales, with secondary sales yielding CGT for holders.

Residents must file a Capital-Gains Return (PP ODG-3) within 120 days of the quarter in which the gain occurred. Companies record gains in their tax balance annually. Required documentation includes exchange statements, transaction hashes, wallet screenshots, and fiat-conversion rates, which must be stored for seven years. Late filing incurs an interest rate of 0.03% per day and a surcharge of 10 to 50%, with deliberate underreporting attracting criminal charges.

Serbian firms can write off immediate expenses of crypto purchases, including exchange fees, electricity for mining, equipment depreciation, and secure storage insurance. Capital losses from crypto disposals can be used against other capital gains in the same year and carried over for five years. Individuals can include mining costs in the acquisition value to reduce future capital gains tax. Crypto gains can be offset by losses in the same calendar year but cannot be carried forward to subsequent years.

The Tax Administration may match exchange information received under LDA licensing regulations, bank-transfer reports, and automatic exchange-of-information agreements. Regulated Virtual Asset Service Providers (VASPs) must conduct Know Your Customer (KYC) procedures and submit transaction summaries monthly. Blockchain analytics tools alert authorities to large wallet movements and coin-mixing activities. Non-compliance with reporting crypto income or gains of 5 million RSD (0.7667 million euro) can result in administrative fines up to RSD 2 million for individuals and RSD 10 million for firms, late-payment interest, tax misdemeanor charges, asset freezes, and withdrawal of VASP licenses. Voluntary disclosure before an audit reduces penalties by 50%.

A 2025 draft amendment to the LDA aims to introduce a regulatory sandbox and clarify VAT treatment of utility-token sales. The Ministry of Finance is considering a de minimis CGT exemption for gains under €1,000 to ease retail compliance. Serbia's government continues to support blockchain innovation, with potential tax credits for R&D-heavy crypto start-ups under consideration.

The crypto capital gains taxation regime and income taxation regime in Serbia are straightforward, both at 15%. Transfers of virtual currency are VAT exempt, while token-linked goods and services remain subject to VAT. Maintaining accurate records of cost basis, classifying them quarterly, and considering the 50% reinvestment relief can be beneficial. Seeking advice from a Serbia-licensed tax advisor is recommended, given the rapidly evolving rules.