Bank Accounts and Transfers in Serbia: An In-Depth Review January 2026

Opening a Business Account for a Sole Proprietor: The Main Obstacle

Serbia's banking system has its nuances, which can be a source of frustration for foreigners, especially when starting a business. One of the most challenging topics is opening a business account for a sole proprietor (IP). Experience shows that Serbian banks' approaches to new clients with a temporary residence permit (VNZh) can vary drastically.

The key factor for most banks is the duration of the residence permit. The longer a foreigner resides in the country, the higher their chances of successfully opening an account. Some financial institutions have very strict policies and prefer clients with an established residency status.

Analysis shows that Alta Banka is the leader in speed and flexibility for new entrepreneurs. Meanwhile, Poštanska štedionica, despite its attractive rates, can require a significant time investment. To save time when dealing with this bank, it is recommended to go directly to the central branch on Kralja Marije street in Belgrade.

Transactions and Transfers: The Role of Residency Status

Issues related to money transfers affect both domestic and international operations, and in each case, residency status plays a crucial role. This affects how the bank classifies your transactions and what limits or requirements it may apply.

When transferring funds from a sole proprietor's business account to your personal account in another Serbian bank, especially with regular and significant amounts, it is recommended to keep your residency status information up-to-date. Although there may be no direct obligation to notify the bank of a change in status, doing so helps avoid potential questions from the bank or tax authorities and ensures financial transparency.

• Sending money abroad from a non-resident account (e.g., with a residence permit of less than 6 months) is often restricted. Such operations usually require a personal visit to the bank to conduct a SWIFT transfer through an operator and to explain the purpose of the payment.
• Receiving money from abroad is generally easier. The key element for an incoming SWIFT transfer is the full IBAN of your account. The absence of a physical plastic card is not an obstacle to receiving funds, but the bank may request documents confirming the origin of the money, especially for large or frequent deposits.

Account Mistake: The Consequences of Mixing Personal and Business Finances

One of the most serious mistakes an entrepreneur can make is receiving business income into a personal account. Such a situation, where an employer or client mistakenly sends funds intended for the sole proprietorship to a personal account, creates significant tax risks.

This mixing blurs the line between personal income and the income of a sole proprietor, which is taxed under completely different rules. The tax authorities may interpret such deposits as undeclared personal income, which will lead to fines and additional tax assessments.

Ideally, such an erroneous payment should be immediately returned to the sender to be redirected to the correct business account. If the money has already been credited and the transaction is confirmed, you must consult an accountant urgently. It will likely be necessary to file additional reports or provide explanations to the tax office to prove that these funds are income for the sole proprietorship.

Documentation and Formalities: The Details That Matter Most

Proper and timely documentation is the key to success in any bureaucratic process in Serbia, whether it's opening a bank account or obtaining a residence permit. Nuances in dates and translations can lead to delays or rejections.

When opening an account for a sole proprietorship, the bank may require a contract with a client company. It is important that this contract is made out to your sole proprietorship and is dated no earlier than the registration date of the proprietorship itself. Work performed before the official creation of the sole proprietorship must be documented in a separate contract with you as an individual, with the corresponding taxation. Attempts to backdate contracts can arouse suspicion from the bank.

• Certified court translations of marriage or birth certificates must be 'fresh,' typically no older than 6 months.
• A criminal record certificate from the court also has a limited validity period. Obtaining it can take from 3 to 7 days, which must be considered when planning document submissions.

Tax Nuances During a Transitional Period

Changing your tax status, for example, transitioning from a freelancer regime to a sole proprietorship, is a complex period that requires special attention to tax obligations. The situation becomes more complicated if this transition coincides with the need to renew a residence permit.

Let's consider a case where a person transitions from being a freelancer to a sole proprietor, but the residence permit for the sole proprietorship has not yet been issued, and the old one is expiring. At the same time, they are expecting payment for work completed under their freelancer status. The question arises: how to correctly receive and tax this money?

1. If the freelancer status is still active at the time of payment, the income must be received and taxed according to the rules for freelancers.
2. If the sole proprietorship is already registered, the income must be accounted for as income of the sole proprietorship, even if it was temporarily deposited into a personal account (which requires subsequent legalization).

The key task is to avoid having parallel freelancer and sole proprietorship statuses for the same type of activity and to determine precisely which tax system to use for the transitional month.

Key Takeaways and Practical Recommendations

An analysis of the real-life experiences of foreigners in Serbia allows us to formulate a series of practical recommendations for those planning to conduct financial affairs in the country. Following these rules will help avoid common mistakes and simplify interactions with banks and tax authorities.

1. Choose your bank wisely. For a quick business account opening with a 'fresh' residence permit, Alta Banka is the preferred choice. If good conversion rates are important and you are willing to wait, consider Poštanska štedionica. Major banks like UniCredit and Raiffeisen are more conservative.

1. Remember that the duration of your residence permit matters. The longer you legally reside in Serbia, the more favorably banks will treat you.

1. Strictly separate personal and business finances. Use separate accounts for personal needs and for your sole proprietorship activities. Erroneous transfers can lead to serious tax consequences.

1. Update your residency information in a timely manner. Notify the bank of any change in your status to ensure transactions are processed correctly.

1. Prepare your documents meticulously. For residence permits and banking procedures, fresh and correctly prepared certified translations and certificates are always required. Plan ahead for the time it takes to obtain them.

1. Be prepared for SWIFT transfers for international transactions. When sending money as a non-resident, a personal visit to the bank and an explanation of the transfer's purpose will likely be required.

1. When in doubt, consult a professional. Complex situations involving taxes, payment errors, or residency issues require professional legal and accounting assistance. Do not try to resolve them on your own.