Banks in Serbia: A Guide for Non-Residents on Opening Accounts and Financial Operations

Legal Framework and General Principles of Account Opening

When choosing a bank in Serbia, it's important to understand the legal framework. According to Article 41 of the Law on Banks, financial institutions have the right to choose their clients and are not obligated to explain the reasons for refusing to open an account. Attempts to challenge such a decision are usually unsuccessful.

It should be noted that approaches may differ in various branches of the same bank. If you are refused at one branch, it makes sense to try another. Additionally, to open a business account, you must provide completed company registration documents from the Serbian Business Registers Agency (APR).

An important concept is the status of a foreign exchange resident. In Serbia, this status is granted to a person who has lived in the country for more than 12 months based on a temporary residence permit. Resident status significantly expands access to banking products and services.

Overview of Banks Friendly to Non-Residents

Not all Serbian banks are willing to work with foreigners without a residence permit. However, there are a number of institutions where opening an account for a non-resident is a standard procedure. The terms, available currencies, and quality of service can vary significantly among them.

The choice of bank depends on individual needs: receiving a salary, running a business, receiving transfers from abroad, or simply storing funds. Below is a comparative analysis of banks that most frequently open accounts for foreigners without a residence permit.

Banks with Special Conditions for Foreigners

Some banks in Serbia are willing to open an account for a foreigner but impose certain requirements. Most often, this involves having an employment contract with a local company, being the director of a Serbian company, or holding a residence permit that has been valid for a specific period.

• OTP Banka: Opens a personal account if you have an employment contract with a Serbian employer. It features a high-quality mobile app and the ability to issue virtual cards.
• Yettel Bank: Opens a personal account for foreigners with a residence permit older than 90 days or for those working in a Serbian company. It offers free plans and commission-free cash withdrawals at any ATM in Serbia.
• Halkbank: Sometimes opens accounts for employees or directors of Serbian companies (DOO).
• AikBanka: There have been successful cases of account opening for citizens of the Russian Federation. The bank offers good interest rates on deposits.
• UniCredit: There have been cases of opening business accounts for sole proprietors with a Russian passport. It accepts a wide range of currencies, including RSD, USD, EUR, and RUB.

Banks such as Banca Intesa, Addiko, and Erste Bank very rarely open accounts for non-residents.

Withdrawing Cash from Foreign Bank Cards

An important detail for newcomers is that at ATMs in Serbia, you can only withdraw the local currency, Serbian Dinars (RSD), from a foreign bank card. It is not possible to withdraw Euros, Dollars, or other currencies directly.

• Adriatic Bank (formerly Expobank)
• Halkbank
• Yettel Bank

When withdrawing cash, you should always select the 'Decline Conversion' option in the ATM menu. Otherwise, the conversion of your card's currency to dinars will be done at the ATM's unfavorable exchange rate, which can lead to a loss of up to 10% of the amount. Choosing 'Decline Conversion' ensures the exchange is made at the payment system's rate (Visa or Mastercard).

Limitations and Capabilities of a Non-Resident Personal Account

A non-resident's personal account in a Serbian bank has a number of functional limitations, especially regarding online operations. Although basic functions are available, fund transfers are significantly more difficult.

• Viewing balance and transaction history.
• Converting currencies between your own accounts.
• Receiving SWIFT transfers.
• Paying by card in stores and online.

• Inability to send money online: neither within the country (by account number or QR code) nor abroad via SWIFT. All outgoing transfers must be made through a bank branch.
• Card-to-card (P2P) transfers do not work for sending, only for receiving.
• Receiving a salary from abroad into a personal account is subject to high taxes (around 40-46%). It is recommended to register as a sole proprietor for this purpose.
• Cryptocurrency operations (P2P purchases, receiving funds from sales) are prohibited for non-residents or carry a high risk of attracting attention from regulatory authorities.

Specifics of Managing a Business Account in Serbia

Opening a business account is a mandatory requirement after registering a company in Serbia. Significant fines are imposed for not having an account. Managing such an account has strict rules, especially concerning foreign currency transactions.

The key rule is the prohibition of withdrawing foreign currency from a business account. Any incoming foreign currency must first be converted into dinars and only then withdrawn. Direct transfer of foreign currency from a business account to your personal account (even in a Serbian bank) is also not possible.

1. Receiving foreign currency into the business account (EUR, USD, etc.).
2. Converting the currency into Serbian Dinars (RSD) via online banking.
3. Withdrawing dinars from an ATM or at the bank teller.
4. Exchanging dinars for the desired currency at an exchange office (menjačnica).
5. Depositing the cash currency into your personal foreign currency account.

There are strict limits on cash withdrawals and purchases with a business card (usually 150,000 dinars per day), and any expenses exceeding this amount require a supporting document (invoice).

Loans, Deposits, and Safe Deposit Boxes

Access to additional banking services for foreigners directly depends on their status. Non-residents have very limited options, while residents can enjoy a wider range of products.

Safe deposit boxes are offered by many major banks, including Raiffeisen, Erste, Alta Banka, Halkbank, and others. The rental cost varies depending on the size of the box and the bank's policy.

Notifying the Russian Federation Tax Authorities about Account Opening

Citizens of the Russian Federation who are its tax residents are required to notify the Federal Tax Service (FTS) about opening (or closing) accounts in banks outside the Russian Federation. This requirement is established in Russian legislation.

The notification must be submitted within the deadlines established by law after opening the account. There is also an obligation to annually submit a report on the movement of funds in such accounts if the turnover or the year-end balance exceeds the established limit.

There are exceptions where submitting a notification or report is not required. For example, if the account is opened in a country that is a member of the EAEU or engages in automatic exchange of financial information with Russia, and certain turnover limits are met. It is recommended to check the current rules and exceptions on the official website of the Federal Tax Service of Russia.