Who are Digital Nomads?
Digital Nomads are, first of all, freelancers whose nature of work allows them to work from home, that is, from any point on the planet. Most Digital Nomads deal with modern IT jobs such as programming, graphic design, but also numerous branches of digital marketing such as SEO, PPC, etc. By strategically choosing a location, Digital Nomads may leverage differences in currency and cost of living in order to minimize their tax bills and maximize profits. There are many factors to be considered in regards to the Digital Nomad equation. In this article we will tackle the question whether Serbia could become a Digital Nomad heaven?
Serbia:
Serbia is a visa-free country for almost every passport holder. In other words, a visa is not required to enter and stay in the country. For a limited stay of 90 days within a 180-day period, there is no requirement to pay visa fees and go through the administrative obstacle course. Besides this, there is an initial obligation for foreigners to report their stay within 24 hours of arrival. During that time, Digital Nomads are exempt from taxes and income reporting, provided that they work for foreign employers who are not registered in Serbia.
However, to stay in Serbia longer than 90 days, a foreigner needs to apply for a residence (now single) permit through the Ministry of Interior Affairs.
New law changes:
On 27. July 2023 the Parliament of Serbia adopted the Law on Amendments to the Law on Foreigners and the Law on Amendments to the Law on Employment of Foreigners. As announced by the Government of Serbia, this makes it possible and easier for foreign citizens, in a single procedure, to exercise the right to temporary residence and work in Serbia at the same time, through a single procedure, which should simplify the procedure for employment and contribute to alleviating the problem of lack of labor strength in the domestic labor market. Most of the changes take effect immediately, except for those requiring by-laws and organizational preparations (such as a single permit) which will take effect on February 1, 2024.
Key Changes:
∎ Single Permit for Residence and Work
An outstanding change involves the introduction of a single integrated permit for both temporary residence and work authorization. This shift simplifies the process by allowing foreigners to apply online for one permit which combines residence and work rights. The decision is required to be rendered within 10-15 days of the application, which makes the process much more efficient than the previous one. Average fee would amount to EUR 110.
∎ Extended Duration for Temporary Residence
The maximum duration for temporary residence permits has been extended to three years, eliminating the previous one-year limit. Renewals of the residence permit can be requested before the permit expires allowing the applicant more flexibility and security. Also, specific categories of foreigners, such as those seeking employment-based residency, will no longer need to provide evidence of financial support or health insurance during their stay.
∎ Easier Employment Conditions
Individuals with temporary residence permits based on property ownership, studies, family reunification, scientific research, or international student exchange will now be allowed to work in Serbia without a distinct work permit , which was previously disputable based on interpretations of different administrative bodies.
Closing remarks
Traditional work patterns are experiencing changes all over the world and a wise choice of destination can makes a huge difference for a Digital Nomads. In that sense, Serbia has taken the first steps to make its immigration law more friendly and expedient for foreigner workers. We will closely observe the further developments and keep our readers posted.
The information in this document does not constitute legal advice on any particular matter and is provided for general informational purposes only.
For more information, please do not hesitate to contact: serbia@odilaw.com
Marija Stojanović, Senior Associate
