Are you a business owner looking to expand your team with talented and reliable freelancers? Do you need a sound designer or a full-stack developer? In this text we will try to convince you to hire freelancers in Serbia, as it’s home to many proficient freelancers that ensure swift delivery of services, professional experience, and demonstrate top skills. Hiring specialists from Serbia is also relatively simple so if you want to expand your operations and attract top talent. This article, we will show how to work with them and quickly work with your new talent.
Serbia
Nestled in the heart of the Balkan Peninsula lies Serbia, a country of warm seas, vibrant culture, and an emerging economy. The country has embraced the free market, with a modern industry that continues to grow and diversify. The service sector is the largest in Serbia, contributing significantly to the country’s economy. The official currency is the Dinar (RSD). The country’s multicultural society provides a comfortable and supportive environment for enterprises and individuals.
In 2020, Serbia’s nominal GDP ranked it as the 86th largest economy in the world, with a high growth rate compared to other European countries. The automotive, energy, machinery, agriculture, and mining industries contribute to Serbia’s economy. Additionally, emerging industries involve tourism, telecommunication, IT, and manufacturing.
Serbia is an ideal destination for firms seeking to grow and gain a workforce. The government has made it considerably easier for companies to enter the country and contribute to its economy. It also boasts a large pool of talented freelancers, with the world’s highest number of freelancers per capita. This makes this country attractive for enterprises seeking to work with remote professionals.
The advantages of hiring freelancers from Serbia
Serbia is a country of opportunity and growth. With a vibrant economy, diverse culture, and talented freelancers with expert skills in software development, web development, mobile development, graphic design, and many more. High-quality designs executed rapidly and smartly are given. Serbia is a place to consider for a company looking for new opportunities. Why?
Paperwork is easy and business-friendly
Serbia’s market-oriented environment results from its efforts to simplify its tax treatment system and participation in international trade agreements. Companies setting up operations can benefit from the country’s streamlined regulations and access to new markets.
Serbia is a booming IT Industry
Serbia’s ICT sector has grown rapidly, making it an important IT hub. The country’s skilled professionals, with high levels of English and software development expertise, have attracted international interest. Its environment and government support for IT development makes it a promising destination for tech companies.
Flexible
Hiring contractors from Serbia can be a less risky and more flexible alternative to hiring full-time employees. Misclassification risks are often lower. Therefore companies can tap into a global talent pool to find skilled and self-driven freelancers at a lower cost. Recruiting contractors overseas may be a smart alternative that offers greater flexibility.
Which regulations should you keep in mind if you want to hire freelancers in Serbia?
In Serbia, the Law on Labor (Zakon o radu) and the Law on Compulsory Social Security Contributions (Zakon o doprinosima za obavezno socijalno osiguranje) reign supreme when it comes to regulating the activities of independent contractors. Foreign individuals who are interested in conducting business activities in Serbia have the possibility to establish a limited liability company (društvo sa ograničenom odgovornošću) in the country.
When working with a freelancer, it is essential to draw up a clear document that specifies the scope of the work, the conditions of remuneration, and the duration of the contract. The contract must also include clauses on intellectual property rights, confidentiality, and a description of each party’s legal and ethical responsibilities.
When it comes to recruiting a remote independent contractor, you don’t need to complete any formal paperwork other than the contract itself. However, to avoid messy lawsuits down the road, it’s wise to keep meticulous records of the contract and all communications with the contractor.
Another point to remember is that hiring independent contractors in Serbia does not require application forms from tax or social security agencies, unlike hiring employees. This is because they are in charge of managing their own fiscal and health insurance payments, as well as personal income tax or unemployment insurance. However, for future tax or accounting matters, you should continue to record carefully any remuneration paid to the contractor.
What about the contract?
To ensure that your contract is legally valid in Serbia, it’s essential that it is written in Serbian. Although it can be bilingual if you wish. The entire contract must be in writing and signed by both sides. Moreover, any bonuses that form part of the contract should be clearly stated in an annex.
In addition to these requirements, several key pieces of information should be included in the contract itself. These involve the name of the person being hired, the starting date, the duration of the employment, a detailed position profile, and the conditions under which the employee can be terminated. By adding all this information to your contract, you can ensure that you and your contractor are on the same page. There are no misunderstandings or disputes down the line. So don’t skimp on the details! Take the time to draft a clear, comprehensive contract that protects both your interests and those of your independent contractor.
If you would like to hire freelancers in Serbia even faster, you can consider working with Useme. With Useme, you save time from forming a job contract. We will take care of the employer’s obligation, finish the related paperwork, and close the deal as quickly as possible. This way, you save 15% of your time each month.
Contractors and freelancers in Serbia
To maximize their net income, a significant number of freelancers opt to become business owners by registering their own businesses. They have to pay taxes on their own and can work with international clients. According to Serbian law, independent contractors are defined as self-sufficient agents who provide services to clients through written agreements.
They do not get the same perks or compensation as regular employees, such as minimum pay, paid time off, or other fringe benefits. How employees and contractors are treated can vary from country to country, and Serbia is no exception. It’s important to understand the legal distinctions between these two types of workers because misclassifying someone can lead to serious consequences in the form of penalties and fines. In Serbia, a new business independence test was introduced to guarantee the correct classification of employees and prevent potential misclassifications.
An entrepreneur, known as a “preduzetnik” in Serbian, is a business-minded individual who operates for profit and is officially registered under the law. They provide services to clients, both local and international, for either a limited or unlimited period of time.
If you want to hire freelancers in Serbia, you need to know that this country has two types of entrepreneurs, each with its own way of managing its finances. The first group, known as ‘lump sum entrepreneurs‘, choose not to keep books but instead pay a fixed amount of monthly tax and contributions. They are subject to lump sum taxes, a simplified tax system for small business owners and self-employed individuals. It allows them to pay a fixed amount of tax each month, regardless of their actual income.
The second group is the ‘bookkeeping entrepreneurs‘, who keep detailed records of their income and expenditure using the double-entry bookkeeping system. They need to manage their own tax administration. This system is commonly used by larger businesses and companies in Serbia.
Recognizing that taxes, medical insurance, and retirement savings must all be made regularly is crucial for contractors in Serbia. According to Serbian legislation, each business owner is liable for the timely payment of these taxes and bonuses. To become a registered entrepreneur in Serbia, certain documents and a registration fee of 1,500 RSD (~14 USD) are required. In-person registration requires submitting a completed registration form, a copy of your ID, and proof of payment of the registration fee. Alternatively, online registration involves creating an account on the Business Registry Agency portal, installing the appropriate software and submitting the registration form online. All fees can be paid by credit or debit card, and the registration process is completed with an electronic certificate.
How to pay freelancers in Serbia?
What payment methods do contractors in Serbia accept? This varies from freelancer to freelancer. While many contractors in the country prefer to be paid in euros or US dollars, a few may be open to accepting Serbian dinars or alternative currencies.
To send payments to freelancers in Serbia, you have a number of options available:
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Bank transfer in dinars or foreign currency
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PayPal for online payments in multiple currencies
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TransferWise for low fee payments in various currencies
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Skrill for payments in a variety of currencies
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Cryptocurrencies such as Bitcoin or Ethereum
That’s all! Now you are ready to hire freelancers in Serbia and grow your business worldwide. It’s important to take legal considerations into account. To ensure that you’re working with freelancers legally and ethically, you’ll want to start by understanding Serbia’s tax and labor laws. Do not want to spend time handling the paperwork? Feel free to work with Useme! We are here for you.
If you’re thinking how to global with your business, read this.
