Trusts in Serbia are not recognized. However, there is an alternative in this sense, and it is called “endowment”, with the same functionalities as a trust. We invite you to read this article if you want to find out information about how to open a trust in Serbia, and more precisely, the options available in this case, with the clarification that our agents in company formation in Serbia can guide you from the very beginning.
Table of Contents
What is the Serbian endowment?
Instead of setting up a trust in Serbia, you can opt for opening and registering an endowment. This legal arrangement works the same as a trust in Serbia. Let’s review some of the characteristics and functionalities of an endowment in Serbia:
- An endowment in Serbia is also known as a Private Foundation.
- It can be used for estate and succession planning, private family matters/interests, or for managing companies.
- It is useful for asset protection.
- Although exceptions apply, a minimum capital of EUR 30,000 is required for opening/registering an endowment in Serbia.
- Endowments in Serbia offer privacy and protection.
- Setting up a trust in Serbia through an endowment can be advantageous in different business activities, as long as they are accepted by the legislation of this country.
- There are no restrictions imposed on the origin of assets of an endowment registered in Serbia.
We recommend that you seek information and specialist assistance when you want to open an endowment in Serbia. Our specialists can also help you set up a company in Serbia by managing all the procedures involved.
How to register an endowment in Serbia
As stated at the beginning of this article, opening a trust in Serbia is not possible. However, one can establish and register an endowment, taking into account the following aspects:
- It is recommended to appoint a specialist before registering an endowment in Serbia. He or she can manage the administrative tasks and formalities involved.
- Wealth documentation, IDs, and proof of address are necessary to register an endowment in Serbia. You can benefit from our fiduciary services in Serbia for this kind of procedure.
- A bank account in Serbia is required for this Private Foundation, known as an endowment.
- The trust deed or agreement must contain clear information about the purposes of the endowment, administration, parties involved (family members may also be included), etc.
In this case, we would like to point out that an endowment in Serbia functions in the same way as a trust. In addition, the holding of assets by the trustees for their own interest through this kind of agreement is prohibited. We advise you to opt for the services of our Serbian agents if you are interested in registering an endowment.
How are trusts taxed in Serbia?
Opening a trust in Serbia and the alternative known as an endowment are taxed as follows:
- The gift tax imposed is set at a 2.5% rate.
- There is no VAT imposed on endowments in Serbia.
- 0% corporate income tax rate is imposed.
Advantages of endowments in Serbia
It is best to know that the assets of an endowment in Serbia do not represent the assets of the trustees/founders, beneficiaries, family members, or the board of directors. Consequently, these assets cannot be the subject of a divorce, commercial, or any kind of dispute that might take place in a court of law in Serbia.
We invite you to learn more about how to open a trust in Serbia, respectively, an endowment, from our local specialists. We can also put you in touch with our accountants in Serbia so that you know everything about taxation. Our specialists can offer you complete payroll services in Serbia. We therefore invite you to contact our experts in company formation in Serbia and discover our personalized services related to opening a business in Serbia.