Serbia is not your average foreign banking jurisdiction. While this is true, banks based in Serbia have witnessed a surge of personal and corporate bank account applications from foreign investors in recent years. In fact, it has taken over a lot of banking business from other European countries, including Cyprus, Latvia, Austria, Switzerland, Luxembourg, and other countries well-known as international banking jurisdictions. And there is a good reasons for this. 

Let’s explore the many reasons for the great success of Serbia when it comes to becoming an attractive domicile for international banking among corporate and private individuals. 

What Makes Opening a Bank Account in Serbia a Highly-Attractive Option?

The banking sector is not the only thing that attracts international businesses in Serbia. As more foreign investments are flocking the county, the role of the banking sector in boosting the country’s economy is now more important than ever.

Serbian financial institutions have a strong foundation. The country is known to feature some of the biggest financial institutions in the region. For instance, poštanska štedionica celebrated its centennial in 2021. 

Recently, the Serbian banking landscape has been dominated by major international banks from Europe and beyond. This is inarguably one of the keys to success of its banking sector. Amid uncertainties, clients are still opening bank accounts with major financial institutions in Serbia. 

Serbia is one of the few countries where non-residents can:

• Open an account fast and easy
• Opening a bank account does not require a large deposit
• Any applicant can open in major banks
• Bank accounts can receive different currencies, such as EU, USD, and RSD
• Bank account holds gain access to sophisticated banking apps and Internet banking
• Banks assess low banking charges 
• Bank employees are well-versed in major languages, including English, Russian, German, French, Spanish, Arabic, and Chinese

Why Do Non-Resident Investors Open a Bank Account in Serbia?

With the current political and economic climate significantly impacted by COVID-19, some people may have reservations with opening a foreign bank account, and of all places, in Serbia. There are many reasons why bank account opening in Serbia is a smart and sensible activity. 

Having your own Serbian bank account gives you access to a wide range of financial services. Any financial advisor will tell you that opening a bank account in Serbia is a good decision, especially if you are looking to plan your finances strategically, optimize money flow, and take advantage of investment opportunities in Serbia and the rest of the European markets. 

Banking in Serbia offers greater international prospects for non-residents. As the Serbian banking sector experiences significant advancements due to its thriving economic growth , enhanced business landscapes, social transformations, and regional reforms, opening a bank account in Serbia opens your business portfolio to plentiful financial opportunities. 

Most recently, Serbia has been attracting investments from China, Germany, and other highly-developed countries. The influx of foreign investments has prompted the diversification and expansion of financial services and ever-improving banking standards, as well as the development of mutually beneficial cooperation with other countries.

To date, Serbia enjoys duty-free trade with the following countries:

• United States
• European Union 
• Countries that make up the Eurasian Economic Union (EAEU), including Kazakhstan, Belarus, Russia, Armenia, and Kyrgyzstan. 
• European Free Trade Association that includes Iceland, Norway, Switzerland, and Liechtenstein 
• Ongoing agreement with Japan on select, preferential duties

While Serbia is not yet a member of the World Trade Organization (WTO), its banking system already includes a total of 30 banks towards international markets, representing seven regions, namely:

• Local
• European Union 
• Russia 
• Americas 
• Dubai
• China 
• Turkey 

Most notably, Serbia is not an EU member state, as its current legislation does not align with EU regulations and standards. European-class financial banking solutions are known to be more affordable in Serbia thank most banks found in other European countries. 

Serbia is not blacklisted in the European Union, which means there are not much restrictions when it comes to income-generating activities and transactions. Serbian financial institutions have excellent reputation in the internal banking landscape, which helps account holders in their business transactions and multinational business activities. 

Opening a Bank Account in Serbia for Non-Residents

• Non-residents are taxed on their income generated in Serbia. 

• Serbia is not a participant of the automatic information exchange agreement (AIEA) under the OECD Convention on the Common Reporting Standards (CRS) as of yet. 

• In 2019, Serbia entered the Multilateral Convention on Mutual Administrative Assistance in Tax Matters that are currently supported by 129 nations under the OECD. 

Different Uses of a Serbian Bank Account for Non-Residents

Common Transactions 

• Can be used for all daily transactions, such as receiving payments, ordering transfers, money withdrawal, and more. 
• Non-residents are permitted to open a bank account in Serbia, such as in the case of expats. Transaction fees from moving money from a bank in your country of residence to a Serbian bank are relatively lower. 
• Special purpose bank accounts such as corporate and brokerage bank accounts are designed for private and corporate entities that are looking to invest in the local stock market and other types of investments in Serbia. 

Guidelines when Opening a Bank Account in Serbia

Investors must be aware that opening a bank account in Serbia is a requirement and a crucial part of a company registration and incorporate processes. This is an important requirement that investors must fulfill together with other requirements for company formation. You must decide on the bank you wish to work with. Perform due diligence and choose a bank with favorable terms and one that fits your needs. 

• You must check ongoing offers for corporate bank accounts from a list of preferred banks in Serbia. 
• If you can’t be physically in Serbia during bank account application, you may appoint a service provider or consultant on your behalf. You will need a power of attorney to help you open a bank account in Serbia. 
• All banks and financial institutions in Serbia are overseen and regulated by the National Bank of Serbia, as per Banking Law.

Requirements for Opening a Personal Bank Account in Serbia 

• Passport and other forms of identification 
• Second passport or residence permit issued by another country 
• A document proving your residence address (utility bills in the last three months)
• Bank forms 

Requirements for Opening a Corporate Bank Account in Serbia

• Extract of the Register, no older than three months, apostilled and translated by an authorized translator in the Serbian language. The original copy must be provided upon application as well. 
• Certificate of the manager’s authorization, apostilled, no longer than three months, and translated by an authorized translator in the Serbian language. The original copy must also be provided upon application. 
• Certificate of Good Standing
• An apostilled and certified power of attorney for opening a bank account
• Articles of Association and other official company documents, translated into Serbian
• Description of business activities
• Copies of passports of ultimate beneficiaries, directors, and managers

Depending on the business structure, opening a corporate bank account in Serbia can take between five to 15 days. 

Investors looking to open a bank account in Serbia hassle-free or without need to visit the country, can trust Damalion and our comprehensive business solutions. As a premier business consultancy form, we have an extensive global service network that allows us to facilitate opening a corporate account in  your chosen jurisdiction. With our expertise in this area and our lasting business relationships in Serbia, you can rest assured that the process of opening a bank account is easy, fast, and stress-free. We also offer other business solutions for foreign investors, including company formation in Serbia, accounting, tax planning, bookkeeping, management, and many more. If you wish to learn more on how to successfully open a bank account in Serbia, reach out to a Damalion expert today. 

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.