The lease, the deposit and the rental tax

What the lease must contain

The lease is your legal protection — write it even when renting to someone you know. It should clearly contain:

• The parties — landlord and tenant (name, ID number), and a guarantor if there is one.
• The property — exact address, size, flat number; ideally the cadastre number too.
• Rent and payment — amount, due date, method (preferably to a bank account, leaving a trail).
• The deposit — amount and return terms (see below).
• Term and notice — the lease period and how far ahead each side must give notice.
• Costs — who pays the utilities (electricity, water, heating, communal charges).
• Condition record — the state of the flat, the meters and the inventory on move-in day (attached to the lease).

The deposit — how much and how

The deposit is money the tenant leaves as security for damage or unpaid rent. In practice:

• Amount — usually one month's rent (sometimes two for pricier/furnished flats).
• Purpose — covers damage beyond normal wear and unpaid obligations at the end.
• Return — returned at the end of the lease if there is no damage or debt; put the terms in the lease.
• Record — the deposit plus a move-in condition record are what prevent a dispute at move-out.

Rental income tax — how much it is

Income from renting out property is taxed. Under the current rules:

• The rate is 20%, but not on the whole rent — first a 25% standardized-cost deduction applies.
• Base = gross rent − 25%; tax = 20% of that base → effectively about 15% of gross rent.
• Actual costs. Instead of the 25% standard deduction you may claim actual documented costs if they are higher.

Example: rent €300/month → standard deduction €75 → base €225 → tax ≈ €45/month (15% of €300). The exact figure depends on the exchange rate and your case — verify on purs.gov.rs or with an accountant.

The base depends on the rent — if you are unsure what your flat fetches on the market, estimate the rent and value before you price it.

Who files and by when (PP OPO)

• The tenant is a natural person: the landlord self-assesses and pays the tax and files a return on form PP OPO, within 30 days of receiving the rent (electronically via the ePorezi portal).
• The tenant is a legal entity or entrepreneur: they are the payer — they assess and pay the tax by withholding (deducting it from the rent), so the landlord does not file PP OPO.

This applies to renting to a natural person for more than 30 days. Short-term tourist letting has a different regime (see below).

Short-term (tourist) letting

Letting short-term (by the day, via platforms) is not the same as a standard lease. As a rule it requires categorization with the local authority, paying a tourist tax, and a separate (often flat-rate, per-bed) way of taxation. The rules differ by city — check with the competent local authority and the Tax Administration before you start.

Frequently asked questions