Accounting Obligations After Setting Up a Company in the Balkans

The Balkan countries offer highly competitive corporate tax rates compared to Western Europe. In North Macedonia, corporate tax is applied at 10% only when profits are distributed; no tax arises while profits are retained in the company. Serbia adopts a different structure with a flat 15% rate, while Bulgaria and Kosovo both apply 10%.

Annual filing deadlines also vary by country: 15 March for electronic filing in North Macedonia, 30 June in Serbia and Bulgaria, and 31 March in Kosovo. These dates may change with legislative updates — we recommend confirming them before filing.

VAT registration thresholds determine when the VAT obligation — a significant cost item for small businesses — begins. The lowest threshold is EUR 30,000 in Kosovo, followed by approximately EUR 33,000 in North Macedonia. Serbia stands higher at around EUR 68,000, while Bulgaria applies a threshold of EUR 51,130 effective from 2026.

The standard VAT rate is 18% in North Macedonia and Kosovo, and 20% in Serbia and Bulgaria. With Bulgaria's adoption of the euro in 2026, all accounting records and tax payments will be denominated in euros — this may simplify foreign-exchange planning for Turkish investors.

In all Balkan countries, companies are required to submit monthly VAT returns, payroll reports and social contribution payments. In Serbia, engaging a professional accounting service is effectively mandatory, with a typical monthly cost of around EUR 30–80 per employee. Although no explicit legal requirement is clearly stated in the other countries, working with accounting software or a local accounting firm eliminates the risk of significant penalties.

In North Macedonia, the e-invoicing system becomes mandatory from October 2026. A compliant accounting infrastructure will need to be in place before that date. Through our local solution partners in each country, we coordinate the set-up and ongoing management of accounting processes in Turkish.