Paušalac for Hair and Beauty Salons in Serbia: What You Pay and How to Register

You do manicures at home or rent a chair, clients pass your name around, and your calendar is full two weeks ahead. All of it is off the books, and that bothers you. You want a bank account in your own name, the option of taking a loan, pension years that count, and no dread when someone mentions an inspection. The question is what the simplest legal route is.

In most cases the answer is the same: a sole proprietor on flat-rate taxation, known in Serbia as a paušalac. No bookkeeping, no annual return with dozens of fields, and a monthly payment you know in advance. Below is what a nail tech, hairdresser or beautician needs before the first filing: what a paušalac is, which activity codes to register, what you pay each month, where the income cap sits, and what an invoice looks like.

Every figure here is approximate for 2026, and the official amount is set by the Tax Administration (Poreska uprava). Rates, bases and limits change almost every year, and your local branch issues the tax decision.

What is a paušalac

A paušalac is a sole proprietor whose tax does not depend on actual turnover. Once a year the Tax Administration estimates your income from your line of work, location and experience, then sets a fixed monthly tax. If you earn half a million dinars in January and nothing in February, the tax is the same.

The legal basis is the Zakon o porezu na dohodak građana (Personal Income Tax Act), which covers flat-rate taxation of entrepreneurs. On top of tax you pay pension and health contributions, but those are also calculated on a fixed base, not on what you earn.

What a paušalac does not have to do:

• keep accounting books in the usual sense (a record of invoiced and received payments is enough);
• file an annual tax return with a balance sheet, because tax is set by decision;
• charge VAT (PDV) until crossing the threshold for entering the VAT system;
• hire an accountant, though many still pay a small fee for help with the first registration.

In return there are restrictions: an income ceiling, no employees, and an independence test if you work mostly for one client.

Who can be a paušalac in beauty

Your business activity is registered at the Business Registers Agency (APR) through a code from the national classification (SKD, šifra delatnosti). Two codes matter for beauty salons.

SKD code	Name (Serbian)	Who registers here
96.02	Frizerski i kozmetički tretmani (hairdressing and beauty treatments)	hairdressers, barbers, beauticians, manicurists and pedicurists, makeup artists, lash extensions, waxing
96.04	Nega tela (body care and physical well-being services)	tanning studios, saunas, spa and non-medical massage, bathhouses

For most readers of this blog the right code is 96.02. It covers haircuts, coloring, manicures, gel polish, nail extensions, facials, waxing and makeup. If you only do massage or run a small spa, consider 96.04. If you combine services (manicure and massage, say), you can register a main code and additional ones, but the tax base follows the main code.

The exact list of codes eligible for flat-rate taxation in 2026 is set by regulations and Tax Administration decisions. Do not rely on a forum table or an old article. Look at the Tax Administration website or call before registering.

The conditions for the status itself are simple. You are an adult individual resident in Serbia, your activity is not excluded from flat-rate taxation, your income stays under the cap, and you are not effectively an employee of one employer (the independence test). A salon where clients come to you and you set your own times and prices usually meets all of these.

How much does a paušalac pay each month

The monthly payment has three parts.

1. Income tax advance. The Tax Administration sets a flat taxable income by decision, and tax is calculated on it at 10% after a non-taxable amount. For small towns and beginners this part is usually small, often a few thousand dinars.
2. PIO (pension and disability insurance). The rate is about 24% on a set base. It is the biggest item, and it is also what earns you pension years.
3. Health insurance. About 10.3% on the same base. It gives you a health card with no extra cost.

The contribution base does not depend on your income. It falls between a minimum and a maximum monthly base, which the state adjusts once a year.

Approximate amounts for 2026, in dinars per month:

Situation	Approximate monthly cost
Small town, first year, no track record	about 16,000 to 22,000 RSD
Mid-sized city (Kragujevac, Niš, Subotica)	about 22,000 to 33,000 RSD
Belgrade or Novi Sad, central zone	about 33,000 to 45,000 RSD

The table is rough. Your actual amount depends on the city, the zone within it, how long you have worked in the field, and whether you are already insured elsewhere. If you have a job and the paušal is a side business, you do not pay PIO and health contributions twice, so the cost is lower.

Work out the exact number for your case with the calculator on the Tax Administration site: purs.gov.rs. The flat-tax decision arrives by post or through the ePorezi portal, and you pay into the accounts listed in it.

A practical tip: budget for tax and contributions before you set aside money for rent and supplies. The deadline is usually the 15th for the previous month, and late payment accrues interest.

The paušalac limit

The most important number for any paušalac is the limit. If your total income over 12 months exceeds 6 million dinars, you lose flat-rate status and must switch to taxation on actual income (income and expense book, annual return).

How the limit works:

• it counts received income over the last 12 months, not the calendar year;
• it counts all income from your business, not just one salon or one client;
• cash, cards and bank transfers count the same.

In practice 6 million means about 500,000 dinars a month. A nail tech working alone and charging 3,500 dinars per session would need around 140 appointments a month to cross the line. For one person at one chair that is hard to reach, so the limit more often affects hairdressers who also sell products, or specialists with long, expensive treatments.

When you approach the cap you have two options: stay under it, which is a legitimate choice if you do not need a bigger operation, or move to actual-income taxation with an accountant. The switch takes effect from the start of the following year with a notice to the Tax Administration, so plan ahead. The limit is for 2026; check the current amount with the Tax Administration before deciding.

Calculator

The calculator gives a rough estimate and does not replace an official calculation from the Tax Administration.

How to open a business as a paušalac, step by step

The process is short and mostly electronic. Plan for a few working days.

1. Pick a name and a code. The name can be your own first and last name or the salon's name. Take the activity code from the table above (most often 96.02).
2. Register at APR. Sole proprietors register with the Business Registers Agency (Agencija za privredne registre, APR). You can go in person or apply online through the APR portal with a qualified electronic certificate. You need your ID, a registered address (your home or a rented space, with the owner's consent) and your chosen activity codes. Registering a sole proprietorship is free, and the decision arrives within a few days.
3. Apply for flat-rate taxation. You tell the Tax Administration you want to be taxed on a flat basis. This usually happens right after registration because APR passes the data on automatically, but make sure you actually receive the tax decision. If it does not arrive on time, contact your branch.
4. Open an account. A sole proprietor must have a business current account. Most banks offer small-business packages without big fees. Compare monthly maintenance, domestic transfer costs and whether a card is included. Keep money on the account for contribution payments.
5. Fiscalization. If you take payments from private individuals (nearly every salon does), you must issue fiscal receipts. Today that runs through the ESIR system with a certified fiscal device or software. Some activities have exemptions, so check whether any apply to you. More in our article on ESIR and fiscalization in salons.
6. Everything else. If you work in rented premises you need a lease. If you receive clients at a space, you must meet sanitary requirements and notify the municipality. Some services (tattooing, micropigmentation, piercing) have special rules.

Above all, do not start working before you hold the decisions. Working without registration is an offense, and fines for undeclared activity run to hundreds of thousands of dinars.

Can a paušalac have employees

Short answer: no. A paušalac works alone. The moment you hire a first person on an employment contract, you lose paušalac status and move to taxation on actual income with bookkeeping.

This is the most common reason owners outgrow the paušal. If you are planning a salon with several chairs, consider one of these routes:

• stay a paušalac and work alone, sharing the space with colleagues who each have their own flat-rate business (each pays their own taxes and issues their own invoices);
• switch to actual-income taxation and hire staff, with an accountant;
• register a limited liability company (d.o.o.) if you plan serious growth.

The law changes, and the rules on assistants and auxiliary staff have exceptions. Before taking on a helper or apprentice, check the current rules with the Tax Administration.

A paušalac invoice: example

When you work with companies (a makeup artist for an event agency, a hairdresser for a photo studio), you issue an invoice. Private individuals get a fiscal receipt, not an invoice. A paušalac invoice carries no VAT because you are not in the PDV system.

Basic structure:

INVOICE No. 14/2026
Issue date: 05.11.2026
Place: Belgrade

Issuer:
Salon Anja, sole proprietor Anja Petrović PR
Address: Ulica 12, Beograd
PIB (tax ID): 123456789
Matični broj (registration no.): 12345678
Bank account: 160-0000000000000-00 (Bank)

Recipient:
Studio Foto d.o.o.
Address: ...
PIB: ...

Service: makeup for photo shoot, 4 models
Quantity: 4
Unit price: 5.000,00 RSD
Total due: 20.000,00 RSD

Note: Issuer is not in the VAT system.
Payment term: 15 days
Poziv na broj (payment reference): 14-2026

Required elements: number and date, your details (name, PIB, matični broj, address), recipient details, description of the service, quantity and price, total amount, the VAT note and the payment term. If you invoice government bodies or larger companies, you use the electronic invoicing system (SEF), which is now mandatory for most business-to-business dealings.

Keep your invoice records through year-end as well. A paušalac keeps no books but still has to know how much was invoiced and received, because of the limit.

The independence test and working for one client

The independence test (test samostalnosti) exists to stop people from working as ordinary employees while formally operating through their own business. The Tax Administration assesses whether you are truly independent or in practice work for one employer.

The test looks at a few things:

• whether most of your income (usually over 70%) comes from one client;
• whether you work on the client's instructions, on their premises, during their hours;
• whether you use their equipment;
• whether you choose your own working method, prices and clients.

For a hairdresser or nail tech with dozens of clients the test is usually irrelevant. Risk arises in two cases: if you work in someone else's salon on a fixed schedule for fixed pay, or if one company brings in most of your income (a hotel spa that books you every day, for instance).

Renting a chair in a salon is a legitimate model: you set prices and hours, you have your own clients, and you pay the owner rent. The lease should say so clearly. If the owner assigns your shifts and prices and pays you a fixed amount, that is disguised employment, and the Tax Administration can spot it.

Check the exact criteria and thresholds for 2026 with the Tax Administration.

Keeping client records without an accountant

A paušalac keeps no books, but the client side of the business still needs tracking. Invoices, your turnover and the limit are one job. The other job is what an accountant will never do for you: who comes when, which shade she used last time, who is allergic to a polish, who runs late, who cancelled at the last minute.

So even without an accountant you need:

• an appointment calendar, so there are no double bookings;
• a client card with service history, color formulas and notes;
• reminders before visits, because no-shows eat the most income of solo practitioners;
• a quick monthly overview, so you can see how much you have collected against the 6 million cap.

Agendo is a free online booking service for salons and solo professionals in Serbia. It has a journal and appointment calendar, online booking by link, widget or the Telegram bot @agendo_chatbot, a client database (CRM), and reminders via Telegram and web push at no extra charge. Your service descriptions and booking page can be translated automatically into Serbian, Russian and English, which helps if foreigners visit your salon.

Agendo does not replace accounting or fiscalization, but it shows turnover by month and keeps each client's history. Sign up at agendo.work and set up your first calendar in a few minutes.

What next

The order is this: choose code 96.02 (or 96.04), register at APR, check the tax decision, open an account and set up fiscalization. Verify the numbers with the Tax Administration calculator before you commit. The figures in this article are approximate for 2026, and only the Tax Administration can tell you the official amount of your obligations.