Opening non-resident and resident bank account in Serbia – conditions and guide

Opening a bank account in Serbia is a process that represents and important step in managing business operations and other financial transactions. There are some important steps to fulfill in order to open a bank account in Serbia, whether you are opening account as non-resident individual, i.e. natural person or as a company. In this article we will describe the entire process of opening a bank account for foreigners in Serbia, outline the advantages of the banking system in Serbia, list the largest international banks operating in Serbia, list the requirements for both natural and legal entities, and address the most common questions and concerns that a foreign citizen planning to open a bank account in Serbia may have.

What is non-resident bank account and who can open it?

Non – resident bank account is a bank account whose user is non resident individual, i.e. natural person or foreign company. By non – resident individual it is considered a natural person who has foreign citizenship, i.e. who is not a citizen of the Republic of Serbia. On the other hand, foreign company is a company that has its seat of address out of Serbia, i.e. it is registered in another country. On the other hand, if you are planning to establish a company in Serbia, one of the steps after registering a company would be opening a bank account. Also, if you are seeking to obtain temporary residence in Serbia as a natural person, there are some situations in which you will need to open a non – resident bank account, which we will mention below.

Non – resident bank account in Serbia can be opened in dinar and in foreign currency. A foreign currency account is an account where foreign currency funds of a resident or non-resident are held, and it can be a current account, in accordance with the law governing payment services, or a deposit account. A dinar account is an account where the dinar funds of a non-resident are held.

Types of bank accounts in Serbia

As mentioned, account can be open in dinar account and in a foreign currency account. A dinar account can be:

• a current account, or
• a deposit account.

A current account is a foreign currency or dinar account used for executing payment transactions and for other purposes related to services that banks provide to payment service users.

Also, there are:

• joint current account;
• deposit account;
• joint deposit account.

Joint current account is a current account that a bank maintains for two residents, or non-residents—holders of that account—or for more of them, in accordance with the law governing payment services and the provisions of this decision. A deposit account is a foreign currency or dinar account opened based on a deposit agreement, and it can be on demand or term, with or without a notice period, with a specific purpose or without a purpose. A joint deposit account is a deposit account that a bank maintains for two individuals—holders of that account—or more of them, in accordance with the provisions of this decision.

In addition to current and deposit accounts, the bank may also open and maintain other accounts for residents and non-residents in accordance with the concluded agreement.

How to open non-resident bank account in Serbia?

Non-resident bank account in Serbia can be opened by natural and legal persons, due to which the procedures for opening are different.  

Bank account for natural persons

Non-resident individuals can open a bank account in Serbia in case they meet the necessary requirements. The process is generally simple, provided you have the correct documentation in place. First step would be to choose the right bank for opening a bank account. Our experienced team can advise you which bank suits your needs, depending on the purpose of opening a bank account. Depending on the chosen bank, there are different types of documentation that are required. However, these are documents that are typically requested by each bank:

• Valid identification document, i.e. passport: For non-residents a passport is the primary identification document required to open a bank account in Serbia. Some banks may also require a visa or a residence permit, depending on the duration of your stay.
• White paper: The banks will typically request you to provide them with white paper, i.e. registration of the residency;
• Information on your address;
• Information on email;
• Serbian phone number;

• Source of Funds Declaration: In order to comply with anti-money laundering regulations, bank may ask you to provide documentation proving the source of the funds you intend to deposit into the account;
• Payment of Deposit: When the accounts are open the bank may request from you to pay some initial deposit in order to get the cards. The amount varies from bank to bank, but it is usually smaller amount (approx. RSD 2.000,00 which is approx. EUR 18).
• Some additional documentation due to the bank policies.

As a natural person you are not obliged to open a non – resident bank account in any case. However, if, for example, you are planning on buying a property in Serbia and applying for temporary residence in Serbia on that ground, before finding a property that suits you and concluding sale and purchase agreement, you will need to open a bank account. This is mandatory since you will be obliged to make a payment from your non – resident bank account. In practice, some banks may request that you submit the pre-agreement on sale and purchase of the property, in order to prove the purpose of opening a bank account.

As mentioned, a non-resident individuals can open different types of accounts, depending on their needs:

• Dinar Account: This account allows you to hold funds in Serbian dinars (RSD). It is useful for everyday transactions in Serbia, such as payments for utilities, rent, or services.
• Foreign Currency Account: You can also open an account in foreign currencies like EUR, USD, GBP, CNY, RUB.

Serbian Tax Identification Number (TIN) for individuals

In some situations, as we mentioned, a non – resident individual will have to obtain a Serbian Tax Identification Number (TIN). In order to do so in a smooth way, a non – resident may initiate and conduct this process via proxy. Following documents are needed:

• Power of Attorney: It should be on Serbian language and stamped with attorney’s stamp;
• Proof of Identification:Certified copy of passport;
• Statement of necessity of Tax Identification Number (TIN): This statement should contain precise reasons why a non – resident individual needs to obtain TIN – in case of purchase of the real estate it is for paying relevant taxes;
• Filled Tax Form: The Form PR – 3 should be duly completed with required information and submitted to the Tax Administration.

The Process for Opening an Account

The process of opening a bank includes following steps:

• Choosing a Bank: First step is finding a bank that will match your needs. There are a lot of banks in Serbia that you may choose between such as Adriatic bank, Banka Postanska Stedionica, AIK bank, Banca Intesa, Raiffeisen Bank, UniCredit Bank, OTP bank. When choosing a bank, our team can navigate you according to your needs and purpose of opening a bank account.
• Prepare and submit documentation: After you have chosen your bank, next step is to prepare necessary documentation requested by that bank and submit it. This can be done in some banks by proxy, i.e. attorney at law. It is only needed to sign the Power of Attorney in a form prescribed by bank. We provide full assistance in opening bank account so that the whole process goes smoothly.
• Account Activation: After reviewing your application, the bank issues the decision on opening a bank account. Upon approval process your account will be activated. This process usually takes few days, up to 2 – 3 weeks depending on the bank and depending whether the bank has requested some additional information or documentation.
• Online Banking Setup: Once your account is active, you can activate online banking, if the chosen bank has such option.

Bank account for Foreign legal entities/Companies

Opening a bank account for a foreign legal entity, i.e. company in Serbia involves a more detailed process compared to individual accounts. Also, depending on the chosen bank, the required documentation may vary, but there are some documents that are certainly requested:

• Documents Regarding Company Registration: These documents include the registration certificate of the foreign company from the official register, as well as the company’s articles of incorporation. Those documents need to be translated to Serbian language by a sworn translator.
• Proof of Ownership: Most of the banks require documentation regarding the ownership structure of the company. Besides this, the bank may request documentation related to the identities of the shareholders or ultimate beneficial owners (UBOs). Sometimes the ownership structure of the company may be very complex, so it is important to obtain and deliver to the bank complete documentation.
• Tax Identification Number (TIN): The banks will request from the foreign legal entity, i.e. company to provide Serbian tax identification number (TIN). The procedure for obtaining Serbian TIN for foreign company can be conducted via proxy, i.e. via attorney at law. In that case, the following documents must be submitted:
• Power of Attorney: It is needed that authorized person from foreign company issues a power of attorney to for representing in tax proceedings before Tax Administration;
• Certificate from the register for foreign company:  Original copy of translated certificated by a sworn translator as well as a copy of the certificate on a language of the state in which the company is registered;
• Statement of necessity of Tax Identification Number (TIN): This statement should contain precise reasons why foreign company needs to obtain TIN – it is usually for opening a bank account for some specific purposes – for example if you wish to initiate enforcement proceedings in Serbia for debt collection, that would be the reason to state;

• Filled Tax Form: The Form PR – 1 should be duly completed with required information and submitted to the Tax Administration.
• Specimen Signature Card: This document contains the signatures of the persons authorized to manage the funds on the accounts.
• Source of Funds Declaration: In order to comply with anti-money laundering regulations, bank will request to provide a declaration regarding the source of funds.
• Initial Deposit: Depending on the bank, foreign company may be required to pay some amount as initial deposit.

Types of account for Foreign Companies

Foreign legal entities can open several types of accounts in Serbia, including:

• Corporate Dinar Account: This account allows companies to make transactions in local currency, i.e. dinars (RSD).
• Foreign Currency Account: Companies engaging in international trade may prefer an account in EUR, USD, RUB, CNY or other foreign currencies.

Besides mentioned accounts, there is also option for opening an Escrow Account. ESCROW account is dinar/foreign currency account opened for a specific purpose/particular transaction aimed at using the funds in the account exclusively for the agreed purposes. Escrow accounts are closed once the obligations outlined in the contract are fulfilled.

The Process for Opening Account for Foreign Company

The process of opening a bank account for a foreign company usually contains these steps:

• Choosing a Bank: Before initiating a process of opening a bank account it is important to choose a right bank that will fit the needs of a foreign company. Similar as in the process with non – resident individual, it is recommended conducting a research and pick a correct bank.
• Preparing and submit Documentation: Since there are few more steps in obtaining relevant documentation for foreign company than for non – resident individual, it is important to prepare all necessary documentation requested by the chosen bank prior submitting. Of course, the bank may request some additional documents even after submitting the request for opening a bank account, but usually it is not a large set of documents.
• Approval of the Account: The process of approval may take several weeks, especially if bank requests additional documentation.
• Activation of the Account: Once the bank approves the application, the corporate account is activated, and the company can begin conducting transactions. Of course, a set of documentation needs to be signed by authorized person, such as agreement between the bank and foreign company and other forms prepared by the bank.

Can non-resident open a bank account in Serbia from abroad?

Due to the fact that opening a bank account by non – resident may be related to the need for a non-resident to open an account in the shortest possible time and without coming to Serbia, the possibility of opening a bank account from abroad would significantly facilitate the process. Therefore, some banks have the option of opening a bank account from abroad, by giving a power of attorney for conducting all necessary actions in that regard. Having in mind said, our team can advise you when making a decision on the choice of a bank in which to open a bank account, in order to facilitate the process as much as possible.

Serbian banking system and its benefits

Opening a bank account in Serbiaas a non-resident, may be attractive for various reasons, including:

• Investment Opportunities;
• Business Expansion;
• Debt collection;
• Purchasing a real estate.

However, we note that non-residents, both individuals and foreign companies, must comply with Serbia’s banking regulations, including the anti-money laundering (AML). Therefore, banks are required to perform detailed due diligence on all potential new clients, which may involve additional checks and documentation requests.

Fees in Serbia

Before opening a non-resident bank account in Serbia, we advise to carefully review all terms and conditions and familiarize yourself with potential fees and charges. Opening a non-resident account in Serbia is generally free, but certain services and transactions incur specific fees.

Maintenance of a non-resident account in Serbia

Maintenance fee for non – resident accounts depends on the business bank and the type of the account, and so the maintenance fee for the dinars account of non – resident individual in Banka Poštanska Štedionica is 250 RSD (approx. EUR 2).

There are some other fees that are subject to payment, depending on the chosen bank, such as ATM takes, E-banking, M-banking and Transfer fees. All these fees should be checked with chosen bank, since the fee structure differs from bank to bank.

Frequently asked questions

The process of opening a non-resident bank account in Serbia is generally not overly complicated, but there are several concerns that trouble most foreigners planning to open an account in a Serbian bank.

Conclusion

Opening a bank account in Serbia as a non-resident natural or legal entity is a procedure that would allow non – residents to have an access to a local market, investment opportunities or for some other reasons, such as exercising their rights in Serbia through debt collection.  The process, while requiring specific documentation and compliance with regulatory requirements, is relatively straightforward. However, there are some specifics which our team could help overcoming, due to high experience in handling such procedures.

This article is for informational purposes only and does not constitute legal advice. If you need additional information regarding the topic in question, please feel free to contact us by email at office@ncrlawyers.com or by phone at +381677049551.