During large events like the Exit Festival in Novi Sad or concerts by world-famous bands in Belgrade, finding accommodation is nearly impossible, leading many tourists to opt for short-term private rentals. These “apartments for the day” can see rental prices triple ahead of big events.
Real estate experts say short-term renting is often more profitable than long-term leasing, despite requiring higher investments, costs, and active management. Official data show that over 14,000 individuals were engaged in short-term apartment rentals in Serbia in 2025, generating tax obligations exceeding 315 million dinars.
The Tax Administration treats income from these short-term rentals as catering services, taxing owners at 20% of a calculated base tied to the number of beds and local tourism coefficients. Taxpayers must register their properties, obtain categorization certificates from local authorities, and file tax returns accordingly. Failure to report rental activity can lead to fines ranging from 5,000 to 150,000 dinars.
Miloš Mitić, director of City Expert real estate agency, explains that short-term rentals benefit from a flat tax system, which differs from income-based taxation of long-term leases. Categorization and proper registration are mandatory for platforms like Airbnb and Booking, preventing operations in the grey market.
Short-term rentals have grown in popularity over the past five years in Belgrade, Novi Sad, Niš, and other cities. Owners prefer this model for quicker returns and higher income, especially in high-demand locations, despite higher operational costs and the need for guest management.
In Belgrade, with its constant influx of tourists and numerous events, short-term rentals offer a steady revenue stream. Rental prices can spike up to three times during major concerts or sports events such as the Euroleague, reflecting strong demand and profitability in the sector.
