Taking payment from foreign guests in Republika Srpska: KM, euros, cards, agency invoices

How foreign guests and agencies may pay you in Republika Srpska is set by the Law on Foreign Exchange Operations (Zakon o deviznom poslovanju). The rules apply to anyone who charges a guest or a foreign agency for accommodation, food, tours or products: farm households, sole traders, restaurants and companies.

In short

• Payments in Republika Srpska, including payments by a non-resident (a foreign guest), are as a rule made in the domestic currency, the convertible mark (KM) (Article 4).
• You may agree a price in a foreign currency, but inside Republika Srpska it is paid and collected in KM (Article 5). A price list or offer can show euros, and a guest who pays on the spot as a rule pays in KM at the exchange rate. The exception for accommodation and transport is described below.
• Money that comes from abroad is different. A foreign agency pays you in foreign currency through a bank (Articles 3 and 7). So an invoice to an agency can be in euros.
• The law allows euro cash only in the exceptions in Article 4 and in cases set by the Government. Under a 2015 Decision of the Government of Republika Srpska (Službeni glasnik RS 46/15), a company or sole trader may collect euro cash from a foreign guest for overnight stays, full board, half board and transport, without approval from the Ministry of Finance. Individuals who are not sole traders do not have this right.
• Buying and selling foreign currency or foreign cash outside the foreign exchange market is banned (Article 30). So do not give change in euros and do not exchange money for guests.

Who it applies to

Anyone in Republika Srpska who sells services or goods to foreigners: farms with rooms, restaurants, wineries, guides, tour organisers. A non-resident is anyone who is not a resident, for example a tourist who does not live in BiH. A foreign national who stays in BiH for 183 days or more on a residence permit or work visa counts as a resident (Article 2).

These rules apply in Republika Srpska. The Federation of BiH has its own law, which is not covered here.

What to do

1. Prices. You may show prices in euros, but give the KM amount next to them, because the guest as a rule pays in KM. For fiscal receipts, see the article on fiscalisation in Republika Srpska.
2. Cash. If you are a company or sole trader registered for hospitality and tourism, you may accept euro cash from a foreign guest for overnight stays, full board, half board and transport (Government Decision, Službeni glasnik RS 46/15). For anything else, for example a meal without accommodation or selling products, accept KM. If a guest has no KM, send them to a bank, an exchange office or an ATM. The Article 4 exception for foreign trade (point 7) covers only deals under Article 7(3) and (9) and Article 19g, such as offsetting debts and assigning claims, not cash from a guest. Record invoices paid in euro cash separately and keep them apart for foreign exchange inspections. You must deposit the euros in your own bank account by the next working day (Article 4 of the Law and the Government Decision). If you are unsure whether your service falls under these cases, ask the Tax Administration (Poreska uprava).
3. Cards. You need a POS terminal from a bank or a payment service provider. Agree fees and currency conversion with the bank.
4. Online prepayments. Payments with foreign buyers for goods and services sold online may also go through electronic money issuers and payment service providers (Article 7). Your contract with the platform sets the commission and when you are paid out.
5. Invoices to foreign agencies. You may invoice in euros, and the agency pays from abroad through a bank (Articles 3, 5 and 7). A sole trader or company keeps the foreign currency it receives in a foreign currency account at a bank or sells it to the bank (Article 24). If an exported service stays unpaid for more than a year, the deal counts as a credit transaction with a foreign party (Article 9). Keep track of overdue invoices.
6. Currency exchange. Only banks and exchange offices (mjenjači) with a permit from the Banking Agency of Republika Srpska (Agencija za bankarstvo Republike Srpske) may exchange money (Article 33, in force since 12 December 2025). Authorisations issued earlier by the Ministry stay valid until they expire. Do not offer to exchange money for guests.

Deadlines and amounts

• Euro cash received in an allowed case must be deposited in a foreign currency account by the next working day.
• Paying or collecting against Article 4, not depositing foreign cash, and buying or selling currency outside the foreign exchange market are misdemeanours (Article 60a). Fines: 5,000 to 20,000 KM for a legal entity, 2,500 to 10,000 KM for the responsible person in a legal entity, a sole trader or an individual. A legal entity or sole trader may also be banned from carrying out the activity for three to six months.
• Official rate: 1 EUR = 1.95583 KM (Central Bank of BiH, Centralna banka BiH).

Where to go

• Your bank, for a POS terminal, a foreign currency account and payments from abroad.
• The Tax Administration of Republika Srpska (Poreska uprava Republike Srpske). Foreign exchange operations are checked by the Tax Administration, the Banking Agency of Republika Srpska and the customs authorities (Article 44).
• The Central Bank of Bosnia and Herzegovina, for the official rate.

If you are unsure how the rules apply to your case, for example a package deal with a foreign agency, ask your bank or the Tax Administration before you take the first payment.

Laws and sources

• Law on Foreign Exchange Operations (Službeni glasnik RS 96/03, 123/06, 92/09, 20/14, 20/18 and 107/24), Articles 2, 3, 4, 5, 7, 9, 24, 30, 33, 44, 60a
• Decision on payment and collection in foreign cash and KM cash in business with non-residents (Odluka o plaćanju i naplati u efektivnom stranom novcu i konvertibilnim markama u gotovini u poslovanju sa nerezidentima, Službeni glasnik RS 46/15), Tax Administration of Republika Srpska, foreign exchange page
• Central Bank of BiH, official exchange rate list