Foreign nationals can own real estate in Serbia, but not on the same terms as citizens, and not in every category of property. The rules differ depending on whether the buyer is an individual or a company, what kind of property is involved, and — for individuals — on whether their home country grants the same right to Serbian citizens.
This guide sets out how the process works in practice: who may buy, what the procedure looks like from land registry check to registration of ownership, which taxes apply, and where foreign buyers most often run into trouble.
Who can buy property in Serbia
Foreign individuals
A foreign individual may acquire real estate in Serbia subject to reciprocity. The public notary who solemnises the purchase contract is required to verify that reciprocity exists and that the foreign buyer meets the legal conditions for acquisition.
Reciprocity can be contractual, where a bilateral agreement exists between Serbia and the buyer’s country, or factual. Where reciprocity is factual, its existence can be evidenced by an official statement of the Ministry of Justice of the Republic of Serbia, issued on request of the interested party.
Foreign companies
Stricter rules apply to foreign legal entities. A foreign company may, subject to reciprocity, acquire ownership of real estate in Serbia only if it conducts business activity in Serbia and the property is necessary for carrying out that activity.
This is the practical difference that surprises most corporate buyers: unlike a foreign individual, a foreign company cannot simply rely on reciprocity to buy an apartment or a house for its own purposes.
Agricultural land
Agricultural land is treated separately and far more restrictively. As a rule, a foreign individual or company cannot own agricultural land in Serbia. The exception is provided under the Law on Agricultural Land for citizens of EU member states, in line with the Stabilisation and Association Agreement.
The purchase procedure, step by step
- Land registry and legal status check. Ownership, encumbrances and restrictions are verified in the cadastre. A lawyer can carry this out quickly.
- Drafting the purchase contract. The contract is prepared and agreed between the parties.
- Notarisation. An appointment is scheduled with a public notary for solemnisation of the contract. Timing depends on the notary’s availability.
- Submission to the cadastre. After solemnisation the notary submits the document to the cadastre ex officio through the e-counter, as a rule within 24 hours.
- Registration of ownership. The statutory deadline for the cadastre to decide is 5 working days from submission by a notary, or 15 working days where the party submits the document itself.
Those are the statutory deadlines. In practice the procedure can take longer, depending on the individual case and the workload of the competent office.
Taxes and costs
| Cost | Who pays | Amount |
|---|---|---|
| Property transfer tax (resale property) | Seller (statutory obligor) | 2.5% |
| VAT — new build from a VAT-registered developer, residential | Buyer | 10% |
| VAT — commercial and other property at the standard rate | Buyer | 20% |
| Notary fee for solemnisation | Buyer (usually) | Depends on property value |
| Cadastre registration fee | Buyer (usually) | Per tariff |
| Annual property tax | Owner | Depends on type, size, value and local authority decision |
Two reliefs are worth knowing about. When buying a first home, and subject to the statutory conditions, the buyer may qualify for exemption from property transfer tax, or for a VAT refund in the case of new construction.
Does buying property give you residence rights?
No. Purchasing real estate does not automatically grant the right of residence in Serbia.
Ownership of property may, however, serve as a basis for granting temporary residence, provided the foreign national also meets the other conditions prescribed by law. These are two separate procedures and should be treated as such.
Common mistakes foreign buyers make
Treating the preliminary contract casually — in both directions
We have seen parties fail to notarise the preliminary contract, unaware that a preliminary contract concerning real estate must also be concluded in the prescribed form before a public notary in order to produce legal effect.
The opposite mistake is just as common: parties notarise a preliminary contract without grasping that they are thereby assuming an obligation to conclude the main contract. There is a widespread misconception that one can simply walk away from a preliminary contract after a change of mind, without legal consequence. That is not the case.
Not checking encumbrances
Property may be burdened by a mortgage, a registered notice of litigation, or other encumbrances, which can make a purchase very risky. Before buying, it is essential to examine the legal status of the property in detail — ownership, any encumbrances and restrictions, and all relevant documentation — so that risks are identified and avoided in time.
Working with us in English
Our office handles these matters in English — client communication, review and preparation of documentation, and representation before the competent authorities.
If you are considering buying property in Serbia and want the legal status checked before you commit, get in touch and we will review the case.
Related: Property Law, Immigration Law and the Rights of the Foreigners, Attorney’s fee. Or contact us directly.