Agricultural land that is state-owned cannot be sold, except under the conditions prescribed by law.
The legal basis for transferring state-owned agricultural land to a person must be through a sales contract.
A buyer must meet numerous legal requirements (citizen of the Republic of Serbia, has a registered agricultural farm or is the holder of a family agricultural farm with active status for at least 3 years, owns no more than 30 hectares of agricultural land, possesses equipment for agricultural activity, has been registered as a resident for at least 5 years in the local government unit where the land being sold is located, has not alienated more than 3 hectares of agricultural land in the last 3 years, and after purchasing the state-owned agricultural land, will not own more than 40 hectares of agricultural land).
The subject of the sale cannot be agricultural land located in the area of the administrative line towards the autonomous province of Kosovo and Metohija. Furthermore, the subject of the sale cannot be agricultural land in state ownership that is less than 10 km from the state border, although the Government may approve the sale of such land after obtaining the opinion of the competent ministries. Additionally, the subject of the sale cannot be agricultural land in state ownership if it is designated in valid planning documents; if it is subject to restitution; if it is part of protected natural resources; or if it is located in or borders a security zone/military base.
The competent authority of the local government unit determines the areas for the sale of state-owned agricultural land, starting with the smallest cadastral parcels, and publishes a public call for collecting offers with the approval of the Ministry. The public call must contain the cadastral parcel number and the starting market value. If multiple buyers apply for the same agricultural land, priority is given to the person with the right of first refusal, provided they accept the highest offered price. If no buyer with the right of first refusal applies, priority is given to the buyer offering the highest price.
Based on the final decision on the sale of state-owned agricultural land, the Ministry and the buyer conclude a contract for the sale of agricultural land in state ownership. The state-owned agricultural land subject to the sales contract may not be alienated, leased for at least 15 years from the date of sale, nor may it be encumbered with a mortgage or other burdens, unless the payment is agreed in installments over a period not exceeding ten years from the date of the sales contract, along with the provision of security for payment. Once the purchased land can be further sold, the Republic of Serbia has the right of first refusal.
Exchange of Agricultural Land
State-owned agricultural land can be exchanged for agricultural land owned by a company or other individuals in the case of land consolidation within state ownership, provided that the lands have the same market value. The Ministry and the owner of the agricultural land will conclude a contract for the exchange of agricultural land.