Serbia
STEPS
Check Eligibility
Determine the Budget
Find a Property
View the Property
Make an Offer
Complete Legal Formalities
Register the Property
Move In
- Non-Residents: Foreigners can buy property in Serbia, but non-residents from outside the European Union may face certain restrictions, particularly when it comes to agricultural land. However, EU nationals can purchase property under the same conditions as Serbian citizens.
- Financing: Non-residents can obtain financing from Serbian banks, but the terms may differ depending on the buyer's residency status. Non-residents may need a larger down payment.
- Budgeting: Consider the total cost, which includes the property price, notary fees, registration fees, taxes, and other associated costs such as utilities and insurance.
- Mortgage: Serbian banks may offer mortgages to non-residents, typically requiring a down payment of at least 30-40% of the property’s value.
- Online Search: Property listings are available on websites like 4zida.rs, Nekretnine.rs, and KupujemProdajem.com, where you can filter properties by location, price, and other preferences.
- Real Estate Agents: It is recommended to work with a local real estate agent (agenti za nekretnine) who can assist with property selection and negotiations.
- Inspections: Arrange a property inspection to assess the condition of the house or apartment. This includes checking the structure, plumbing, electrical systems, and other key features.
- Visiting the Property: If you're not able to visit in person, you may opt to hire a representative or schedule a virtual tour.
- Bidding: After selecting a property, make an offer to the seller. In Serbia, negotiations are common, and the final price may differ from the listing price.
- Contract: Once an offer is accepted, both parties sign a preliminary agreement (predugovor) and a deposit (typically 10% of the purchase price) is paid.
- Notary Role: A notary (notar) is required to authenticate and verify the transaction. The notary prepares the final sale agreement (ugovor o kupovini) and ensures that the transaction complies with Serbian law.
- Taxes and Fees: Be prepared to pay notary fees, registration fees, and property transfer taxes. The transfer tax is generally 2.5% of the property’s purchase price.
- Land Registry: The property must be registered with the Serbian Land Registry (Katastru nepokretnosti) to transfer ownership officially. The registration must be done within 30 days after signing the contract.
- Insurance: It is advised to purchase property insurance (osiguranje imovine) to cover potential risks like natural disasters, fire, or theft.
- Once the property is registered, the buyer can move into their new home in Serbia.
ADDITIONAL CONSIDERATIONS
- Legal Assistance: Although the process is generally straightforward, it is advisable to hire a Serbian lawyer to guide you through the legal process and ensure compliance with local laws.
- Taxes and Fees: Remember that property transfer taxes, notary fees, and registration costs will add to the overall cost of the purchase.
ADDITIONAL NOTICES
- Notary Role: In Serbia, a notary is required to authenticate the sale. This helps ensure the legality of the transaction and that all documents are properly verified.
- Mortgage Financing: Foreign buyers can obtain mortgages, but they may need to provide a larger down payment (usually 30-40%) and meet stricter criteria compared to local buyers.
- Land Purchase Restrictions: Non-residents may not be allowed to purchase agricultural land or property in certain protected areas. Be aware of these restrictions when buying land.
In Serbia, real estate taxes are regulated by the central government and local municipalities. The key types of taxes related to real estate in Serbia include:
Property Ownership Tax
Property Tax (Porez na imovinu): Property tax in Serbia is applied at the municipal level and applies to both residential and commercial properties.
- The property tax is calculated based on the property’s value, which is assessed by local authorities.
- The tax rate typically ranges from 0.4% to 2% of the property’s value, depending on the municipality.
- The property tax is paid annually, and it is the responsibility of the property owner.
Real Estate Transfer Tax
The real estate transfer tax is applied when a property changes ownership, such as during a sale or inheritance.
- The standard transfer tax rate is 2.5% of the purchase price or market value, whichever is higher.
- In some cases, tax rates may be reduced if the property is transferred within the family (e.g., parent to child).
Capital Gains Tax on Real Estate
Capital gains tax is applied when a property is sold at a profit. However, exemptions may apply for primary residences under certain conditions.
- The general capital gains tax rate is 15% on the profit made from the sale of the property (the difference between the sale price and purchase price).
- Exemptions may apply for properties that were owned for more than 5 years or if the property was used as the owner’s primary residence for at least 3 years.
- If the property is inherited or received as a gift, no capital gains tax applies until the property is sold.
Inheritance and Gift Tax
In Serbia, inheritance and gift taxes are applicable when real estate is inherited or received as a gift.
- Inheritance tax is based on the relationship between the deceased and the heir, with rates ranging from 1.5% to 2.5% depending on the value of the inheritance and the family relationship.
- Gift tax follows a similar structure to inheritance tax, and rates can also range from 1.5% to 2.5%, with exemptions for close family members such as spouses, children, and parents.
- If the property is sold after inheritance or gifting, capital gains tax may apply.
Municipal Taxes
In addition to property tax, municipalities may impose additional local levies or charges for certain types of real estate, such as for the use of public infrastructure or services.
Income Tax on Rental Income
If rental income is generated from real estate, it is subject to income tax in Serbia.
- Rental income is taxed under the personal income tax system, with a standard tax rate of 20% on the net rental income.
- Property owners can deduct related expenses, such as maintenance costs, property management fees, and repair expenses, from their rental income.
Note: Tax rates and regulations can vary by municipality, and exemptions or reductions may apply based on specific circumstances. It is recommended to consult with local authorities or a tax professional for the most up-to-date and accurate information.
- Official
- Republic of Serbia
- CIOC
- SRB
- Subregion
- Southeast Europe
- Borders
- BIHBGRHRVHUNUNKMKDMNEROU
- Capital
- Belgrade
- Area
- 88 361 km²
- Population
- 6 908 000
- Timezones
-
UTC+01:00
- Phone
- +381
- Currencies
-
Serbian dinar (RSD дин.)