Buying a property in Serbia
- Last Updated on Monday, 25 June 2012 17:17
When living in Serbia for a quite some
time and planning to stay there, many expats are starting to think about
purchasing a home of their own.
Buying a home is an investment, a big commitment, and there are many factors to consider.
Non-Serbian, foreign nationals are able
to acquire real estate (a "building" and/or land) in Serbia on the
conditions of being reciprocal, meaning, if a Serbian citizen is able to
own real estate in one's respective country, then that foreign
individual has an equal right to the same in Serbia. In Serbia foreign
and local individuals, as well as legal entities are treated equally.
The following countries have that right:
Algeria, Argentina, Austria, Australia, Bangladesh, Belgium, Bolivia,
BiH, Brazil, Bulgaria, Great Britain, Gambia, Guinea, Greece, Denmark,
the Virgin Islands, Egypt, Ecuador, India, Indonesia, Iran, Ireland,
Israel, Japan, Jordan, South Africa, Canada, Kenya, Cyprus, Monaco,
Lebanon, Liberia, Lithuania, Lichtenstein, Luxemburg, Mali, Hungary,
Malta, Mexico, Namibia, Germany, Nigeria, Nicaragua, New Zealand,
Norway, Panama, Peru, Poland, Portugal, Romania, Russia, USA, Senegal,
Singapore, Syria, Slovakia, Sudan, Thailand, Tanzania, Turkey, the
Ukraine, Uruguay, Finland, France, Holland, Hong Kong, the Czech
Republic, Chile, Switzerland, Sweden and Spain.
If you are from a country which does not have a signed reciprocity with Serbia, you would have to address to:
If you are from a country which does not have a signed reciprocity with Serbia, you would have to address to:
Ministry of Human and Minority Rights
Address: Bul. Mihajla Pupina 2
Phone: +381 11 311 24 10, +381 11 311 27 69
http://www.ljudskaprava.gov.rs/
Address: Bul. Mihajla Pupina 2
Phone: +381 11 311 24 10, +381 11 311 27 69
http://www.ljudskaprava.gov.rs/
The real estate buying process is very straightforward and it can take from 3 to 30 days.
Once a property has been chosen, there
are several things buyer should consider: 1) is the asking price in line
with prices of similar homes in the area? 2) Is the home in good
condition or will you have to spend a substantial amount of money making
it the way you want it? 3) How long has the home been on the market? If
it's been for sale for a while, the seller may be more eager to accept a
lower offer.
After the analysis has been finished,
next step is making an offer. After seller's acceptance, both parties
sign a preliminary purchase agreement and have it notarized. At the
time, the buyer will have to make a deposit in the amount of 10%-15% of
the total purchase price (if the buyer does back out of the agreement,
he/she generally will lose the deposit money)
The buyer’s solicitor can now start
analyzing the title deed. This document firstly proves that the person
selling the property actually owns it, and secondly set out any rights
or obligations that affect the property. When all is in order, the main
terms of agreement are written into the original contract and he is
signed in the presence of a public notary. After finalization and
certification, the buyer is the legal owner of the property.
Next, the Inland Revenue Office estimates the value of the property, and the buyer needs to pay the 5% property tax based on the estimated value of the purchased property (this enables registration with the local Area Property Registry).
Next, the Inland Revenue Office estimates the value of the property, and the buyer needs to pay the 5% property tax based on the estimated value of the purchased property (this enables registration with the local Area Property Registry).
Payment of the agreed price ends the buying process.
All costs
Real estate property in Serbia is subject to three basic taxes:
Property tax (seller's cost) is payable by all legal entities and individuals who own or have rights over real estate located in Serbia. For a taxpayer who keeps books, property tax on the rights to real estate is 0.40% of the property’s book value, while for individuals and entrepreneurs, the rates are progressive.
Tax on transfer (buyer's cost) of title over property is payable by all legal entities and individuals who sell rights in relation to real estate. The taxable base is the price stated in the contract or the market value of the property, with the current tax rate set at 2.5%. This tax is not payable on the sale of real estate property rights to physical entities, purchasing the first apartment under the 40 sq m area, as well as up to 15sq m for each member of their households.
Capital gain (seller's cost) is determined as the difference between the sale price and purchase price of the real estate. The applicable rates for legal entities and individuals are 10% and 20%, respectively. Capital gains can be offset against capital losses, occurring in the same period, and a capital loss can be carried forward for a period of 10 years.
Property tax (seller's cost) is payable by all legal entities and individuals who own or have rights over real estate located in Serbia. For a taxpayer who keeps books, property tax on the rights to real estate is 0.40% of the property’s book value, while for individuals and entrepreneurs, the rates are progressive.
Tax on transfer (buyer's cost) of title over property is payable by all legal entities and individuals who sell rights in relation to real estate. The taxable base is the price stated in the contract or the market value of the property, with the current tax rate set at 2.5%. This tax is not payable on the sale of real estate property rights to physical entities, purchasing the first apartment under the 40 sq m area, as well as up to 15sq m for each member of their households.
Capital gain (seller's cost) is determined as the difference between the sale price and purchase price of the real estate. The applicable rates for legal entities and individuals are 10% and 20%, respectively. Capital gains can be offset against capital losses, occurring in the same period, and a capital loss can be carried forward for a period of 10 years.
Additional fees are Real Estate Agent's fee (3% of the purchase price is generally paid by the buyer), Registration fee (0.01%-0.05%) and Court fees
(The court verifies the documents, similar to notaries in other
countries) around 200-500 euro. Amount of Court fees depends on the
value of real estate listed in the Purchase Agreement and it's paid
according to the scale of the competent court.
Nearly always the cost of the property will be quoted in euros.
But if you are not ready to commit or you don’t have assets yet, we recommend checking out articles about Renting an apartment, Hotels and Hostels in Belgrade.
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