Can Foreigners Buy Real Estate In Serbia?

The ability of a non-Serbian individual to purchase real estate in Serbia is limited only by the practice of reciprocity. If a Serbian citizen is able to own real estate in one's respective country, then that individual has an equal opportunity to do so in Serbia. In addition, those individuals unable to own land via reciprocity can circumvent this policy by incorporating themselves within Serbia, thus becoming a local legal entity and capable of owning property.

Unlike all other neighboring countries, where foreigners have restricted rights over the ownership of land, in Serbia foreign and local individuals, as well as legal entities are treated equally.

Can I obtain finance in Serbia?

Yes, we can help you arrange finance in Serbia. The minimum amount of equity required is generally 10% of the purchase price. Alternatively, you can use the equity in your existing property or arrange a loan in the UK.

How high are realtors’ and lawyers’ fees in Serbia? What about other property purchase costs?

Footnotes to Transaction Costs Table

The round trip transaction costs include all costs of buying and then re-selling a property – lawyers’ fees, notaries’ fees, registration fees, taxes, agents’ fees, etc.

Real Estate Agent's fee:

The Real Estate Agent's fee, 3% of the purchase price, is generally paid by the buyer.

Registration fee:

Registration of property is submitted to either the Municipal Court Land Register (RSD3,250 or €41.56) or to the Cadastre (RSD4,212.60 or €53.87). There is an on-going program of transferring all proeprty registration from the Land Register to the Cadastre. It is expected that by 2010 all registration processes will be handled by the Cadastre.

Transfer Tax:

18% VAT is imposed on new buildings as of 01 January 2005.

VAT:

First transfer of right of use of a residential property is subject to 8% VAT. Otherwise, first transfer of the right of use of new buildings or parts therefore is subject to the normal VAT rate of 18%.

Court fees:

The court verifies the documents, similar to notaries in other countries. Fees are based on the following schedule: