Buying commercial property and land in Serbia

Who buys: you, your foreign company or a Serbian company

Foreign individuals and foreign companies can acquire real estate in Serbia on the basis of reciprocity, which means that Serbian citizens and companies can acquire property in their country. For most EU countries and the United States, reciprocity exists for buildings and commercial premises. For other countries it is checked case by case.

A Serbian company (d.o.o.) is a Serbian legal entity, even if its owners are foreigners. It acquires real estate as a domestic legal entity, so reciprocity is not examined. Many investors buy through a Serbian company because it will also hold the lease, permits and the business itself.

Agricultural and construction land

Agricultural land is subject to separate rules under the Law on Agricultural Land. As a rule, foreign individuals and foreign companies cannot own it. There is a limited exception for EU citizens under strict conditions, such as long registered residence in Serbia and actually farming the land. If a plot is registered as agricultural, check its status before negotiating.

Construction land is acquired under the Law on Planning and Construction. Whether a plot can be built on, and what can be built, depends on the applicable planning documents, not on the description in the advertisement.

Cadastre and encumbrances

The real estate cadastre is kept by the Republic Geodetic Authority (RGZ). The cadastre extract (list nepokretnosti) shows the owner, the ownership shares, the type of land or building, and encumbrances. Check that the seller is the registered owner and that the plot or unit matches what you are buying.

• Registered owner and ownership shares
• Mortgages, pre-notations and enforcement notes
• Notes on court disputes
• Leases and easements, where registered
• Whether the building is registered, and with which permits
• Whether consent of a spouse, co-owner or other party is needed

Planning, permits and legalization

The location information (informacija o lokaciji) is issued by the local authority and shows what the planning documents allow on a given plot. For construction land, it is the starting point for any investment plan. Location conditions, issued later, set the exact parameters for a building permit.

For an existing building, check the building permit and the use permit. Some buildings were built without a permit and are in, or have gone through, a legalization procedure under the Law on Legalization of Buildings. A building that is not legalized can limit financing, registration and later sale, so the status should be clear before the price is agreed.

Also check utility connections, access to a public road and, for commercial use, whether the intended activity is allowed in that zone.

VAT or transfer tax

Depending on the type of property and the transaction, a purchase is subject either to VAT or to property transfer tax. The first transfer of a newly built building is generally subject to VAT. Other transfers are generally subject to transfer tax, with exceptions and options in certain cases.

The tax treatment affects the total cost and who pays, so it should be confirmed with your tax adviser or accountant before the price and the contract are agreed. We coordinate with them on the legal side of the transaction.

The contract and registration

A contract for the transfer of real estate in Serbia must be solemnized by a public notary. The notary checks the identity of the parties and reads the contract to them. A foreign party who does not speak Serbian needs a court interpreter at signing.

After solemnization, the notary submits the contract to the cadastre for registration. Ownership passes on registration. The price is usually paid in a way that protects both sides, for example through a bank or with payment tied to registration or the removal of a mortgage.

Our office checks the title and the planning status, drafts or reviews the contract, coordinates with the notary and follows the registration. We can act under a power of attorney if you cannot be present.

Frequently asked questions