Buying Property in Serbia – Frequently Asked Questions

1. Who Can Purchase Property in Serbia?

There are certain restrictions regarding who may acquire real estate in Serbia.
• Agricultural land may only be purchased by Serbian citizens.
• Other types of property (apartments, houses, commercial real estate) may be purchased by foreign nationals from countries that have reciprocity agreements with Serbia.
In both cases, property can also be acquired through a Serbian-registered company. Once established, the company becomes the legal owner of the property, regardless of its purpose or the existence of reciprocity.

2. Can a Foreign Company Purchase Property in Serbia?

Yes, a foreign legal entity may purchase property in Serbia, subject to the rule of reciprocity.
However, reciprocity does not apply to Serbian companies that are foreign-owned. This means that establishing a Serbian company (even if fully foreign-owned) may simplify the acquisition process.
A foreign company may also establish a branch in Serbia, which can facilitate property transactions and fund transfers.

3. In Which Currency Can Property Be Purchased?

Real estate in Serbia may be purchased in Serbian dinars (RSD) or in a foreign currency agreed upon by the buyer and seller, provided the buyer’s bank accepts the transaction.
Common contract currencies include:
• EUR
• USD
• CHF
• GBP
• RUB
• CNY
• AED

4. How Is Payment Typically Made?

The most common and practical solution is for both buyer and seller to open accounts in the same Serbian bank. After the transfer is completed, the bank issues confirmation of payment, which is submitted to the notary.
This is generally the simplest and safest method.

5. Can I Pay for Property From Abroad?

Yes, payment can be made directly from your foreign bank account in the agreed currency.
However, international transfers involving large sums are subject to enhanced scrutiny by correspondent banks. Buyers should be prepared to provide documentation regarding the source of funds to avoid delays.

6. AML (Anti-Money Laundering) Compliance

Real estate agencies in Serbia are legally required to report suspicious AML transactions.
It is essential to clearly document and explain:
• The source of your funds
• The purpose of the purchase
Proper documentation helps prevent delays or complications.

7. What Is the Procedure for Buying Property in Serbia?

The standard purchase process includes:
1. Verification of eligibility (reciprocity check)
2. Legal due diligence (ownership verification in the Cadastre, checking for mortgages, encumbrances, disputes, etc.)
3. Opening a Serbian bank account (recommended, even if payment is made from abroad)
4. Signing a preliminary agreement and/or main agreement (notarization is mandatory)
5. Payment of applicable taxes (depending on whether the property is newly built or resale)
6. Registration of ownership in the Cadastre
The buyer becomes the full legal owner only after registration in the Serbian Real Estate Cadastre.

8. How Do I Verify the Legal Status of the Property?

Although the notary is required to verify the property’s status, the buyer also bears responsibility for legal verification.
It is necessary to confirm:
• How the property was acquired
• Whether there are mortgages, liens, or legal disputes
• Whether the property is properly registered
• Whether it is legalized or undergoing legalization
• Whether construction and occupancy permits exist
• Whether there are unpaid utility debts
A significant number of properties in Serbia were built without complete documentation, so legal consultation is highly recommended.
It is also important to determine:
• Whether a preliminary agreement is required
• Whether a deposit is advisable
• Whether a bilingual contract is needed
Proper legal guidance ensures full legal security.

9. Can I Buy Property Under Construction?

Yes, purchasing property during construction is possible.
However, it is crucial that the contract be properly notarized. In practice, some buyers make payments without notarized agreements, which may lead to serious risks if the project is not completed.
An unfinished property cannot serve as grounds for obtaining residency.

10. Is It Possible to Pay With Cryptocurrency?

Cryptocurrency cannot be used directly to purchase property in Serbia.
However, it may be converted into fiat currency before completing the transaction. Professional guidance is recommended for structuring such transactions.

11. What Taxes Apply When Buying Property?

Before purchasing, it is important to determine whether the buyer must pay:
• Property Transfer Tax (2.5%), or
• VAT (10%), typically applicable to new construction.
In practice, the buyer usually bears these costs.
Additional expenses include:
• Notary fees (based on property value)
• Registration fees
After acquisition and registration, the new owner must declare the property for annual property tax, which may be up to 1% of the assessed value (rates vary by municipality).
If the property is later sold, capital gains tax may apply.

12. Can a Foreigner Rent or Sell Property After Purchase?

Yes.
If you obtained temporary residence based on property ownership, you may rent the property provided it does not jeopardize the basis of your residence.
As a private individual, renting generates a tax obligation.
Short-term rentals (such as Airbnb-type rentals) require registration in accordance with Serbian regulations.
If you later sell the property, capital gains tax obligations should be considered.

13. Can Property Be Purchased Through a Company?

Yes, purchasing property through a company is a common and legally permitted option.
It is important to note that even if the company has sufficient funds, real estate acquisition is not treated as a one-time expense in accounting. Instead, the cost is distributed over time through depreciation.
This structure may provide strategic tax and investment advantages depending on your business goals.