Property Tax in Serbia: Key Concepts, Taxpayers, Deadlines

Who Is Liable for Property Tax in Serbia?

According to Serbian tax regulations, the obligation to pay property tax applies to both legal entities and individuals, regardless of whether they are residents or non-residents in Serbia. A taxpayer is any entity that holds ownership rights, usage rights, or possession over real estate in Serbia. The tax applies to properties valued above 400,000 RSD, except in cases where exemptions are granted under special provisions, such as for diplomatic missions, religious institutions, and foundations.

 

In instances where a property has multiple owners but ownership shares are not explicitly defined, for tax purposes, it is assumed that all owners hold equal shares of the property.

 

 

 

 

Categories of Property Taxpayers

 

Taxpayers liable for property tax include:

1. Self-employed individuals generating income under personal income tax regulations, including entrepreneurs taxed on a lump sum basis;
2. Entities not required to maintain business records under Serbian law;
3. Entrepreneurs maintaining business records, but only for properties not recorded in their accounting books.

 

 

 

 

How Is Property Value Determined for Taxation Purposes?

 

The tax base for property tax is determined by the local self-government authorities, which oversee assessment, collection, and control of property tax revenue. The assessed value of real estate, excluding land, can be depreciated at a rate of up to 1% per year, with a maximum depreciation of 40%, calculated based on the year of construction or the most recent renovation. The depreciation rate is set by local government decisions and must be officially published before December 15 of the preceding tax year. If no depreciation rate is set or published, depreciation is not applied.

 

 

 

 

Factors in Property Value Assessment

 

The assessed value of real estate is determined based on:

1. Usable area of the property;
2. Average price per square meter of comparable properties within the same zone.

 

 

 

 

When Does Property Tax Obligation Begin?

 

The obligation to pay property tax arises on the earliest of the following dates:

• The date of acquiring ownership or usage rights;
• The date of taking possession of the property;
• The date of commencing usage;
• The date of obtaining an occupancy permit;
• The date on which the property is otherwise made available for use.

 

If a property is under construction and does not yet have an occupancy permit, the tax obligation begins when usage commences or when the property is deemed fit for use.

 

 

 

 

Property Tax Rates in Serbia

 

• For legal entities maintaining business records: up to 0.4%
• For landowners who do not maintain business records: up to 0.3%

 

 

 

 

Progressive Tax Brackets for Property Value

 

1. Properties valued up to 10 million RSD: up to 0.4%;
2. Properties valued between 10 million and 25 million RSD: Base tax from (1) + up to 0.6% on the excess value;
3. Properties valued between 25 million and 50 million RSD: Base tax from (2) + up to 1% on the excess value;
4. Properties exceeding 50 million RSD: Base tax from (3) + up to 2% on the excess value.

 

 

 

 

Tax Reduction for Residential Property Owners

 

A taxpayer residing in their own property may qualify for a 50% tax reduction, with a maximum deduction of 20,000 RSD. If multiple individuals share ownership, each resident co-owner receives a proportional deduction based on their ownership stake.

 

 

 

 

Payment Deadlines for Property Tax in Serbia

 

Property tax is paid in four equal installments, due by the 15th of February, May, August, and November.

 

 

 

 

Digital Access to Property Tax Information

 

Since 2019, taxpayers can access real-time property tax information through the Unified Information System for Local Tax Administration. This platform provides businesses and individuals with an overview of all tax liabilities in Serbia and enables the electronic submission of property tax declarations.

 

From February onwards, an electronic payment service is also available, making tax compliance significantly easier, particularly for legal entities that must submit annual tax reports.