Property Purchase Process in Serbia: The property law relationship states that the correlative principle is the general rule governing the acquisition of property and property rights in Serbia. Foreign persons and legal things can easily acquire property if the said property is necessary for their business.
Foreigners can also get houses and apartments easily, even if they are not operating the business. However, foreign ownership of property near military land and on city building plots is prohibited.
The land in Serbia Urban is exclusively owned by the state. However, urban land can be leased for a minimum period of five to a maximum of 30 years. In the interest of building construction for commercial purposes, investors can acquire property rights or rights to use the land beyond the ownership of the land.
Ownership of buildings and apartments is not restricted. Foreigners who cannot acquire land through reciprocity can circumvent this restriction by involving themselves in Serbia.
After a property is selected, the buyer makes an offer. Once the seller accepts the offer, both parties sign the initial purchase agreement and notarize it. Upon signing the initial contract, the buyer pays a 10% deposit, which is non-refundable if the buyer changes his mind. The buyer’s attorney can now initiate an investigation into the property’s title deed and its history as well as the seller’s rights to dispose of the property.
When all are in order, a completion date is written into the original contract and the entire process takes about six weeks to complete. The final and certified contract establishes the legal ownership of the property. Once ownership is confirmed, the Inland Revenue Office determines the value of the property, and the buyer pays a 5% property tax based on the estimated value of the property. Once this is completed, the property can be registered with the local area property registry. The purchase process is completed upon payment of the agreed price.
Why Invest only in Serbia?
The residential market in Serbia is rising day by day. The new construction activity is trying to respond to the increasing demand. 100,000 additional square meters of new apartments are needed because the demand is very high. In recent years many building construction projects have come up in response to the demand.
The capital cities Belgrade and Novi Sad, which are important for the IT industry, are the cities with the most demand for real estate purchases.
In addition, the cost of real estate in Serbia is quite attractive compared to other European cities. Prices for high-medium quality projects range from 1,700–2,200 per square meter, with prices ranging between 1,000 euros – 1,300 per square meter for older apartments. High-quality apartment prices range between EUR 2,350–2,800 per square meter.
Foreigners bought the property in Serbia
In Serbia, foreigners can buy property by meeting the necessary conditions. The reciprocal principle is the general rule governing the acquisition of property and property rights in Serbia’s property law in 1996.
The urban land is state-owned in Serbia but can be leased for 5–30 years. In the interest of building construction for commercial purposes, investors can acquire property rights or rights to use the land beyond the ownership of the land.
Foreigners have the right to buy real estate in Serbia depending on the country. The rights of active legal and natural persons and the rights of inactive persons are different in the Republic of Serbia.
Foreign property and legal entities can easily purchase the property if the property is necessary for their business. In addition, foreigners can buy houses and apartments even if they are not operating the business. Foreign ownership of property is prohibited near military land and on city building plots.
Rules for immigrants who want to buy a property in Serbia
Individuals who do not have a home in Serbia and are interested in buying a building or land for commercial purposes can do so and obtain full control of the property. For those people who have mutual restrictions, they can first register a business in Serbia and then purchase a building, an apartment, a plot, or a commercial office space.
Each type of acquisition is decided through an agreement signed by the seller and future owner, but before that, the entire history of the property must be verified to understand if there are any claims or related responsibilities. In this case and document preparation issues, our agents in Serbia can provide legal advice and assistance.
What is the Property Purchase Process in Serbia?
Property purchase in Serbia involves simple steps that can be found in a sales contract signed by both parties. It is suggested to consider the following aspects:
- A notarized initial purchase contract has been signed before the authorities;
- The title of the deed is verified by a Serbian lawyer;
- The final agreement is prepared to be signed before the notary;
- If the property is valued at the proposed price, the Inland Revenue Office is settled;
- The buyer must pay a property tax of 5% below the price of the acquisition;
- The property is then filed with the Area Property Registry.
Who can buy property in Serbia?
All foreign investors or foreign nationals interested in Serbian property can acquire various types of property, as long as they are not state-owned. The law is acceptable for foreigners wishing to purchase property in this country, but it is best to ask for legal aid before making any decision in this direction.
What kind of property can you buy in Serbia?
Luxury real estate, agricultural land, commercial office space (garages, warehouses, storage), studios, apartments, and homes are among the properties that can be purchased by foreign entrepreneurs in Serbia. Prices vary depending on location and facilities.
Real Estate Labor in Serbia
Before purchasing any property, you can talk to our lawyers in Serbia, who produce real estate due diligence. When purchasing a property, it is an important process to verify its history, if any litigation cases are involved, or if the property is legally registered with the Serbian authorities. We strongly advise you to keep in mind the importance of real estate in Serbia and to ask our advisors for full support.
How to verify property in Serbia?
The real estate sector in Serbia is complex but very attractive to foreigners who want to acquire property for commercial purposes. Knowing the local real estate market before undertaking any movement can begin with real estate due diligence, a case where our lawyers in Serbia can offer legal support. One should know that due to real estate in Serbia, the following aspects are involved:
- Verification of assets to see if there are any unresolved lawsuits;
- A firm examination of property documents;
- Structural verification of the land where the development will be done;
- Coefficient of possession to see how much land can be used for construction;
Reviewing the financial terms and if there is any ongoing administrative action.
From a legal point of view, all of the above requirements are considered seriously and are part of a concrete verification of an asset before purchasing it. A review of the due diligence performed by our consultants may reveal whether the assets are legal issues.
What procedures are to be followed?
Foreigners should check their eligibility to purchase property according to their citizenship before the procedural process begins. Both parties sign the purchase agreement and notarize it. Once the buyer has decided to purchase the property, make an offer, and do due diligence to check if the property has encroachments, mortgages, or annotations.
After the buyer has paid the purchase price, the final contract is signed in the presence of a public notary and the certified contract establishes the legal ownership of the property.
