In Serbia like in most countries, you can purchase real estate either directly from the owner or through a real estate agent for a fee of 2-3% of the real estate value. While agents can present you with a larger number of interesting properties and can facilitate the process, it’s crucial to ensure your rights are fully protected. Many agents rely on template contracts, which may not always cover your interests in detail.

💡 Tip: Engage a lawyer to review the paperwork and draft a contract tailored to your needs. This ensures your rights and obligations are clearly defined, avoiding future complications.

Once the price and details are agreed upon, a purchase and sale contract must be prepared. The contract

• Must be notarized: All parties must sign the contract in the presence of a notary.
• Can be bilingual (optional): If you don’t speak Serbian, a bilingual Serbo-English contract can be prepared by law office in advance to streamline the notarization process.

Even with a bilingual contract, a court interpreter must be present during notarization if you don’t understand Serbian.

Required documents for notarization include:

• Buyer’s and seller’s identification documents.
• Proof of ownership by the seller (e.g., contract, inheritance decision, or court ruling).

Two of the key elements of the contracts you should keep in mind:

The contract must include:

• Payment terms: The purchase price can be paid before or after notarization, depending on mutual trust between parties.
• Clausula Intabulandi: A clause granting the buyer permission to register as the new owner in the cadastre.

Best Practice: Protecting Buyer and Seller Interests
Our law office recommends including a clause where the buyer pays the full purchase price immediately after notarization. The seller then provides a notarized statement within three days, confirming payment and granting registration permission. This protects equally the interests of both parties.

When purchasing property in Serbia, several taxes will apply:

a) Tax on the Transfer of Absolute Rights

• Rate: 2.5% of the property’s catalog value (determined by the tax administration, not the contract price).
• Responsibility: By law, the seller pays this tax, but contracting parties often transfer the obligation to the buyer, making them a joint debtor. In that case, if buyer fails to pay, the seller can sue for reimbursement.
  

b) Annual Property Tax

• Paid annually in four installments as long as you own the property.

c) Capital Gains Tax (in some cases)

• Rate: 15% on the profit (difference between purchase and sale price).
• Responsibility: Paid by the seller when selling property for profit.

Navigating Serbia’s real estate market can be challenging, especially for foreigners. Our law firm offers:

- Analysis of the property’s registration, ownership rights, boundaries, and any encumbrances or legal disputes associated with it.

- Comprehensive Contract Drafting: Tailored agreements to protect your interests.

- Bilingual Services: Contracts in Serbo-English for transparency and efficiency.

- Assistance with tax obligations and cadastre registration.

Let us make your property purchase in Serbia a smooth and secure process. Contact us today to learn more.