Buying an Apartment in Serbia: What You Need to Know

Buying an apartment in Serbia, especially in Belgrade, has become an increasingly popular choice for both investors and individuals seeking a home. The real estate market has shown steady growth since 2015, and the number of new developments continues to rise. According to official data, over 25,000 apartments were built in Serbia during 2020, with a total area exceeding 1.8 million square meters.

Interestingly, the COVID-19 pandemic further boosted interest in real estate. Faced with an uncertain investment climate, many chose to safeguard their capital by investing in property. Unlike cash in the bank, a property does not lose value overnight.

Whether you’re buying an apartment as an investment or for personal use, every step must be carefully considered. Buying property is a significant decision that demands accurate information, legal security, and a serious approach. Even small mistakes can lead to major problems.

That’s why we’ve prepared an overview of the five key things you must check before signing a contract.

To help you navigate the process, we’ve divided apartments into two categories:

• Apartments under construction

• Completed apartments

In the following sections, you’ll learn what to check in each case – and how to be fully confident in your purchase decision.

Apartments under Construction	Completed Apartments
1. Construction Permit Buying an apartment during construction may seem attractive – lower price, flexible layout. However, without a valid construction permit, the purchase is not legally safe. Check the permit number in the official public register and ask the right questions about modifications and deadlines. Without a valid permit – the apartment does not legally exist.	1. Registration in the Land Registry A registered apartment means legal ownership and security. If not registered, verify the property’s legality, ownership rights, and transferability. Review the documents and consult a lawyer as key steps.
2. Check the Developer and Financing In most cases, the developer is funded through bank loans – but don’t stop at the bank’s name. Ask about past projects, delivery deadlines, and potential legal issues. A trustworthy developer ensures a safer process, although some risk always remains.	2. Verify the Seller and Authorization The seller should be the registered owner or have a notarized special power of attorney. Check the legal basis for ownership (e.g., purchase contract, inheritance decision, court ruling). Determine whether any encumbrances exist – such as a mortgage, usufruct rights, or rights of first refusal.
3. Taking Possession Payments are usually made in installments tied to construction stages. The final payment is often made after passing the technical inspection. If full payment is requested before construction is complete – assess the developer’s credibility and risk.	3. Taking Possession The general rule is: pay in full, then take possession. Exceptions are possible – such as agreed move-out periods or early access (e.g., for renovation). Any exception must be clearly stated in the contract.
4. Contract Provisions Your purchase contract must be precise: describe the apartment, define deadlines, and state penalties for delays. Avoid vague clauses. The contract should balance the rights of both buyer and seller.	4. Contract Provisions The same applies to completed properties – the agreement must be clear and specific. Consult a lawyer before signing. All obligations and terms must be unambiguous.
5. Purchase Costs You’ll need to pay for contract notarization, annexes, the “clausula intabulandi,” and VAT (10%). VAT is paid directly to the developer. If you’re buying your first home, you may be eligible for a VAT refund. Most costs are borne by the buyer.	5. Purchase Costs Instead of VAT, a 2.5% transfer tax applies to previously owned properties. By law, the seller is responsible for this tax – but in practice, the buyer usually pays it. If you’re buying your first property, you may be exempt from paying this tax.

So, which is better – a property under construction or a completed one?

As shown in the comparison, there are many differences between buying an apartment under construction and purchasing a completed property. Both options can be good, but each comes with its own benefits and risks – which you can only manage through good preparation and informed decisions.

1. Construction Permit vs. Land Registry Registration

If you’re buying new, the construction permit is non-negotiable.
For completed apartments, registration in the land registry proves the apartment legally exists and can be transferred.

2. Checking the Developer vs. Checking Ownership

With new builds, much depends on who is behind the project – verifying the developer is essential.
With existing apartments, focus on the seller, their authority to sell, and any encumbrances on the property.

3. Taking Possession – Balancing Payment and Move-in

Taking possession marks the exchange of money for property.
In new builds, this is often tied to construction milestones.
With completed apartments, it’s usually more straightforward, but still requires precise contract terms.

4. Contract Provisions – Same Rules Apply

No matter the type of property, your contract must be clear, detailed, and fair.
List responsibilities, penalties, and deadlines.
Avoid open-ended language. Legal certainty must be mutual.

5. Costs – Similar, but not the same

New apartments come with 10% VAT (but may qualify for a refund).
Previously sold apartments are taxed at 2.5% of market value.
In both cases, the buyer usually bears the main expenses, including notarization and possible annexes.

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Final Thoughts

Buying an apartment is not something to be rushed.
Each check must be done carefully, every clause must be clear, and all costs must be anticipated.

• Do your research. ✅
• Consult a legal expert. ✅
• Request all relevant documents. ✅
• And most importantly – take your time. ✅

Whether you’re buying a new build or a previously owned home – an informed buyer is a protected buyer.

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Need help with legal due diligence before buying property?
Our team at Stojković Attorneys is here to assist with legal checks and professional guidance.

📩 [email protected] | 📞 +381 11 328 1914
🌐 www.statt.rs