Capital Gains Tax in Serbia: Navigating Property Transactions in 2023


In the ever-evolving landscape of Serbian tax law, understanding the intricacies of capital gains tax, especially concerning property transactions, is crucial for investors, legal professionals, and taxpayers. As we move into 2023, it’s essential to stay informed about the latest legislative updates and their implications on the determination of acquisition and sales prices. This article delves into these aspects, offering valuable insights for navigating this complex terrain.

Capital Gains Tax: A Brief Overview

Capital gains tax in Serbia, governed by the Law on Personal Income Tax, primarily concerns the profit earned from the sale of property, including real estate and securities. According to Article 72 of the Law, capital gain or loss is the difference between the selling price and the acquisition cost of assets. This regulation is pivotal in understanding the financial implications of property transactions.

Determining the Acquisition and Sales Prices

The determination of acquisition and sales prices is fundamental in calculating the capital gain. Under Serbian law, the sale price is deemed as the contracted price or the market price as assessed by the tax authorities if the contracted price is lower than the market value. The acquisition price, on the other hand, is typically the cost at which the taxpayer initially obtained the asset.

For properties constructed by the taxpayer, the acquisition cost includes the building expenses. If these costs are not verifiable, the tax basis may default to the property’s tax value in the year of tax liability origination. It’s crucial to note that these prices are subject to adjustments based on the consumer price index from the acquisition date to the date of transfer.

Implications of Tax Law Amendments

Recent amendments to Serbian tax laws, including changes in the Law on Tax Procedure and Tax Administration, emphasize the importance of evidence in determining these prices. Tax authorities now heavily rely on documentation such as tax returns, business records, and expert appraisals, especially in cases where the actual costs are unclear.

Navigating Compliance and Strategy

For legal and tax professionals, as well as property owners, understanding these regulations is key to ensuring compliance and optimizing tax strategy. Whether it’s for preparing tax returns or advising on property transactions, a thorough grasp of these laws is indispensable.


The realm of capital gains tax in Serbia, particularly in the context of property transactions, presents both challenges and opportunities. By keeping abreast of the latest legal provisions and understanding the nuances of acquisition and sales price determination, stakeholders can navigate this complex field more effectively. As the Serbian tax landscape continues to evolve, staying informed and compliant is more important than ever.

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