🏠 Real Estate in Serbia – Legal Guide (Updated 2025)

Introduction

This Real Estate Guide provides a comprehensive and practical overview of the legal framework governing real estate ownership, acquisition, registration, leasing, taxation, and protection of rights in the Republic of Serbia.

It is intended for:

• Foreign investors looking to understand how to acquire, lease, or inherit property in Serbia,
• Local individuals and companies seeking clarity on their rights and obligations,
• Legal professionals and real estate advisors needing a consolidated reference point.

This 2025 edition includes updates on:

• The digitalization of public notary and cadaster processes (📲 eNotar and eKatastar),
• Interpretation of reciprocity for foreign buyers,
• Capital gains tax, VAT, and transfer tax application,
• Ongoing restitution procedures and due diligence recommendations.

We trust this guide will help you make secure and informed real estate decisions in Serbia. For personalized assistance, feel free to reach out to our team at STATT.

📚 Table of Contents

• Types of Real Estate Rights
• Acquisition of Real Estate Rights
• The Right of Foreigners to Acquire Real Estate
• Real Estate Registration – Cadaster System
• Protection of Transferred Ownership Rights
• Lease Agreements
• Mortgage Law in Serbia
• Restitution and Compensation
• Real Estate Taxation
• Legal Framework
• FAQ – Real Estate in Serbia

Types of Real Estate Rights

📌 Key Takeaways

• Serbian law recognizes full ownership and several limited rights in real estate.
• Rights may be registered individually or jointly in the cadaster.

Main types of real estate rights include:

• Ownership (individual, co-ownership, joint ownership)
• Servitude (real and personal)
• Pre-emption rights (legal and contractual)
• Mortgage (pledge)
• Right of use
• Lease rights

Ownership is the strongest form of real estate right, granting full control over use, disposal, and enjoyment of the property. Co-ownership refers to a situation where shares are explicitly defined, while joint ownership implies undivided shares (e.g. between spouses).

Other rights (e.g. servitudes or leases) may grant limited access or control over real estate without full ownership.

Acquisition of Real Estate Rights

📌 Key Takeaways

• Ownership transfer requires a valid legal basis and registration in the Real Estate Cadaster.
• Contracts must be in written form and certified by a notary public.
• As of 2024, notaries submit real estate agreements electronically to the Cadaster via eNotar.

🧾 Legal Basis for Acquisition

Ownership and other real estate rights can be acquired on the basis of:

• Sale and purchase agreement
• Inheritance (probate decision)
• Gift agreement
• Court decision
• Construction (newly built property)

The right is obtained only once the valid legal document is registered in the Real Estate Cadaster. Registration is constitutive in Serbia.

📝 Contract Formalities

To be valid, a real estate transfer contract must:

• Be concluded in written form (paper-based)
• Bear the signatures of all parties
• Be certified by a public notary, in one of two forms:
  • Notary Deed: drafted by the notary (mandatory in certain cases: e.g. minors, housing loans)
  • Solemnization: notary confirms the parties understand and accept the agreement

💡 Solemnization is generally more cost-effective, at ~60% of the notary fee for a full deed.

💶 Price & Payment Rules

• Though Serbia’s official currency is RSD, property prices may be stated in EUR.
• Cash payments are limited to EUR 10,000 (in RSD equivalent), whether in one or multiple connected transactions.
• Amounts above that limit must be paid via bank transfer to a commercial account.

📄 Notary Certification Duties

Before certifying the contract, the public notary must:

• Verify that the property has valid construction and use permits
• Check that no other active sale agreements exist for the same property
• Inform parties of the results of this due diligence

Following certification, the notary is required to:

• Submit the contract electronically to the Real Estate Cadaster (via eNotar) within 24 hours
• Send copies to the tax administration within 10 days
• Report the contract to the local court for statistical and record-keeping purposes

🌐 Language & Translation

• Contracts are typically in Serbian Cyrillic, but may be bilingual or in Latin script.
• If a party does not speak Serbian, a certified court interpreter must be involved.
• Notaries can solemnize bilingual contracts if the interpreter confirms content alignment.

👉 As of 2024–2025, digital integration via eNotar and eKatastar allows faster, more secure registration and tax compliance.

2.1 Co-ownership of Real Estate

📌 Key Takeaways

• Co-ownership involves multiple owners with clearly defined (ideal) shares.
• Co-owners may manage, use, or dispose of their share within legal boundaries.

In Serbia, co-ownership arises when several individuals or entities hold portions of the same property, each with a defined share. If the agreement does not specify shares, the law assumes that they are equal.

Rights and Responsibilities of Co-owners:

Co-owners may:

• Use the property in proportion to their ownership share, without infringing on the rights of others
• Sell or otherwise transfer their share independently, while respecting the pre-emption rights of other co-owners
• At any time, initiate a division of the property — this is a permanent and non-waivable right

Decision-Making Framework:

• For regular management (e.g. maintenance), co-owners whose shares represent more than 50% of the value must agree
• For major actions — such as leasing or selling the entire property, mortgaging it, or changing its purpose — unanimous consent is required
• When co-owners cannot reach agreement, any of them may request a court ruling on the matter

Following the division, co-owners remain jointly responsible for any legal or physical defects in proportion to their former shares.

2.2 Joint Ownership

📌 Key Takeaways

• Joint ownership involves multiple persons owning property without predetermined shares.
• Common example: spouses acquiring property during marriage.

Joint ownership typically arises when property is acquired together by spouses during marriage. In these cases, the law presumes equal ownership unless one spouse explicitly agrees otherwise within the certified contract.

This form of ownership also applies to inherited real estate that has not yet been formally divided.

To convert joint ownership into individually defined shares, parties may:

• Conclude a marital or partition agreement
• Initiate a division procedure before the court

All rules that govern individual property rights equally apply to joint ownership — including the requirements for acquisition, documentation, and registration in the Cadaster.

2.3 Pre-emption Rights (Right of First Refusal)

📌 Key Takeaways

• Co-owners and neighboring landowners may have pre-emption rights.
• Sellers must follow a formal offer process before transferring the property to third parties.

Pre-emption in Co-ownership:

When a co-owner decides to sell their share, they are legally required to offer it first to other co-owners. Among them:

• The co-owner with a larger ownership share has priority
• If shares are equal, the seller may freely choose whom to sell to

Pre-emption in Agricultural Land:

The same principle applies when selling agricultural land. In this case, the seller must offer it to neighboring landowners. The priority order is:

1. The neighbor with the longest common border with the seller
2. If border lengths are equal, the neighbor with the larger land parcel gains priority
3. Co-owners (if any) always take precedence over neighbors

Required Procedure:

• The seller must send a written offer to all persons who hold pre-emption rights
• The offer must clearly state the property details, price, and sale terms
• If no response is received within 15 days, the seller may proceed to sell the property to a third party — but only under equal or less favorable terms
• If the sale does not occur within one year, the seller must restart the offer process

The Right of Foreigners to Acquire Real Estate

📌 Key Takeaways

• Foreign individuals and legal entities can acquire real estate in Serbia under reciprocity conditions.
• Foreigners are restricted from owning agricultural land unless specific legal exceptions apply.

Foreign citizens and companies may acquire ownership rights over real estate in Serbia, but only under the principle of reciprocity. This means a foreigner may purchase property in Serbia if Serbian citizens can acquire property under similar conditions in that person’s country of origin.

Owning Property for Business or Residence

• If a foreign individual or company performs business activities in Serbia, they may acquire ownership of real estate necessary for conducting those activities, subject to reciprocity.
• If a foreign individual does not conduct business in Serbia, they may still purchase apartments or residential buildings, provided that reciprocity with their country exists.

However, Serbian law may restrict foreign ownership in specific geographic areas or zones deemed strategically important.

Agricultural Land Restrictions

Foreign individuals and legal entities cannot own agricultural land in Serbia. An exception exists only in accordance with:

• The Law on Agricultural Land, and
• The Stabilization and Association Agreement (SAA) between Serbia and the European Union.

Agricultural land includes fields, vineyards, orchards, meadows, pastures, ponds, and other land suitable for food production.

Reciprocity: Contractual and De Facto

Serbia has contractual reciprocity agreements with only a limited number of countries. Fortunately, contractual reciprocity is not required for a transaction to proceed. In most cases, de facto reciprocity is sufficient.

De facto reciprocity exists if:

• The foreigner’s home country allows Serbian citizens to purchase real estate under similar or less restrictive terms.

In practice, public notaries in Serbia assume that de facto reciprocity exists unless someone proves otherwise. If a notary needs to verify reciprocity for a specific country, they may request guidance from the Ministry of Justice.

Inheriting Real Estate as a Foreigner

Foreign individuals may also inherit real estate in Serbia under reciprocity conditions. Here too, de facto reciprocity is sufficient, and notaries typically presume it exists unless proven otherwise. Serbia maintains contractual inheritance reciprocity with several countries, though this is not strictly required.

👉 For a detailed, practical explanation of this process, including how reciprocity works in real cases, visit our specialized guide: Foreigners Buying Real Estate in Serbia

Real Estate Registration – Cadaster System

📌 Key Takeaways

• Ownership rights become effective only after registration in the Real Estate Cadaster.
• Registration is mostly handled electronically by notaries and courts via the eKatastar system.

To legally own real estate in Serbia, you must be registered in the Real Estate Cadaster (“Katastar”). This public registry records both the physical features of properties and the legal rights over them.

Who Registers the Property?

Typically, registration is performed ex officio by:

• Courts
• Public notaries
• Public enforcement officers
• Other authorized institutions that issue or certify the underlying legal documents

These entities submit the request electronically through the eKatastar portal.

What the Cadaster Includes

The Real Estate Cadaster maintains detailed data about:

• Land: location, area, use, soil class, cadastral number
• Buildings and structures: layout, floors, use, dimensions
• Units: apartments and commercial spaces
• Rights and encumbrances: ownership, mortgages, easements, restrictions

Each real estate entry is divided into:

• A folio – land data
• B folio – ownership holder(s)
• V folio – buildings and parts
• G folio – encumbrances and limitations

Accessing the Cadaster: Online and Offline

You can request official extracts (excerpts) from:

• Local cadaster offices
• Public notaries
• Geodetic organizations

Alternatively, access the digital Cadaster via the eKatastar Portal. There are two options:

1. Public (Free) Access: Allows viewing of basic data, such as:
   • Plot number and area
   • Building details
   • Ownership name (not full ID)
   • Notices and encumbrance types (no full content)
2. Registered Access (Paid): Grants access to full owner info (address and ID number), as well as detailed encumbrance descriptions.

👉 By 2025, most notaries and courts register transactions digitally, greatly improving speed, transparency, and traceability of ownership changes.

Protection of Transferred Ownership Rights

📌 Key Takeaways

• Sellers are liable for legal defects of the property under the rule of eviction.
• Buyers can request compensation, contract termination, or price reduction in specific scenarios.

When you purchase real estate in Serbia, the Law on Obligations offers strong protection to ensure your rights are not unlawfully challenged by third parties. This legal protection is commonly known as “protection against eviction.”

Even if your contract does not explicitly include this clause, the protection still applies by default—unless both parties clearly waive it in writing.

What Is Protection Against Eviction?

If a third party claims a legal right (such as ownership or a mortgage) that limits or nullifies your ownership, the seller becomes liable. As the buyer, you must notify the seller about the claim and give them a reasonable opportunity to resolve it.

If the seller fails to act and you lose ownership completely, the contract is automatically terminated. However, if your ownership is only partially reduced or restricted, you may choose between:

• Terminating the contract, or
• Requesting a proportionate reduction of the purchase price

In both cases, you are entitled to claim compensation for any damage or financial loss you suffer.

Good Faith Requirement

Keep in mind, your right to compensation depends on whether you acted in good faith at the time of the transaction. If you knew—or reasonably should have known—about the third-party claim, you may only be eligible for a refund or price reduction, not full compensation.

✅ Example: If the seller fails to inform you that the property is subject to a third-party lien, and you later lose rights to the property due to that lien, the contract is canceled by law. You may also recover any losses, as long as you were unaware of the lien when signing.

This legal framework helps balance the rights of both buyers and sellers while promoting transparency in real estate transactions.

Lease Agreements

📌 Key Takeaways

• Lease agreements can be oral or written, depending on property type.
• Lessees have usage rights and obligations; lessors must provide and maintain the property.
• If the leased property is sold, the lease generally continues.

Serbian law recognizes lease agreements as a distinct and regulated type of contract. While the Law on Obligations does not mandate a specific form, some property types—such as apartments—must have written lease contracts under specialized regulations.

Duration and Renewal

Lease agreements may be:

• Fixed-term – ending on an agreed date, or
• Open-ended – which either party can terminate with proper notice.

If the notice period isn’t agreed upon, defined by law, or determined by custom, it defaults to eight days. Notably, if a fixed-term lease ends and both parties continue performing their obligations, the law considers the lease automatically renewed under the same terms but for an indefinite period.

Main Obligations

• The lessor must deliver the property, maintain it, and defend the lessee against any legal or physical defects.
• The lessee must pay rent on time, use the property responsibly, and return it in proper condition.

Routine maintenance is the lessor’s responsibility. However, the lessee bears the cost of minor repairs from normal use and is not liable for wear and tear.

Transfer of Ownership During Lease

If the leased property is sold, the new owner automatically assumes the lessor’s role. This means the new owner cannot evict the lessee before the lease term ends (or notice period expires if the term is undefined). Unless stated otherwise, the new owner becomes entitled to rent payments starting with the next payment due after acquisition.

If the former owner received advance payments, they must transfer the unused portion to the buyer.

✅ Tip: The lessee always has the right to terminate the lease after a sale, by providing notice.

Why a Written Lease Is Smart

Although oral leases are allowed in many cases, clearly written agreements protect both parties. Defining each party’s rights and duties in detail helps reduce misunderstandings and provides legal certainty in case of disputes.

Whether you are renting a property or leasing it out, we highly recommend documenting your agreement and registering it if applicable.

Mortgage Law in Serbia

📌 Key Takeaways

• Mortgages must be registered in the Real Estate Cadaster.
• Creditors gain priority rights to collect from the property’s value.
• Construction-phase mortgages convert automatically once the building is registered.

A mortgage in Serbia represents a legal lien over real estate, enabling a creditor to collect debt by enforcing the mortgage against the property if the debtor defaults. This right takes priority over unsecured creditors and subsequent mortgagees.

What a Mortgage Covers

A mortgage extends to:

• All integral parts of the property,
• Natural fruits (unless contractually excluded),
• Improvements or increased value made after mortgage registration,
• Real estate components defined in the mortgage contract,
• But not items owned by third parties.

Legal Form Requirements

To establish a mortgage, parties must sign:

• A public notary deed, or
• A notarized pledge statement (solemnized).

If the creditor wants the right to initiate enforcement without court proceedings, the mortgage must be in the form of a public notary deed.

Mortgages on Buildings Under Construction

When securing a loan for a building under construction (e.g., project finance), the mortgage initially applies to the underlying land. Once the building is completed, the mortgage automatically transfers (ex officio) to the building and its registered units upon Cadaster registration.

✅ Example: If you’re buying an apartment before construction is finished, your bank can register a mortgage on your future unit based on the building permit’s layout and pledge documentation. Initially, the lien applies to the land, but once your apartment is registered, the lien follows and attaches directly to your unit.

This mechanism ensures that mortgages established during construction seamlessly convert to apply to the actual property units after registration.

By understanding how mortgages function in Serbia, both creditors and property owners can ensure their rights are properly protected and enforced.

Restitution and Compensation

📌 Key Takeaways

• Property nationalized after WWII may be returned or compensated.
• Restitution applies to real estate in public ownership.
• Due diligence is crucial when acquiring public assets.

In Serbia, property confiscated after March 9, 1945 by nationalization, agrarian reform, or similar regulations may be subject to restitution or compensation under the Law on Restitution and Compensation. Eligible claimants are usually legal heirs of the original property owners.

Forms of Restitution

Restitution can occur in one of two ways:

• In kind — if the property remains in public ownership,
• Financial compensation — if the property has since entered private ownership, paid via:
  • Government bonds (issued by the Republic of Serbia), and
  • A cash advance.

The maximum total compensation to one former owner cannot exceed EUR 500,000, regardless of how many properties were seized.

Eligible Property for Restitution

Real estate that may be restituted includes:

• Construction land,
• Agricultural land,
• Forests and forest land,
• Residential and commercial buildings,
• Apartments and business premises,
• Other facilities still existing as of the law’s effective date.

Who Bears the Obligation to Return Property?

Debtors of restitution can include:

• The Republic of Serbia,
• Autonomous provinces and municipalities,
• Public enterprises,
• Companies with state-owned capital, and
• Cooperatives, including those undergoing bankruptcy or liquidation.

These entities are responsible for returning the property or executing compensation, depending on their current possession or usage rights.

Restrictions and Legal Consequences

Until the restitution process concludes with a final decision:

• Restitutable properties cannot be sold, mortgaged, or pledged,
• Any alienation or encumbrance of such property during this period is legally null and void.

Due Diligence Recommendation

When acquiring publicly owned property — especially from entities listed as possible debtors — buyers must conduct a thorough legal due diligence check. This process should confirm whether any restitution claims have been filed or are pending.

✅ Tip: Always consult a legal expert before finalizing the purchase of state or municipal real estate to avoid future disputes related to restitution claims.

Real Estate Taxation

📌 Key Takeaways

• Serbia applies property tax, transfer tax, VAT, and capital gains tax on real estate.
• Special exemptions apply for first-time homebuyers and long-term owners.
• Municipalities determine tax rates based on property location and type.

Property Tax (Annual)

Property tax applies to all residents and non-residents, whether natural or legal persons, who own real estate in Serbia.

• If the taxpayer keeps business books and applies fair value accounting, the book value is used as the tax base.
• Otherwise, the market value is used.
• Municipalities publish average prices per square meter annually to help calculate this value.

Tax is paid in quarterly installments. Additionally, a 50% reduction (up to RSD 20,000) applies if the taxpayer has registered residence in the property.

Senior citizens (65+) may also qualify for a 75% tax reduction on non-rented properties up to 60 m², provided the home isn’t under construction.

Value Added Tax (VAT)

VAT is charged when:

• A newly built property is sold by a VAT-registered entity (first transfer only),
• An existing property is sold by a VAT-registered professional dealing in real estate (e.g. renovator or flipper).

VAT rates:

• 10% (reduced rate) – residential buildings and their individual units (apartments, houses)
• 20% (standard rate) – commercial properties and other real estate

Special exemption: First-time homebuyers receive VAT relief for:

• Up to 40 m² for the buyer,
• Plus 15 m² for each household member.

Property Transfer Tax (PTT)

If a property sale is not subject to VAT, the buyer typically pays property transfer tax at a rate of 2.5%.

Key points:

• PTT and VAT are mutually exclusive – only one applies.
• Although the seller is technically the taxpayer, the buyer usually covers it in practice.
• The tax base is the higher of:
  • Contracted sale price, or
  • Market value (determined by tax authorities).

First-time homebuyers may apply for a PTT refund under the same conditions that apply to VAT relief.

Capital Gains Tax

This tax applies when a seller makes a profit from selling real estate.

• The tax base is the difference between:
  • Selling price (must not be lower than market value), and
  • Purchase price (original acquisition cost, construction cost, or inherited/gifted value).

The capital gains tax rate is 15%.

However, sellers don’t pay capital gains tax if:

• They owned the property continuously for at least 10 years,
• They inherited it from a first-degree relative (e.g. parent),
• The transfer occurs between spouses or direct blood relatives.

Partial or full tax exemptions are also granted if:

• The seller uses the proceeds to resolve a housing need (for self or family) within:
  • 90 days – full exemption,
  • 12 months – tax refund possible.
• If only part of the proceeds is reinvested, the tax is proportionally reduced.

✅ Tip: Always consult a tax or legal expert when calculating your expected real estate tax exposure or filing for exemptions.

Legal Framework

To better understand the rules and procedures presented in this Guide, we highlight the core legal sources regulating real estate rights in Serbia. These laws form the foundation for property acquisition, ownership, taxation, and dispute resolution.

📌 Key Laws Governing Real Estate in Serbia (as of 2025):

• Law on Property Relations – governs ownership and related rights.
• Law on Real Estate Transfer – regulates procedures and conditions for property transactions.
• Law on State Survey and Cadaster – covers registration and management of real estate data.
• Law on Registration Procedure in Cadaster – outlines the registration process.
• Law on Public Notaries – prescribes the role of notaries in property transactions.
• Law on Agricultural Land – addresses ownership and use of agricultural plots.
• Law on Forests – defines forest land rights and usage.
• Law on Public Property – regulates property owned by the state and public institutions.
• Law on Obligations – establishes general contract law principles, including sale and lease.
• Law on Planning and Construction – governs construction, permits, and urban planning.
• Law on Mortgage – defines procedures for registering and enforcing mortgages.
• Law on Housing and Building Maintenance – details residential property management.
• Law on Expropriation – regulates state acquisition of private property for public use.
• Law on Property Restitution and Compensation – governs the return of nationalized property.
• Law on Value Added Tax (VAT) – applies to new constructions and professional sellers.
• Law on Corporate Income Tax – outlines taxation of legal entities.
• Law on Personal Income Tax – includes capital gains tax provisions.
• Law on Property Taxes – regulates annual property taxes and transfer duties.

👉 Tip: Laws in Serbia frequently change. Always consult updated versions or a legal professional to ensure compliance.

FAQ – Real Estate in Serbia

Who can buy real estate in Serbia?

Foreign individuals and companies may purchase property under the principle of reciprocity. If Serbian citizens can acquire property in your country, you can do the same in Serbia. Most commonly, foreigners purchase residential real estate.

Can foreigners own agricultural land in Serbia?

In most cases, no. Agricultural land acquisition is limited for foreigners, except under EU agreements. Legal advice is essential before attempting such transactions.

Do I need a written agreement to buy property?

Yes, Serbian law mandates a written contract certified by a public notary. This contract serves as the legal foundation for registration in the Cadaster.

How is property ownership registered in Serbia?

Ownership becomes legally effective only upon registration in the Real Estate Cadaster. The registration typically occurs automatically through the notary or competent authority who certified the contract.

What is the Real Estate Cadaster?

It is Serbia’s official registry of real estate and associated rights. Real Estate Cadaster includes land details, structures, ownership data, and encumbrances. It ensures transparency and legal certainty.

What taxes apply to real estate purchases?

Buyers may be subject to either property transfer tax (2.5%) or VAT (10% for residential, 20% for commercial), depending on the transaction. Annual property taxes also apply.

Is there capital gains tax in Serbia?

Yes. A 15% capital gains tax applies to profits from selling property. Exemptions exist if the seller held the property for over 10 years or reinvests proceeds in housing.

Can foreigners lease or rent out property?

Yes, they can. Lease contracts can be fixed or indefinite. Rules differ slightly depending on the type of property, so written agreements are strongly recommended.

What if I unknowingly buy disputed property?

Buyers are protected by Serbian law against eviction. If a third party enforces a legal claim and you acted in good faith, the contract may be canceled and damages awarded.

Are mortgages available in Serbia?

Definitely. Mortgages are widely used and regulated by the Law on Mortgage. Properly registered mortgages enable lenders to recover debts from the property’s value.

Is restitution still a concern when buying property?

Yes. Restitution claims may affect public property and past nationalizations. Always conduct legal due diligence when acquiring real estate from state or public entities.

Can I check property data online?

Yes. Visit Serbia’s official Cadaster portal at https://katastar.rgz.gov.rs/eKatastarPublic to review basic real estate data. Some details are free; others require registration.

What laws apply to real estate in Serbia?

A combination of civil, property, construction, tax, and restitution laws apply. See Section 10. Legal Framework for a complete list.

📞 For additional questions or legal guidance, contact us via statt.rs or schedule a consultation.