Kill Two Flies With One Swat. Getting a Minimum 10% Return On Investment (ROI) While Extending Residence Permit. Does It Get Any Better Than This?

The greatest benefits of buying an apartment in Serbia if you are a foreigner

Would you like to know a surefire way of making a great investment and at the same time getting your residence application approved?

We thought so.

Now, let us explain how.

But, before that, a few kick off facts which you probably would like to know.

Serbia has proven to be one of the fastest-growing countries in Europe when it comes to infrastructure and economic growth. Serbia has become of great interest to people who plan to invest in real estate not only because of its central position in the Balkan region, but also the fact it’s one of the few countries that introduced duty-free trade with the countries of the Eurasian Customs Union.

In addition, there are many benefits of investing in real estate in Serbia that aren’t talked about very often, including favorable conditions for foreign investors, the possibility to obtain a temporary residence permit through real estate investment, and property taxes which are among the lowest in Europe.

“With minimal restrictions when buying real estate in Serbia, foreign investors are provided with maximum security”

There are very few restrictions for foreigners who want to purchase real estate in Serbia. The general rule is that there should be reciprocity between Serbia and your country regarding this matter – whether it’s embodied in a bilateral agreement or applied in practice. If reciprocity exists, we have good news! You have the right to purchase real estate in our country.

However, keep in mind that the rights of legal and natural persons operating in Serbia and the rights of inactive individuals are different. In the first case, you will be able to purchase any form of immovable property but only if it’s necessary for your business activities. In the other case, you will be able to purchase real estate without any restrictions, but you won’t be able to purchase land (except for the land that is a part of real estate).

Nonetheless, once you purchase real estate, Serbia will guarantee you absolute legal security. The ownership position of a foreigner in Serbia is basically as secure as that of a local owner.

“One of the best and easiest ways to obtain a temporary residence permit in Serbia is through real estate investment”

Perhaps the biggest advantage of purchasing real estate in Serbia is the opportunity to obtain a temporary residence permit through this investment. This is possible because owning real estate in Serbia shows a valid reason for your stay in our country.

When you apply for a temporary residence permit on this basis, alongside general documentation, the only thing that you need to submit to the relevant police department is proof of ownership of the real estate. As proof of ownership of the real estate, you can submit an extract from the real estate cadaster or, exceptionally, a certified sales and purchase agreement.

What makes the process even easier is the fact that Serbia, unlike many other countries, does not prescribe a minimum amount that you need to spend on real estate to be eligible for this opportunity. You are free to choose the budget that you are willing to spend, and the prices per square meter are quite affordable.

Keep in mind that the temporary residence permit is limited in time and that you will need to renew it if you’re planning to stay in the country longer. To be able to renew it, you will need to spend at least half of the time for which the permit was previously issued in the country.

“Serbia has attracted a huge amount of foreign investment in the last few years because of its low tax rates for people who purchase real estate”

When buying real estate in Serbia, one must be prepared to incur extra costs in addition to the value of the asset itself. We’re talking about the costs associated with the payment of VAT (if you’re buying new real estate) or property transfer tax (if the real estate has already been sold before) and property tax.

Compared to the tax rates of other European countries, these tax rates are among the lowest. In addition to low tax rates, there is a special tax benefit that reduces the determined property tax by 50% (up to RSD 20,000) for real estate in which the taxpayer lives and has registered residence.

P.S. In order to fully enjoy all the benefits that purchasing real estate in Serbia offers, consider hiring an expert who will follow you along the way to ensure that no mistakes will be made in process of purchasing real estate, paying taxes, and obtaining a temporary residence permit.

For more information on this or any other legal, tax, or business topic, feel free to write to us at [email protected] at any time or call us at phone number +381113281914 every working day from 08:30 to 16:30

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your AK STATT representative, or other competent legal counsel.

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