Buying property in Serbia as a foreigner: what is allowed and how it works

More and more people from abroad are buying property in Sremska Mitrovica and the Srem region — Serbians living in Austria, Germany and Switzerland, and foreign citizens who have moved to Serbia. The rules are clear, but they differ from what you may know at home.

What foreigners can buy

A foreign individual can buy an apartment or a house in Serbia, together with the land that belongs to the house, provided there is reciprocity — that is, Serbian citizens can buy property in the buyer’s country on the same terms. For purchases, reciprocity is confirmed with the Ministry of Justice of Serbia. Most European countries, the USA and many others meet this condition.

What foreigners cannot buy

• Agricultural land. As a rule, foreign individuals and companies cannot own agricultural land. Citizens of EU member states may acquire it only under strict conditions set by law.
• A separate building plot, if you are a private individual without a registered business in Serbia. A plot that belongs to a house you are buying is not a problem.

If you plan to buy land for a business, the usual route is to set up a company in Serbia, which can then acquire property like any domestic company.

The process step by step

1. Check the property. Before paying any deposit, check the title deed (list nepokretnosti) in the cadastre: who the owner is, the size, and whether there are mortgages or other encumbrances.
2. Deposit and preliminary contract. A deposit (kapara) is paid with a written preliminary contract. Under Serbian law, a buyer who withdraws loses the deposit; a seller who withdraws returns double.
3. Tax number. As a foreigner you will need an identification number from the Tax Administration for the tax return.
4. Contract at the notary. A property purchase contract must be certified (solemnised) by a Serbian public notary. If you do not speak Serbian, a court interpreter must be present. You can also sign through a representative with a power of attorney.
5. Payment and registration. The price is paid through a bank. The notary sends the contract to the cadastre electronically, and your ownership is registered.

Taxes

When buying an existing property from a private seller, the property transfer tax is 2.5% of the price. By law the seller pays it, but the contract often says the buyer will. For new builds bought from a developer, VAT is included in the price instead.

Residence

Owning real estate in Serbia can be one of the grounds for applying for temporary residence. The conditions are set by the Law on Foreigners and checked by the police administration — ask us for the current requirements before you buy, if residence is part of your plan.

How we help

We have worked in Sremska Mitrovica since 1994. We check documents before you pay a deposit, prepare contracts, arrange an interpreter and the notary, and follow the case until your title is registered. You can manage most of the process from abroad. See our properties or message us on WhatsApp or Viber.