Buying Property in Serbia as a Foreigner - 5-Step Guide
Ovaj tekst je dostupan i na srpskom jeziku.
Foreign nationals can buy an apartment or a house in Serbia, but not on exactly the same terms as Serbian buyers. Whether you can become the owner depends on your nationality (reciprocity), the type of property and whether you run a business in Serbia. The procedure itself - the contract, certification by a notary public, registration in the cadastre and taxes - is the same as for Serbian buyers, with a few practical differences: translation of the contract, a power of attorney from abroad and payment from a foreign account.
This guide explains which foreigners can buy real estate in Serbia, which rules apply to EU citizens, how the purchase works step by step and what it costs. It describes Serbian law as of October 2026 and is general information, not legal advice for a specific case.
In short - 5 steps:
- Check whether you can acquire property as a foreigner
- Check the property and agree on the terms
- Sign the contract before a notary public
- Pay the price and register in the cadastre
- Pay the transfer tax and the annual property tax
Contents:
- EU citizens
- Agricultural land
- Buying through a Serbian company
- What is specific for foreigners
- Costs of buying
- FAQ
Step 1: Check whether you can acquire property as a foreigner
Under the Law on the Fundamentals of Property Relations (in Serbian), a foreign national who does not run a business in Serbia may, subject to reciprocity, acquire ownership of an apartment or a residential building (house) on the same terms as a Serbian citizen. In practice, a house is bought together with the land on which it stands and which serves its regular use. Foreign individuals and companies doing business in Serbia may, also subject to reciprocity, acquire real estate they need for that business.
This means that a foreigner who does not do business here cannot, as a private individual, buy for example a standalone building plot, commercial premises as an investment, or agricultural land.
How reciprocity is determined
Reciprocity exists in two forms:
- treaty reciprocity - Serbia and your country have concluded an international agreement on the acquisition of real estate,
- factual reciprocity - there is no such agreement, but your country in practice allows Serbian citizens to buy real estate on the same terms.
Reciprocity is checked by the authority handling the acquisition - the notary public when certifying the contract and the cadastre when registering ownership. In case of doubt, they request an explanation from the Ministry of Justice, which keeps records of the countries with which reciprocity has been established. The buyer can also request this explanation. Reciprocity has already been established with many countries, including the USA, the United Kingdom, Germany, France, Croatia, Slovenia, Russia, Turkey and China. If your country is not among them, the procedure may take time, so it is best to start it before paying a deposit.
EU citizens
Under the Stabilisation and Association Agreement, Serbia has undertaken to allow EU citizens to acquire real estate on the same terms as its own citizens. The Law on the Fundamentals of Property Relations has not been amended in this respect and formally still requires reciprocity, but it has already been established with many member states (for example Germany, France, Croatia and Slovenia), so buying an apartment or a house is usually straightforward for EU citizens. Special rules apply to agricultural land, including for EU citizens, as described below.
Agricultural land
Under the Law on Agricultural Land (in Serbian), a foreign individual or company cannot own agricultural land. The only exception applies to EU citizens, who may buy privately owned agricultural land if they meet all of the following conditions:
- permanent residence for at least 10 years in the municipality or city where the land is sold,
- farming that land for at least 3 years,
- being the holder of a registered, active family farm for at least 10 years,
- owning agricultural machinery and equipment.
The maximum area is 2 hectares. Excluded is land near military facilities, protected natural assets, land zoned for construction and land within 10 km of the state border. The Republic of Serbia has a pre-emption right, and a contract concluded contrary to these rules is null and void.
Buying through a Serbian company
A company that a foreigner incorporates in Serbia is a domestic legal entity and can acquire apartments, commercial premises and building land like any other Serbian company. This is why setting up a company (in Serbian) is a solution when there is no reciprocity or when the property is needed for business. It is, however, not a formality:
- the owner of the property is the company, not you personally - selling it, inheriting it or transferring it to you requires company decisions and triggers taxes,
- the company must register its beneficial owner in the Central Register of Beneficial Owners, keep accounts through an accountant and file financial statements and tax returns,
- the company self-assesses and pays property tax and is subject to corporate income tax, and private use of a company apartment by the owner may have tax consequences,
- the running costs of the company continue for as long as it owns the property.
We do not recommend setting up a company solely to get around the statutory ban on acquiring agricultural land - such a transaction carries a serious risk of being challenged as void. Before deciding to buy through a company, have a lawyer and an accountant assess the total costs and tax consequences in your specific case.
Step 2: Check the property and agree on the terms
Once you know that you can buy, you find a property that suits you, check it and negotiate the price. In addition to a physical inspection, a legal check is essential:
- whether the seller is registered in the cadastre as the owner and whether they are the sole owner,
- whether there are mortgages, notes of pending disputes or other third-party rights on the property,
- whether the building has an occupancy permit and whether it is in a legalisation procedure,
- whether the consent of the seller's spouse is required.
If a deposit (kapara) is paid before the main contract, keep in mind that a preliminary contract for the sale of real estate must also be certified (solemnised) by a notary public to be valid. The cadastre check, the preliminary contract, deposits and advance payments are explained in detail in our article on the real estate sale contract (in Serbian), and off-plan purchases in the article on buying property under construction (in Serbian).
Step 3: Sign the contract before a notary public
Under the Law on Real Estate Transactions (in Serbian), a real estate sale contract must be concluded as a document certified (solemnised) by a notary public in whose area the property is located. A contract not concluded in this form has no legal effect. When certifying it, the notary verifies the parties' identity, explains their rights and obligations and checks that the conditions for acquisition are met - for a foreign buyer, including reciprocity.
The contract is usually drafted by a lawyer, who includes provisions protecting their client: payment terms, the seller's statements on encumbrances, consequences of delay and the consent to registration in the cadastre. A lawyer represents one party - the buyer or the seller - and protects that party's interests; agreement with the other party is reached through negotiation. If we represent you as the buyer, our real estate lawyer carries out all the checks from Step 2 before you sign.
Notarial documents are drawn up in Serbian. If you do not understand Serbian, the contract must be translated to you in full, and a clause signed by you confirming this is included in the contract - see what is specific for foreigners.
Step 4: Pay the price and register in the cadastre
The buyer pays the price within the agreed deadline by bank transfer to the seller's account, and the seller hands over possession of the property. The buyer becomes the owner only upon registration in the Real Estate Cadastre, and registration requires the seller's unconditional consent to the buyer's registration (clausula intabulandi).
The notary sends the certified contract to the Real Estate Cadastre electronically and ex officio within 24 hours, and the cadastre decides on registration within five working days. The buyer and the seller do not need to file a separate application.
If the price has been paid by the time the contract is certified, the consent to registration is given in the contract itself. If the price is paid later, the seller usually gives it after payment, in a separate statement with a certified signature; until then the cadastre can only enter a provisional registration (predbeležba). Both models, their risks and how to reduce them (for example through a notary escrow deposit) are explained in our article on clausula intabulandi (in Serbian).
Step 5: Pay the transfer tax and the annual property tax
Transfer tax (porez na prenos apsolutnih prava)
Under the Law on Property Taxes (in Serbian), the transfer tax is 2.5% and the tax base is the agreed price, unless it is lower than the market value. If the tax authority considers the price to be below market value, it may assess the tax on the market value.
The taxpayer is the seller. Contracts usually provide that the buyer pays the tax, in which case the buyer is jointly and severally liable with the seller; even without such a clause, the buyer is liable as a guarantor if the seller does not pay.
When the contract is certified by a notary, no tax return is filed: the notary forwards the contract electronically and the tax authority issues a tax assessment, payable within 15 days of delivery. Transfer tax is not payable when the sale is subject to VAT (for example a new-build apartment bought from the developer). The first-home exemption applies only to Serbian citizens, so foreign buyers cannot use it.
Annual property tax (porez na imovinu)
As an owner you also pay annual property tax. The tax base is not the market price but the usable floor area multiplied by the average price per square metre in the zone where the property is located, reduced by depreciation of the building. Zones and average prices are set each year by the city or municipality. If you live in the apartment and have registered permanent residence there, the tax is reduced by 50%, up to RSD 20,000.
The City of Novi Sad, under its Decision on Property Tax Rates (in Serbian), applies the maximum rates allowed by law. For individuals who do not keep business books, the rates apply to the tax base, not to the price you paid (as of October 2026):
- tax base up to RSD 10,000,000 - 0.40%,
- RSD 10,000,000 to 25,000,000 - RSD 40,000 + 0.6% of the amount above RSD 10,000,000,
- RSD 25,000,000 to 50,000,000 - RSD 130,000 + 1.0% of the amount above RSD 25,000,000,
- above RSD 50,000,000 - RSD 380,000 + 2.0% of the amount above RSD 50,000,000.
If the tax base is up to RSD 10 million, which is common for average-sized apartments, the 0.40% rate applies. Other municipalities may have lower rates. When the contract has been certified by a notary, you do not file a property tax return, but you give the notary a statement with the data needed for the assessment (floor area, year of construction, reliefs). The tax is assessed by the City Tax Administration and paid quarterly, within 45 days of the start of each quarter.
What is specific for foreigners
Language and translation of the contract
Notaries draw up documents in Serbian. If you do not understand Serbian, the contract is translated to you in full at the signing, usually by a sworn court interpreter, and a clause signed by you confirming the full translation is included in the contract. The interpreter has to be arranged in advance, so mention it when booking the appointment with the notary.
Power of attorney from abroad
You do not have to come to Serbia in person - an attorney-in-fact can sign the contract on your behalf. The power of attorney for buying real estate should be specific (for that property and that transaction) and bear a certified signature. If it is certified by a foreign authority, it needs an apostille, or legalisation for countries that are not parties to the Hague Convention. It can also be certified at a Serbian embassy or consulate. If it is not in Serbian, a translation by a sworn court interpreter is attached.
Identification in the cadastre
Instead of a Serbian personal identification number (JMBG), the cadastre records the number of a foreigner's valid travel document. Make sure the passport details in the contract are exact and bring the same passport to the notary.
Paying from abroad and source of funds
Payments by non-residents for the acquisition of real estate are free, and the price for real estate may also be paid in foreign currency. We recommend paying by bank transfer: the seller may not accept cash of EUR 10,000 or more, and under the Law on the Prevention of Money Laundering and Terrorist Financing (in Serbian) banks, notaries and lawyers may ask for information and evidence of the source of funds. Prepare a bank statement or other proof of where the money comes from in advance.
Property ownership and residence in Serbia
Under the Law on Foreigners (in Serbian), owning an apartment or a residential building in Serbia in which you live is a ground for applying for a temporary residence permit. The permit is not granted automatically by buying: you must also meet the general conditions (valid passport, sufficient funds, health insurance, registered address) and submit an application. Under the Law on the Employment of Foreigners, a foreigner with temporary residence on this ground may work in Serbia without a single residence and work permit. The procedure is described in our article on residence of foreigners in Serbia (in Serbian).
Costs of buying
Foreigners pay the same costs as Serbian buyers. In addition to the price of the property, budget for:
- the notary's fee for certifying the contract, which depends on the price - for example RSD 36,288 including VAT for a property worth RSD 10-14 million, plus expenses,
- the cadastre fee for registering ownership on the basis of the contract - RSD 7,010,
- the 2.5% transfer tax, if you take it over from the seller under the contract,
- court interpreter and document translation costs,
- power of attorney certification and apostille abroad, if you buy through an attorney-in-fact,
- legal fees for checking the property, drafting the contract and representation.
The full table of notary fees and cadastre fees (valid in October 2026) is in the section costs of a real estate sale (in Serbian).
FAQ
Can a foreigner buy an apartment in Serbia?
Yes. A foreign national who does not run a business in Serbia can buy an apartment or a house (residential building), subject to reciprocity - meaning that Serbian citizens can also buy real estate in the buyer's country. Reciprocity has already been established with many countries, including the USA, the United Kingdom, Germany, France, Russia and China.
Can a foreigner buy land in Serbia?
A foreigner who does not run a business in Serbia cannot buy a standalone building plot as an individual, only a house together with the land on which it stands. Foreign persons cannot acquire agricultural land, except EU citizens who meet strict statutory conditions (at least 10 years of residence in the municipality, active farming, a maximum of 2 hectares). A building plot or commercial premises can be acquired through a company incorporated in Serbia, with the costs and obligations of running a company.
Do EU citizens have to prove reciprocity?
The Stabilisation and Association Agreement obliges Serbia to allow EU citizens to acquire real estate on the same terms as its own citizens. Serbian law formally still requires reciprocity, but it has already been established with many EU member states, so buying an apartment is usually straightforward for EU citizens. The notary or the cadastre still checks that the conditions for acquisition are met.
How much does it cost a foreigner to buy property in Serbia?
Foreigners pay the same costs as Serbian buyers: the notary's fee for the contract (it depends on the price - for example RSD 36,288 including VAT for a property worth RSD 10-14 million), the cadastre registration fee of RSD 7,010, the 2.5% transfer tax if the buyer takes it over from the seller under the contract, plus translation, power of attorney certification and legal fees.
Are foreigners entitled to the first-home tax exemption or VAT refund?
No. Both the transfer tax exemption and the VAT refund for buying a first home are available only to adult Serbian citizens with permanent residence (prebivalište) in Serbia.
Does buying property in Serbia give me the right to live there?
Owning an apartment or house in which you live is a legal ground for applying for a temporary residence permit, but residence is not granted automatically. You must also meet the general conditions (valid passport, sufficient funds, health insurance, registered address). A foreigner with temporary residence on this ground may work in Serbia without a single residence and work permit.
Do I have to come to Serbia in person to buy property?
No. An attorney-in-fact can sign the contract on your behalf under a power of attorney certified abroad and bearing an apostille (or certified at a Serbian consulate), with a translation by a sworn court interpreter if the power of attorney is not in Serbian.
Conclusion
The key for a foreign buyer is to check, before paying anything, whether they can acquire the specific property at all - whether there is reciprocity with their country and whether it is an apartment or house rather than land that foreigners cannot buy. After that, the procedure is the same as for Serbian buyers, with a translated contract, possibly a power of attorney from abroad and payment by bank transfer.
If you are buying property in Novi Sad or elsewhere in Serbia and would like us to check reciprocity, the property and the contract, contact our real estate lawyer. Consultations are available in English.