A Comprehensive Guide to Buying Property in Serbia

With its rising property values, relatively low taxes, and accessible path to residency, Serbia has become an increasingly attractive destination for real estate buyers from abroad. Whether you’re looking to invest, relocate, or secure a foothold in the Balkans, understanding the legal and financial landscape is essential.

This guide walks you through the entire process—from eligibility rules and costs to legal procedures and residency options—so you can buy property in Serbia with clarity and confidence.

Can Foreigners Buy Property in Serbia?

The Reciprocity Rule

Foreign individuals can buy property in Serbia only if their country of citizenship has a reciprocity agreement with Serbia. This means your home country must allow Serbian nationals to purchase real estate there. A list of eligible countries is maintained by Serbia’s Ministry of Justice.

If you’re from a country without reciprocity, you can still acquire property through a Serbian-registered company (most commonly a limited liability company or DOO). This structure also opens the door to broader types of property ownership.

What Kind of Property Can You Buy?

Foreign individuals with reciprocity may purchase:

  • Residential apartments
  • Houses with land
  • Construction land (urban plots)

They cannot directly purchase:

  • Agricultural land
  • “Bare” urban plots (land not attached to a structure)

However, foreign-owned Serbian companies may acquire all of the above, including farmland and development sites, subject to zoning and usage approvals.

Serbia’s Property Market in 2025: A Snapshot

  • Belgrade average price: €2,990 per square meter
  • New Belgrade area: ~€2,658 per m²
  • Annual nationwide price growth: +4.7%
  • Rental yields in Belgrade: ~7–8% gross for mid-range units
  • New completions: Over 32,000 residential units delivered in 2024–25

Serbia’s market continues to trend upward, with notable demand in urban centers like Belgrade, Novi Sad, and Niš. Pre-construction opportunities are growing, particularly in newly developing districts.

How Much Does It Cost to Buy Property in Serbia?

Here’s an overview of the typical up-front costs for a €200,000 resale apartment:

Cost CategoryAmountNotes
Transfer Tax€5,0002.5% (resale only)
Notary & Registration~€450Fixed notary fees + €50 cadastre filing
Legal Fees€2,000–€6,000Depending on complexity and property type
Buyer’s Commission~€4,000Average is 2% of purchase price
Total Closing Costs€12,000–13,000Roughly 6–7% of property price

New-build purchases are exempt from the 2.5% transfer tax but subject to 10% VAT on residential units (20% for commercial).

Step-by-Step Buying Process

The transaction process in Serbia typically takes 30 to 60 days. Here’s how it unfolds:

  1. Property Search & Due Diligence
    • A lawyer checks the cadastre (land registry), ownership, encumbrances, and permits.
  2. Deposit & Pre-Contract (Optional)
    • A 5–10% deposit is often placed to reserve the property. A notarised pre-contract may outline terms.
  3. Sales Contract (SPA)
    • The final agreement must be notarised in Serbian. A court-certified interpreter is required if you don’t speak the language.
  4. Payment & Registration
    • Funds are typically transferred through a Serbian bank account. The notary files the contract electronically, and the cadastre registers the new owner.
  5. Possession Transfer
    • Ownership becomes official once the cadastre issues its decision—usually within 2–15 business days.

Ongoing Costs After Purchase

  • Annual property tax: Up to 0.4% of assessed value
  • Rental income tax: 20% flat rate on net income
  • Capital gains tax: 20% on profits when you sell (for non-residents)
  • Monthly expenses: Around €150–200 for a 70 m² Belgrade apartment, including utilities and maintenance

Financing a Purchase in Serbia

Mortgages are available to foreigners under certain conditions:

  • Proof of stable income (local or international)
  • Temporary residence permit may be required
  • Minimum down payment: 30–40%

As of mid-2025, interest rates range from 4.5–7%, often tied to EURIBOR. A law capping all housing-loan rates at 5% is set to come into effect by year-end, pending implementation.

Residency Through Property Ownership

Buying any property—regardless of value—makes you eligible to apply for a Temporary Residence Permit (TRP).

  • Valid for up to 3 years, renewable
  • Requires you to spend at least 183 days/year in Serbia
  • Permanent residence after 5 continuous years
  • Citizenship potentially after 8 years (language and integration tests apply)

Property ownership alone does not guarantee citizenship, but it can facilitate the path toward it.

Tips for a Smooth Purchase

  1. Check reciprocity before starting your search
  2. Use an independent lawyer to protect your interests
  3. Open a non-resident bank account early—required for transfers
  4. Verify property documentation, including energy and occupancy permits
  5. Account for EUR-to-RSD currency conversion risks
  6. Think long term—consider liquidity and resale potential

Final Thoughts

Serbia’s real estate market offers strong value, a favorable tax regime, and accessible residency options. However, buyers must navigate a legal landscape that requires local expertise, particularly regarding ownership eligibility, cadastre registration, and taxation.

By securing qualified legal guidance and conducting proper due diligence, purchasing property in Serbia can be a rewarding and strategic investment.