A foreigner buying real estate in Serbia pays the same taxes as a Serbian buyer, but is not entitled to the reliefs for first-time buyers. Which tax applies depends on whether the property is new and bought from a developer or bought from its previous owner.
Property transfer tax
When property is bought from an individual, or other property not subject to VAT, the tax on transfer of absolute rights is paid at a rate of 2.5%. The tax base is the agreed price, but within 60 days the tax authority may set it at market value if it considers the agreed price too low. The taxpayer is the seller, and the buyer is secondarily liable for the tax. If the buyer undertook in the contract to pay the tax, which is common in practice, the buyer is jointly liable. The parties do not file a tax return: within 24 hours the notary sends the contract to the cadastre and to the local tax authority, which assesses the tax by a decision.
VAT on new flats
When a new flat or house is bought from a developer registered for VAT, no transfer tax is paid, because VAT is included in the price. For the first transfer of residential buildings the rate is 10%, and for commercial premises 20%.
Reliefs that do not apply to foreigners
- The VAT refund for first-time buyers is available only to adult Serbian citizens with domicile in Serbia.
- The transfer tax exemption for first-time buyers also applies only to Serbian citizens with domicile in Serbia.
Property tax
The owner of real estate, including a foreigner, pays annual property tax to the local tax administration. When the property was acquired by a contract certified by a notary, no separate tax return is filed, because the notary supplies the data. The tax is paid on the basis of a decision, quarterly, within 45 days of the start of each quarter.
Other costs
- the notary's fee, according to the notarial tariff and the value of the property
- the cadastre registration fee
- a court interpreter, if the buyer does not speak Serbian
- the agency commission, if agreed
- legal assistance with the checks and the contract
When a foreigner sells property
A sale may give rise to capital gains tax at a rate of 15% on the difference between the selling and the purchase price. Capital gains are not taxed, among other cases, when the seller has owned the property continuously for at least ten years or acquired it by inheritance in the first order of succession. No tax is due either when the proceeds are invested within 90 days in solving the seller's housing needs in Serbia. For foreigners it matters whether Serbia has a double taxation treaty with their country of tax residence.
Common questions
Note: This text is general information and is not legal advice for a specific case. It reflects the regulations at the time of the page's last update (October 2026). Assessing a particular situation requires reviewing the documents and circumstances of the case.
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