Russians have opened more than two thousand companies in Serbia in recent years; Most of the employees of these enterprises who have moved from the Russian Federation rent housing, but there are also those who decide to purchase their own; Where to start the procedure for buying real estate? How do I prepare for a deal? Who is involved in it? How do I pay the seller? How not to run into trouble? We tell you in order.
Russians’ interest in Serbian real estate is great and, as realtors say, in August – September 2024, there were more requests, especially for apartments in actively built-up inexpensive areas of Belgrade.
Many relocators who have moved to Serbia decide to eventually acquire property here. There are those who consider buying real estate as a way to obtain a residence permit and further citizenship.
Investment deals are also present, as prices per square meter are rising, despite the stagnation in the market, and there is always demand for rental housing in the capital.
Can foreigners buy housing in Serbia without any restrictions?
Citizens of foreign countries have the right to purchase apartments and houses in Serbia if the principle of reciprocity is respected, that is, if Serbs, in turn, are allowed to make transactions in these states.
Thus, Russians, Belarusians, and Ukrainians can freely buy housing. Citizens of other countries need to clarify the information.
As for the restrictions for foreigners, they apply to land. Individuals from abroad are prohibited from acquiring land plots without buildings, but this does not apply to legal entities.
If you are interested in land, then you can either make a purchase for a company, or rent a plot, build a house on it and only then transfer everything to ownership.
The purchase of agricultural land by foreigners is not allowed.
What kind of real estate can I buy to obtain a residence permit in Serbia?
Ownership of any livable real estate is the basis for obtaining a residence permit in Serbia. There is no minimum threshold for the cost of an apartment or house, but there is a caveat – you will need to live at the address at which you were issued a residence permit.
A residence permit card is provided to the owner of the property and his family members for 3 years. Next, you can either extend your residence permit, or apply for permanent residence and then immediately apply for citizenship. An important caveat is that you can apply for a passport only if you have not left Serbia for more than 10 months in total during these 3 years.
Thus, the path to citizenship in Serbia is one of the fastest and easiest in the world.
Note that if the purpose of the purchase is a residence permit, either the secondary market or a new building that has already been commissioned is suitable for you. Otherwise, you will not receive a residence permit immediately, you will have to wait.
Stages of buying an apartment or house in Serbia
Choosing a property
Theoretically, you can search for real estate and arrange a transaction yourself, but in practice it is more convenient and reliable to contact a Russian-speaking agency that will become your assistant.
An apartment or a house? For your own living or for renting? How many rooms are there? Which areas are preferable? Primary or secondary housing? What is the budget? You discuss all these issues with your realtor, and he correlates your needs and opportunities with those offers that are on the market. An experienced broker, knowing the local specifics, can recommend a particular location, a developer, and so on.
Suitable apartment options can be pre-selected electronically, based on photos and descriptions. Then the agent invites you to the real estate screenings. It is important to assess the condition of the object you like, make sure that everything meets your expectations, and make a decision.
Further, during the final negotiations with the seller, the details are agreed upon: the final amount, terms and conditions of the transaction, which of the furniture remains.
Checking the object and drawing up the contract
A common practice in any country when buying a home on the secondary market is to check it for legal purity. In Serbia, this should definitely not be neglected, since problematic objects are found. It is important, for example, to request whether the mortgage has been closed by the owner of the apartment, and whether there is a document confirming this fact, as well as to clarify whether the property is registered in the national cadastre. Otherwise, it is not worth contacting such a “good”.
If the deal is with a developer, then you need to make sure, for example, that the construction permit corresponds to what is actually being built. It happens that according to the documents there should be a garage cooperative, and an apartment building is being built. In the long run, of course, this promises problems.
Such checks are part of the agency’s work.
The realtor is also engaged in drafting the contract together with a full–time lawyer in large agencies and with an involved one in small offices.
Reservation of the object. Conclusion of a preliminary agreement
To secure the property that you have decided to buy, you need to make a deposit. In Belgrade, it usually ranges from 1,000 to 5,000 euros, sometimes more, depending on the cost of the apartment and the date of the proposed transaction with a notary (for how long the object is withdrawn from sale).
The deposit is irrevocable. In case you change your mind about buying, it will remain with the seller. If the seller changes his mind, he will return to you in double the amount. These conditions are prescribed in the preliminary agreement.
Let’s make a reservation that in Serbia, the parties are often ready to enter into a deal quickly, so they skip the reservation stage and immediately conclude the main contract. Of course, this is possible if the buyer has prepared the required amount in advance. However, even if the deal is scheduled in three days, the seller will still have to leave a small advance so that he is confident in you and removes the advertisement from the site.
Opening a bank account and accumulating funds on it
To buy a property in Serbia, it is important that you have a Serbian bank account. Settlements with the seller are possible only from your local account!
Some banks continue to open accounts for Russians without a residence permit, but the process does not always go smoothly. A lot depends on the branch of the bank and specifically on the employee. For example, the central office may refuse, and the branch on the periphery will approve your application literally on the same day. In Belgrade, for example, opening an account can take several weeks, but in a Niche in the same bank everything is done in two days.
To open an account, you will need two documents – a foreign passport and a “white cardboard” – a certificate of registration with the police at the place of temporary residence. Such a paper is issued through the hotel where you are staying or through the owner of the apartment that you rented. The agency that handles your deal can also help.
Transaction: signing of the main agreement, settlements and receipt of keys
The signing of the main contract takes place at the notary office or at the agency’s office, but it is mandatory in the presence of a notary.
Who is required to be at the transaction, in addition to the notary: the seller, the buyer, the lawyer, two witnesses who know both Serbian and Russian (often these are realtors), an interpreter.
The notary reads aloud the text of the contract in Serbian. The translator simultaneously translates into the buyer’s language.
After signing the contract, the buyer goes to the bank and transfers funds to the seller’s account. Then he returns to the notary who is waiting for him and gives him a receipt for payment. The notary sends the documents to the cadastral chamber, and the buyer receives an “intabulanti clause” signed by all parties to the transaction – permission to register the transfer of ownership rights.
The buyer of ready-made housing receives the keys either immediately on the day of the transaction, or after a few days by prior arrangement. The same applies to the signing of the act of acceptance and transfer of the apartment.
Next, the new owner can move into the apartment and transfer contracts with public utilities to his name.
Transfer of ownership
Registration of property rights in the cadastral chamber usually takes 2-3 weeks. In some places, the procedure is already completely electronic, and somewhere else it is not, and the certificate will be issued in paper form.
After registration, the fee for adding new owners to the cadastre is paid. It is small, 50 euros, and it can be paid by trusted persons.
It’s done! You are listed in the cadastre as a new owner, which means that you can apply for a residence permit.
It should be noted that the procedure in the primary market has its own bureaucratic features.
Registration of ownership rights to an apartment in a new building is possible after completion of all work and commissioning of the house. In practice, after the commissioning of the building, it takes some time before the developer receives a special document – “use permitted”, that is, permission to use.
People can already live in apartments, but they are not included in the cadastre. Many are afraid of this prospect, and foreigners try to choose options from fresh “secondary” or in new houses, but for which there is a “permission column”.
Taxes on the purchase of real estate in Serbia
When purchasing a home on the secondary market, the buyer pays a 2.5% transfer of ownership tax.
In the primary market, VAT is paid in the amount of 10%. It is usually already included in the property price.
The owner of a home in Serbia is obliged to pay an annual property tax in the amount of 0.06 to 0.6%, depending on the value of the property and its location. In order to make this payment, the foreign owner must issue an individual tax number, and this must be done no later than 5 days after the purchase by contacting the tax service.
Income tax on rental housing: 20%.
Additional expenses when buying real estate in Serbia
Agency commission: from 1.5 to 3%.
Lawyer, notary and translator services: approximately 1% of the transaction amount.
Thus, in total, 5-6% of the real estate value must be allocated for taxes and additional expenses.
Is it possible to conduct a transaction remotely?
Theoretically, this is possible, but in practice there are very few such cases in Serbia.
At least two weeks should be allocated for a trip to buy a home, subject to prior arrangements.
Thank you for your help in preparing the material:
Yulia Titova, Head of the RENTSALE agency,
Elena Selibovskaya, head of the Serbia direction of the online foreign real estate agency VRC, expert of the MGS agency.
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