After the conclusion of the agreement and the acquisition of the real estate, some other activities should accompany the purchase of the property.
When buying property in Serbia, you will be charged with absolute rights transfer tax. The seller (as a taxpayer) submits the tax return within 30 days from the date of the certification – solemnization of the Agreement with the Notary public. In practice, however, the more common situation is that the Contracting Parties agree for the buyer to pay the tax, and therefore, the agreements state that the buyer will pay the absolute rights transfer tax, although the seller is supposed to pay the tax according to the law.
The tax rate is 2.5% of the market value. If the Agreement stipulates a price that is higher than the market price, the tax will be calculated at the agreed price. Market value is assessed by the competent tax administration.
In addition to the absolute rights transfer tax, which is paid only once during the purchase of each property, you are also required to file a tax return on property tax. Property tax is determined on the basis of the annual Decision and is being paid quarterly. The tax rate is 0.4% for real estate valued up to 10 million dinars, while it goes up for the more valuable real estate.
In order to complete the entire procedure of buying a property in Serbia as a foreigner, it is also necessary to make changes of the account holder with the competent companies (eg., for electricity, water supply, etc.)