Costs and taxes when buying property in Serbia
Beyond the purchase price, a property transaction in Serbia carries four groups of costs: transfer tax or VAT, the notary's fee, cadastre registration, and — for sellers — potential capital gains tax. Rates below are current at the time of writing and must be confirmed against the applicable legislation before you transact. If you are not a Serbian tax resident, read the double-taxation section as well; the Serbian bill is only half the picture.
What are the total costs of buying property in Serbia?
A buyer should budget for transfer tax (on resale property) or VAT included in the price (on new builds), notary certification fees, cadastre registration duty, and any agency commission if an agency was engaged.
| Item | Usually paid by | Rate | Note |
|---|---|---|---|
| Absolute rights transfer tax | Seller by statute, buyer by contract in practice | 2.5% | Resale property only |
| VAT | Included in the price paid by the buyer | 10% on residential | First transfer of a new build |
| Notary fee | By agreement, often split | 60% of Tariff no. 1; 1 point = RSD 180 + VAT | Rises with value, capped at RSD 864,000 incl. VAT |
| Cadastre registration | Buyer | Per the RGZ tariff | |
| Agency commission | The party that engaged the agency | ~2–3% (KADENA 2.5%) | See commission guide |
| Capital gains tax | Seller | 15% on the gain | Exemptions apply |
What is the property transfer tax in Serbia?
The absolute rights transfer tax is 2.5% and applies to transfers that are not subject to VAT — in practice, every resale transaction.
The point international buyers most often miss: the statutory taxpayer is the seller, but Serbian contracts very commonly shift it to the buyer. Do not assume your home market's convention applies. Read the clause, and make sure the contract says explicitly who bears it.
The tax base is the contract price, unless the Tax Administration assesses it as below market value and substitutes its own valuation.
When does VAT apply instead?
VAT applies to the first transfer of a newly built property where the seller is a VAT payer — in practice, buying directly from a developer. The residential rate is 10%, included in the price. Where VAT applies, transfer tax does not; the two are not cumulative.
Serbia operates a VAT refund scheme for first-home buyers, but it will not generally help an international buyer. The law caps it at 40 m² for the buyer plus 15 m² per household member, and requires the claimant to be an adult Serbian citizen resident in Serbia who has not owned a home since 1 July 2006. The full contract price including VAT must also be paid into the seller's bank account; pay any part of it in cash and the refund is lost.
Do not price a purchase on the assumption that the VAT will be recovered.
Will I be taxed again in my home country?
Possibly. Serbia taxes the gain arising in Serbia; your country of tax residence may tax the same gain, with relief depending on whether a double taxation treaty applies and what it says.
Serbia has concluded double taxation treaties with a large number of countries, but the treatment of immovable property gains varies between them. Get the position confirmed for your specific country of residence before completion — after the fact, the options narrow considerably.
How do funds enter and leave Serbia?
Purchase funds are transferred through a Serbian commercial bank, which will require the sale contract as the documentary basis, and the same applies in reverse when a foreign owner sells and repatriates proceeds.
Open the account early. Non-resident account opening involves more documentation than most buyers expect, and it is the single most common cause of a completion date slipping. The account is also where the notary's escrow arrangement, if used, will settle.
What are the ongoing costs of ownership?
Owners pay an annual property tax, the amount depending on the municipality, zone and assessed value of the property. Utilities and, in newer buildings, a building management and maintenance charge apply on top.
If you let the property, rental income is taxable in Serbia.
Eligibility, residency and remote purchase are covered in our guide to buying property in Serbia as a foreigner.