Real Estate Transfer Tax in Serbia — How Much Is Paid and Who Bears It

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Real Estate Transfer Tax in Serbia — Everything You Need to Know

When buying or selling property in Serbia, one important aspect that is often overlooked is the real estate transfer tax. Many buyers and sellers are unaware of the obligations arising from the law, which can lead to unpleasant surprises and additional costs. In this article, we explain how much the tax is, who pays it, and in what situations you may be exempt from payment.

What is Real Estate Transfer Tax?

Real estate transfer tax is a tax obligation that arises during the transfer of ownership rights to land, buildings, and other structures. According to the Property Tax Law, this tax is paid during purchase, exchange, gift, or any other form of property transfer.

The real estate transfer tax rate in Serbia is 2.5% of the tax base.

Who Pays the Tax?

According to current legislation, the taxpayer is the transferor of rights — that is, the property seller. However, in practice, this cost is often passed on to the buyer through the contract, so it is important that parties clearly define who bears this cost during the negotiation phase.

Tip: Always specify in the purchase agreement who pays the real estate transfer tax to avoid misunderstandings later.

How is the Tax Base Determined?

The tax base for real estate transfer tax is the agreed purchase price. If tax authorities assess that the agreed price is significantly lower than the market value, they may determine the tax base based on their own assessment.

Example: If you are buying an apartment for 50,000 EUR, the tax is:
50,000 EUR × 2.5% = 1,250 EUR

Who is Exempt from Paying the Tax?

The law provides numerous cases of exemption from paying real estate transfer tax. The most common are:

1. First Sale of New Construction Apartments

If you are buying an apartment from an investor (first sale in new construction), the real estate transfer tax is not paid. The investor pays VAT (20%), but the buyer has no obligation to pay the transfer tax.

2. Sale of Sole Residential Property

An individual is exempt from paying tax if selling an apartment that is their sole residential property in Serbia and if they have had permanent residence in that apartment for at least 10 years.

3. Sale of Land Related to Construction

The exemption also applies to the sale of construction land if an apartment in a building being constructed on that land is sold simultaneously.

4. Rights from Inheritance

When making inheritance decisions, acquiring ownership rights to real estate based on inheritance is exempt from paying this tax.

5. Division of Property Between Spouses

Division of property acquired during marriage between spouses is also exempt from real estate transfer tax.

When and How is the Tax Paid?

The tax is paid before or at the latest during the registration of ownership rights in the cadaster or land registry. The procedure is as follows:

  1. Submitting the tax return to the competent tax authority
  2. Tax assessment by the tax authority (issuance of decision)
  3. Payment of tax within 15 days of receiving the decision

Significant Changes in 2024 and 2025

In recent years, certain changes have been introduced that affected the scope of exemptions:

  • Increased residency requirement: Previously, 3 years of residence was sufficient for exemption, but now 10 years are required to qualify for exemption when selling the sole residential property.

  • Stricter price control: Tax authorities have intensified control over agreed prices to prevent concealment of the actual value of real estate.

Common Mistakes and How to Avoid Them

1. Imprecise Contract

A common mistake is that the contract does not clearly define who pays the tax. This can lead to disputes between buyer and seller.

2. Lack of Knowledge About Exemptions

Many sellers are unaware that they may be exempt from tax if they meet the conditions, so they pay unnecessarily or abandon the sale out of fear.

3. Late Filing

The legal deadline for filing the tax return is 30 days from the date of contract conclusion. Delay can result in monetary penalties.

Conclusion

Real estate transfer tax is an inevitable part of most property transactions in Serbia, but with good information you can save significantly. It is crucial to:

  • Precisely regulate who pays the tax in the contract
  • Check if you qualify for an exemption
  • Timely file the return and pay the tax

If you have any doubts, we recommend consulting a tax advisor or lawyer before concluding the contract. The ENERGY-REA team is at your disposal for all questions related to buying and selling real estate in Kragujevac and Serbia.

The information in this article is current as of May 2026. Legislation may change, so we recommend consulting the competent authorities for the latest information.