Foreign Ownership Regulations in Serbia: What You Really Need to Know

Published on January 14, 2026 and written by Cyril Jarnias

Purchasing real estate abroad is always a mix of enthusiasm and legal headaches. In Serbia, this headache has a name: reciprocity. Around this central principle are grafted a series of restrictions depending on the type of property, the buyer’s profile, their nationality, and even land use. Add to that a constitutive cadastre, some peculiarities regarding agricultural land and military zones, a dense tax system, and you get an attractive framework that must be approached methodically.

The rule of the game: reciprocity above all

At the heart of the Serbian system is a simple idea: a foreigner can buy property in Serbia only if a Serbian citizen can, in principle, buy a similar property in that foreigner’s country of origin. This is the famous principle of reciprocity, which applies to both individuals and companies.

For countries not on the list, a national can file an individual request with the Ministry of Justice to confirm, or not, the existence of de facto reciprocity. This procedure costs 1,990 dinars and generally takes about fifteen days. In matters of inheritance, authorities often assume that de facto reciprocity exists, making inheritance simpler than purchase.

Countries with confirmed reciprocity: a large Western bloc

Serbia has confirmed reciprocity with most Western countries, making property access relatively smooth for their nationals. The United States, the United Kingdom, Canada, Australia, most European Union member states, as well as Japan, Switzerland, Norway, and the United Arab Emirates are among the nationalities that can buy in Serbia without major obstacles on this front.

Transfer type	Examples of countries with confirmed reciprocity
Inter vivos (purchase, gift)	France, Germany, Italy, Spain, United States, United Kingdom, Canada, Australia…
Mortis causa (inheritance)	Austria, Canada, Croatia, Hungary, Israel, Japan, Netherlands, Romania, USA…

For nationals of certain Asian, African, or Middle Eastern countries, the situation is more uncertain: without a bilateral agreement or proven practice giving Serbs leeway, direct purchase can be impossible. Hence the importance of checking this point before any promise of sale.

Who can buy what? The decisive role of property type

Even when reciprocity is established, Serbia does not open its doors wide to all property categories. Distinctions are clear between apartments, buildings, buildable land, or agricultural land, and between individuals and companies.

Apartments, houses, commercial spaces: fairly broad access

For a foreigner, the simplest route remains purchasing an apartment or residential building. In most cases, provided reciprocity is respected, there are no particular restrictions.

The rules, simplified, look like this:

Buyer profile	Generally accessible properties
Foreign individual (no activity in Serbia)	Apartments, residential buildings, commercial premises
Foreign individual conducting an activity in Serbia	Apartments, buildings, land necessary for the activity
Foreign company registered in Serbia (DOO/LLC)	All types of property, including land, if related to the company’s business purpose

For individual houses, the purchase must encompass not only the building but also the plot on which it sits. For offices, shops, warehouses, or mixed-use buildings, foreigners have considerable freedom, as long as the nature of the property does not fall into a protected category (military zones, forests, etc.).

Agricultural land, vacant land, forests: the red zone

Where the Serbian system hardens is on agricultural land and “vacant” land — meaning plots without buildings. The general rule is clear: a foreign individual cannot directly buy agricultural land, vacant land, or forest.

A table summarizes this dividing line well.

Table

Property type	Direct purchase by a foreign individual	Purchase by a Serbian company owned by a foreigner
Apartment / residential building	Yes, subject to reciprocity	Yes
Commercial premises (offices, shops…)	Yes, subject to reciprocity	Yes
Vacant land (no construction)	No (except plot linked to a building)	Yes, if necessary for the activity
Agricultural land	No (except very special case for EU)	Yes, via Serbian company (DOO/LLC)
Forest	No	Heavily restricted, practically excluded

For foreign individuals not conducting an activity in Serbia, the only exception is to acquire, with the house or building, the plot directly attached to it (courtyard, adjoining garden).

Special case: European Union citizens and agricultural land

Under pressure from the Stabilization and Association Agreement with the EU, Serbia slightly opened the door to its agricultural land for European citizens, starting in September 2017. But the conditions are such that, in practice, very few candidates can meet them.

For a citizen of an EU member state to be able to directly buy private agricultural land, they must meet several criteria, including notably:

Even when these conditions are met, the Serbian state has a right of pre-emption and can buy the land with priority. Furthermore, this opening only concerns individuals, not companies.

Prohibited zones: military, borders, protected areas

Beyond the nature of the land, location can also make a property inaccessible to foreigners. The main prohibited or highly restricted zones are:

– military zones and their surroundings ;

– a 10-kilometer strip along certain borders for agricultural land ;

– national parks and other environmental protection zones ;

– certain strategic perimeters defined by law.

Even a Serbian company owned by foreigners can encounter authorization refusals or enhanced checks in these sensitive sectors, particularly with the involvement of the Ministry of Defense.

Bypassing restrictions: the Serbian company, a central tool

Facing the prohibition on directly buying agricultural land or vacant land, practice has found a perfectly legal solution: establishing a Serbian law company. A DOO (equivalent to an LLC), even 100% owned by foreigners, is considered a domestic entity and can therefore acquire properties that foreign individuals cannot buy directly.

This strategy serves to: define clear objectives, maximize resources, and minimize risks.

Some investors go further and buy an existing Serbian company that already holds the desired land. This solution can sometimes avoid the 2.5% property transfer tax, as it involves a transfer of shares rather than direct ownership of the asset. However, it requires thorough due diligence on the company itself: hidden debts, disputes, tax compliance.

The purchase process: between notary, cadastre, and banks

On the ground, a real estate purchase in Serbia follows a fairly standard pattern, whether one is Serbian or foreign, albeit with additional administrative requirements for the latter.

Key steps of a transaction

From a practical standpoint, a “classic” purchase proceeds in several stages:

Under normal circumstances, this process takes between 30 and 60 days from the offer to final registration in the cadastre. Official cadastral deadlines are a few days, but delays are frequent, especially in large cities.

The role of the notary and the cadastre

Since the notary reform, the notary occupies a central place: they authenticate the sales contract, verify the parties’ identities, quickly check the cadastral status before signing, and then transmit the deed to the cadastre.

The sales contract must contain a precise description of the property and the famous “clausula intabulandi“: the seller’s explicit consent to the registration of the property transfer in favor of the buyer.

Remote purchase: the power of attorney as a basic tool

A foreigner can buy in Serbia without ever setting foot in the country. This is done through a power of attorney granted to a representative (lawyer, relative, service company). This power must be:

– drafted precisely (power to sign the preliminary contract, the final contract, to file requests with the cadastre, etc.);

– legalized (apostille or Serbian consulate/embassy) in the country of origin;

– translated into Serbian by a sworn translator.

Once received in Serbia, this power of attorney allows the representative to manage the entire transaction, from opening a bank account to the final signature.

Due diligence: why you need to dig into the property’s history

In Serbia, legal verification of a property is not a mere formality. The country’s real estate history, marked by nationalization, privatization, and numerous illegal constructions, demands particular caution.

Among the points to systematically check:

Ignoring these checks means exposing oneself to serious scenarios: annulment action, inability to register in the cadastre, eviction by a former entitled party, or even blockage of the property due to a restitution claim.

Purchase taxation: between transfer tax and VAT

The other unavoidable dimension of a property purchase in Serbia concerns the taxes and fees added to the sale price.

Total cost of an acquisition

In practice, a foreign buyer should budget an additional 7.6% to 10% of the property price in costs. These fees are distributed as follows:

Cost item	Order of magnitude
Transfer tax (existing properties)	2.5% of the property value
VAT (new properties)	10% residential / 20% commercial (instead of the 2.5% tax)
Legal fees	1% to 3% of the price
Notary fees	0.1% to 0.5% of the price
Agency commission	Approx. 2% (often split seller/buyer)
Cadastre fees	Approx. €30 to €50 (up to a few hundred in some cases)
Sworn translations	€20 to €50 per page

In addition to these acquisition costs are:

Transfer tax vs. VAT

The basic rule is simple: do not rush into a decision without examining all available options.

– For an existing property (resale between individuals or a non-VAT registered company), a transfer tax of 2.5% applies to the market value or the contract price, whichever is higher;

– For a new property sold by a VAT-registered developer, VAT applies instead of this transfer tax, at a rate of 10% for residential and 20% for commercial.

In theory, it is the seller who is liable for the transfer tax, but contracts very often stipulate that this charge is borne by the buyer. Regarding VAT, it is usually included in the advertised price for new developments.

Financing: mortgage loans, a selective path for foreigners

While buying cash is relatively simple, obtaining a mortgage loan as a non-resident remains a more delicate operation. Most banks require:

– resident status or at least a temporary residence permit ;

– regular income in Serbia or in a country deemed “reliable” ;

– a significant down payment, generally at least 30%, sometimes up to 50% of the price.

In this context, many foreign buyers turn to:

– financing in their country of origin, using other assets as collateral ;

– installment payment plans offered by developers for new constructions;

– or simply full financing with equity.

Also note: the National Bank of Serbia strictly regulates cash payments. For amounts over €9,999, payments must go through a bank, implying traceability of the funds’ origin.

Ownership and right of residence: no automatic passport

Unlike some destinations that have relied on “golden visas,” Serbia does not offer direct citizenship in exchange for real estate investment. However, owning property is a recognized reason for obtaining a temporary residence permit.

The main lines are as follows:

However, obtaining the residence permit requires providing: the required documents.

– proof of ownership (up-to-date cadastre excerpt);

– valid health insurance (approx. €75 per year according to some scales);

– proof of sufficient means of subsistence ;

– a criminal record certificate from the country of origin.

In parallel, tax legislation has its own criterion: a tax resident is someone who has their center of vital interests in Serbia or stays there for more than 183 days in a twelve-month period. This status leads to taxation on worldwide income.

Market context: where do foreigners buy in Serbia?

While the legal framework is complex, the appeal of the Serbian market is not just theoretical. Demand is strong, especially in large cities, and prices remain significantly lower than in most Western European capitals.

Some price benchmarks per square meter show the scale:

City / area	Indicative price range per m² (apartments)
Belgrade center (Vračar, Dorćol…)	€2,000 to €2,500 (over €5,000 for high-end luxury)
New Belgrade (new builds)	Approx. €2,658
Novi Sad (sought-after areas)	From €2,000
Niš (older apartments)	Approx. €1,100 to €1,300

Belgrade concentrates the majority of foreign investment, especially around central districts, major projects like Belgrade Waterfront or the future planned metro stations. Novi Sad attracts a more “tech and student” profile, while Niš, Kragujevac, or towns like Sombor offer lower entry points.

Main risks: where foreigners often go wrong

Despite the market’s appeal, several pitfalls await unprepared investors.

Among frequent mistakes:

To these are added systemic risks: litigation stemming from past nationalizations, visible cases of past corruption in land administration, and more recently, technical difficulties (such as cyberattacks temporarily affecting registration systems).

Between constitutional protection and practical constraints

On paper, the Serbian Constitution guarantees the right to property and peaceful enjoyment of possessions, in the spirit of the European Convention on Human Rights. Possible infringements (expropriation, usage restrictions) must be provided by law, serve a public interest, and give rise to compensation at least equivalent to market value.

In practice, foreign investors also benefit from:

Nevertheless, the system remains administrative, technical, and demanding for those who master neither the language nor its subtleties.

Conclusion: an open market, but one to handle with method

Regulations on foreign ownership in Serbia paint a contrasting landscape. On one side, a fairly welcoming framework for apartments, houses, and commercial premises, with no residency requirement or investment threshold, a moderately growing market, and still attractive prices. On the other, a very tight lock on agricultural land, vacant land, and sensitive areas, coupled with a strong dependence on the reciprocity principle and the efficiency of the cadastre.

For a foreign buyer, Serbia can be a relevant destination, provided that they:

Far from being a “legal Wild West,” the Serbian framework is on the contrary highly codified. When well mastered, it allows foreigners to secure their investment and, for some, to gradually establish a lasting presence in Serbia. When approached poorly, however, it can turn a promising real estate project into a long administrative and legal saga.