Published on and written by Cyril Jarnias
Getting interested in real estate in Serbia means entering a market that is still affordable on a European scale, but governed by very specific rules for non-residents. Between the principle of reciprocity, restrictions on certain types of land, taxation, and residency possibilities, the path can seem complex. In reality, the process is relatively structured, provided you understand each step and surround yourself with reliable professionals.
Property acquisition in Serbia by a foreigner follows a specific path: checking eligibility, obtaining a permit, securing financing, considering associated costs, choosing an area (some are more sought-after), the possibility of obtaining a residence permit, and finally registering the property with the cadastre. The article details each step of this process.
Understanding the Principle of Reciprocity, the Key to Entering the Market
Before even looking at listings, a foreigner must check whether they legally have the right to purchase property in Serbia. Everything hinges on the principle of reciprocity: a foreign citizen can acquire real estate in Serbia only if a Serbian citizen enjoys the same right in that foreigner’s country.
The principle of reciprocity allowing Serbians to buy property abroad can be established in two ways: through a formal bilateral agreement between states, or de facto if the foreign country’s legislation already permits it. This reciprocity must be confirmed by the Serbian Ministry of Justice or Foreign Affairs, as well as by the cadastre.
In practice, most nationals from Western countries do not encounter any particular obstacle. Citizens of the United States, the United Kingdom, Canada, Australia, European Union countries, or states like Switzerland, Norway, or Turkey benefit from recognized reciprocity. A long list of countries has been officially confirmed, including for example Argentina, Austria, Belgium, France, Germany, Greece, Italy, the Netherlands, Portugal, Spain, the United Arab Emirates, Russia, or Ukraine.
Nationals from Asian, African, or Middle Eastern countries without reciprocity cannot buy real estate in their own name in Serbia. A common solution is to establish a limited liability company (DOO) locally. This local entity is then authorized to acquire property, including certain types of land otherwise restricted from purchase.
The reflex to adopt before any steps is therefore to officially verify your country’s status with the Serbian authorities or through a local lawyer. Not doing so is one of the most costly mistakes, as the transaction could be blocked at the final stage.
What Types of Property Can a Foreigner Buy in Serbia?
A foreign buyer does not have exactly the same rights as a Serbian citizen across all market segments. Serbian law clearly distinguishes between accessible property and restricted property.
A foreigner can easily acquire apartments, single-family homes for residential use, and commercial property like shops, offices, or warehouses. This is indeed the most common case, especially in large cities like Belgrade, Novi Sad, or Niš, where non-resident demand focuses on urban housing or small units intended for rental.
On the other hand, several categories remain prohibited for direct purchase by a foreign individual. The acquisition of agricultural land is in principle prohibited, as is that of vacant land without buildings, forests, or land near military areas and other locations deemed strategic. These restrictions are for reasons of national security and protection of agricultural land.
A foreigner can buy a single-family home and acquire the adjacent land necessary for its use (the functional plot). However, they are not allowed to buy a large vacant plot alone, such as a field or a forest.
To legally bypass these limits, many investors create a Serbian company which, as a local entity, is not subject to the same prohibitions. A DOO can, under certain conditions, buy agricultural land, vacant plots, or parcels intended for tourism or industrial projects. This option, however, involves company formation, accounting, and taxation costs, which must be factored into the profitability calculation.
Buying Without Residency: Possible, But Not Without Consequences
One of Serbia’s assets for international investors is the absence of a residency or visa requirement to become a property owner. A foreigner can buy remotely, as a mere tourist or even without ever visiting the country, provided they appoint a representative by power of attorney.
At the same time, it is essential to understand that property ownership does not automatically grant residency status. However, it opens an interesting door: it allows applying for a temporary residence permit based on owning real estate, with no minimum investment amount required.
Number of years of permanent residency required, after 3 years of temporary residency, to be able to apply for citizenship.
For most nationals from visa-exempt countries, it is possible to stay for 90 days within a 180-day period without a residence permit. Beyond that, holding a residence permit becomes necessary. Real estate ownership then becomes a practical lever for legally extending one’s stay in Serbia, even though this permit does not equal a work authorization: a separate work permit is still mandatory for salaried or self-employed activity.
The Concrete Steps of the Purchase Process
The real estate purchase process in Serbia follows a fairly clear pattern, generally completed within 30 to 60 days between the offer and final registration at the cadastre. For a foreigner, scrupulously following each step is crucial.
Everything starts with property search. Most buyers use major local real estate portals like 4zida.rs, nekretnine.rs, sasomange.rs, or cityexpert.rs, which aggregate listings from individuals, agencies, and developers. These sites allow filtering by neighborhood, price per square meter, property type, old or new, and give a quick overview of the market.
Very quickly, it becomes wise to work with a local real estate agency, especially for a foreigner who does not speak the language. The agent’s role is to propose suitable properties, organize viewings, negotiate the price, but also serve as a cultural interface. The standard commission is around 2% of the price for the buyer, often doubled on the seller’s side.
It is highly recommended to hire a Serbian lawyer specialized in real estate, independent of the agency and the seller, to conduct legal due diligence. This critical verification examines the chain of ownership, cadastral registration, the absence of mortgages, tax debts, or disputes, as well as permit compliance. It is essential given the many unauthorized constructions and complex situations inherited from the socialist era in Serbia.
Once the property is deemed “clean” from a legal standpoint, the parties can sign a preliminary contract, called a predugovor. This document sets the price, timeline, and conditions precedent and provides for a deposit, in practice between 10% and 20% of the price. In case of unjustified withdrawal by the buyer, this deposit may be forfeited to the seller; if the seller backs out, they may be required to return double the amount, according to the stipulated clauses.
The sale contract must be signed before a Serbian public notary, who authenticates the deed and verifies the documents. These include passports, proof of ownership, the clause consenting to registration (clausula intabulandi), and the buyer’s Serbian tax number. If the buyer does not speak Serbian, the presence of a sworn interpreter-translator is mandatory, and a bilingual version of the contract is highly recommended.
The price payment is then made via the Serbian banking system. Authorities strictly link real estate transactions to formal bank transfers, particularly for anti-money laundering reasons. The foreign buyer must therefore open an account in a Serbian bank, which sometimes requires obtaining a local tax identification number. Once payment is made and taxes paid, the notary submits the complete file to the cadastre.
The registration of the new property in the buyer’s name is the final step, and it is this step that grants full legal security. As long as the change does not appear in the registers, ownership is not considered definitively transferred. Depending on the office, registration generally takes between 5 and 15 business days.
Buying Remotely: The Role of the Power of Attorney
For a foreigner, it is often difficult to travel to Serbia for every signature and formality. Fortunately, the Serbian system allows managing everything remotely, thanks to a Power of Attorney given to a trusted representative, usually a lawyer.
For a real estate purchase in Serbia by an absent foreigner, a notarized power of attorney is required. It must be executed before a notary in the buyer’s country, then apostilled or legalized according to international conventions. Then, it must be officially translated into Serbian by a sworn translator. This document must precisely describe the powers conferred, such as property search, signing contracts, representation before the Serbian notary, filing deeds with the cadastre, and opening a local bank account.
Once this document is validated in Serbia, the lawyer can handle the entire transaction. The buyer then only has to make the international transfers from their country. This mode of operation is common, especially for investors acquiring multiple properties or who do not wish to travel frequently.
Essential Documents for a Foreign Buyer
Even if professionals handle most of the procedures, the buyer must provide a number of documents. A valid passport is obviously the basis. Depending on the case, a document attesting to marital status may be required, especially for questions of co-ownership between spouses.
Serbian authorities require, under anti-money laundering legislation, proof of the lawful origin of funds for opening a bank account. These supporting documents can include bank statements from the last 6 to 12 months, employment contracts, income certificates, or asset sale confirmations. The bank may also request employer certificates or proof of professional income.
All foreign documents must be translated into Serbian by a sworn translator and, very often, bear an apostille or consular legalization. Without this formalization step, the notary or the cadastre may refuse to register the transaction.
For a residence application based on property ownership, other documents are added: copy of the sale contract, cadastre extract proving property registration, health insurance policy valid in Serbia, proof of sufficient means (often a minimum balance on a Serbian account), and a clean criminal record from the country of origin.
What Does a Purchase Really Cost: Taxes and Fees to Expect
Beyond the sale price, a real estate purchase in Serbia entails a series of fees and taxes that should not be underestimated. Overall, studies show that the total transaction cost for the buyer represents between 7.6% and 10% of the property price, adding up taxes, fees, and administrative costs.
The key tax is the property transfer tax for existing properties. It amounts to 2.5% of the declared purchase price and is in principle the buyer’s responsibility. The administration may, however, adjust the base if it deems the declared price below market value. This tax must be paid within about two weeks after signing the contract.
For new properties sold by a developer, the transfer is not subject to the 2.5% tax but to VAT. A reduced rate of 10% applies to new residential housing, while commercial buildings (offices, retail) are subject to 20% VAT. Prices displayed by developers generally already include this VAT.
Legal fees, highly recommended for a foreigner, generally range between 1% and 3% of the property value, depending on the complexity of the case and services provided (due diligence, contract drafting, representation). Notary fees are regulated by a scale and are around 0.1% to 0.5% of the price, with amounts often between €300 and €500 for a medium-sized apartment.
On the real estate agency side, the standard commission is around 2% of the price for the buyer, with an equivalent charged to the seller. For new properties purchased directly from a developer, the buyer may sometimes be exempt from commission, as it is covered by the builder.
This is the minimum cost in euros for administrative fees to register a property with the cadastre and obtain the clausula intabulandi.
Once an owner, one must also factor in recurring taxation. The annual property tax is calculated on the cadastral value of the property. For residential housing, the capped rate is 0.4%, with local variations and sometimes progressivity based on value. For commercial properties, the rate is around 0.8%, or more depending on the category and municipality.
In case of rental, property income for non-residents is in principle taxed at 20%, after a standard 25% deduction for expenses, resulting in an effective rate around 15% on net income. Upon resale, a capital gain is taxed at 15% for individuals, unless the property was held for more than ten years, in which case exemption applies in practice.
Market and Prices: Where and How Much to Invest?
Serbia offers price levels still significantly lower than those in Western Europe or North America, even though the capital has appreciated strongly in recent years. The country is often presented as an affordable alternative, with moderate growth potential. Forecasts from some organizations estimate an average annual market growth of around 1.8% in the coming years.
Maximum price per square meter that can be reached in premium sectors of Belgrade’s historic center.
The city also multiplies iconic projects like Belgrade Waterfront, a large riverside development, where prices are significantly higher than average. Generally, new apartments in Serbia sell for about 10% to 20% more than comparable second-hand properties.
Overview of different Belgrade neighborhoods, ranked by attractiveness for investors and by budget type.
The most sought-after neighborhoods by investors: New Belgrade, Vračar, Stari Grad, Dorćol, Zemun, and Zvezdara.
For reduced budgets: Mladenovac, Obrenovac, and Lazarevac. More accessible prices but far from the center.
Sectors in development, positioned as economical family options: Mirijevo, Borča, and Rakovica.
Outside Belgrade, Novi Sad attracts for its economic dynamism, tech sector, and cultural atmosphere. Average prices there are around €1,900/m², with peaks above €2,000/m² in sought-after areas. Niš, the country’s third city, remains significantly more affordable, with older apartments around €1,100–€1,300/m².
Mountain resorts like Zlatibor, Kopaonik, Tara, or Divčibare represent another booming segment, supported by tourism and short-term rentals. Many foreign investors position themselves there with studios or small apartments intended for seasonal rental.
For a comparative overview, some average price levels per square meter can be summarized:
| City / Segment | Older (€/m²) | New (€/m²) | Main Comment |
|---|---|---|---|
| Belgrade | ≈ 2,225 | ≈ 2,950 | Most expensive in the country, high central demand |
| Novi Sad | ≈ 1,925 | ≈ 2,820 | Tech and cultural hub, dynamic market |
| Niš | ≈ 1,335 | ≈ 1,930 | Historic city, prices still moderate |
| National Average | ≈ 1,700 | ≈ 2,660 | All city types combined |
| United States (ref.) | ≈ 5,330 | ≈ 7,855 | Much higher international reference |
These figures illustrate the significant gap between Serbia and major Western markets, while showing that some areas of Belgrade are starting to reach the levels of more established regional capitals.
Financing in Serbia: Between Cash, Difficult Loans, and Hybrid Solutions
A point often underestimated by foreigners concerns access to local credit. In practice, about 70% of apartment purchases in Belgrade are made in cash, without recourse to a mortgage. This predominance of cash is linked to local habits, but also to restrictive conditions imposed by banks.
Serbian banks clearly distinguish between residents and non-residents. A resident is a person who has a domicile in Serbia and has not left the country for more than twelve consecutive months; a non-resident is a foreigner without residency or a Serbian living permanently abroad. Foreign residents are generally treated like Serbian citizens: they can obtain a real estate loan with a down payment around 20%, rates indexed to the six-month EURIBOR, often plus a margin of about 3 percentage points.
For non-residents, obtaining a mortgage in Serbia is more complex. Many banks refuse to finance foreigners without residency. A few institutions, like API Bank, Banca Intesa, or some subsidiaries of international groups (Raiffeisen, UniCredit), offer specific products. Conditions are nevertheless stricter: minimum personal contributions can reach 30 to 50%, higher interest rates (e.g., EURIBOR + 5 points), shorter repayment terms, and heavier documentation requirements.
Loan applications for foreigners generally require proof of stable income for at least six months, pay slips, a twelve-month account history, an indefinite-term employment contract, credit reports from agencies in the country of origin, and sometimes a certificate of absence of other debts outside Serbia. A certified appraiser must assess the value of the property serving as collateral, and the bank will require registration of a first-rank mortgage.
Average interest rate for some 20-year mortgages, according to recent data.
Faced with these difficulties, many foreign buyers favor other strategies: full financing with own funds, borrowing in their home country, installment payment plans offered by developers, or recourse to private lenders specializing in assisting expatriates. There are, for example, relocation companies that offer real estate bridging loans with amounts ranging from €50,000 to €500,000, often more flexible but more costly than bank loans.
Rental and Yield: A Changing Market
For an investor buying to rent, it is essential to understand the state of the rental market. In Belgrade, the situation has evolved in recent years. After a sharp rise in rents linked to the massive arrival of foreign workers and economic refugees, the market has somewhat turned, with an increase in supply and a 10% to 30% drop in rents in several neighborhoods.
Gross rental yields for apartments generally vary between 2.5% and a little over 5%. This rate depends on location, property quality, and management mode. Small, well-located units, especially near universities or business centers, often offer the best performance due to combined demand from students, young local professionals, and expatriates.
Short-term rentals, via platforms like Airbnb, work particularly well in tourist neighborhoods of Belgrade or in mountain resorts like Kopaonik and Zlatibor. They require, however, active management: check-in, cleaning, maintenance, review management, price optimization. Many foreign owners rely on local property management companies, which charge variable percentages on rents or monthly fixed fees.
Flat tax rate on rental income for non-resident property owners, which can be reduced to about 15% after standard deduction.
To get an idea of potential yields, a simplified order of magnitude can be presented:
| Location / Type | Estimated Price (€/m²) | Average Gross Yield (%) | Demand Profile |
|---|---|---|---|
| Belgrade center (1–2 rooms) | 2,500–3,000 | 3.5–5.0 | Expats, professionals, students |
| New Belgrade | 2,200–2,700 | 3.0–4.5 | Middle class, offices |
| Novi Sad | 1,900–2,200 | 3.5–5.0 | Students, tech, tourism |
| Niš | 1,200–1,400 | 3.0–4.0 | Local, moderate tourism |
| Mountain resorts | 2,000–2,800 | 3.5–5.2 (seasonal) | Tourism, short stays |
These figures remain indicative and do not replace a fine-grained market study, neighborhood by neighborhood, especially in an environment where rental supply can evolve quickly.
Specific Risks of the Serbian Market and How to Reduce Them
While it presents obvious advantages, the Serbian real estate market also has structural risks that foreign buyers must take very seriously. The main one comes from the country’s recent history. The transition from a socialist system to a market economy left complex situations: usage rights without proper property registration, nationalizations then partial restitutions, constructions built without permits at different periods.
It is common for real estate properties (apartments, houses) or their extensions (verandas, floors) not to be properly registered with the cadastre. Acquiring such a property without verification can lead to lasting disputes and hinder its resale.
Similarly, failure to verify the presence of mortgages, seizures, tax debts, or court decisions can burden the buyer with unexpected charges. In some cases, unidentified heirs may also contest a sale made without their consent.
Relying on unlicensed, improvised, or unqualified intermediaries (agents, hunters, advisors) poses a significant risk. These players may downplay legal issues, push for a quick signature, or organize cash payments outside the banking system, practices strongly discouraged.
The recommendations that consistently come up to limit these risks are clear: check eligibility related to reciprocity before any steps, hire an experienced local lawyer in international transactions, demand a complete due diligence report on the property, use a notary for all deeds, and make every payment via the official banking system. It is also crucial to ensure the property is correctly registered with the cadastre at the time of sale, and that the contract explicitly states the transfer conditions and guarantees regarding the absence of debts.
Residency Through Real Estate Investment: A Flexible Lever, No Minimum Threshold
A singular point of the Serbian framework is the great flexibility of its residency-by-investment system. While many countries impose a minimum threshold – sometimes several hundred thousand euros – Serbia does not set a minimum amount to consider that a real estate investment allows applying for residency.
The purchase of a modest apartment or a small house in good condition can form the basis for a temporary residence permit application. This permit is generally issued within a few weeks after submitting a complete file, without requiring a massive investment.
However, the buyer must demonstrate that they have sufficient resources to live in Serbia, that they are covered by health insurance, and that they have no criminal record in their country of origin. They must also prove that the purchased property is actually in a habitable condition, which in principle excludes ruins or unsanitary buildings.
After a period of temporary residency, the foreigner can obtain permanent resident status. By maintaining this status for several additional years, they become eligible to apply for Serbian citizenship by naturalization. There is no direct passport-by-investment program, but a path that combines real estate investment and genuine anchoring in the country.
For some profiles – retirees, remote workers, mobile entrepreneurs – this mechanism can constitute a strategic entry point to a country located at the crossroads of Central Europe and the Balkans, with relatively moderate taxation and a lower cost of living than in most EU states.
Building Your Team: Agents, Lawyers, Notaries, and Managers
Succeeding in a real estate purchase in Serbia as a foreigner is largely about successfully surrounding yourself with the right professionals. Experience shows that a transaction supported by a specialized lawyer, a serious notary, and a recognized real estate agency rarely goes wrong, whereas attempts to do it “alone” or with approximate intermediaries expose you to many pitfalls.
Local agencies accustomed to foreign clients, like some based in Belgrade or Novi Sad, are capable of offering complete support: property selection, organization of remote viewings via video, negotiation, coordination with notaries and lawyers, and then possibly rental and property management.
External service fees (legal, administrative, rental management) increase the total investment cost but reduce risks and save time. Management companies offer monthly packages (from a few dozen to a few hundred euros) for property monitoring, bill payment, maintenance, and tenant management.
On the legal side, choosing a lawyer independent of the agency and seller remains the best guarantee of objective advice. It is also recommended to check the references and professional licenses of the players you engage with, whether agents or advisors.
In Summary: An Accessible Market, But Not One to Wing
The Serbian framework offers foreigners a rather rare combination: still competitive prices on a European scale, relatively broad openness to foreign ownership (subject to reciprocity), no residency requirement to buy, and a residency-by-investment program with no minimum threshold. For a patient investor or an expatriate seeking a base in Southeastern Europe, these assets are far from negligible.
The real estate market is marked by a complex land history, a past of unauthorized constructions, a banking system cautious towards non-residents, and regulations requiring absolute rigor. The foreign buyer must follow a strict process: verification of reciprocity, opening a bank account, legal due diligence, signing before a notary, and registration with the cadastre.
To turn this journey into success rather than a headache, three levers make the difference: take the legal verification phase seriously, budget from the outset for all additional costs – taxes, notary fees, legal fees, agency commissions, recurring taxes – and, above all, rely on reliable local professionals. With these safeguards in place, the real estate purchase process for foreigners in Serbia becomes not only manageable but also a real opportunity for asset diversification and, for those who wish, a longer-term life project in the country.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
