The right of a foreigner to acquire real estate in the Republic of Serbia
Reciprocity in Acquiring Property Rights
The right of foreign nationals (both individuals and legal entities) to acquire ownership of real estate in the Republic of Serbia, through inter vivos legal transactions (such as purchase agreements, gift contracts, contracts on life support, etc.) and mortis causa legal transactions (inheritance), is regulated by the Law on the Fundamentals of Property Relations (Official Gazette of SFRY, No. 6/80 and 36/90, Official Gazette of FRY, No. 29/96, and Official Gazette of RS, No. 115/2005).
Acquiring Property through Inter Vivos Legal Transactions
Article 82a of the Law stipulates that foreign individuals and legal entities conducting business in Serbia can acquire property under the principle of reciprocity, provided the property is necessary for conducting their business activities (paragraph 1). A foreign national who does not conduct business in Serbia can acquire ownership of an apartment or residential building under the same conditions as Serbian nationals (paragraph 2).
Additionally, in accordance with Article 82a, paragraph 2, of the Law on the Fundamentals of Property Relations, foreign individuals who do not engage in business in Serbia may not acquire ownership of other types of land, unless the land is where the apartment or residential building is located or serves for the regular use of the apartment or building.
An exception exists regarding agricultural land, as Article 1 of the Agricultural Land Law ("Official Gazette of RS," Nos. 62/2006, 65/2008 – amended law, 41/2009, 112/2015, and 80/2017) explicitly prohibits foreign individuals or legal entities from owning agricultural land, unless otherwise specified by law, in accordance with the Stabilization and Association Agreement between the European Communities and their member states, on one side, and the Republic of Serbia, on the other ("Official Gazette of RS - International Treaties," Nos. 83/08 and 12/14 – hereinafter: the Agreement).
Reciprocity Requirement
Foreign nationals can acquire property in Serbia if their home country allows Serbian nationals to acquire property under similar conditions. This principle of reciprocity does not require formal diplomatic agreements but is based on whether foreign nationals can acquire property in Serbia on terms that are not significantly stricter than those applicable to Serbian citizens. This is often referred to as factual reciprocity.
Serbia has established contractual reciprocity for property acquisition by foreign nationals through inter vivos legal transactions with only a few countries, based on treaties dating back to the early 20th century. In some cases, the reciprocity is explicitly stipulated, while in others, it exists through the most-favored-nation clause. Some of these countries include the United Kingdom, the United States, the Kingdom of the Netherlands, and Japan.
Intermark Services
Navigating the intricacies of property acquisition in a foreign country can be challenging. Intermark Relocation is here to guide individuals and businesses through the complexities of legal procedures, ensuring compliance with all necessary regulations. With expert knowledge of Serbian real estate laws, Intermark offers relocation and legal support to foreign nationals interested in purchasing property, handling everything from legal advice to the acquisition process.
Whether you are an individual moving to Serbia or a company seeking to establish a presence, Intermark Relocation provides personalized services to simplify your transition and property acquisition in Serbia.
Conclusion
Foreign nationals can acquire real estate in Serbia, but the process is subject to specific legal conditions, particularly those related to reciprocity. To ensure a smooth process, it is advisable to work with experienced professionals. Intermark Relocation offers comprehensive support for anyone looking to relocate or invest in Serbian real estate, providing expert advice, ensuring compliance with local laws, and facilitating a hassle-free relocation experience.