Property tax in Serbia - who is required to pay it?

Property tax is imposed on all properties located in the territory of the Republic of Serbia. It is a mandatory annual expense for every property owner and its amount depends on many factors.

In the following text, you will learn who the property tax payer is, on which real estate objects it is levied, the payment deadlines, and how the amount of this tax is determined.

Who Is the taxpayer and on what objects is property tax levied?

Real estate includes residential, commercial, and other buildings, apartments, office spaces, garages, and other above-ground and underground construction objects or their parts.

Property tax applies to any natural or legal person owning real estate, regardless of whether that person is a resident of the Republic of Serbia or not.

If several persons have rights to certain real estate (co-owners), the property tax is applied to each of them proportionally to their shares in the ownership right. If the shares are not determined, the property tax is considered equal, and the total tax amount is divided among the number of co-owners.

When does the tax obligation arise?

The taxpayer is obligated to notify the competent authority (the Tax Administration in the relevant city of Serbia) about owning any real estate, regardless of whether it is used or not.

The obligation to pay the tax arises from the moment the ownership right on the real estate is acquired. When you buy real estate and notarize the purchase agreement, data about the purchase and the new owner is forwarded to the tax office. Usually, you receive a written notice about the tax calculation to the new address within 30 days after purchasing the real estate. However, practice may differ depending on the municipality. Therefore, it is recommended to contact the tax office immediately after purchasing real estate in Serbia to obtain accurate information and avoid delays.

Tax on bought objects under construction

The property tax obligation arises from the date of acquiring the right on which the property tax is levied. If the right is acquired on a construction object that is not suitable for use, is not used, and has not been issued a use permit, the property tax obligation for this object arises on the earliest of the following dates:

• The date of beginning of use
• The date of making it suitable for use
• The date of issuance of the use permit
• The date of enabling the use of the object in any other way

How is the property value and tax calculated?

The value of real estate is determined based on the usable area and the average price per square meter of real estate depending on the zone it is located in and represents the tax base.

The usable area of a land plot includes the total area of the plot, while the usable area of an object is calculated as the sum of the areas between the walls of the object, excluding balconies, terraces, and unadapted attic spaces.

Property tax rate and tax base

The property tax rate for taxpayers keeping accounting records is up to 0.4%, and for land plots of those not keeping accounting records – up to 0.3%.

Depending on the value of the real estate (tax base), the tax rate may be as follows:

• Value up to 10 million dinars - 0.4%
• Value from 10 to 25 million dinars - 40,000 dinars + 0.6% on the amount over 10 million dinars
• Value from 25 to 50 million dinars - 130,000 dinars + 1% on the amount over 25 million dinars
• Value over 50 million dinars - 380,000 dinars + 2% on the amount over 50 million dinars
• The higher the value of the real estate, the higher the tax rate by which the tax is calculated.

When and how to pay property tax?

Property tax is calculated on an annual basis, but its payment is made quarterly. Four equal parts of the total tax amount are paid by the 15th of the month, and the payment months are February, May, August, and November. However, if the taxpayer wishes, they can pay the property tax in a single installment.

How to check property tax?

To find out information about the debt status, there is no need to visit the competent authority; this can be done through the Tax Administration's website. On it, you can find out how many payments have been made and what your current debt is.

We hope that this text was helpful to you and that you found all the information about the calculation and payment of property tax in Serbia, as well as who the taxpayer is and when the tax obligation arises.