Taxes to pay when selling real estate in Serbia

If you're a foreign national selling a property in Serbia, it's important to understand the taxes involved. Here's a breakdown of the key taxes and when they apply:

1. Property Tax (Annual)

Property tax is paid by the legal owner of a property in Serbia – whether they are a resident or not. If the property has co-owners, each pays proportionally to their ownership share.

• Deadline for reporting: Within 30 days after signing the sales contract.

• Payment frequency: Quarterly (every three months). If you use the property as your residence, you may be eligible for a 50% discount (max. 20,000 RSD), so it’s advisable to register your residence address before submitting the tax report.

Before selling, the seller must provide proof that all previous property taxes have been paid up to the sale date.

2. Capital Gains Tax

Capital gains tax applies if the property is sold at a higher price than it was purchased for.

• Tax base: Sale price – Purchase price (adjusted by inflation or renovation costs, if applicable).

• Tax rate: 15%.

• Deadline for reporting: Within 30 days of signing the contract.

• Payment deadline: 15 days from the delivery of the tax assessment.

You are exempt from this tax if:

• You owned the property for 10+ years.

• You inherited the property in the first line of succession (e.g., from parents).

• The sale is between spouses or direct relatives.

• You reinvest the proceeds into your own or your family’s housing within 90 days (or get a refund if reinvested within 12 months).

3. Real Estate Transfer Tax

This tax applies when ownership rights are transferred for compensation.

• Tax rate: 2.5%.

• Who usually pays it? Legally the seller, but by agreement the buyer often covers it and handles filing and payment.

• Deadline for reporting: 30 days from contract signing.

• Payment deadline: 15 days after receiving the tax assessment.

4. Value Added Tax (VAT)

Instead of the real estate transfer tax, VAT is charged when buying from a developer or professional seller whose activity involves selling real estate.

• VAT rate: 10% (usually for new buildings).
  

If you're selling a property in Serbia and need legal or practical assistance, our experienced agents can guide you through the process. Fill out the contact form and we’ll reach out promptly.