Additional costs when buying an apartment in Serbia - what should be paid besides the property price?

When preparing to buy an apartment, most potential buyers usually think about how much money they need to gather and how big of a loan they need to take out from the bank if the purchase is made with a mortgage. In other words, they only think about the property price.

Everyone who has ever bought real estate knows how much money is “unexpectedly” spent on various procedures related to the purchase. However, to be well prepared for this procedure in Serbia, read this text and find out what additional costs exist, from taxes to various fees.

Buying a new-build apartment from the investor

When it comes to buying an apartment in a building under construction, we distinguish between procedures for cash purchases and mortgage purchases.

Costs for cash purchases:

• Notary certification: This cost depends on the value of the purchase agreement. To give you an idea, for an apartment worth 100,000 euros, notarization costs about 40,000 dinars. This cost can be divided into two parts if the purchase involves signing a preliminary and a main contract.
• Issuance of Clausula Intabulandi: After the full payment of the apartment, it is necessary to pay the cost of issuing the Clausula Intabulandi, which amounts to 4,000 dinars. This document allows for the registration of ownership rights in the real estate cadastre in the buyer's name.
• Value-added tax (VAT): When buying a new-build property from a developer, the VAT is 10% of the total property price. First-time homebuyers are entitled to a VAT refund from the state for up to 40 m² for the owner and an additional 15 m² for other household members. In the case of purchasing from a private individual or buying a secondary property, a transfer tax of 2.5% of the property's value is paid instead of VAT. For information on how first-time homebuyers can be exempt from this tax, read at the link.
• Agency commission: At City Expert, customers that buy or rent properties do not pay any agency commission. All legal support and sales management provided by agents are free. On the other hand, if you choose another intermediary, agency commissions vary from 2% to 5% of the property's price.

Costs for purchasers a mortgage:

In addition to the costs mentioned above, buyers taking out a house loan must also account for additional expenses:

• Costs of drafting preliminary and main contracts: These costs are mandatory, and the amount depends on the value of the property and notary fees.
• Costs of mortgage deed: The amount varies depending on the property's value, but it usually ranges from 15,000 to 30,000 dinars.
• Loan processing fees: Processing fees depend on the bank, which often range between €120 and €150. In total, these fees can reach up to €1,000.
• Money transfer fees: When making payments, it is recommended that the buyer and seller have accounts in the same bank to avoid high transfer fees. The costs for transfers within the same bank are the lowest, while fees for transfers between different banks can range from 5,000 to 16,000 dinars.
• Exchange rate difference costs: Since the mortgage bank issues the money in dinars and the seller receive it in euros, there may be a difference between the average exchange rate and the purchase rate. In order for the seller to receive the exact amount in euros, this difference must be covered.

Buying a resale apartment - Taxes and fees

Costs for cash purchases:

• Absolute rights transfer tax: As mentioned, when buying a resale property, this tax is 2.5% of the property's value and is paid after the purchase, upon receiving the tax decision, except in the case of exemption.
• Notary certification: The costs of certifying the purchase agreement vary depending on the property's value. For example, for an apartment worth €130,000, notary fees are about €350.
• Issuance of Clausula Intabulandi: It is necessary to pay the cost of issuing the Clausula Intabulandi, which amounts to 4,000 dinars.
• Money transfer fees: As with new-build properties, the cost of transferring money between banks can range from 5,000 to 16,000 dinars, depending on whether the transfer is made within the same bank or between different banks.

Costs for purchases with house loan:

• Loan processing fees: Mortgage processing fees depend on the bank and may include various charges, fees, and additional taxes. Each bank conducts its policy on these matters.
• Exchange rate difference costs: If the payment is made via a mortgage, the exchange rate difference may lead to additional costs for the buyer, as already explained above.
• Notary certification of mortgage deed: The costs usually range from 15,000 to 30,000 dinars, depending on the property's value.
• Mortgage registration: The cost of mortgage registration depends on the loan's value, for which you will receive precise information from the bank you choose.

Buying an apartment, whether it is a new build or a resale, requires careful planning and consideration of all additional costs to be fully prepared and avoid unpleasant surprises. As always, City Expert is here to provide support and help make the purchase process as simple and successful as possible. A special benefit for our property buyers - there is no agency commission. Contact us to find your next home together!