Anyone wishing to buy a property in Serbia must first check that their country has a reciprocal agreement pertaining to home ownership. As the UK allows Serbian citizens to own property within Great Britain, UK citizens are also permitted to buy a home in Serbia.
Purchasers can either be a cash buyer or can apply for a Serbian mortgage, although professional assistance from an international mortgage broker would be wise in this eventuality in order to navigate the complex international property laws.
When buying property in Serbia, it is important to take into account the taxes and extra costs that must be paid on top of the agreed purchase price. Apart from the 5% property tax which must be paid on the estimated value of the property to enable registration with the Area Property Registry, there is also a transfer tax at a rate of 2.5% on some properties, (although each member of the household is entitled to 15 sq m per person tax free and the first apartment of under 40 sq m purchased is also Transfer Tax free). Buyers in Serbia are also required to pay an estate agent’s fee, unlike in the UK, usually at around 3% of the purchase price, as well as a registration fee and a court fee.