Buying New Construction in Serbia: A Buyer's Guide
A practical walkthrough for buying a new-build apartment in Serbia — which permits are mandatory, how to vet the developer, how VAT works, and the risks of buying off-plan.
Upsides and risks of new construction
New-builds appeal with lower maintenance, modern construction and energy efficiency — but carry specific risks, especially when buying before completion.
- Upsides: new wiring and insulation, lower bills, lift and parking, choice of floor/layout off-plan, workmanship warranty.
- Risks: delays, design changes, a building with no use permit, an unreliable developer, floor area that differs from contract.
Key permits: building & use permit
The most important check. Without the correct permits, the unit cannot be properly registered in your name.
- Building permit — must exist before and during construction; verify the parcel and building match what you are buying.
- Use (occupancy) permit — on completion, confirms the building is safe and built to the approved design; no clean registration without it.
- Project documentation — that your unit (area, floor, layout) matches the certified design.
Vetting the developer
A reliable developer is your best protection, especially off-plan. Before signing, check:
- Past buildings — completed on time and properly registered.
- Company records in the registry (APR) and any account freezes.
- References from earlier buyers; a serious developer shares documentation openly.
- For larger sums — legal due diligence before any payment.
VAT and tax on new construction
New-builds are taxed differently from resale. Figures are for 2026 and should be confirmed.
- VAT 10% on the first transfer from a VAT-registered developer (instead of the 2.5% transfer tax); usually included in the price.
- First-apartment VAT refund — for an adult citizen resident in Serbia who has not owned a home since 1 July 2006; up to 40 m² for the buyer + 15 m² per household member. Only when buying from the developer.
- Estimate your loan in the mortgage calculator.
Buying off-plan
Buying before completion is usually cheaper but riskier. If you do:
- Require escrow or bank protection for payments tied to construction stages.
- Insist on a clear completion deadline and penalties for delay.
- Verify the building permit before the first payment.
- Agree what happens if the floor area differs from the design.
Energy passport & registration
- Energy passport — required for the building; shows the energy rating and running costs.
- Cadastre registration — ownership is perfected only on registration, after the use permit and notarized contract.
Red flags
- No building or use permit — cannot be registered; avoid.
- Pressure to pay a deposit fast without a notarized contract and payment protection.
- Developer with no track record or with account freezes / unfinished projects.
- Price well below market with a rush — hides a permit or registration problem.
- Cash payment with no invoice.
Frequently asked questions
What is the VAT on new construction in Serbia?
The first transfer of a newly built residential unit from a VAT-registered developer is taxed at 10% VAT (instead of the 2.5% transfer tax on the resale market); usually included in the price. Confirm the rate with the developer or a tax adviser.
Can I get a first-apartment VAT refund?
Yes — an adult Serbian citizen resident in Serbia who has not owned a home since 1 July 2006 may claim it; up to 40 m² for the buyer and 15 m² per household member. Only when buying from the developer. Check the conditions with the Tax Administration.
Which permits must a new build have?
A building permit (before and during construction) and a use (occupancy) permit (on completion). Without the use permit, the unit cannot be properly registered.
What does buying off-plan mean?
Buying before the building is finished, usually at a lower price and paying in installments tied to construction stages. It carries more risk, so require escrow protection and check the developer and permits carefully.
How do I vet the developer?
Check past buildings, company records (APR), any account freezes, and whether previous buildings were registered on time. For larger purchases, engage a lawyer.
This guide is general information only and is not legal or tax advice. Laws and tax rates in Serbia change and depend on your circumstances. Confirm with a lawyer and the Tax Administration before committing.