Property tax in Serbia

Property tax is an annual tax paid by anyone who owns real estate — whether they live in it, leave it empty, or rent it out. It is different from the one-time transfer tax (paid when you buy) and from rental income tax. Here is how much it is, how the base is calculated, what reductions exist, and the payment deadlines.

Updated: 13 Jun 2026 6 min read

What property tax is and who pays it

Property tax is an annual tax on ownership of real estate (flat, house, commercial space, land, garage). It is paid by the owner — whether they live in it, keep it empty, or rent it out.

  • It is paid every year, unlike the transfer tax which is paid once, on purchase.
  • It is collected by the local self-government via the Local Tax Administration (LPA) — NOT the national Tax Administration (purs.gov.rs). So the conditions and exact amount are checked with your municipality's LPA.
  • A new owner files a tax return (form PPI-2 for individuals) with the competent LPA after acquiring the property; thereafter the LPA issues a decision each year.

How much it is — rate and base

  • The rate for individuals not keeping business books is at most 0.4%. Each local self-government sets the exact rate (up to that maximum), so it varies by city.
  • The base is the market value assessed by the LPA: average €/m² in the zone × area. It is not necessarily the price you paid.
  • Depreciation reduces the base by 1% per year of the building's age, up to 40% (a 30-year-old building → base lower by 30%).

Since the base depends on market value, it helps to know the ballpark — estimate the property value for free.

Tax reductions

  • Depreciation for the building's age (above).
  • People over 65 who live in a house or flat up to 60 m² may get a reduction of up to 75% (under the local decision's conditions).
  • There may be further reductions under the local decision (e.g. for the dwelling the taxpayer lives in). Verify the exact conditions and percentages with your LPA — they differ by municipality.

Deadlines and payment

Property tax is paid quarterly (4 installments), within 45 days of the start of each quarter:

  • 1st — by 14 February
  • 2nd — by 14 May
  • 3rd — by 14 August
  • 4th — by 14 November

If a deadline falls on a non-working day, it moves to the next working day. Until a new decision arrives, you pay on account at the level of last year's instalment. Check your balance and payment slips on the lpa.gov.rs portal or with the LPA.

What to watch out for

  • LPA, not PURS. Property tax is collected by the local self-government — get information and payment slips from the municipality's LPA, not purs.gov.rs.
  • Don't mix up the three taxes. The transfer tax (2.5%, once on purchase) and the rental tax (on rent) are separate from the annual property tax.
  • File after buying. As a new owner, file a return with the LPA — the tax does not start "by itself".
  • The rate varies. The amount depends on the rate set by your local self-government and the zone the property is in.

Frequently asked questions

How much is the property tax?

For individuals not keeping business books the rate is at most 0.4%. Each local self-government sets the exact rate up to that maximum, and the base is the market value (average €/m² in the zone × area, reduced by depreciation).

Who collects the property tax?

The local self-government (municipality/city) via the Local Tax Administration (LPA) — not the national Tax Administration. Check the conditions and slips with your municipality's LPA or on lpa.gov.rs.

When is it due?

Quarterly, in 4 instalments: by 14 February, 14 May, 14 August and 14 November. If a deadline falls on a non-working day it moves to the next working day.

How is it different from the transfer tax?

The transfer tax (2.5%) is paid once, on purchase. Property tax is paid every year while you own the property. They are two different taxes.

Are there any reductions?

Yes — depreciation for the building's age (up to 40%), a reduction for people over 65 living in a property up to 60 m² (up to 75%), and possibly further reductions under the local decision. Verify the conditions with the LPA.

This text is informational and is not tax or legal advice. Property tax is assessed and collected by the local self-government, so rates, zones and reductions differ by municipality and may change — verify official information with your municipality's Local Tax Administration (LPA) or on lpa.gov.rs.