Property transfer tax in Serbia
When you buy property in Serbia you pay either the property transfer tax (2.5%) or VAT (10%) — never both. Here is how much it is, who is legally liable, when it does not apply, and how a first-time buyer can use the exemption.
What the transfer tax is and how much it costs
The transfer tax (porez na prenos apsolutnih prava) is paid when ownership of real estate is transferred for consideration — i.e. on the purchase of a second-hand (already registered) property. The rate is 2.5%, set by the Law on Property Taxes.
- The base is the contract price — but if it is below market, the Tax Administration assesses the market value and taxes that.
- It applies only to second-hand property. On the first sale of a new build (from the developer) VAT applies instead (see below).
A good value estimate helps before you sign — estimate the property value to know the likely tax base.
2.5% tax or 10% VAT — which applies
- Second-hand property (resale): 2.5% transfer tax.
- New build (first transfer from the developer): 10% VAT on the flat, usually already included in the price. The transfer tax is then NOT paid.
Rule of thumb: you never pay both — either 2.5% (old) or 10% VAT (new). More on new builds in our guide Buying a new build.
Who pays — seller or buyer
By law the liable party is the seller. But the contract very often shifts it to the buyer or splits it — that is a matter of agreement and must be stated clearly in the sale contract.
Filing and assessment are triggered by certifying the contract: the notary forwards it to the Tax Administration, which issues a decision assessing the tax. Check the deadline and procedure with the notary — they depend on the case.
First-home buyer exemption
A buyer of a first apartment can be exempt from the transfer tax (2.5%) — the biggest saving for first-time buyers. Under the current rules, subject to conditions:
- the buyer is an adult citizen of Serbia resident in Serbia;
- has not owned or co-owned an apartment in Serbia from 1 July 2006 to the date the contract is certified;
- the exemption covers up to 40 m² for the buyer + 15 m² per household member who also has not owned one (any excess area is taxed).
It is claimed on request with the prescribed documents. Verify the exact conditions and forms on purs.gov.rs or with the notary — details can change.
How it is calculated and filed
- Base × 2.5%. E.g. for a flat valued at €100,000 the tax is €2,500 (where no exemption applies).
- Market value. The Tax Administration may set a base higher than the contract price if it deems the price below market.
- Filing. Triggered by certifying the contract at the notary; the Tax Administration issues a decision with the amount and payment deadline.
This tax is only one purchase cost — calculate the total costs (down payment, notary, registration, loan fees) on the calculator.
What to watch out for
- Who pays — put it in the contract. If the contract is silent, the seller is liable; do not assume, state it clearly.
- The Tax Administration's valuation can be higher than the contract price — the tax then rises. A realistic value estimate up front helps.
- First home: mind the m². The exemption is capped at 40 m² (+15 m²/member); for a larger flat the excess stays taxable.
- Deadlines. Do not miss the statutory filing/payment deadlines — check them with the notary / Tax Administration.
Frequently asked questions
How much is the property transfer tax in Serbia?
The rate is 2.5%, paid on the sale of a second-hand (already registered) property. The base is the contract price, or the market value assessed by the Tax Administration if the price is below market.
Who pays the transfer tax — seller or buyer?
By law the seller is liable, but the contract often shifts it to the buyer or splits it. What matters is that the sale contract clearly states who pays.
When is VAT paid instead of the transfer tax?
On the first sale of a new build (transfer from the developer) 10% VAT applies to the flat, usually already in the price — then the 2.5% transfer tax is not paid. You never pay both.
Is a first-home buyer exempt from the tax?
They can be — an adult Serbian citizen resident in Serbia who has not owned/co-owned an apartment from 1 July 2006 to the contract certification, for up to 40 m² + 15 m² per household member. Verify the conditions and forms on purs.gov.rs or with the notary.
What value is the tax calculated on?
On the tax base — the contract price, or the market value if the Tax Administration assesses it higher. For a ballpark you can estimate the property value for free on Kaza.rs.
This text is informational and is not tax or legal advice. Rates, conditions and exemptions may change — verify official information on purs.gov.rs (Tax Administration) or with a notary. For a specific case, consult a professional.