New Amendments to Serbia’s Planning and Construction Laws: What You Need to Know
The National Assembly of the Republic of Serbia has recently adopted amendments to the Law on Planning and Construction and the Building Legalization Law, as well as enacted the new Law on Construction Products. These changes aim to improve the efficiency of Serbia’s construction sector, fostering greater competition and encouraging the participation of domestic and foreign entities in new projects.
This article provides an overview of the most significant amendments to the Law on Planning and Construction (hereinafter: the Law).
Streamlining Procedures and Reducing Costs
The amendments introduce several measures designed to simplify administrative processes, primarily through the integration of the eDozvola system with notaries, the tax administration, and the cadaster. Additionally, steps have been taken to simplify the administrative tax system.
Notably, the abolition of seven administrative taxes related to construction procedures is expected to save investors 5.7% of a facility’s value. For instance, the largest construction fee, previously 0.2% of the estimated facility value, has been replaced with fees based on project complexity. For a typical warehouse, this reduces the fee from over RSD 56,000 to between RSD 1,800 and 18,000, depending on the facility.
New Administrative Fees
While some fees have been eliminated, others have been introduced. New administrative fees now apply for obtaining confirmation from the competent public authority for registration of work, location information, and location conditions.
Changes to Planning Documents
The amendments introduce important updates to planning documents. These include the requirement for planning documents like urban and spatial plans to be stored in a central register, managed by the public authority for geodetic survey and cadaster affairs. This registry will provide free online access to interested parties.
The validity period for location conditions has been extended from 12 months to 2 years. Additionally, in certain situations, investors are no longer required to obtain location conditions, such as for maintenance work or modifications that do not alter the building’s appearance, functionality, or infrastructure connections.
Licensing and Technical Documentation
Significant changes have been made to licensing requirements:
- The Ministry of Construction, Spatial Planning, and Urban Planning will now issue licenses for responsible planners, urban planners, designers, and contractors, replacing the Serbian Chamber of Engineers.
- Only companies or legal entities, not individual project bureaus or entrepreneurs, may now draft technical documentation.
- Licensed companies must reapply every two years to ensure they continue to meet the required conditions.
The Ministry also has the authority to revoke licenses if companies fail to meet conditions, with a waiting period of six months before a new license can be issued.
Updates to Building Permits and Deadlines
The validity of building permits has been extended. Construction must now begin within three years of the permit’s issuance, up from the previous two years. Additionally, the deadline for amending a permit due to investor changes has been extended from 15 to 30 days.
Penalties for Non-Compliance
To ensure compliance, fines for violations have been increased. Companies may face penalties of RSD 1.5 to 3 million, while contractors failing to meet obligations can be fined between RSD 500,000 and 1 million. Entrepreneurs face fines of up to RSD 150,000.
New Regulations for Construction Work
For certain types of construction, a decision on work execution is now required instead of a building permit. Specifics will be defined in a new bylaw expected within 60 days of the amendments’ enactment.
Contractors must submit a statement of completion, along with a geodetic record, for both building foundations and overall construction. Non-compliance will result in fines and potential delays in obtaining a use permit.
Conclusion
The new amendments represent a comprehensive effort to improve Serbia’s construction sector. These changes aim to reduce administrative burdens, cut costs, and enhance transparency, while introducing stricter regulations to ensure compliance and accountability.
Attorney at Law Damir Petrović
The information contained herein is provided solely for general informational purposes and should not be considered as legal advice. Petrović Mojsić & Partners disclaims all responsibility for actions taken or not taken based on this content.
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