Right of foreign citizens to buy properties and to acquire ownership rights on immovables in the Republic of Serbia

Right of Foreign citizens to Acquire Ownership of Immovables in Serbia

The rights of foreign natural and legal persons to acquire ownership of immovables in Serbia, either through legal transactions inter vivos (e.g., purchase and sale agreements, deeds of gift, life care contracts) or mortis causa (inheritance), are governed by the Law on Basis of Ownership and Proprietary Relations (“Official Gazette of SFRY”, Nos. 6/80 and 36/90; “Official Gazette of SRY”, No. 29/96; “Official Gazette of RS”, No. 115/2005 – hereinafter: the “Law”).

General Rules for Foreign Ownership

1. Ownership Rights for Foreign Persons Engaged in Serbia:
   Foreign natural and legal persons conducting activities in Serbia may, under terms of reciprocity, acquire ownership of immovables necessary for conducting those activities.

2. Ownership Rights for Foreign Persons Not Engaged in Serbia:
   Foreign natural and legal persons not conducting activities in Serbia may, under terms of reciprocity, acquire ownership of apartments in residential buildings under the same conditions as Serbian citizens.

Reciprocity Requirement

The Law does not explicitly define the conditions for reciprocity. However, it is generally understood that contractual reciprocity (diplomatic agreements) is not required. Instead, factual reciprocity suffices, meaning:

• The foreign country’s legislation allows Serbian citizens to acquire immovables under conditions no more restrictive than those in Serbian law.
• Serbian citizens are allowed, in practice, to acquire immovables in the foreign country.

For legal transactions inter vivos, Serbia has established reciprocity with countries such as:

• Contractual Reciprocity: Great Britain, United States, the Kingdom of the Netherlands, and Japan.
• Factual Reciprocity: Countries including Israel, Italy, Germany, Canada, France, Spain, and many others (a comprehensive list is available from the Ministry of Justice).

If a country is not listed, the Ministry of Justice should be consulted to verify reciprocity.

Restrictions on Agricultural Land

Ownership of agricultural land by foreign natural or legal persons is explicitly prohibited under Article 1 of the Law on Agricultural Land (“Official Gazette of RS”, Nos. 62/2006, 65/2008, 41/2009, 112/2015, 80/2017). Exceptions apply only to citizens of European Union member states, who may acquire up to 2 hectares under specific conditions:

• Permanent residence in Serbia for at least 10 years within the local self-government area where the transaction occurs.
• Cultivation of the land for at least 3 years prior to the transaction.
• Registered agricultural status for at least 10 continuous years.
• Ownership of machinery and equipment for agricultural production.

Exclusions:

• Land designated for construction, protected natural resources, or near military zones and facilities.
• Agricultural land within 10 km of Serbia’s state borders.

Inheritance of Immovables

Foreign natural persons may inherit immovables in Serbia under the same conditions as Serbian citizens, subject to reciprocity. Where contractual reciprocity does not exist, long-standing practice presumes factual reciprocity, allowing foreign citizens to inherit immovables unless evidence to the contrary is provided.

Attorney at Law Stefan Mojsić

Disclaimer:
The information provided herein is for general informational purposes only and does not constitute legal advice. Law Firm Petrovic Mojsic & Partners disclaims all responsibility and liability for actions taken or not taken based on this content.