The Essential Guide to Contracts in Serbia: What Every Foreigner Needs to Know

Serbia’s contractual system is built around clear foundations. While you don't need a law degree to understand them, you do need to know the basics.

Offer and Acceptance

Every contract in Serbia must involve:

• An offer

• An acceptance of that offer

If this part is unclear, the entire agreement becomes shaky.

Clear Subject Matter

Serbian contracts must state exactly what is being agreed to — whether it’s services, real estate, employment, or cooperation between business partners.

Defined Obligations and Responsibilities

This includes:

• What each party must do

• Deadlines

• Payment terms

• Any conditions or limitations

If it isn’t written down, don’t assume it exists.

Intention to Create a Legal Relationship

Informal chats, messages, or handshake deals don’t count. The intention to create a binding agreement must be clear and documented.

Here’s the key rule: Contracts in Serbia must be written in Serbian to be formally valid.

But — and this is where many foreigners get burned — if you sign something you can’t read, you are still legally bound by it.

This is why bilingual contracts (Serbian + English) are essential. They:

• Prevent misunderstandings

• Make sure you know exactly what you’re agreeing to

• Protect you in case of disputes

• Keep everyone on the same page

A bilingual contract costs far less than fixing a legal disaster afterward.

Not all agreements need notarization — but some absolutely do, including:

Real Estate Purchase Agreements

Mandatory notarization.
If it’s not notarized, it’s not valid. Period.

Most Lease Agreements

Notarization strengthens protection for both tenant and landlord, and many landlords require it.

Certain Business Agreements

Especially those involving:

• Property

• High-value commitments

• Company ownership

Notarization ensures your signature is verified and legally enforceable.

Important: Once a document is notarized and signed, it becomes legally binding — even if you didn’t fully understand it. This is why bilingual contracts or a court interpreter are crucial.

1. Business Cooperation Agreements

Common for partnerships, joint ventures, or shared projects.

They should always include:

• Clear deliverables

• Division of responsibilities

• Payment and profit-sharing terms

• Termination rules

Important:
If you do NOT specify duration, Serbian law may treat the agreement as indefinite, making it hard to exit later.

These are widely used in Serbia and must clearly define:

• Scope of work

• Payment schedule

• Deadlines

• Intellectual property ownership

Foreigners often assume IP automatically belongs to the business.
In Serbia, it belongs to the creator unless transferred in writing.

Always specify IP ownership — especially for tech, design, or software projects.

If you’re running a business in Serbia and hiring staff, your employment contracts must include:

• Position and job description

• Salary (always listed in RSD)

• Working hours

• Probation period

• Termination terms

• Rights and obligations of both parties

Trying to disguise employees as “contractors” to avoid taxes is illegal and heavily fined.

About Non-Compete Clauses

Serbia allows them, but only if:

• They are time-limited

• Clearly defined

• The employee is compensated during the restricted period

Foreigners frequently run into problems here.

Lease Agreements Should Include:

• Property address

• Rent amount

• Deposit amount

• Duration

• Termination rules

Commercial leases can be registered in the real estate cadaster for additional protection.

Real Estate Purchases

Must be:

• In Serbian

• Notarized

• Paid through Serbian banks

• Clear about all costs

Taxes include:

• 2.5% real estate transfer tax, or

• 10% VAT for new builds

Common Real Estate Mistakes

• Signing Serbian-only documents

• Going to the notary without a translator

• Not catching abusive clauses (e.g., “late payment increases rent by 50%”)

• Not confirming final price and bank fees

These things happen every day — especially with real estate agencies that do not act in the buyer’s best interest.

Even if you don’t speak Serbian, the contract must be in Serbian to be legally valid.

However, if you can prove you did not understand what you signed, you may challenge it — but this means:

• Going to court

• Hiring lawyers

• Investing time, energy, and money

Most foreigners choose not to fight, which is why precaution is key.

How to Avoid Problems

• Use bilingual contracts

• Bring a court interpreter

• Bring your own lawyer (not the seller’s or agent’s)

• Never sign documents blindly

Protecting yourself upfront is cheaper than undoing damage afterward.

NDAs in Serbia must define:

• What information is confidential

• Duration

• Penalties for breach

Non-compete agreements are valid only when:

• Time-limited

• Reasonable

• The employee is compensated

A strong contract is not just a formality — it’s your protection.

At Relocation Serbia, we:

• Draft customized bilingual agreements

• Ensure compliance with Serbian legal standards

• Handle translations, notarizations, and registrations

• Protect you through every stage of the process

Instead of walking into legal uncertainty, you walk in prepared, informed, and protected.

Serbia is welcoming, friendly, and full of opportunity — but its legal and contractual landscape is not something to take lightly. Understanding how agreements work, using bilingual contracts, involving proper legal support, and ensuring that every clause serves your interests will save you from costly mistakes.

If you're planning to rent, hire, buy property, or start a business in Serbia, make sure your documents are as strong as your ambitions. Protect yourself now so you don’t pay for it later.

If you need help reviewing, drafting, or finalizing your Serbian contracts, book a paid consultation with Relocation Serbia and get professional guidance tailored to your situation.