Real Estate in Serbia: Residency, Capital Gains, and Investment Insights

Serbia’s real estate market is becoming increasingly attractive for foreigners and returning Serbs alike. From the charming villages in Vojvodina to modern apartments in Novi Sad and Belgrade, property prices remain affordable compared to Western Europe, Canada, or the U.S.

Many of our clients from Canada, Australia, the United States, and across Europe are returning to Serbia after decades abroad—often through citizenship by descent. Real estate is a powerful way for them to re-establish roots while investing in a growing market.

One of the most straightforward pathways to obtain temporary or permanent residency in Serbia is by purchasing residential property. To qualify:

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  The property must be legally categorized as residential.

  
  


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  It must be deemed habitable, with functioning utilities.

  
  


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  Agricultural land does not qualify unless you're a citizen.
  
  

  
  

Yes, even properties in villages can qualify—so long as they are safe and meet the residential criteria.

💡 Pro Tip: You cannot purchase agricultural property as a foreigner unless you’re a Serbian citizen.

If you're planning to invest in Serbian real estate, it’s crucial to understand how capital gains tax works. Here's the breakdown:

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  Capital gains tax is 15% of the profit made when you sell a property.

  
  


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  It applies to the difference between the purchase price and the sale price.

This is where Serbia shines.

✅ If you own your property for 10 years or more as an individual, you are completely exempt from capital gains tax when you sell.

Example:

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  You buy a property for €100,000.

  
  


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  You sell it 5 years later for €150,000.

  
  


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  You owe 15% tax on the €50,000 profit = €7,500.

  
  


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  But if you hold that property for 10+ years, you pay €0 in capital gains tax.

To benefit from this tax break, you must:

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  Be a Serbian tax resident (temporary, permanent, or citizen).

  
  


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  Maintain that residency for the 10-year holding period.
  
  

  
  

⚠️ Warning: If you purchase a home in Serbia but live elsewhere for 10 years, you’ll still be liable for the tax.

If a company owns the property, even for 10 years, capital gains tax still applies. The exemption only applies to individual owners.

So if you’re buying for personal use or retirement, buy in your personal name, not through a business.

Inherited or gifted properties can also qualify for exemption. The 10-year holding period starts from the original acquisition date of the person who gave you the property. This is an important strategy for Serbian families planning long-term wealth preservation.

When you do decide to sell, you must:

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  File a tax return within 30 days of the sale.

  
  


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  Provide documents proving the purchase date and purchase price.

  
  


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  Show evidence of your residency status over the holding period.

  
  

📁 Tip: Keep digital copies of all documents in the cloud (purchase contracts, tax receipts, proof of residency). This avoids any issues with missing paperwork down the road.

If you’re a foreign buyer, here’s what to keep in mind:

✅ Primary Residence: The tax exemption only applies if the property was your main residence—not a rental or Airbnb.

✅ Business Ownership Doesn’t Qualify: If your company owns the property, you’re still taxed.

✅ Residency Is Key: Serbia wants you to actually live here. Residency status matters when it comes to taxes.

✅ Ask Before You Sell: Consult with experts (like us!) to understand your obligations before you list your property.

Real estate in Serbia offers a powerful opportunity: low entry costs, a path to residency, and long-term tax advantages. Whether you're:

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  Retiring in a peaceful Balkan village,

  
  


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  Returning to your homeland,

  
  


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  Or starting a business in Belgrade—
  
  ...Serbia has something to offer.
  
  

  
  

Just be aware: Serbia rewards long-term commitment. If you plan to flip homes, you’ll pay taxes. But if you plan to build a life here, the system supports you.

📩 Get a consultation today and learn how we can assist you with residency, business setup, and real estate investments in Serbia.

🚀 Visit us at RelocationSerbia.com to learn more!