The real estate market in Serbia has seen significant growth, especially after the Covid-19 pandemic and the ongoing situation in Ukraine. While these global events have caused immense human suffering, they have also had a substantial impact on the real estate sector in Serbia, attracting many foreign investors. Factors such as migration from Russia and Ukraine, favorable investment conditions, low taxes, and growth in major cities like Belgrade and Novi Sad have led to an increase in property sales.

One key question arises: Can foreign individuals and companies acquire property in Serbia under the same conditions as Serbian citizens? The answer is complex. In many cases, foreign citizens enjoy similar rights to Serbian citizens, but there are specific legal restrictions.

The Law on Property Ownership outlines the conditions for foreign citizens to acquire real estate, which can be through legal transactions during their lifetime (e.g., sale, gift) or after death (e.g., inheritance). A key requirement is the principle of reciprocity, which can either be contractual or factual.

• Contractual Reciprocity: Serbia has bilateral agreements with some countries (e.g., Russia, UAE, Ukraine, USA, Canada) allowing foreign citizens from these countries to acquire property.
• Factual Reciprocity: For countries without specific agreements, foreign citizens can still buy property in Serbia if Serbian citizens are allowed to acquire property in the foreign country on similar terms. This must be confirmed for each individual case by the Ministry of Justice.

Foreign citizens can also acquire property through inheritance under the same conditions as Serbian citizens, without needing a specific agreement. Reciprocity is presumed, meaning foreign citizens can inherit property unless proven otherwise.

Additionally, foreign citizens can buy property in Serbia based on their professional activities:

• Foreign citizens working in Serbia can purchase property necessary for their business, including residential, commercial, and industrial properties.
• Foreign citizens not working in Serbia can only purchase apartments, houses, or buildings, but not land, unless it is part of the property.

Foreign legal entities can also acquire property, but the requirements are stricter. They must either have a company in Serbia or conduct professional activities in the country. Unlike individuals, foreign companies can purchase land.

The main restriction concerns agricultural land, which cannot be owned by foreign citizens or entities under any circumstances. However, foreign investors can work around this by creating Special Purpose Vehicles (SPVs) or acquiring local companies that already own agricultural land.

In conclusion, while the process for foreign individuals and legal entities to acquire property in Serbia is generally open, it is subject to specific conditions based on reciprocity, type of property, and professional activities.

For detailed information regarding the acquisition of real estates in Serbia and full legal assistance in that matter, feel free to contact our attorneys at law Uroš Đorđević (uros.djordjevic@zslaw.rs) and Srđan Zerdo (srdjan.zerdo@zslaw.rs).