At its 26th session on January 21, 2021, the Government of the Republic of Serbia, in accordance with the Law on Restitution of Confiscated Property and Compensation (“Official Gazette of the RS”, Nos. 72/11, 108/13, 142/14, 88/15 - US, 95/18, 153/20), adopted a decision to set the compensation coefficient at 0.15, as proposed by the Ministry of Finance.

The Agency for Restitution determines whether an applicant is entitled to the return of confiscated property or compensation. Under the Law, applicants may receive restitution in kind (return of property) if it is in public (state) ownership. If the property cannot be returned in kind, applicants are entitled to monetary compensation.

The compensation amount is calculated by multiplying the market value of the property, as determined by the final decision of the Agency for Restitution, by the 0.15 coefficient. For example, if the property’s market value is €100,000, the compensation would be €15,000. However, the total compensation cannot exceed €500,000.

Compensation will be paid by the Republic of Serbia through bonds denominated in euros. A cash advance of up to 10%, not exceeding €10,000, will be paid upfront, with the remainder paid in bonds.

The bonds will be issued in intangible form, transferable, and will mature annually on January 15, starting the year after the advance payment, over a period of 12 years. For individuals over 70 at the time the law was enacted (2011), bonds will be issued within 5 years. For those over 65, bonds will be issued over the next 10 years.

If you have any questions regarding the above, please contact lawyer Srdjan Zerdo (srdjan.zerdo@zslaw.rs).