Can I sell or buy real estate in Serbia without coming from abroad?
Yes, you can. If you live abroad and plan to sell or buy real estate in Serbia, it is important to know that your physical presence in the country is not necessary. All legal actions can be done through a proxy, which saves time and money. Sometimes people think that it is enough to send the signed contract and other documentation to the public notary in Serbia, however, you must have a personal representative at the notary when notarizing the purchase agreement.
What is the procedure for selling or buying real estate from abroad?
Your attorney must submit a power of attorney to the public notary in Serbia (it is recommended that he be a lawyer) by which you authorize him to conclude a contract for the sale or purchase of real estate on your behalf and for your account. Your signature on the power of attorney must be notarized either at the diplomatic and consular representation of Serbia in the country where you live or at a foreign notary. It is more practical and cheaper to have the notarization done at a diplomatic-consular representation because in that case there is no question of legalization of the foreign document, and no translation by an authorized translator is required.
What can you authorize a proxy to do?
– Signing of the purchase agreement
– Receipt of the purchase price in cash or on account
– Opening a bank account in your name
– Ordering the bank to pay the purchase price to the seller from your account
– Submitting tax returns and paying taxes
It is important that the power of attorney be precisely formulated and that it contains all the necessary data about the real estate and the actions to which the power of attorney is authorized.
Certification of the contract and registration of the change of owner
For legal validity, the contract must be certified by a notary public in Serbia. An attorney can attend the notarization on your behalf.
Certification of registration permit
In order for the buyer to be able to register the real estate in the cadastre, it is necessary to have the so-called permission for registration (clausula intabulandi) from the seller, and in this sense it is necessary that the seller’s attorney is expressly authorized to issue this clause. The registration permit can be contained in the sales contract itself, or it can be given separately, in which case it is notarized separately.
How is money transferred from abroad for the purchase of real estate?
It is best to open a foreign currency account in Serbia and transfer funds to that account. It is recommended to consult with the bank for information on the procedure and time frame of the transfer.
What tax is paid when buying real estate?
A tax on the transfer of absolute rights is payable, which amounts to 2.5% of the contracted price. If a new property is purchased directly from an investor, VAT is paid instead of this tax.
Danilo Babić- lawyer in Novi Sad
