Useful information

WHAT IS THE SALES TAX AND WHO PAYS IT?

  • The sales tax (the tax on transfer of the absolute rights) amounts 2.5% of the appraised value of the property by the competent Republican Public Revenue - Tax Department of the Municipality where the property is located. Seller has the legal obligation to pay this tax, but the perennial common practice arranges possibility that the Buyer pays the same on behalf of the Seller, so the Buyer has absolute protection that tax will be paid.

WHETHER IS PURCHASE OF RESIDENTAL PROPERTY FREED FROM PAYING THE SALES TAX?

  • Yes! If you do not own property in the territory of Serbia from 01.07.2006. You are freed from paying sales tax for the property size up to 40 square meters. If purchased property has more than 40 square meters, you pay sales tax only for the difference in quadrature. In addition, there is exemption from paying sales tax for additional 15 square meters to each member of the family household who does not own any property and lives with you in the same household.

WHAT IS THE LEGAL DEADLINE FOR REGISTRATION OF THE SALES TAX?

  • The legal deadline for the registration of sales tax payment is 30 days after the certification of the purchase contract with the competent Republican Public Revenue - Tax Department of the Municipality where the property is located.
  • In addition, the Seller is obligated to submit the preliminary base of the ownership - the copy of the meaning contract with the tax clause – the seal of the Republican Public Revenue.
  • After receiving the decision about the tax, the taxpayer has 15 days from the date of the decision to pay the required fee and submit the proof to the Republican Public Revenue, so the clause - the seal about regulated Sales Tax could be put on all copies.

HOW TO SELL AND BUY AT THE SAME TIME?

  • Absolutely the most common question sent to us intermediaries!
  • The fact is that 90% of cases are associated trades – which means that to buy another immobility someone first must to sell the one in which he lives. In that process security, protection and synchronization of the entire work are key.
  • The first step is the sale of the property, which begins with the signing of the Preliminary Contract and receiving down payment (usually in the amount of 10%). In the Preliminary Contract, that provides maximum legal protection to both parties in the sales process, is defined the date - the deadline for the payment of the full purchase price, which is followed by the transfer of immovable property. This deadline is not defined in the Act, but the Parties jointly agree (usually 45-60 days from the date of signing of the Preliminary Contract). In the Preliminary Contract regarding the date stands formulation - no later than, and if there are conditions that payment is earlier, there is no obstacle.
  • The second step brings more joy - selection of the new property. With clearly defined parameters and actual requirements, and of course whit an experienced agent, this step should not be a problem, especially given the number of real estate which are for sale in Belgrade. With given data about specific location, and the requirements about the floor and heating, as well as the degree of orderliness, the real estate agent or manager of the Elite Real Estate agency will show you in the short term a large number of high-quality real estate from their own offer. After ten days of high-quality viewing, every ex Seller should already has chosen a property to buy, and as Buyer has signed a Preliminary Contract for the purchase with the same date of payment and transfer that appears on a Preliminary Contract of sale
  • Due to the specifics of this type of trade, you are advised to entrust the whole business of buying and selling to the one agency that would take over the responsibility of harmonizing deadlines, payment of the purchase price and entering property and a number of other supporting actions that are related to a sale.

HOW TO SELL THE APARTMENT/ HOUSE/ SHOP/ PLOT?

Easy, at the right place!

  • Click on SUBMIT YOUR PROPERTY and fill in basic information about your estate and send them to us, or contact the agency by phone: + 381 (0) 63 8211 760, +381 (0) 60 6689 686 or +381 (0) 11 2456 558
  • In a very short time you will be contacted by our experienced agent, and you will be scheduled for a meeting in order to realistically evaluate position of your immobility in the market. Agent shall make control of your documents, point out anything that is incomplete, and explain to you how to eliminate it. Then you will agree on the terms of the sale, advertising process and the presentation to the potential customers.
  • Sales can begin!

HOW TO BUY APARTMENT/ HOUSE/ SHOP /PLOT?

  • Go back to the most comprehensive search engine for real estate in Belgrade!
  • Of course it is internet presentation of the ELTENEKRETNINE.RS !
  • Enter basic information in the questionnaire and the computer will throw out the entire selection with the specified parameters. Once you contact us, as soon as possible we will invite our agents and sales managers in charge of real estate you have chosen to make an appointment for the viewing.
  • If you do not want all this yourself that you do contact us by phone + 381 (0) 63 8211 760, +381 (0) 60 6689 686 or +381 (0) 11 2456 558 and we will do it for you.

DO FOREIGN CITIZENS CAN BUY REAL ESTATE IN SERBIA?

  • Foreign nationals can buy real estate in Serbia by the principle of reciprocity of their country with Serbia. In relation with this legal issue, in case that there is no reciprocity, the approval of the Ministry of Justice must be asked for. The process of getting approval takes about 30 days. Reciprocity exists with almost all countries of European Union, America, Canada, Australia, China, Russia, and 50 countries.

HOW TO TRANSFER THE RIGHT TO USE A TELEPHONE, ELECTRICITY AND UTILITY SERVISES

1) THE TRANSFER OF RIGHTS TO USE THE PHONE CONNECTION

  • Telephone service company rights are transferred from the Buyer to the Seller with the agreement on the property, and mutual and simultaneous departure of the Buyer and the Seller to the company, where the Buyer submits a request to change the name of user connection, and the Seller requires to check-out and relocation to a new address. It is important to bring a copy of the sale Contract of the real estate and a photocopy of identity card for both, the Seller and the Buyer.

2) THE TRANSFER OF RIGHTS TO USE THE ELECTRICITY METER

  • The transfer of rights to use electricity meter performs Buyer, by going to the relevant service of the company Belgrade Electric Power with a copy of the sale Contract of the real estate and the last paid bill for electricity. Depending on the municipality where the property is located, company's offices are located in the Masarikova or Požeska Street.

3) THE TRANSFER OF RIGHTS ON THE USE OF THE UTILITY SERVISES

  • Transfer of utilities, performs Buyer by going into the relevant branch of the company in the municipality in which the property is located, with a copy of the sale Contract of the real estate.

WHAT IS THE DIFFERENCE BETWEEN REGISTERED AND UNREGISTERED OF REAL ESTATE?

  • The difference between registered and unregistered real estate is that, you can put the mortgage or loan stock on the registered property, and the unregistered does not support that possibility, which means that only registered property may be purchased through bank loans and companies. Unregistered apartments does not lose value, nor should be avoided, because the legislator determined that there is no difference between registered and unregistered real estate, and ownership is proved by verification of the purchase agreement in the Court, or other final decision, and by registration of property rights in the land registry or cadastre of real estate.

HOW TO PERFORM THE PAYMENT OF THE PURCHASE PRICE?

  • Payment of the purchase price is done by transfer of money from the Buyer's to the Seller's account at the bank, all in accordance with the Foreign Exchange Act. Choosing a bank is a matter of agreement between Seller and Buyer. Sellers have no reason for any fear, because the money can be picked up immediately, and the bank verifies the correctness of money and gives a guarantee for its correctness. The entire transfer process with the opening of foreign currency accounts takes about 30 minutes. Transfer fees are paid by the buyer, and they vary from bank to bank, but the amounts are 1000-8000 RSD.

HOW TO REGISTER IMMOVABLE PROPERTY?

  • First, it is necessary that the building it self where the immovable property is located, be recorded and plotted, as well as that there are final construction and use permits on behalf of investors who built the building in question, and a certified original copy of the Contract, for the current owner to prove his ownership. This means that if there is no knowledge as to whether the property that is the subject of the Purchase Contract is registered or not, the first step is to check the land registry - the real estate cadastre.
  • If immobility isn't registered, the question is why? If entire building isn't registered, for example, first it's necessary to register the building, what should be the obligation of the investor, or the one who gave the apartments to purchase. It is impossible to expect that the property owner has documentation that precedes the purchase, especially if we are talking about old buildings 30, 40, 50 years, and which are still, due to the inefficiency of certain municipalities, company-investor, or the holder of the right to use, are not registered. It is certainly that for registering, and if all of conditions are fulfilled, it is necessary to make the request with all required attachments and the proof of payment of the fees for registration.

WHAT IS a CAPITAL GAIN?

  • Capital gain is the difference between bought and sold real estate value, and that under the law is 15%. Liable to capital gains are persons who have acquired immovable property in the last 10 years. So, everyone whose real estate was acquired for any reason before the deadline, is not liable to capital gains.
  • Exemption from capital gain becomes possible by purchasing other real estate that solves the housing problem and to do so within 90 days of the sale of the property.

WHAT IS REQUIRED OF DOCUMENTS FOR SALE OF REAL ESTATE?

  • Before someone starts the process of selling the property, first must be legitimized as the Seller.
  • The seller proves his ownership on the basis of legally valid documents, which must be originals, certified by a competent court, with clauses from Republican Public Revenue of competent Municipality that regulates tax on absolute rights. It is necessary to have a new certificate from a land book, respectively, a copy of immovable property. If real estate is not registered, it is necessary to have complete documentation, starting from the first to the current owner, the originals, all certified, and stamped by Republican Public Revenue of competent Municipality for the paid tax on transfer of absolute rights. So, there needs to be a legal trail from the first owner to this day, at the moment when there are the conditions, the Buyer or the property owner can register the property on their behalf.

WHAT ARE THE OBLIGATIONS OF THE SELLER?

  • From the moment of the conclusion of the Preliminary Contract, Seller is required to receive the entire purchase price in the manner and within the deadlines agreed with the Buyer.
  • Until the moment of the conclusion of the Purchase Agreement, the Seller is obliged to fulfil all obligations arising from postal services, electricity services, utilities, property taxes. On the day of signing the Purchase Agreement, the Seller is obliged to deliver the utility bill as of the previous month, Certificate from Republican Public Revenue by competent Municipality that has settled all liabilities arising from the property tax, last electricity bill, the last phone bill.
  • The seller is also obliged, at the time of conclusion of the Contract to hand over the keys of the subject real estate, cleared out from persons and things, with standard equipment. Seller's obligation is also to submit a copy of the birth certificate and court certified statements of the spouse, or others of which it may be requested, depending on the specific case, as well as to amend the documents to prove his ownership, if necessary.

WHAT ARE THE OBLIGATIONS OF THE BUYER?

  • Buyer is obliged to pay the entire purchase price in the manner and within the deadlines agreed with the Seller.
  • It is common that during the conclusion of the preliminary contract, the Buyer pays 10% of the agreed purchase price on behalf of down payment, and the rest in the agreed time transfers to the foreign currency account of the Buyer from the foreign currency account of the Seller, all in accordance with the Foreign Exchange Act. The Buyer is obliged to pay the brokerage commission, the court fee for the certification of agreements, contracts, or the Annex, transfer in authorized bank, the tax on transfer of the absolute rights and fees for the transfer of the subscription rights (telephone, electricity, ...), as well as the fee for the registration of real estate on their behalf if conditions are fulfilled for it.

HOW TO PERFORM THE TAKEOVER OF REAL ESTATE?

  • The handover of immovable property and entering the possession is a process that goes through several phases:
  • Checking whether the real estate is released of things and persons before signing and verification of the purchase contract ;
  • Certification of the Sale Contract in the Court;
  • Payment of the purchase price in the bank;
  • The arrival to the purchased property and handing over the keys.

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