Guide to Property Taxes in Serbia
Effective Tax Rate on Rental Income |
|||
| Monthly Income | €1,500 | €6,000 | €12,000 |
| Tax Rate | 20.0% | 20.0% | 20.0% |
Nonresidents are taxed on their income from Serbian sources. Married couples are taxed separately.
Rental Income Tax
Rental income earned by nonresidents are taxed at a flat rate of 20%. Income-generating expenses are deductible when computing for the taxable income.
Capital Gains
Capital gains realized by nonresidents from the sale of Serbian property are taxed at a flat rate of 15%. The taxable gain is the selling price less the acquisition price.
Transfers of property that has been held for more than 10 years is exempt from capital gains tax.
Corporate Taxation
Non-residents are only taxed on their income sourced from a permanent establishment on Serbian territory. The corporate tax rate is 15%. Additionally, a 20% withholding tax is levied on dividends/royalties/profits on shares.
Property Buying Costs and Taxes in Serbia
Transaction Costs |
||
| Who Pays? | ||
| Real Estate Agent's Fee |
2% 2% |
buyer seller |
| Notary Fee | 0.1% - 0.5% | buyer |
| Legal Costs | 1%-3% | buyer |
| Transfer tax | 2.5% | buyer |
| Costs paid by buyer | 5.6% - 8% | |
| Costs paid by seller |
2% |
|
| ROUNDTRIP TRANSACTION COSTS | 7.6% - 10% | |
Real Estate Tax
Property tax is levied on the property value at a maximum rate of 0.40%. Property tax in Serbia is paid by the individual owner of the property or property rights.