Property tax of natural persons in Serbia

The legislation od the Republic of Serbia stipulates that property tax is an obligation of natural persons (residents and non-residents) owning real estate within the territory of the Republic of Serbia, the value of which exceeds 400,000 dinars and is not excluded from tax payment.

Property tax is payed on the following real estate rights:

– ownership right

– housing right

– the right to rent an apartment or dwelling unit for a period that is longer than one year

– the right to rent public building land i.e. state-owned agricultural land, with the surface area exceeding 10 ares.

Tax Base

Property tax base is the value stipulated by a local governing body in charge of determining, collecting and controlling the own source revenues of a local government unit. Apart from land, the value of real estate is reduced by amortization at 1% annual rate using linear calculation method, up to 40%, starting from the end of each calendar year in respect of the year when construction i.e. the last facility reconstruction was completed, based on the decision on the amount of the amortization rate that is effective on December 15 of the year preceding the year for which the property tax is determined, issued by the assembly of a local government unit and published in compliance with this law.

If the assembly of a local government unit does not determine the amortization rate amount, if it does not determine the amount in compliance with this law or determines it but does not publish it in compliance with the law, the property value is not reduced by amortization at the moment of property tax determination.

The property value is determined by applying the following elements:

1) usable area

2) an average price per square meter of the relevant real estate in the real estate zone.

              The property tax liability is incurred on one of the following days that comes the first:

– on the right acquisition date

– on vesting date

– on exploitation permit issuance date

– on the day when it becomes possible to use the property in another way.

Property tax assessment is issued by a local government unit based on PPI-2 tax report data. Property tax payers shall submit this tax report to a competent tax authority within 30 days for:

– the real estate on which the tax is incurred

– the real estate in terms of which the tax liability lapses

– the real estate in terms of which the tax exemption right has lapsed

– a facility with modified usable area.

Taxpayers shall pay input tax (equal to the amount payed in the last quarter of the previous calendar year) until a tax assessment is issued by a competent authority.