Understanding Property Tax in Serbia: What You Need to Know

January 8, 20240

Who’s Liable for Property Tax? Almost Everyone

The law states that any legal or natural person (resident or non-resident) holding rights, using, or possessing property on Serbian territory valued over 400,000 RSD and not exempt from tax (like churches, diplomatic missions, foundations, etc.) falls under the tax bracket. If a property has multiple owners with undefined shares, each is considered equal for tax purposes.


Property Tax Base: How It’s Calculated

The value of the property, determined by the local government unit responsible for establishing, collecting, and controlling its own revenues, forms the tax base. Except for land, this value can be reduced by depreciation at a rate of up to 1% per year, with a maximum of 40%, based on the decision of the local assembly.


Useful Area Defined:

  1. For land – its total area, including the area under the building.
  2. For a building – the sum of floor areas between the inner sides of the building’s external walls, excluding balconies, terraces, etc.


The Genesis of Tax Obligation

A tax obligation arises on the earliest of several events – acquisition of property rights, establishment of possession, commencement of use, or the issuance of a usage permit.


Property Tax Rates:

  • Up to 0.4% for properties of taxpayers maintaining business records.
  • Up to 0.30% for land belonging to those not maintaining business records.


Tax Calculation Basis:

  1. Up to 10,000,000 RSD – up to 0.40%.
  2. From 10,000,000 to 25,000,000 RSD – tax from the previous point + up to 0.6% on the amount over 10,000,000 RSD, and so on.


Tax Discounts for Residential Property Owners

A 50% discount, up to 20,000 RSD, applies to taxpayers living in the property. Multiple taxpayers of a single property are entitled to a proportional discount.


Tax Payment Deadlines

Property tax is payable in four installments – by the 15th of February, May, August, and November.


The 2019 Innovation: Property Tax Information at Your Fingertips

Since 2019, the Unified Information System of Local Tax Administration has centralized data, allowing citizens and businesses to view all their tax obligations across Serbia and to submit property tax assessments electronically. This is particularly beneficial for legal entities required to repeat this process annually. Since February, e-payment of taxes has also been available on the portal.


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