Real Estate Due Diligence in Serbia in 2025

Buying real estate in Serbia in 2025 continues to be an attractive option for both domestic and foreign investors. With increasing demand in major urban areas such as Belgrade and Novi Sad, the Serbian property market offers promising opportunities. However, it also requires careful legal navigation. One of the most important aspects of any real estate transaction in Serbia is due diligence.

Due diligence refers to the process of verifying the legal, factual, and administrative status of a property before finalising a purchase. It serves as a safeguard, ensuring not only that the property is legally transferable, but also that the buyer understands the ownership structure, any encumbrances or risks, and the specific legal environment in which the property exists.

In Serbia, real estate due diligence is typically conducted by attorneys specialising in real estate, contract, and corporate law. Their role is central to ensuring a smooth and legally secure transaction, particularly where the property is owned by a legal entity or forms part of a larger development project.

What Does Due Diligence Involve?

At its core, real estate due diligence in Serbia aims to confirm that the property has a clear title, is properly registered in the Real Estate Cadastre, and is not subject to legal disputes or encumbered by mortgages, liens, or unresolved ownership issues. It also includes reviewing construction and usage permits, confirming compliance with zoning regulations, and verifying the legal capacity of the seller—whether a natural person or a legal entity.

The process is particularly important for foreign buyers who may be unfamiliar with the Serbian legal system or public registries. A properly conducted due diligence review can prevent future legal complications and, in some cases, uncover hidden liabilities or irregularities that might otherwise go unnoticed.

Legal Documentation: What Is Reviewed?

The scope of documentation reviewed during due diligence depends on whether the seller is a natural person or a legal entity (including companies and entrepreneurs). Transactions involving legal entities are generally more complex and require a deeper examination of corporate documentation, shareholder structures, and internal decision-making authority.

For natural-person sellers, key personal identification and ownership documents must be reviewed. These typically include identification documents, proof of ownership, and an extract from the Real Estate Cadastre. It is also essential to determine whether the property constitutes separate (personal) property or marital property acquired during marriage. Clarifying this distinction at the outset helps prevent potential disputes, ensures that all required consents are obtained, and provides legal certainty that the transaction is being carried out by the authorised party. In practice, this step often reveals issues that might otherwise surface later in the process—sometimes too late—making it a critical element of thorough due diligence.

Where the seller is a legal entity, additional corporate documentation must be examined. This includes the act of incorporation, share transfer agreements, and records of any encumbrances or restrictions affecting the company’s shares. The authority of the managing director must also be verified, including any limitations on their power of representation imposed by shareholders or other corporate bodies. These checks are essential to confirm that the company can legally sell the property without risk of subsequent challenge.

Corporate Structure and Real Estate Ownership

If the seller is a company, the due diligence process must extend into corporate law. The legal team must confirm that the company is in good standing with the Serbian Business Registers Agency and that it holds legal title to the property being sold.

It is equally important to verify that the managing director or authorised representative has the authority to execute the sale and purchase agreement and that all required internal approvals—such as shareholder or board resolutions—have been adopted in accordance with the company’s founding documents.

In some cases, company shares may be pledged or subject to legal disputes, which can indirectly affect the real estate transaction. Due diligence therefore includes verifying whether the company’s shares are encumbered, as well as reviewing the company’s broader legal and financial status, including ongoing litigation, insolvency proceedings, or tax liabilities that could impact the transaction or future ownership.

Role of Powers of Attorney in the Process

In many real estate transactions involving international or remote buyers, legal representation through Powers of Attorney (POAs) is a practical necessity. This allows Serbian attorneys to conduct due diligence, liaise with public authorities, and complete the transaction on the buyer’s behalf.

POAs and other documents issued abroad must be properly drafted and executed to be legally recognised by Serbian authorities, including notaries public and other state institutions. In practice, attorneys usually prepare POAs in accordance with Serbian legal requirements and provide them to the parties for execution, simplifying the process for foreign clients.

At this stage, it is crucial that the POA is correctly legalised and translated into Serbian to ensure its legal validity and effectiveness within the Serbian legal system.

Agreement Drafting and Verification of Technical Documentation

Once ownership and legal checks have been completed, the process moves into the contract-drafting phase. The attorney prepares the sale and purchase agreement based on all collected information, including a review of project-technical documentation, construction permits, occupancy permits, and other records confirming that the property was lawfully built and properly registered in the Real Estate Cadastre.

The agreement must clearly define the subject matter of the sale, the purchase price, payment terms, deadlines, seller warranties, and all other essential provisions designed to protect the interests of both buyer and seller.

The Role of the Notary Public

The sale and purchase agreement must be notarised before a public notary, who plays a central role in securing the legality of real estate transactions in Serbia. The notary verifies the identity and authority of the parties, reviews powers of attorney and supporting documentation, explains the contractual provisions, and ensures compliance with Serbian law.

If foreign nationals are present at signing, a certified court interpreter must attend to ensure full understanding of the agreement. This stage also includes the assessment of tax obligations—most commonly the tax on the transfer of absolute rights (for “old” properties) or VAT (for purchases from investors)—as well as property tax liabilities that transfer to the buyer upon acquisition. The notary then solemnises the agreement, granting it full legal effect.

Payment and Registration with the Cadastre

Following notarisation, the purchase price is paid in accordance with the agreement, after which the documentation is submitted to the Cadastre. Foreign sellers are required to open non-resident bank accounts in Serbia to comply with domestic banking and foreign-exchange regulations. The agreement specifies payment timelines, payment methods, and the procedure for providing proof of transfer.

Once payment is completed, the notary electronically submits the contract and supporting documents to the Republic Geodetic Authority, initiating the registration of the new owner. Owing to the digitalised system, the process is faster and more transparent, and neither party is required to attend the Cadastre in person.

This stage typically marks the completion of due diligence for completed (“old”) properties. New-build transactions, however, often involve additional stages, usually structured as:

• a reservation agreement,
• a preliminary agreement, and
• a final sale and purchase agreement.

New Construction vs. Old Construction: Key Differences

Due diligence requirements differ significantly depending on whether the property is a new build or an older structure.

New construction properties often involve first-time registration in the Real Estate Cadastre and are commonly owned by investor companies, introducing additional corporate and legal considerations. Older properties are usually registered to natural persons, which can simplify ownership verification.

New builds may appear in the Cadastre as “under construction”, requiring careful scrutiny, while older properties are typically fully registered. New construction also requires detailed review of location, building, and usage permits. Occupancy permits are particularly critical and must be issued before final completion of the transaction.

From a tax perspective, new constructions are generally subject to VAT (typically 10% for residential units and 20% for garages), whereas older properties are usually subject to tax on the transfer of absolute rights (typically 2.5% of the purchase price).

Legal risk tends to be higher with new builds—especially where construction is incomplete or documentation is deficient—while older properties generally present lower risk where documentation is complete and well maintained.

How Information Is Verified

Legal teams rely on several public registries when conducting due diligence. The Real Estate Cadastre is the primary source of information on ownership and encumbrances, while the Serbian Business Registers Agency provides corporate data for company-owned properties. The Tax Authority is consulted to confirm the absence of outstanding tax liabilities.

All information is cross-checked for accuracy and consistency. Where discrepancies arise, transactions are typically paused until legal certainty is achieved.

Why Legal Support Matters

Purchasing property in Serbia—particularly for foreign buyers—can be complex due to language barriers, administrative requirements, and procedural risks. Engaging an experienced local attorney ensures that the transaction is carried out smoothly, lawfully, and with full legal certainty.

From document verification and authority checks to notarisation and registration, Serbian real estate attorneys play a vital role in protecting buyers’ interests. Acting under a special Power of Attorney, they can even complete the transaction and registration on the buyer’s behalf.

Whether purchasing a newly built apartment in central Belgrade or acquiring an older commercial property in Novi Sad, due diligence is not merely a formality—it is the foundation of a secure and successful real estate investment in Serbia.

By Zunic Law, Serbia, a Transatlantic Law International Affiliated Firm. 

For further information or for any assistance please contact serbia@transatlanticlaw.com

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