Clearing Up Confusion Around Property Purchases and Tax Refunds for Expats in Serbia

One of the most popular ways for expats to obtain Serbian residency is through purchasing real estate. However, there are misconceptions about tax refunds, particularly the PDV refund, which is a value-added tax refund available under certain conditions.

If you're coming to Serbia as a foreigner or tourist without any citizenship ties, the general rule is that you will be required to pay the PDV on the property purchase. This tax applies unless you have a connection to Serbia, such as obtaining citizenship through descent.

At Relocation Serbia, we’ve helped many clients navigate this process, especially those with Serbian ancestry who can apply for citizenship through descent. Once you become a Serbian citizen, you may qualify for a PDV refund on your real estate purchase.

The PDV refund for real estate purchases is one of the easiest ways to reduce the overall cost of your property purchase, but it only applies to Serbian citizens. Here's what you need to know:

• First Property Purchase: The PDV refund is available only on the first property you purchase in Serbia as a citizen. If you purchase property before becoming a citizen, you will not be eligible for the refund once you do obtain citizenship.
  
  

• Refund Limits: If you're buying an apartment, for example, as a Serbian citizen, you can write off the PDV for up to 40 square meters. If you add a second citizen (like your child), you may transfer the remaining refund to them for an additional 10 square meters.
  
  

• New Construction: The PDV refund is primarily available for newly constructed residential properties purchased directly from developers.
  
  

It’s important to note that the refund isn’t automatic after your property purchase. It involves a formal application process through the Serbian Tax Administration, something we can assist you with to ensure a smooth and efficient experience.

If you're looking to establish a business in Serbia, you may be eligible for a 20% VAT refund on commercial property purchases, even if you're not a Serbian citizen. This applies to foreign individuals or companies purchasing commercial real estate (offices, retail spaces, industrial properties) for business use.

If you're planning to make renovations or improvements to your commercial property, you can also qualify for a VAT refund, as long as the improvements meet the criteria. Relocation Serbia works with experienced legal professionals to help you navigate this process and ensure you get the most out of your investments.

In addition to real estate assistance, we offer comprehensive services to facilitate your entire relocation journey. From helping you open a Serbian business bank account to guiding you through the Serbian residency application process, our team of Serbia relocation experts is here to ensure you have the support you need every step of the way.

We help you set up businesses in Serbia, navigate Serbian real estate services, and provide moving assistance in Serbia for both individuals and families. Whether you're interested in relocating your family to Serbia or purchasing your dream property, we provide personalized solutions tailored to your needs.

At Relocation Serbia, we believe that a successful move to Serbia requires more than just a property purchase. We offer full relocation support, including:

• Serbia relocation assistance and moving services to help you settle into your new home with ease.
  
  
• Serbian legal services to help with residency, work permits, and other legal aspects of your relocation.
  
  
• Serbia visa applications and advice on Serbian citizenship programs for those who qualify through descent or naturalization.
  
  

Whether you’re purchasing real estate, setting up a business, or just need help settling in, we are your trusted Serbia relocation agency to guide you through the complexities of relocating to Serbia.

At Relocation Serbia, our goal is to simplify your move to Serbia and ensure you have all the information you need for a smooth transition. We assist with property purchases, business setup, Serbian residency applications, and much more. If you're looking to relocate to Serbia, buy property in Serbia, or need moving assistance, reach out to us for professional support every step of the way.

Visit our website, fill out our form, and let us help you start your new life in Serbia with confidence.

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