The National Assembly of the Republic of Serbia, at its session held on November 27, 2020, adopted the Law on Amendments to the Property Taxes Law, published in the "Official Gazette of the Republic of Serbia" No. 144/2020.

Amended Property Tax Law  comes into force on 1 January 2021.

Property taxation in statics

As of January 1, 2021, property tax payers are (in addition to legal entities and individuals) also open-end investment funds, ie alternative investment funds, which:

  • do not have the status of a legal entity,
  • are entered in the appropriate register in accordance with the law, and
  • are the right holders, users or holders (referred to in Article 2 of the Law) on real estate on the territory of the Republic of Serbia on which property tax is paid.

When the subject of taxation is the right of ownership on land and the right to use construction land, which covers an area of over 10 acres, the property taxpayer is each holder of that right in proportion to his share in relation to the total land area, even when the proportionate share of individual taxpayers is smaller of ten acres.

It is defined that public facilities are the facilities intended for public use that can be in all forms of ownership (hospitals, health centers, homes for the elderly, educational facilities, open and closed sports and recreational facilities, cultural facilities, post offices, etc.).

From January 1, 2021, the average prices of 1m2 of appropriate real estate in zones will be determined on the basis of prices realized in the turnover of appropriate real estate by zones in the period from October 1 of the year preceding the current year to September 30 of the current year.

The average price of 1m2 of appropriate real estate in the most equipped, ie the most unequipped zone, in which there was no turnover, and which borders on several zones, is considered to be:

  • in the best equipped zone - the average price of 1 m2 of appropriate real estate in the border zone where the average price of 1 m2 of appropriate real estate is the highest;
  • the most unequipped zone - the average price of 1 m2 of appropriate real estate in the border zone where the average price of 1 m2 of appropriate real estate is the lowest.

When the local self-government unit has not published the average prices within the prescribed period, the property tax base for the real estate of the taxpayer who does not keep business books in the zone for which the average prices of the corresponding real estate have not been published it’s equal to the property tax base of that, ie the corresponding real estate in that zone of the taxpayer who does not keep business books for the current year, for the appropriate usable area.

It shall be considered that the local self-government unit has adopted and published acts regulating the depreciation rate, property tax rates, zones by November 30 of the current year, ie that undeveloped construction land used exclusively for plant cultivation is classified as agricultural or forest land, planting material or forest - if the acts regulating it have been published:

  • by 30 November of the current year, or
  • before the current year, provided that their application is not limited to the current year.

Starting with the tax for 2021, for the purpose of determining the property tax base, auxiliary facilities are classified in the same group with garages.

When the tax base is determined by applying the elements of usable area and the average price of 1m2 of appropriate real estate in the zone, for a building on land or under land that is not the subject, the base is the value of the building.

It is prescribed that the basis is determined (not estimated).

It prescribes what is considered to be the production facilities of the processing industry.

Starting from the tax for 2021, the tax base for all real estate of the taxpayer who keeps business books is the book value in the following cases:

when the local self-government unit does not publish an act by November 30 of the current year determining the average prices of appropriate real estate in the zones, ie the average prices of appropriate real estate on the basis of which the property tax base for real estate is determined for 

  • taxpayers who do not keep business books in the best equipped zone;
  • when there was no real estate turnover in the zone and border zones in the prescribed period, and there is no appropriate type of real estate in the most equipped zone;
  • when the local self-government unit does not publish an act determining the zones and the most equipped zones by November 30 of the current year.

It is prescribed that:

  • the amount of the property tax rate up to the amount prescribed by Article 11 of the Law is determined by the assembly of the local self-government unit by a decision;
  • property tax rates for real estate of taxpayers who keep business books and for land of taxpayers who do not keep business books are proportional and are determined in the same amount for:
  • all types of real estate of the taxpayer who keeps business books, in all zones of the same local self-government unit;
  • all types of land of the taxpayer who does not keep business books, in all zones of the same local self-government unit.

As a condition for obtaining a tax credit (reduction of the determined tax), in addition to the taxpayer's residence, the registered residence of the taxpayer in that house or apartment is prescribed. If the conditions for the reduction of the determined tax on several bases are met for the same house or apartment, the reduction will be performed on one basis which is the most favorable for the taxpayer, ie. a tax credit cannot "grow" into a tax exemption.

Starting from the tax for 2021, the changes that affect the determination of tax to the same taxpayer are:

  • incurrence of tax liability during the year to a taxpayer who did not pay taxes because his base for all real estate was up to 400,000 dinars during the year, after which the tax base in that unit of local self-government is above 400,000 dinars;

change in the usable area of real estate during the tax year (decrease or increase in usable area, given that the construction / demolition of real estate during the year leads to the occurrence / termination of the tax liability).

Tax on inheritance and gift

Starting from January 1, 2021, the subject of taxation has been extended to the inheritance and gift of digital property.

It is prescribed that taxpayers of inheritance and gift taxes are also an open-end investment fund, ie an alternative investment fund, which does not have the status of a legal entity, and which is entered in the appropriate register.

The successor or gift recipient of the second hereditary order realizes tax exemption on one inherited or gift-received apartment, if he lived with the testator or donor in a joint household for at least one year before the death of the testator, ie before receiving the gift.

The successor, ie the recipient of special passenger vehicles for the training of candidates for drivers with built-in double foot controls, as well as passenger vehicles for taxis and "rent a car" which are specially marked, receives tax exemption on that vehicle, provided that the vehicle performs at least five years from acquisition.

As of January 1, 2022, the authority to determine, control and collect inheritance and gift taxes is transferred from the Tax Administration to local self-government units.

Starting from January 1, 2021, the tax return for determining the inheritance and gift tax (when that obligation exists) that has real estate as its subject is submitted to the tax authority competent according to the place of that real estate.

Tax on transfer of absolute rights

The tax exemption has been specified for transfer with the compensation of special passenger vehicles for the training of candidates for drivers with built-in double foot controls, as well as passenger vehicles for taxis and "rent a car" which are specially marked - in the same way as for inheritance and gift taxes.

It is prescribed that the conditions for exercising the right to tax exemption based on the purchase of the first apartment must be fulfilled on the day of concluding the contract, ie the second act based of which the buyer buys the first apartment (including the purchase of the apartment in enforcement proceedings).

Starting from January 1, 2022, the competence for determining, controlling and collecting taxes on transfer of absolute rights is transferred from the Tax Administration to local self-government units.