Possibility Of Acquiring Title To Real Estate By Foreign Persons In Bosnia And Herzegovina

• Published date: 03 August 2020
• Subject Matter: Real Estate and Construction, Real Estate
• Law Firm: Odvjetnicki ured Ljubic
• Author: Mr Ivan Ljubic and Marin Ljubic

1. Introduction

Bosnia and Herzegovina is a country situated in South-eastern Europe, bordered by the Republic of Croatia, Serbia and Montenegro. By the state organization, Bosnia and Herzegovina is a complex federal state with elements of confederation composed of two Entities (the Federation of Bosnia and Herzegovina - FBiH and the Republika Srpska - RS) and one independent unit called Brčko District. Bosnia and Herzegovina is characterised by multi-nationality - Bosniacs Croats and Serbs are three constituent peoples. Total surface area of the country is about 50 000 square km and major part of the territory consists of high mountains covered in forests and pastures. There are also many lakes and rivers that make the country very rich in natural resources. Town Neum, being the only one coastal Bosnia and Herzegovina town, has a strategic importance through which Bosnia and Herzegovina has an access to the Adriatic Sea. Also, the religious tourism is well developed especially in a place of Medjugorje which has become one of the most popular shrines for Catholics in the world and which is visited by more than a million guests every year. Considering the attractive position and the abundance of natural beauties, foreigners are becoming more and more interested in acquisition of ownership of real estate in Bosnia and Herzegovina and therefore in this article we shall explain the conditions under which they can become owners of land and other real estate.

2. The term 'foreign person'

A foreigner is any natural person who does not have the citizenship of Bosnia and Herzegovina. If we speak about foreign legal persons, than we refer all those companies which are not registered in the territory of Bosnia and Herzegovina, that is, the companies with their headquarters located abroad. It is important to mention that within the meaning of the Law on Property Rights the following persons are not considered to be foreigners:

• The one who had citizenship of Bosnia and Herzegovina in earlier period of time,
• Who were born in Bosnia and Herzegovina,
• Who are the descendants of the citizens of Bosnia and Herzegovina.

This arrangement aims to facilitate the purchase of real estate for the persons closely connected with Bosnia and Herzegovina because of their descent.

Also, there is one additional option for any foreigner within this topic, which comes in form of obtaining the citizenship of Bosnia and Herzegovina, if all the legal requirements are met. That ultimately...