Unlocking Financial Freedom: Tax Breaks In Serbian Real Estate Deals

• Published date: 08 January 2024
• Subject Matter: Real Estate and Construction, Tax, Real Estate, Income Tax, Capital Gains Tax, Tax Authorities
• Law Firm: Eurofast
• Author: Aleksandar Maljkovic

The Ministry of Finance in Serbia has issued an official opinion that could bring relief to taxpayers involved in real estate transactions. This benefit is particularly relevant to individuals who choose to reinvest the proceeds from the sale of their real estate into acquiring another property.

To be eligible for this tax exemption, certain conditions must be met, and it is essential to emphasize that it is not an automatic privilege. Rather, individuals must obtain an official decision from the relevant tax authority.

This tax relief is specifically designed for those addressing their housing needs or those of their family members.

However, it's important to note that the exemption is limited to capital gains arising from the sale of real estate and does not extend to gains from other sources, such as the sale of shares in a company.

To apply for this exemption, taxpayers need to submit a tax return using Form PPDG-3R. Alongside the return, documentation substantiating the resolution of their housing matter must be provided. It's crucial to understand that this exemption is conditional and not a universal exclusion.

Furthermore, the Law on Personal Income...