Tax discounts for procurement of first apartment

New tax discounts, which are introduced by changes in Law on Value Added Tax (VAT) and Law on Property Tax, will be put in effect starting today (July 9, 2007).


The plan is that all adult citizens of Serbia who did not own apartment prior to July 1, 2006, have the right to buy apartment without paying tax on transfer of absolute rights. In addition, buyers of the first apartment will be refunded VAT (8%), which investors include in the price of apartment.

Tax discounts will also be allotted to the one who buys an apartment of 40 square meters plus 15 square meters per each member of the family. Buyer of the apartment can choose whether to use tax discounts for members of his family, because they can later become the buyers of the first apartment and be freed from paying tax.

The rule book that the Ministry of Finance is preparing will contain the list of all documents that will be necessary for proving purchase of first apartment and obtaining tax discounts.