Exemption from transfer of absolute rights to first-time apartment buyers

The Law on Amendments and Supplements to the Law on Property Taxes stipulates that the transfer of absolute rights tax is not paid on the transfer of ownership rights to an apartment or a family residential building, or an ownership interest in an apartment or a family residential building to a natural person who purchases a first-time apartment, for an area of ​​up to 40 m2 for the buyer of the first apartment and for members of his family household who, as of July 1, 2007, did not own or co-own an apartment in the territory of the Republic of Serbia, up to 15 m2 per member, provided that:

1) the buyer of the first apartment is an adult citizen of the Republic of Serbia, with a permanent residence in the territory of the Republic of Serbia;

2) the buyer of the first apartment, from July 1, 2006 until the date of certification of the purchase and sale contract on the basis of which the buyer acquires the first apartment, did not own or co-own an apartment in the territory of the Republic of Serbia.

The right to exemption from the tax on the transfer of absolute rights may be exercised by the buyer of the first apartment only on the basis of a purchase and sale contract certified after the entry into force of this law, i.e. on 8 July 2007.

The family household of the buyer of the first apartment is considered to be the community of life, business and spending of income of the buyer of the first apartment, his spouse, the buyer’s children, the buyer’s adopted children, the children of his spouse, the adopted children of his spouse, the buyer’s parents, his adoptive parents, the parents of his spouse, the adoptive parents of the buyer’s spouse, with the same residence as the buyer of the first apartment.

If the area of ​​the apartment that the buyer of the first apartment buys is larger than the area of ​​the corresponding apartment, the tax is paid on the transfer of ownership rights on the difference between the area of ​​the purchased and the area of ​​the corresponding apartment.

The taxpayer who transfers the ownership of the apartment is not entitled to tax exemption:

1) a person whose first purchase of the apartment once gave him the right to a refund of value added tax, in accordance with the law governing value added tax, or to a tax exemption from paying the tax on the transfer of absolute rights in accordance with the Law on Amendments and Supplements to the Law on Property Taxes;

2) a member of the family household of the buyer of the first apartment for whom the right to a refund of value added tax, in accordance with the law governing value added tax, or to a tax exemption from paying the tax on the transfer of absolute rights in accordance with the Law on Amendments and Supplements to the Law on Property Taxes. The PPI-4 tax return is submitted by the seller – the taxpayer of the tax on the transfer of absolute rights, to the competent organizational unit of the Tax Administration (according to the municipality in whose territory the real estate is located). For the purpose of exercising the right to tax exemption, the taxpayer shall submit a certified statement of the buyer that he is buying the first apartment for himself, or for himself and certain members of his family household, as well as other evidence within 10 days from the date of the tax liability.

List of evidence to be submitted:

1) copy of the identity card of the buyer of the first apartment;

2) certificate of citizenship for the buyer of the first apartment;

3) copy of the identity card for certain members of the family household (for adults and minors who possess an identity card, and for other minors, an extract from the birth register and a residence registration);

4) certificate of citizenship for certain members of the family household;

5) copy of the certified purchase contract for the purchase of the apartment;

6) proof of residence (photocopy of identity card or certificate of residence for buyers of certain members of his family household);

7) for certain members of the family household, the following evidence of kinship or marital status with the buyer of the first apartment: for spouses, an extract from the marriage registry, for children and parents, an extract from the birth registry, and for adopted children and adoptive parents, a decision of the competent authority on adoption; a certified statement by the buyer of the apartment that he is buying the first apartment.

The competent tax authority keeps records of contracts for the sale of apartments for which that authority has determined the right to tax exemption, of the amounts of tax on the transfer of absolute rights that have not been collected on the territory of the local self-government unit as a result, of the buyers of the first apartment and of the members of their family household for whom that right has been exercised.

The Regulation on the content and form of the statement of the buyer of the apartment that he is buying the first apartment for himself, or for himself and certain members of his family household regulates the content and form of the statement of the buyer of the apartment that he is buying the first apartment for himself, or for himself and certain members of his family household.

The buyer of the first apartment shall submit a declaration on Form

Form IKPS – PPAP

• Declaration of the buyer of the apartment that he is buying the first apartment for himself, or for himself and certain members of his family household. An apartment, within the meaning of this regulation, is considered to be an apartment and a family residential building.

Form IKPS – PPAP

contains data on the buyer of the first apartment and certain members of his family household for whom the right to tax exemption from paying tax on the transfer of absolute rights is exercised, and who from July 1, 2006 until the date of certification of the contract have not owned or co-owned an apartment or family residential building on the territory of the Republic of Serbia and have never exercised the right to a refund of value added tax, in accordance with the law governing value added tax, nor has any person exercised the right to tax exemption from paying tax on the transfer of absolute rights, in accordance with the law governing property taxation, based on the purchase of a first apartment on the territory of the Republic of Serbia for the buyer of the first apartment or for a member of his family household.