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Views/ Serbia updates Real Estate Legislations
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Dejan NikolićAdvokat / Senior Partnerdejan.nikolic@karanovic-nikolic.com
16/01/2015
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Near the end of 2014, the Serbian Parliament adopted the Law on Amendments to the Law on Planning and Construction, the Law on Amendments and Supplements to the Law on Special Conditions for Registration of Right of Ownership on Facilities Constructed Without a Building Permit and the Law on Amendments to the Law on Property Restitution and Compensation. Below are short descriptions of the changes which these laws bring with them.

Although the Law on Amendments and Supplements to the Law on Planning and Construction was adopted just a few of weeks earlier, Serbian legislators have already decided to introduce certain changes to the Law on Planning and Construction by adopting the Law on Amendments to the Law on Planning and Construction. These changes are the following:

  • The exemption from payment of the contribution for development of the construction land has been extended to also encompass production and storage facilities, underground floors of facilities (space intended for the garaging of vehicles, substations, power stations, storages, laundry rooms, etc.), except for the parts of underground floors used for commercial activities; 
  • The restriction that the unit amount of the contribution for the most expensive purpose in the most expensive zone within a municipality may be up to ten times greater than the amount of the contribution for the cheapest purpose in the cheapest zone, has been abolished.
  • Also, the provision that provided the possibility for municipalities to establish different coefficients(than the ones stipulated in the Law on Planning and Construction) for calculating the amount of the contribution for areas that are outside the central city zone of those municipalities, has been deleted. 

The Law on Amendments and Supplements to the Law on Special Conditions for the Registration of Right of Ownership on Facilities Constructed without a Building Permit has brought the following novelties:

  • Demolition of the facility in relation to which the procedure for the registration of right of ownership has been initiated in accordance with the Law on Special Conditions for the Registration of the Right of Ownership on Facilities Constructed without a Building Permit (the "Law"), shall not be executed until the final completion of the mentioned procedure; 
  • The decision on demolition of the facility adopted in relation to the facility for which the right of ownership was registered in accordance with the Law, will not be executed, and the process of inspection supervision will be suspended;
  • Also, the provision that provided that the Law was to be valid until 31 December 2014, has been deleted. 

The Law on Amendments to the Law on Property Restitution and Compensation regulates the following:

  • The deadline for determining the coefficient necessary for calculating the amount of compensation, the deadline for estimation of the total amount of principal for compensation and the deadline for estimation of the undetermined principals have been prolonged for another 2 years i.e. until the expiration of 5 years as of the announcement of the public call for submitting the restitution requests;
  • The deadline for the Government to regulate the basic elements of the bonds, the amount of issue, as well as conditions of distribution and payment of bonds has been prolonged for another 2.5 years i.e. until 30 June 2017;
  • Bonds shall fall due in 12 instead of 15 years and shall be paid in annual instalments not starting from 2015, but instead starting from 15 December 2018. The exemptions to this general rule have remained unchanged.
  • Accordingly, the beneficiary shall receive due annual instalments of bonds with accrued interest, in cases where the decision on compensation became valid after the maturity of the first annual instalment of bonds in 2018 (not 2015).
  • The determination and effectuation of irreversible advance payments of compensation in cash in accordance with the Law on Property Restitution and Compensation, shall commence starting 31 March 2017, instead of 31 March 2015; 

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