Serbia’s 2025 Real Estate Legalization Law: Key Changes and Challenges

Key Changes and Practical Implications

The process of legalizing illegally constructed buildings in Serbia has been transformed with the recent adoption of the new Law on the Special Conditions for Recording and Registering Rights to Real Estate. Now in force, this legislation aims to address the long-standing issues of illegal constructions, which, according to official estimates, number around over 4.8 million structures—comprising houses, apartments, and auxiliary buildings built without permits and unregistered in the real estate cadaster.

Background and Context

Serbia’s previous efforts to regulate illegal construction, notably through the Law on Legalization of Objects, have yielded limited results. Since its implementation, out of approximately 2 million identified illegal structures in 2015, only 320,000 have been legalized. Meanwhile, new illegal structures continue to emerge, leading to a growing backlog of unregistered buildings. Existing legislation, including the Criminal Code which criminalizes illegal construction, has struggled with enforcement, leaving many properties in legal limbo. The new Law is now in effect and aims to finally resolve this persistent issue by introducing a streamlined and incentive-driven legalization process.

Key Features of the New Law

The Law applies to all illegally constructed objects, including buildings with temporary permits or those whose permits expired. Structures on public land intended for public use can also be legalized. However, constructions on private land owned by others, protected zones (e.g., national parks, cultural heritage sites, natural reserves), or in sensitive areas, will not qualify for legalization. In such cases, buildings may either become state property or face demolition, safeguarding public interests and natural resources. Any new illegal constructions on land not owned by the builder will automatically be registered as state property and repurposed for public purposes.

Simplified and Accelerated Procedure

The legalization process is now managed via a joint digital platform established by the Agency for Spatial Planning and Urbanism and the Republic Geodetic Authority (Cadaster). Once the submitted documentation is reviewed, the Agency and Cadaster will carry out registration without the need for formal decisions, aiming for a swift process.

Practical Challenges and Risks

While the law promotes a simplified, fast-track process, practical issues are anticipated. The limited capacity of agencies and registries to handle hundreds of thousands of applications within the short timeframe could pose substantial delays. Additionally, the law allows registration or rejection without formal decisions, which may complicate appeal procedures and citizens’ legal protection. Building owners on someone else’s land will need to resolve land rights within five years, or face the removal of their buildings. Those unable or unwilling to purchase land may face demolition, highlighting the law’s limitations in addressing illegal constructions with unclear landownership.

Conclusion

The new Serbian Law on the Special Conditions for Recording and Registering Rights to Real Estate represents a significant step forward in tackling the country’s long-standing illegal construction issues. Its success depends on the efficiency of implementation, which will require substantial capacity and transparency from the authorities. While it offers a more accessible pathway for many, potential legal and practical challenges remain, including needing clearer criteria for investor eligibility, handling of disputes, and enforcement capacities. Citizens and investors should closely follow developments and consider consulting legal advisers to ensure smooth navigation through the legalization process now that the Law is in force.