Cost of property registration
Under the Doing Business report for 2019, the property conveyance costs are measured for each individual step under the following scenario:
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Assumptions
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Parties
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• The buyer and seller are local limited liability companies located in Belgrade.
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• They are owned by private nationals (no foreign or state ownership) and perform general commercial activities.
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• Both companies are formally registered in the Business Registers Agency and have a Tax ID.
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Property
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• The property consists of land measuring 557.4 square meters and a 2-story building (warehouse) with a total surface area of 929 square meters.
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• The value of property is estimated at RSD 29,571,477.12 (equivalent to 259,000.00) equal to 50 times income per capita.
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• The property is registered in the land registry; it is free of title disputes and has no mortgage attached to it.
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• The seller company has owned the property for the past 10 years.
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Transaction
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• The seller company has accepted the buyer company’s offer to purchase the property.
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• The parties will undertake every procedure that is officially required or needed in practice to transfer the ownership of the property.
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The new Law on Procedure of Registration in the Real Estate Cadastre and Utility Cadastre was promulgated in May 2018, and is being used since July 1st, 2018. After promulgation of the new legislation for registration in the cadastre, citizens and businesses are provided with the registration by a single visit to the notary public (single step), and the registration cost was cut. The table below gives a comparative analysis
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COST July 1st, 2017 to June 31st, 2018
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COST July 1st, 2018 to June 31st, 2019
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Procedure 1
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Obtain the extract from the Business Registers Agency
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Procedure is abolished
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Cost
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RSD 1,700 per extract/company
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RSD 0
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Procedure 2
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Prepare the property sale contract
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This procedure remains
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Cost
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RSD 66000
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RSD 48240
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Procedure 3
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Submit request for registration to the Republic Geodetic Authority
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Procedure is abolished
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Cost
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RSD 5000
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Cost is paid after registration
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Procedure 4
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Submit application to tax authorities for taxation
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Procedure is abolished
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Cost
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RSD 0
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RSD 0
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Procedure 5
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Pay the transfer tax
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Procedure is abolished
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Cost
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RSD 739,286.93
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Cost is paid after registration
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Procedure 6
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Cadastre issues the decision on the property title
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Procedure is abolished
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Cost
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RSD 660
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Cost is paid after registration
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Total RSD before registration
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RSD 73,360
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RSD 48,240
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