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Real estate investment in Bosnia and Herzegovina

The sale of real estate to foreigners is not restricted in Bosnia and Herzegovina: one can buy, lease and sell housing and commercial real estate in the country.

Statistics confirm the liquidity of investments: every quarter, residential real estate prices grow by an average of 1.5%. Five years ago, an apartment of 100 m² cost an average of €98,000, and today it is being sold for €118,000.

€1,177 Average price per 1 m²
of housing in
Bosnia and Herzegovina
1,5% Average price per 1 m²
increase per quarter
5-8%
+ €330—1,500
Buyers’ related expenses,
of the transaction amount

Cost of a 3-bedroom apartment in
Bosnia and Herzegovina

€400,000

Apartment in the centre of Sarajevo

€270,000

Apartment in the New Sarajevo municipality

€200,000

Apartment in Sarajevo, within
a 15-minute drive from
the city centre

What do investors buy?

The most expensive real estate in Bosnia and Herzegovina is in the capital, Sarajevo.

Apartments

  • apartments
  • studios

Houses

  • villas
  • cottages

 

Bosnia and Herzegovina residence permit or citizenship by real estate investment

Owners of any property, residential or commercial, can get a residence permit in Bosnia and Herzegovina. The property value does not matter.

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Taxes and associated costs

Purchase
Ownership
Sale

Buyers pay a property purchase tax and additional fees. The associated costs amount to approximately 3% of the purchase agreement value and an extra €330—1,500.

When buying an apartment worth €200,000, the investor will spend €211,150, including additional costs.

5%
+ €330—1,500
Of the contract value are related costs for the purchase of housing
in Bosnia and Herzegovina
Purchase expenses
Transfer tax
5%

Of the transaction amount

Legal support of the transaction
€500—700 
Translation services
€100—300 
Transaction registration
€300—500 
Registration of real estate
€30—50 

Taxes

Owners pay an annual property tax of €0.5 to €1 per square metre of the property. The tax rate varies by region.

Rental income is taxed at 10% in Bosnia and Herzegovina.

€1,488 Approximate annual costs for
maintenance of an apartment

Communal payments

Electricity, gas, water, heating, and garbage collection
€76—193 

per month

Internet, TV and telephone
€15—30 

per month

Real estate sellers pay a capital gains tax of 10% on the difference between the sale and purchase prices.

10% Capital gains tax on the sale of
real estate in Bosnia and Herzegovina

Frequently asked questions

Can foreigners buy property in Bosnia?

Yes. The sale of real estate to foreigners in Bosnia and Herzegovina is not limited: you can buy, rent out, and sell residential and commercial real estate.

Owners of residential or commercial real estate in Bosnia and Herzegovina can obtain a temporary residence permit in the country. There are no minimal investment requirements.

What is the cost of living in Bosnia?

According to Numbeo.com, a single person estimated monthly expenses are €463.

Housing in Bosnia and Herzegovina is inexpensive. Renting a one-room apartment in the centre of Sarajevo will cost an average of €280 per month. In the suburbs of the capital, rent is lower by €90—150.

Can British citizens buy property in Bosnia?

Yes. Bosnia and Herzegovina has no restrictions for foreigners who want to buy real estate in the country.

Owners of residential or commercial real estate in Bosnia and Herzegovina can obtain a temporary residence permit in the country. There are no minimum investment requirements.

How much is tax in Bosnia?

Real estate buyers pay a 10% transfer tax.

Property owners in Bosnia and Herzegovina pay an annual property tax in the amount of €0,5 to €1 per 1 m² of the property. Landlords pay a 10% income tax.

Sellers of real estate in Bosnia and Herzegovina pay a capital gains tax of 10% on the difference between the sale and purchase price.