Costs of buying property in Bosnia: tax, notary and fees

The asking price is not the only amount to budget for. This guide is for buyers in Bosnia and Herzegovina (BiH) and abroad who want to know in advance which costs fall on the buyer, which on the seller, and what they depend on. At the end there is a worked example for a flat in Sarajevo.

Real estate transfer tax

The largest extra cost is the real estate transfer tax (porez na promet nekretnina). The rules differ between the Federation of BiH (FBiH), Republika Srpska (RS) and Brčko District, and within the Federation from canton to canton.

Federation of BiH. The tax is set by cantonal laws. Who pays it (buyer or seller) and at what rate depends on the canton where the property is.

• Sarajevo Canton: the buyer pays, at 5%. The tax base is the market value set by a commission appointed by the municipal mayor, so it need not match the contract price. The tax return is due within 15 days of the tax liability arising, and the tax is paid within 30 days of receiving the assessment.
• Tuzla Canton: the seller pays, at 5%.
• Zenica-Doboj Canton: under the 2025 law the buyer pays, at 5%, and the seller is secondarily liable if the buyer does not pay.
• Una-Sana Canton: the buyer pays. The rate is set by the municipal or city council and cannot exceed 5%.
• Posavina Canton: the buyer pays, at 5%.
• The other cantons (Central Bosnia, Herzegovina-Neretva, West Herzegovina, Canton 10, Bosnian Podrinje) have their own laws.

In Sarajevo and Zenica-Doboj cantons, the first sale of a newly built property on which VAT was paid is exempt from transfer tax. When you buy from a developer, VAT is charged instead. It is 17% in BiH and is usually included in the price.

Sarajevo Canton also exempts certain first-time buyers, for example BiH citizens aged up to 38 with residence in the canton, up to a set floor area. The cantonal government proposed changes to these reliefs in 2025.

Republika Srpska. According to PwC's tax summary, RS has no real estate transfer tax. Owners pay an annual property tax.

Brčko District. According to the same summary, Brčko District has no transfer tax either, but does levy an annual property tax.

Area	Transfer tax	Who pays	Rate
Sarajevo Canton	yes	buyer	5%
Tuzla Canton	yes	seller	5%
Zenica-Doboj Canton	yes	buyer	5%
Una-Sana Canton	yes	buyer	up to 5%, set by municipality
Posavina Canton	yes	buyer	5%
Republika Srpska	no	-	-
Brčko District	no	-	-

The parties can agree in the contract who bears the cost, but the tax office still holds liable the person the law names.

Notary

The sale contract is normally drawn up by a notary. In the Federation the fee follows the notary tariff ("Službene novine FBiH", No. 40/21). For a contract worth 75,001 to 100,000 KM the fee is 320 KM. For each commenced 100,000 KM above that, 30 KM is added, and this addition is capped at 1,800 KM. VAT and expenses come on top.

According to 2023 press reports, after rulings of the FBiH Constitutional Court, lawyers in the Federation may also draft property sale contracts, with the signatures certified.

RS and Brčko District have their own notary tariffs.

Buyer and seller agree who pays the notary.

Land registry and cadastre entry

You become the owner on registration. Court or administrative fees apply.

• Federation of BiH: fees are set by cantonal court fee laws. In Sarajevo Canton, under the 2014 consolidated text, the application to register ownership costs 10 KM and the registration of ownership 50 KM. The fee is paid by the person in whose favour the entry is made, unless the parties agree otherwise. The cantonal assembly amended this law in 2025.
• Republika Srpska: the land registry and cadastre are kept by the Republic Administration for Geodetic and Property Affairs (RGURS), and its fees are set by the RS government.
• Brčko District:

You will also want a land registry extract before you buy. Our guide Land registry extract in Bosnia explains how to read one.

Buying from abroad: power of attorney and translation

If you cannot attend the signing, you can give a power of attorney to someone in BiH. In the Federation a notary charges 30 KM per grantor for a power of attorney to sell or encumber property, plus VAT.

If you sign the power of attorney abroad, there are two usual routes: certification at a BiH embassy or consulate, for that mission's consular fee, or certification by a notary in your country of residence. Documents between Germany and BiH need an apostille. A power of attorney in a foreign language must be translated by a court interpreter authorised in BiH.

The full process is described in Buying property in Bosnia from abroad.

Agency commission

Commission is not fixed by any tariff. The amount and who pays it are set in the brokerage agreement. Read it before you sign, and ask whether the figure includes VAT.

Other costs to plan for

• Annual property tax: you pay it every year as owner. The amount depends on the entity, canton or municipality.
• Mortgage: the bank requires a valuation and a registered mortgage, which means another notary fee and a registration fee (50 KM in Sarajevo Canton under the 2014 text).
• Legalisation: if a building is not fully legal, the costs can be significant. See Legalisation of property in Bosnia.

Worked example (estimate)

This is an illustrative estimate, not a quote or a tax calculation. Assumptions: a flat in Sarajevo Canton bought from a private individual (not the first sale of a new build), price 200,000 KM (about 102,258 EUR), and the commission sets the same market value.

Item	Basis	Amount (KM)
Transfer tax (buyer)	5% of 200,000 KM	10,000.00
Notary, sale contract	320 + 30 KM	350.00
VAT on notary fee	17% of 350 KM	59.50
Application to register	Sarajevo Canton, 2014 text	10.00
Registration of ownership	Sarajevo Canton, 2014 text	50.00
Official land registry extract	Sarajevo Canton, 2014 text	10.00
Total before commission		10,479.50
Agency commission	per agreement	-

That total is about 5,358 EUR (1 EUR = 1.95583 KM, fixed rate).

If the commission sets a value above the price, the tax rises. The same flat in Republika Srpska would carry no transfer tax, so its extra costs would be much lower.

Common mistakes

• Budgeting only for the asking price, without tax and fees.
• Assuming the buyer pays the tax everywhere in the Federation. In Tuzla Canton the seller pays.
• Assuming the contract price is the tax base. In Sarajevo Canton a commission sets it.
• Missing the 15-day deadline for the tax return.
• Sending a power of attorney from abroad without an apostille or certified translation, so the notary cannot act on it.

FAQ

Who pays property transfer tax in Bosnia?

It depends on where the property is. In Sarajevo, Zenica-Doboj, Una-Sana and Posavina cantons the buyer pays; in Tuzla Canton the seller pays. Republika Srpska and Brčko District have no such tax.

Is transfer tax due on a new build?

In Sarajevo and Zenica-Doboj cantons, the first sale of a new build on which VAT was paid is exempt. For other cantons, ask the tax office. See also Buying a new-build flat in Bosnia.

How much does the notary charge for a sale contract?

In the Federation, 320 KM for a contract up to 100,000 KM, plus 30 KM for each commenced 100,000 KM above that, plus VAT. RS and Brčko District use other tariffs.

Can I buy without travelling to Bosnia?

Yes, through a power of attorney. It must be certified and, if in a foreign language, translated. From Germany it needs an apostille.

For the exact figure in your case, ask the notary drafting the contract and the tax office for the property's location. This guide explains the rules but is not tax or legal advice.

Before we list a property, DMI checks the land registry and the paperwork, so you know from the start which documents you are working with.