Apartment lease contract in Serbia (ugovor o zakupu stana): contents, deposit and tax
Apartment and business premises lease contract in Serbia: essential elements, written form, whether certification is needed, deposit, notice period and tax.
What an apartment lease contract is
An apartment lease contract (ugovor o zakupu stana) is a type of lease under Art. 567 of the Law on Contracts and Torts (Zakon o obligacionim odnosima, "Sl. list SFRJ", No. 29/78 ... "Sl. glasnik RS", No. 18/2020): the landlord undertakes to hand an item over to the tenant for use, and the tenant undertakes to pay rent for it. The general lease rules are in Art. 567 to 599 of that law. The Law on Housing and Building Maintenance (Zakon o stanovanju i održavanju zgrada, "Sl. glasnik RS", No. 104/2016 and 9/2020) also applies to apartment leases.
A lease does not transfer ownership. The tenant acquires the right to use the apartment in line with the contract and its purpose, and on termination returns it in the condition in which it was received, allowing for normal wear.
The general lease rules require no special form. Written form is required for an apartment lease (Art. 70 of the Housing and Building Maintenance Act). The same article lists what the contract must in particular contain and requires the landlord to send a copy of the contract to the local tax administration within 30 days of signing. In any case a written contract is the only reliable evidence of the rent, the deposit and the duration.
What a lease contract (ugovor o zakupu) must contain
The essential elements are the item being let and the rent. Everything else can be agreed freely, and where it is not agreed, the statutory rules apply:
- the landlord must hand the apartment over in proper condition and keep it that way. The costs of minor repairs caused by normal use are borne by the tenant (Art. 570),
- the tenant must inform the landlord of any necessary repair that is the landlord's responsibility,
- the tenant may not alter the apartment without the landlord's consent,
- subletting is allowed unless the contract excludes it, provided it causes no harm to the landlord (Art. 586). A ban on subletting, if the parties want one, must therefore be written into the contract,
- if the tenant continues to use the apartment after a fixed-term contract expires and the landlord does not object, a new contract of indefinite duration is deemed concluded on the same terms (Art. 596).
In Serbia rent can be agreed with a currency clause. Payments between residents are as a rule made in dinars, but the Foreign Exchange Act expressly allows payments for the lease of real estate to be made in foreign currency as well (Art. 34(2)(5)).
Certification, residence registration and tax on rental income
A lease contract does not have to be certified to be valid. Signature certification by a notary confirms who signed the contract and when, which is useful in a later dispute and when registering the tenant's temporary or permanent residence at the apartment's address.
A landlord who is a private individual earns income from real estate. The tax is 20% of a base made up of gross rent reduced by standardised costs of 25%. Instead of standardised costs the landlord may prove actual costs. The landlord files the return when letting to a private individual; when the tenant is a company or a sole trader, the tax is paid by withholding. Rental income also enters annual personal income tax if total income exceeds the non-taxable amount.
Lease contract for business premises (ugovor o zakupu poslovnog prostora)
The same general lease rules apply to business premises, but the contract is usually longer because investments and risks are larger. The following are regulated in particular:
- the purpose of the premises and obtaining permits for the activity,
- fit-out: who pays for it, whether the investment is recognised through the rent and what stays in the premises when the lease ends,
- duration, renewal and conditions for early termination,
- rent adjustment, for example to the consumer price index,
- payment security: deposit, promissory note, bank guarantee or a founder's surety,
- VAT and the costs of the building's common areas.
Common mistakes
- The apartment is let by someone who is not the registered owner, without a power of attorney or the co-owners' consent.
- There is no handover record, so the condition of the apartment and the meters cannot be proved after moving out.
- The deposit is handed over without a written trace and without rules on its return.
- No notice period is agreed, so the short statutory period applies.
- The contract does not say who pays building management costs and major faults.
- The rent is not reported, which is a tax offence by the landlord and makes residence registration harder for the tenant.
A short overview of the clauses usually found in the contract: contracting parties, object of the lease, rent, duration and termination, deposit, costs and maintenance, rules of use, handover, dispute resolution. This is an overview of content, not a ready-made contract text.
Sources
- Law on Contracts and Torts (Zakon o obligacionim odnosima, Sl. list SFRJ No. 29/78 ... Sl. glasnik RS No. 18/2020), Art. 567-599, in particular Art. 591 and 597
- Housing and Building Maintenance Act (Zakon o stanovanju i održavanju zgrada, Sl. glasnik RS Nos. 104/2016 and 9/2020), Art. 70
- Personal Income Tax Act (Zakon o porezu na dohodak građana, Sl. glasnik RS Nos. 24/2001 ... 109/2025), Art. 65a-65g
- Law on Notaries (Zakon o javnom beležništvu, Sl. glasnik RS Nos. 31/2011 ... 80/2026), Art. 85
- Notary Tariff (Javnobeležnička tarifa, Sl. glasnik RS Nos. 91/2014 ... 59/2025), Art. 10 and tariff items 1 and 8
- VAT Act (Zakon o porezu na dodatu vrednost, Sl. glasnik RS Nos. 84/2004 ... 80/2026), Art. 23 and 25
- Foreign Exchange Act (Zakon o deviznom poslovanju, Sl. glasnik RS Nos. 62/2006 ... 19/2025), Art. 34
What to do
- Details of the landlord and the tenant, and proof that the landlord owns the apartment or is entitled to let it.
- A description of the apartment: address, apartment number, area, layout and data from the property sheet.
- The amount of rent, the currency, the due date and the method of payment. If rent is tied to the euro, the exchange rate used for payment is stated.
- Duration of the lease: fixed or indefinite term, the notice period and the grounds for termination.
- The deposit: amount, purpose, conditions under which it is retained and the deadline for returning it.
- Who pays utility bills, building management and maintenance costs, running repairs and major faults.
- A handover record with an inventory, meter readings and photographs, attached to the contract.
- Rules of use: number of occupants, pets, subletting, alterations, and the landlord's right to visit the apartment with notice.
What it costs
Certifying signatures on a lease contract is not mandatory. If the parties want it, it is charged under tariff item 8 of the Notary Tariff (Javnobeležnička tarifa): 1 point per signature of an individual, with one point worth RSD 180 excluding VAT. If the contract is drawn up as a notarial deed or solemnised, the fee is calculated by value, and one year's rent is taken as the value. Tax on rental income: 20% of gross rent reduced by 25% standardised costs, which is effectively 15% of gross rent. For rent of RSD 30,000 the base is 22,500 and the tax is RSD 4,500 per month. Gross income also includes the value of obligations the tenant has taken on, except costs that depend on the tenant's consumption, such as electricity and telephone (Art. 65a to 65g of the Personal Income Tax Act).
FAQ
Does an apartment lease contract have to be certified by a notary?
No. Written form is required for an apartment lease, but not certification or solemnisation. A certified contract carries more evidentiary weight and is often requested when registering residence or by an employer or a bank. If the parties want a contract that is itself an enforceable document, they can conclude it as a notarial deed with a statement of consent to direct enforcement. A solemnised document containing such a statement has the same effect (Art. 85 of the Law on Notaries).
Who pays tax on letting an apartment, and how much is it?
The taxpayer is the landlord. The rate is 20% and the base is gross rent reduced by 25% standardised costs, so the tax is effectively 15% of the rent. When letting to a private individual, the landlord files the PP OPO return themselves. When the tenant is a legal entity or a sole trader, the tenant calculates and pays the tax by withholding.
How large a deposit can be requested and when is it returned?
The law does not regulate deposits in apartment leases, so the amount and conditions depend on agreement. In practice it is one month's rent. The contract states what the deposit covers (unpaid bills, damage beyond normal wear), the deadline for its return and how damage is established. The handover record is the main evidence in such a dispute.
How does a lease contract for business premises differ?
A lease of business premises is subject to the general lease rules of the Law on Contracts and Torts (Art. 567 to 599). The contract usually regulates in more detail the purpose of the premises, fit-out works and who pays for them, rent indexation, security instruments (promissory note, bank guarantee) and VAT. Only the lease of apartments for housing is exempt from VAT, so a VAT-registered landlord charges VAT at the standard rate of 20% on rent for business premises (Art. 23 and Art. 25(2)(4) of the VAT Act).
Can the landlord evict the tenant before the contract expires?
The landlord can terminate the contract on grounds provided by law and by the contract, for example non-payment of rent after a reminder (Art. 584 of the Law on Contracts and Torts) or use of the apartment contrary to the contract. If the tenant does not leave voluntarily, eviction is sought through the court. Changing the lock or removing belongings on one's own initiative carries a risk of liability for the landlord.
What if the apartment is sold during the lease?
If the apartment was handed over to the tenant before the sale, the buyer steps into the landlord's position and the lease continues on the same terms (Art. 591 of the Law on Contracts and Torts). The new owner cannot demand that the apartment be handed over before the agreed lease term expires, or, for an indefinite lease, before the notice period expires. The seller is jointly liable as a guarantor for the new owner's obligations to the tenant.