Gift contract in Serbia (ugovor o poklonu): real estate, notary, tax and revocation
Gift contract for real estate in Serbia: mandatory notarial solemnisation, what the contract must contain, who is exempt from gift tax and the forced share.
What a gift contract is
A gift contract (ugovor o poklonu) is a contract by which one party (the donor) voluntarily and without consideration transfers ownership of an item or another right to the other party (the donee), and the other party accepts it. A gift is a contract, not a unilateral statement: without the donee's acceptance there is no gift.
The Law on Contracts and Torts (Zakon o obligacionim odnosima) does not regulate this contract. It is subject to that law's general rules on contracts and to the legal rules of earlier civil codes, which courts still use. Form, tax and the effects in inheritance law are governed by separate statutes: the Law on Real Estate Transactions, the Law on Property Taxes and the Inheritance Law.
A gift should be distinguished from a lifelong maintenance contract. With a gift there is no counter-performance and the property passes immediately. With lifelong maintenance the property passes only after the death of the maintained person and is not counted towards the forced share.
Gift contract for real estate: form and notarial solemnisation
Under Art. 2 of the Law on Real Estate Transactions (Zakon o prometu nepokretnosti, "Sl. glasnik RS", No. 93/2014, 121/2014 and 6/2015), a real estate transaction is a transfer of ownership by legal transaction, with or without consideration. A gift of an apartment, a house or land is therefore a real estate transaction, and Art. 4 of the same law requires the contract to be concluded as a notarially confirmed (solemnised) document. A contract not concluded in that form has no legal effect.
Solemnisation is not the same as signature certification. The notary reads the contract, checks whether it is permitted and whether the parties understand its effects, warns them of the consequences and adds the confirmation clause. For a gift contract at the notary the parties bring identity documents, proof of ownership and, where needed, proof of kinship (a birth or marriage certificate) for the tax exemption.
The documents for a gift contract for real estate are as a rule: identity cards of the parties, data from the property sheet, the document by which the donor acquired ownership, proof of kinship and, for joint marital property, the spouse's consent. The notary can ask for further documents, so check the list with the office before booking the appointment.
After solemnisation the notary delivers the document to the cadastre for registration, and the cadastre forwards it immediately to the tax authority for tax assessment (Art. 34 of the Law on Property Taxes).
Gift tax and costs
Gift tax is governed by the Law on Property Taxes. The taxpayer is the donee. The rates are 1.5% for heirs of the second order of succession and 2.5% for heirs of the third and further orders and for unrelated persons (Art. 19). An heir of the first order and the spouse are exempt (Art. 21). The base is the market value of the gift as established by the tax authority.
Gift tax is also paid on a gift of a used motor vehicle, vessel or aircraft, and on a gift of cash, savings, a bank deposit, a monetary claim, digital assets or intellectual property rights. For money, rights and movable items from the same person, RSD 100,000 per calendar year is exempt for each of those categories (Art. 14 of the Law on Property Taxes).
A gift of money needs no special form by law, but the tax liability arises on the day the contract is concluded or, without a written contract, on the day the gift is received (Art. 17). The tax return is due within 30 days (Art. 35). When parents gift an apartment to a child, no tax is paid because the child is in the first order of succession, and the notary's fee is reduced to 50% of the fee in tariff item 1 (tariff item 9 of the Notary Tariff).
If the gift is a disguised contract of sale, the tax authority and the court assess the real content of the transaction. A sham contract is subject to the rules on the contract it conceals (Art. 66 of the Law on Contracts and Torts).
Revocation of a gift and the forced share
A gift is as a rule final. The donor cannot unilaterally change their mind because family relations have changed. The legal rules applied by courts allow revocation in narrow cases, above all for gross ingratitude of the donee and for impoverishment of a donor who no longer has means to live on. A court decides on revocation, and the burden of proof is on the donor.
The second consequence appears after the donor's death. A gift made to an heir is as a rule counted towards that heir's share of inheritance, unless the donor provided otherwise (Art. 66 and 67 of the Inheritance Act). For the forced share, all gifts to statutory heirs and gifts to others made in the deceased's last year of life are added to the value of the estate (Art. 48). If gifts infringe the forced share of other heirs, they can seek return of the gift to the extent needed to satisfy the forced share. With a gift of valuable real estate to one child, the position of the other heirs is therefore considered in advance. A lifelong maintenance contract has a different effect in this respect.
Common mistakes
- A gift of real estate is drawn up as an ordinary written contract with certified signatures. Such a contract has no effect and cannot be registered in the cadastre.
- Joint marital property is gifted without the other spouse's consent.
- The donor gives away their only apartment without retaining a right of residence or usufruct.
- Nobody considers the forced share of the other heirs, so a dispute arises in probate proceedings.
- A gift is chosen instead of a lifelong maintenance contract although the donor actually expects care and support.
- No request for tax exemption with proof of kinship is filed.
A short overview of the clauses usually found in the contract: contracting parties, object of the gift, statement of gift and acceptance, retained rights, encumbrances, consent to registration, handover of possession, counting towards the share of inheritance, costs. This is an overview of content, not a ready-made contract text.
Sources
- Law on Property Taxes (Zakon o porezima na imovinu, Sl. glasnik RS Nos. 26/2001 ... 94/2024), Art. 14, 17, 19, 21, 34, 35 and 40
- Notary Tariff (Javnobeležnička tarifa, Sl. glasnik RS Nos. 91/2014 ... 59/2025), Art. 10 and tariff items 1 and 9
- Law on Real Estate Transactions (Zakon o prometu nepokretnosti, Sl. glasnik RS Nos. 93/2014, 121/2014 and 6/2015), Art. 4
- Inheritance Act (Zakon o nasleđivanju, Sl. glasnik RS Nos. 46/95, 101/2003 and 6/2015), Art. 48, 58, 59, 66 and 67
What to do
- Details of the donor and the donee and their family relationship, because tax and the notary fee depend on it.
- An exact description of the gift. For real estate: cadastral municipality, parcel number, property sheet number, number and area of the unit, and the share being gifted.
- The donor's statement that the gift is made without consideration and the donee's statement that they accept it.
- The donor's consent for the donee to be registered in the cadastre as owner without the donor's further presence (clausula intabulandi).
- Any rights the donor retains, for example a lifelong right of residence or usufruct, and any charge or condition.
- A statement on encumbrances on the property and on whether it is joint marital property. A gift out of joint property requires the spouse's consent.
- A clause on whether the gift is counted towards the donee's share of inheritance, the moment possession is handed over, and who bears the costs.
What it costs
Solemnisation is charged under the Notary Tariff (Javnobeležnička tarifa, "Sl. glasnik RS", No. 91/2014 ... 59/2025), according to the value of the property. The fee for solemnisation is 60% of the fee in tariff item 1, and one point is worth RSD 180 excluding VAT. For property worth between RSD 7 and 10 million, tariff item 1 provides 240 points, so solemnisation is 144 points, that is RSD 25,920 plus VAT. For a notarial deed or solemnisation of a gift contract between a parent as donor and a child as donee, the fee is 50% of the fee in tariff item 1 instead of 60%, so for the same value band it is 120 points, that is RSD 21,600 plus VAT (tariff items 1 and 9). Gift tax: 1.5% for the second order of succession, 2.5% for others, with the first order and the spouse exempt (Art. 19 and 21 of the Law on Property Taxes). Registration in the cadastre on the basis of the document delivered by the notary carries a separate fee.
FAQ
Does a gift contract have to be made before a notary in Serbia?
A gift contract for real estate does, because Art. 4 of the Law on Real Estate Transactions (Zakon o prometu nepokretnosti) requires a notarially confirmed (solemnised) document for every transfer of ownership of real estate, with or without consideration. The competent notary is the one in whose area the property is located. For a gift of a movable item that is handed over immediately, the law requires no special form.
How much does a gift contract cost at the notary?
The price depends on the value of the property and is calculated in points under the Notary Tariff. Solemnisation is 60% of the fee for the relevant value band, plus VAT. Between parent and child the tariff provides a reduction. The value of the property is taken from the contract or the tax authority's assessment.
Who does not pay gift tax?
Gift tax is not paid by an heir of the first order of succession (children, adopted children and their descendants) or by the donor's spouse (Art. 21 of the Law on Property Taxes). The second order (parents, siblings and their descendants) pays 1.5%, and everyone else 2.5%. The law provides other exemptions as well, and a gift of money up to RSD 100,000 per year from the same person is not taxable.
Can a gift contract for real estate be revoked?
Revocation of a gift is not governed by the Law on Contracts and Torts. Courts apply the legal rules of earlier civil codes, under which a gift can be revoked for gross ingratitude of the donee and for impoverishment of the donor. Revocation is decided by a court in litigation, on the circumstances of each case.
Does a gift count towards the forced share of heirs?
Yes. When the value of the estate is established for calculating the forced share, gifts the deceased made to statutory heirs are taken into account regardless of when they were made, and gifts to third parties only if made in the last year of the deceased's life (Art. 48 of the Inheritance Act). If the forced share is infringed, a forced heir can seek reduction of dispositions and return of gifts within three years of the deceased's death (Art. 58 and 59).
What does an example of a gift contract for real estate look like?
An example usually has these parts: the parties and their relationship, a description of the property from cadastre data, the statement of gift and acceptance, rights retained by the donor, a statement on encumbrances, consent to registration, handover of possession, costs and the notary's clause. The text is adapted to the specific property, and the notary checks before confirmation whether the contract complies with the law.
How do parents gift an apartment to their child in Serbia?
A gift contract for an apartment from a parent to a child (ugovor o poklonu stana sa roditelja na dete) must be solemnised by a notary in whose area the apartment is located (Art. 4 of the Law on Real Estate Transactions). For a gift between a parent as donor and a child as donee, the notary's fee is 50% of the fee in tariff item 1 instead of 60% (tariff item 9 of the Notary Tariff). The child, as an heir of the first order, pays no gift tax (Art. 21 of the Law on Property Taxes). The parent can retain a lifelong right of residence or usufruct in the contract. After the parent's death the gift is counted towards the child's share of inheritance unless the parent declared otherwise, and the forced share rules protecting the other children apply in any case (Art. 66 and 67 of the Inheritance Act).
Does a gift of money need a written contract?
The law requires no special form for a gift of money that is handed over at once, but a written contract is useful evidence that the money was a gift and not a loan. A gift of cash, savings or a bank deposit is subject to gift tax (Art. 14 of the Law on Property Taxes), with RSD 100,000 per calendar year from the same person exempt. The tax liability arises on the day the contract is concluded, or without a written contract on the day the gift is received (Art. 17). The donee files a tax return within 30 days, even when exempt as a child or spouse (Art. 35). A bank transfer leaves a clearer trail than cash.
Which documents are needed for a gift contract for real estate?
A gift contract for real estate usually requires: valid identity cards or passports of the donor and the donee, the property details from the property sheet (list nepokretnosti), the document by which the donor acquired ownership (a contract or an inheritance decision), a birth or marriage certificate as proof of kinship for the tax exemption (Art. 21 of the Law on Property Taxes), and the spouse's consent if the property is joint marital property. The list can differ from case to case, so ask the notary's office in advance what to bring.