Bosnia and Herzegovina - Latest Amendments to the Tax Legislation

New Property Transfer Tax Law

As of 1 January 2019, a new Property Transfer Tax Law is applicable for the transfer of property in the capital of Bosnia and Herzegovina, Sarajevo, and the entire Sarajevo Canton (published in the Official Gazette of the Sarajevo Canton no. 28/18).

The new law regulates tax issues on real estate transfers, as well as inheritance and gifts in real and moveable assets, in a more detailed and more market adapt manner than earlier legislation.

Instead of the previous 5% overall tax rate for any kind of transfer, the new law introduces several tax rates depending on the manner of obtainment:

  • real estate transfers (purchase, exchange or other manners not regulated differently) – 5%;
  • real estate obtained pursuant to a Life Care Contract – from 0% to 10% depending on the years of life care and the timing of the ownership transfer;
  • inheritance of real assets or movable assets valued over BAM 5,000 – 8%;
  • gifts of real assets or movable assets valued over BAM 5,000 – 10%.

The party liable for property transfer tax is the party that acquires the property.

 

 

The information in this document does not constitute legal advice on any particular matter and is provided for general informational purposes only.