In addition to ownership rights, there are also:
It should be noted that in the Federation of Bosnia and Herzegovina the rights to use and to dispose of real estate exist as a result of the previous regime, when state ownership prevented individuals or legal entities from owning the real estate that they occupied and used. Under current regulations, these rights to use and dispose of real estate can be converted into ownership, but this can be a slow process.
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Under Bosnia and Herzegovina's Act on Rights in Rem, foreigners can acquire real estate in the Federation of BiH and Republika Srpska, provided that there is reciprocity, save for the acquisition of real estate through inheritance if by law or international agreement not provided otherwise. It is assumed that the reciprocity exists. The Federal Ministry of Justice publishes a list of countries whit which there is no reciprocity, based on previous opinion of the Ministry Council of BiH.
A foreign investor can acquire real estate directly provided he obtains various administrative consents in advance.
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Yes. Pre-emption rights can exist by law or under the contract.
According to the Rights in Rem Act in the Federation of Bosnia and Herzegovina and the applicable regulations in the Serb Republic and the Brčko District, if the real estate to be sold is co-owned by more than one person, the existing co-owners have a mandatory pre-emption right.
The owner of residential property must offer first refusal to a co-owner or to the holder of any tenancy.
The owner of a business building or premises must offer first refusal to a co-owner or a lessee who has leased the building for more than five years. This is an old law which is not always applied. There are no specific regulations governing the pre-emption rights of multiple lessees.
If a person who has pre-emption rights does not advise the seller of their acceptance of the offer within 30 days, the owner is free to sell the property to someone else, although the seller is not allowed to offer them better terms or a lower price.
In addition, in the Republika Srpska (RS), a municipality also has pre-emption rights to property located in the municipality.
A new Rights in Rem Act in the Federation of Bosnia and Herzegovina was published on 28 August 2013 and came into effect on 5 March 2014.
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The transfer of property is generally governed by the Rights in Rem Act in the Federation of Bosnia and Herzegovina (Official Gazette of F BiH no 66/13,100/13 and 32/19 – The Decision of the Constitutional Court) and Rights in Rem Act in the Republika Srpska (Official Gazette of RS 124/08, 3/09 – revised, 58/09, 95/11, 60/15, 18/16 – The Decision of the Constitutional Court, 107/19, 1/21 – The Decision of the Constitutional Court and 119/21 – The Decision of the Constitutional Court).
The rights of foreign investors are set out in the Law on Foreign Direct Investment Policy in Bosnia and Herzegovina (Official Gazettes of FBiH 4/98, 17/98, 13/03, 48/10 and 22/15).
Other applicable laws regarding the acquisition of real estate are as follows:
The Law on Spatial Planning and Construction in the RS (Official Gazette of RS no. 40/13, 2/15 – The Decision of the Constitutional Court, 106/15 and 3/16 correction, 104/18 – The Decision of the Constitutional Court and 84/19)
The Act on Rights in Rem (Official Gazette of F BiH no. 66/13, 100/13 and 32/19 – The Decision of the Constitutional Court)
The Act on Rights in Rem (Official Gazette of Republika Srpska no. 124/08, 3/09, 58/09, 95/11, 60/15, 18/16 – Decision of the Constitutional Court, 107/19, 1/21 – The Decision of the Constitutional Court and 119/21 – The Decision of the Constitutional Court)
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In general, the civil law regime applies to the transfer of all types of real estate.
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The sale contract is either signed and signatures legalized at the court or executed in the form of a notarial deed.
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Yes. Real estate ownership and property rights are registered in land books which are maintained by the municipal courts in the Federation of Bosnia and Herzegovina (FBiH) and by the basic courts in the Republika Srpska (RS).
According to the legislation governing land registers, the following rights are subject to registration:
Land registers are accessible to the public in the relevant courts and in the presence of an official employed by the land registry.
In addition to the land registers, municipalities within Bosnia and Herzegovina maintain cadastres, ie property registers.
Yes, transfers of title to real estate are registered in the land register.
The land registry record contains three sections:
Purchase agreements are recorded.
Foreign insurance companies can insure property in the Federation of Bosnia and Herzegovina (FBiH) but such insurance is not common.
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In general, there are three different approaches to the acquisition of real estate in the Federation of Bosnia and Herzegovina (FBiH):
Asset purchase means that the real estate in question is directly purchased from its owner. Ownership rights are transferred upon registration in the land registers.
Real estate can also be acquired indirectly through the purchase of an enterprise (share purchase) under the Law on Commercial Companies.
In this way the owner of the business interest acquires the rights and liabilities of the local company owning the real estate.
A share purchase is normally a better way of purchasing real estate, since the buyer does not pay VAT or tax on the transfer of ownership.
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Investors should carry out legal due diligence on title, building permits, leases and contracts relating to the property and technical due diligence on the condition of the buildings.
Due diligence is conducted before completion of the contract. It is possible for the buyer to agree with the seller an exclusive right to buy the property subject to the results of the due diligence.
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No specific consents are normally required. However, if the seller is married, consent by the spouse is required if the property was acquired during the course of the marriage. In such cases, real estate is considered to be jointly owned and, if a dispute arises in relation to the transaction, the court may annul any contract which is not co-signed by the spouse.
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Yes. Under the Rights in Rem Act and the Law on Obligations, the sale contract must be concluded in writing. All purchase agreements affecting real estate must be concluded in writing, signed and signatures legalized at the court or executed either in the form of a notarial deed. The purchase agreement must be registered in the land registry.
It should contain the following essential elements:
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Seller's warranties are provided in respect of physical and legal defects in the property. For example, the seller's basic warranties included in the sale contract are as follows:
The time limit for claims to be made is one year from the date the buyer notified the seller of a physical defect, or, in the case of a legal defect, within one year of the date the buyer discovered the adverse third party rights.
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A buyer must notify the seller of any defects within eight days of the date it becomes aware of them. In such cases the buyer has the following rights:
If the seller is found not to own the property in question, the contract is automatically terminated and the buyer has a right to claim damages and compensation.
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When purchasing real estate, a potential investor should consider the following:
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The person who caused the damage to the environment is normally held responsible for it.
In addition, under the Law on Obligations, the builder is liable, for a period of ten years from the date of completion, for any defects in construction or in the land upon which a property has been built.
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When planning a construction project, the builder must submit a request to the relevant authorities to obtain an urban planning consent and a construction permit. The authorities will issue permits only when the proposed construction project is in accordance with the laws on spatial planning and the decisions on zoning.
Under the law of the Republika Srpska, before obtaining a construction permit for building on urban building land, an investor must pay the fee for the arrangement of the construction site and rent to the authorities of Republic Srpska.
Uses can be changed by an amendment to the zoning plan but this can only be done by law or by a decision of the relevant authority.
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Yes. Public-private partnerships (PPPs) have recently been introduced in the Federation of Bosnia and Herzegovina (FBiH), allowing potential investors to enter into specific development agreements with the relevant authorities to facilitate projects.
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Expropriation can only be carried out where a relevant authority decides that this is necessary for reasons of public interest. In this case compensation must be paid to the owners of the property.
Expropriation is therefore possible, but only in exceptional cases, and only in accordance with the Law on Expropriation.
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Transaction costs are typically paid by the buyer, who also pays tax on the transfer of the property and the fee for registering the change of ownership in the land register.
The buyer also usually pays the notary's fee and the agency fees, but this is subject to agreement between the parties.
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Transaction costs are normally paid by the buyer.
The buyer usually pays the notary's fee and the agency fees, but this is subject to agreement between the parties. These costs are usually around 5% of the estimated value of the property plus the additional fees for the notary, which also depend on the value of the property. The property value is determined by the relevant Tax Administration.
The Constitutional Court of Federation of Bosnia and Herzegovina rendered a decision no. U-22/16 on 6 March 2019 deciding that the provisions of the Law on Registration of Companies of FBiH, the Act on Rights in Rem, the Act on Land Registries in FBiH, the Family Law of FBiH, and the Act on Enforcement Procedure are not in accordance with the Constitution of FBiH. This will eliminate the need that the documents related to the transfer of real estate, incorporation acts etc will be required in the form of a notarial deed.
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Do mandatory pre-emption rights apply to the sale of real estate assets in this country?
Yes. Pre-emption rights can exist by law or under the contract.
According to the Rights in Rem Act in the Federation of Bosnia and Herzegovina and the applicable regulations in the Serb Republic and the Brčko District, if the real estate to be sold is co-owned by more than one person, the existing co-owners have a mandatory pre-emption right.
The owner of residential property must offer first refusal to a co-owner or to the holder of any tenancy.
The owner of a business building or premises must offer first refusal to a co-owner or a lessee who has leased the building for more than five years. This is an old law which is not always applied. There are no specific regulations governing the pre-emption rights of multiple lessees.
If a person who has pre-emption rights does not advise the seller of their acceptance of the offer within 30 days, the owner is free to sell the property to someone else, although the seller is not allowed to offer them better terms or a lower price.
In addition, in the Republika Srpska (RS), a municipality also has pre-emption rights to property located in the municipality.
A new Rights in Rem Act in the Federation of Bosnia and Herzegovina was published on 28 August 2013 and came into effect on 5 March 2014.
Last modified 13 Mar 2025