Buying property in Bosnia through a company
Whether a foreigner can buy property in Bosnia in their own name depends on their nationality. A Bosnian company can buy in its own name, whoever owns it. Here is how it works.
The reciprocity rule
Under Article 15 of the Law on Property Rights of the Federation of BiH, foreign citizens acquire real estate on the basis of reciprocity: if citizens of Bosnia can buy property in your country, you can buy in Bosnia. Reciprocity is presumed; each year, by 31 January, the Federal Ministry of Justice publishes the list of countries with which it does not exist. People born in Bosnia and Herzegovina and their descendants are not treated as foreigners under this law.
A company registered in Bosnia — including one fully owned by foreigners — is a domestic legal entity. It buys property in its own name, without the reciprocity check.
Advantages of a company
- No reciprocity check for the purchase
- Rental income invoiced and taxed at 10% corporate tax on profit
- Maintenance, furniture and management costs are deductible
- Several properties held in one structure
- The property can be sold by selling the company
From company to keys: the steps
- Week 1–5
Company formation
A d.o.o. is registered in Sarajevo, owned by you, without travel. It receives a tax number and bank account.
- Before signing
Property checks
Land registry extract, ownership history, encumbrances, building permits and utility debts are checked before you commit.
- Signing
Purchase contract at a notary
The company signs the purchase contract before a notary in Bosnia. Payment goes from the company’s bank account.
- After signing
Tax and land registry
The transfer tax is paid and the company is entered as owner in the land registry.
A company that owns property must keep accounts and file annual statements, even if it only holds the property. See accounting and annual costs.
Property questions
Can foreigners buy property in Bosnia and Herzegovina?
Foreign citizens can buy property in their own name on the basis of reciprocity (Article 15, Law on Property Rights of the FBiH). Reciprocity is presumed unless your country is on the list of countries without reciprocity published every year by the Federal Ministry of Justice. Where it does not exist, a Bosnian company can buy property in its own name, whoever owns the company.
Why buy through a company?
A d.o.o. registered in Bosnia is a domestic legal entity, so the reciprocity rule does not apply to it. It also lets you rent the property out with proper invoicing, deduct costs and sell the company with the property later.
Are there properties a company cannot buy?
Agricultural and forest land and some protected areas are subject to special rules. Apartments, houses, offices and building land in towns are the usual purchases.
What are the costs of buying?
Mainly the real estate transfer tax (in Sarajevo Canton 5% of the price), notary fees for the contract and the land registry fee — plus the company formation and its running costs.
Does owning property give me residence?
Property owned by your company is not your personal property. If residence is your goal, we explain the options before you buy: personal ownership where reciprocity allows, or residence through work as the company’s director.
Planning to buy in Sarajevo?
Tell us what you plan to buy and where. We explain the best structure and the full cost in writing.