Foreign Investors Council
47, Gospodar Jevremova Street, IV Floor, 11000 Belgrade, Serbia
Phone: +381 11 3281 958, 3281 965
e-mail: office@fic.org.rs

New Initiative on Conversion

New Initiative on Conversion

On April 27, FIC provided to the Construction Ministry the proposal for the conversion of the right of land use into the right of property. In particular, the goal of the proposal is to reduce the fee to a reasonable amount or even eliminate it in this way. The good solution would decrease unpredictability of costs which has impact on the investors’ plans to acquire land subject to the conversion process. Two alternative proposals were provided. The first would require the conversion without the fee for the developed land. For undeveloped land, the proposal is to abolish the conversion fee if the construction and the inscription in cadaster take place within 10 years, and to apply the reasonable fee for other cases. Alternative solution would be to apply a conversion fee in all cases, but to determine a reasonable fixed rate per square meter of land, without defining the land for regular use of objects. FIC engages quite a long time in resolving the problems related to the conversion, in order to facilitate construction. The current initiative is the result of the meeting held with the Ministry in December 2020. The letter can be found here.