Real Estate in Bosnia and Herzegovina - Engagement of the Law Office

Author: Azur Prnjavorac, Attorney · Updated: 29 June 2026.

Buying real estate in BiH

Our law office advises its clients and assists them in legal, financial, tax and other matters related to real estate transactions in Bosnia and Herzegovina, including proceedings before the competent state authorities of Bosnia and Herzegovina. A good knowledge of the real estate market in Bosnia and Herzegovina has further contributed to successful cooperation with clients in all aspects of real estate investment. We represent clients in real estate matters in all larger cities, including Sarajevo, Tuzla, Banja Luka, Mostar, Zenica, Bijeljina and Brčko. Some of the services that the attorneys of our office provide in the field of real estate are:

• Comprehensive legal assistance with the sale, purchase and construction of real estate in Bosnia and Herzegovina.
• Advice and assistance in conducting negotiations and concluding preliminary contracts and real estate purchase agreements, as well as lease agreements for real estate in Bosnia and Herzegovina.
• Representation in legal transactions whose subject is the transfer or acquisition of ownership or other rights in rem over real estate on the territory of Bosnia and Herzegovina.
• Representation of the seller or buyer of real estate before the notary, without the presence of the client in Bosnia and Herzegovina.
• Proceedings before the competent offices for the real estate cadastre regarding the registration of ownership rights over real estate, the establishment, registration, realization and deletion of a mortgage on real estate in Bosnia and Herzegovina.
• Obtaining a reciprocity confirmation from the competent Ministry of Justice (in the Federation of BiH from the Federal Ministry of Justice) for the registration of foreigners in the land registry in BiH after buying real estate.
• Drafting legal opinions and reports concerning the relevant real estate.
• Representation before the land registry and the Tax Administration in Bosnia and Herzegovina, for the assessment of the real estate transfer tax.
• Representation in proceedings for drafting lifelong support agreements whose subject is real estate in BiH.
• Representation of foreigners in the acquisition of ownership over real estate in BiH.
• Drafting, representation and advice in the agreement on the division of marital property in BiH.
• Representation in disputes concerning real estate before the courts of Bosnia and Herzegovina.

How can a foreigner buy real estate in Bosnia and Herzegovina?

Foreign nationals may acquire ownership of real estate in Bosnia and Herzegovina on the basis of the principle of reciprocity. If the foreign buyer's country allows BiH citizens to acquire real estate, the same principle applies in BiH. For some countries reciprocity exists, for others it does not; the existence of reciprocity in a specific procedure is confirmed by the competent Ministry of Justice, and if there is no reciprocity, the notary and the land registry office cannot register the transfer of ownership. The condition of reciprocity applies to acquisition through legal transactions between the living (purchase, gift, exchange); inheritance of real estate in BiH is possible even when there is no reciprocity, under the rules of private international law and bilateral legal assistance treaties. Specific examples by country (Germany, Austria, Croatia, Belgium, the Netherlands) are listed in the section Frequently asked questions, and a full overview of the acquisition of ownership by foreigners is presented on the page right of foreigners in BiH.

Bosnia and Herzegovina requires material reciprocity, that is, the actual possibility for BiH citizens to acquire real estate in the country concerned, and not merely the existence of an international treaty. When there is no reciprocity for the buyer's country, acquisition is possible through a domestic legal entity: a foreign national may establish a limited liability company (d.o.o.) in Bosnia and Herzegovina and buy the real estate through that company, which as a domestic legal entity is not subject to the reciprocity requirement. The foreigner thus acquires ownership indirectly, as the founder and member of the company.

The procedure for buying real estate in BiH

Buying real estate in Bosnia and Herzegovina takes place through several clear steps: checking the legal and factual status of the real estate in the land registry and cadastre, checking the possibility of acquisition (especially for foreign nationals), concluding a notarially processed purchase agreement, filing and paying the real estate transfer tax and registering the ownership right in the land registry. The legal grounds for acquisition and special cases are addressed below.

Legal grounds for the acquisition of ownership

The ownership right over real estate in Bosnia and Herzegovina is acquired on the basis of a legal transaction, the law, a decision of a court or another competent authority, and by inheritance, subject to the conditions prescribed by law. Through a legal transaction, the acquirer of the ownership right cannot acquire that right to a greater extent than the person from whom the right was acquired. The ownership right based on the law is acquired by fulfilling the conditions provided for by law. Unless otherwise provided by law, with the acquisition of ownership over real estate on the basis of the law, all rights in rem that existed until then over the relevant property cease, except for those of whose existence the acquirer knew or had to know. The heir acquires ownership of inherited real estate in Bosnia and Herzegovina at the moment of the testator's death, unless otherwise provided by law.

The acquirer of the ownership right over real estate in BiH on the basis of the law, inheritance, a final court decision or a final decision of another competent authority is entitled to request the registration of the acquired ownership right in the land registry. The ownership right thus acquired cannot be set against the right of a third party acting in good faith who, relying on the land registry, requested the registration of their right before the person who acquired the right on the basis of inheritance, the law or a decision requested the registration of their right.

Condominium (floor) ownership

Ownership of a particular part of the real estate (condominium ownership) arises and remains inseparably connected with the corresponding co-ownership share (ideal part) of the real estate on which it was established, and may be transferred or encumbered only together with it. Ownership of a specific particular part entitles the condominium owner to the exclusive use and disposal of that part, and over the common parts of the real estate they have the co-ownership right. Condominium ownership may be established on the corresponding co-ownership share of real estate consisting of land with a building or of the right to build with a building. For registration, a declaration of division or a division agreement and a plan of the particular building parts to be registered must be submitted to the court.

The right of pre-emption when buying real estate

Co-owners of an apartment, a business premises or an independent premises have the right of pre-emption when acquiring real estate. A co-owner who sells their condominium ownership is obliged to make an offer to the other co-owners of that particular part. The offer must be made in writing and contain the land registry or cadastral data of the real estate and of the particular part being sold. If the selling condominium owner does not make an offer or sells their part to a third party on more favourable terms, the other co-owners have the right to request that the court declare the contract invalid and to buy that part on the same terms. From case law: challenging the purchase agreement due to violation of the right of pre-emption.

Documents required for buying real estate

For a safe real estate purchase in Bosnia and Herzegovina, before concluding the agreement and registration, the following documents are generally required:

• Land registry extract (ZK extract) for the relevant real estate.
• Copy of the cadastral plan and possession sheet from the cadastre.
• Identification documents of the contracting parties (ID card or passport); for foreign nationals, also proof of citizenship.
• Purchase agreement or preliminary contract, drafted or reviewed by an attorney.
• Notarially processed deed with the clausula intabulandi, as the basis for registration.
• Proof of filing and payment of the real estate transfer tax.
• For foreign nationals: consent of the competent ministry, where prescribed, and proof of reciprocity.
• Power of attorney (notarially processed, with an Apostille if issued abroad) when the purchase is carried out through a proxy.

Checking the land registry and cadastre

Before any real estate purchase in Bosnia and Herzegovina, it is necessary to check who is the registered owner and whether there are encumbrances, mortgages or dispute notes. The check is carried out by inspecting the land registry extract and the cadastral data, which identifies the exact parcel or particular part (apartment). The land registry system is regulated by the Land Registry Act of the FBiH, and surveying and the cadastre by the Act on Land Surveying and Cadastre. In Republika Srpska, the real estate records are kept by the real estate cadastre at the Republic Administration for Geodetic and Property-Legal Affairs.

The concept of real estate and the object of ownership

The object of the ownership right is individually determined real estate in Bosnia and Herzegovina or a movable thing, except for those that are not suitable for it or where the law provides otherwise. Real estate consists of parcels of the land surface, together with everything permanently connected to the land on the surface or beneath it, unless the law provides otherwise. Things that are movable by their nature are considered immovable in the legal sense if they belong to real estate or are equated with real estate by law. In case of doubt as to whether something is movable or immovable, it is considered movable.

Protection of trust in the land registry

The land registry is deemed to reflect the factual and legal status of the real estate truthfully and completely, so a person who acted in good faith relying on the land registry, without knowing that what is registered is incomplete or that it differs from the off-registry status, enjoys protection in respect of that acquisition under the provisions of the law. As regards the factual status of the real estate, the land registry is deemed truthful and complete if it was established on the basis of the data of a new survey. The acquirer was in good faith if, at the moment of concluding the legal transaction and also at the moment of requesting registration, they did not know and, given the circumstances, had no sufficient reason to doubt that the thing belongs to the transferor. Lack of good faith cannot be attributed to anyone merely because they did not investigate the off-registry status.

Notarial contract, tax and registration of ownership

Notarial processing of the purchase agreement

The real estate purchase agreement may be drafted by an attorney or a notary. The notary processes the deed, verifies the identity of the parties and the validity of the agreement and advises the parties of the legal consequences. Without notarial processing, the agreement is not suitable for registration in the land registry. More on certification and on the signatures of contracting parties on real estate transfer agreements.

Registration of the ownership right

Acquisition of real estate by registration in BiH
The ownership right over real estate in Bosnia and Herzegovina on the basis of a legal transaction is acquired by registration in the land registry. The legal transaction is concluded in the form of a notarially processed deed, namely: the real estate purchase agreement, the real estate gift agreement and the lifelong support agreement. Ownership of real estate in Bosnia and Herzegovina is transferred on the basis of the validly expressed will of the registered owner, directed at having their ownership pass to the acquirer (clausula intabulandi). This declaration of will may be given in the legal transaction directed at the transfer of ownership, but also in a separate deed, which must then be notarially processed. The completed registration takes effect from the moment the request for registration of the relevant real estate was submitted to the court.

Real estate transfer tax

Tax obligations differ between entities. In the Federation of BiH, a real estate transfer tax is paid, regulated by cantonal regulations (usually 5%, generally borne by the seller, and in Canton Sarajevo by the buyer). In Republika Srpska there is no real estate transfer tax: the buyer pays an annual real estate tax (around 0.20%) and the seller pays capital gains tax (10%) on the difference between the purchase and the sale price. In addition, notary fees, court fees for registration and the costs of legal representation arise. More: tax law in BiH.

Buying real estate in BiH by power of attorney

Clients from abroad and the diaspora can buy real estate in Bosnia and Herzegovina without coming to the country, by power of attorney. The power of attorney is issued in notarially processed form; if it is issued abroad, certification and an Apostille (or consular legalization) are generally required, together with a translation into one of the official languages in BiH. On the basis of the power of attorney, the attorney represents the client in all phases: in negotiations, the signing of the notarial agreement, the tax filing and the registration of ownership. The power of attorney should precisely determine the authorizations (the specific real estate, the price, the right to sign the agreement and to file the registration request). You can find more on the recognition of foreign documents, legalization and the Apostille in a separate document (PDF). More on the representation of foreigners: right of foreigners in BiH.

Attorney for real estate in Sarajevo, Tuzla and other cities in BiH

Our law office provides legal assistance with the purchase, sale and registration of real estate in all larger cities in Bosnia and Herzegovina. Whether the real estate is located in Sarajevo, Tuzla, Banja Luka, Mostar, Zenica, Bijeljina or Brčko, we carry out the check of the land registry and cadastre, the drafting and notarial processing of the purchase agreement and the registration of the ownership right before the competent authorities in that city. For clients from the diaspora, we conduct the entire procedure by power of attorney, without coming to Bosnia and Herzegovina.

Attorney for real estate by city: Sarajevo, Tuzla, Banja Luka, Mostar, Zenica, Bijeljina, Brčko.

Real estate transaction support

In real estate transactions we represent the buyer and the seller before the notary, the tax administration and the land registry office of the court, with the presence of the parties or without their coming to Bosnia and Herzegovina. Large investors and companies that build real estate in Sarajevo, Mostar, Banja Luka, Tuzla and other cities recommend our office to foreign buyers, to guide them through the purchase from beginning to end.

Services

• Drafting the real estate purchase agreement.
• Legal review of the documentation on the seller's side to prevent subsequent disputes, including a review of ownership of the real estate, urban planning consent, the building permit, the use permit, cadastral and land registry entries, encumbrances on the real estate, as well as any unsettled tax obligations.
• Representation at the conclusion of the real estate purchase agreement, which removes the need for the owner to travel personally to Bosnia and Herzegovina on the day the agreement is concluded.
• Drafting the confirmation of payment of the purchase price for the buyer and the seller.
• Drafting the consent for taking possession of the real estate.
• Representation in the procedure of registering the transaction note for the real estate before the competent land registry office of the court.
• Filing the request for tax assessment with the Tax Administration.
• Representation before the Tax Administration in the administrative procedure of tax assessment.
• Presence and representation at the on-site inspection before the commission for the valuation of the real estate, in order to determine the tax base.
• Drafting the appeal against the assessed value of the real estate, if necessary, e.g. in the case of an excessive assessment.
• Physical collection of the Tax Administration's decision on the real estate transfer tax.
• Representation in the procedure of registering the ownership right before the competent land registry office of the court.
• Coordination with the land registry office, if necessary.
• Certification of copies of all the required documentation.
• Execution of the real estate contract before the competent authority for cadastral and property-legal affairs.
• Comprehensive legal advice and representation aimed at registering the ownership right over the real estate in the public registers, which establishes an absolute ownership right that produces legal effect towards all third parties, including the resolution of all legal issues that may arise during the procedure.

Frequently asked questions