On Thursday, July 16th, Parliament adopted a Law on Conversion that should finally resolve some of the most complicated land ownership issues companies have faced in the past several years
The new Law comes after quite a few unsuccessful attempts to remove outdated statutes concerning the right to use land from the Serbian legal system and to adequately transform right of use into right of ownership. The Law was developed in close cooperation between the working group and business associations. As a result, the private sector perspective positively influenced its final text, enabling creation of a system that will hopefully provide relatively quick and easy procedure implementation in practice.
Key new elements introduced by the Law are:
• Conversion without fee of land serving for regular use of objects, including elements located around the object (infrastructure, traffic roads etc.)
• Possibility to convert undeveloped land free of charge once an object is constructed on it and the occupancy permit is issued
• Recognition of costs for acquiring right to use land in specific cases: for example if it relates to undeveloped land or when it is determined that there existed acquiring costs at the time of acquisition
• Allowing construction with right to use for a year once the Law comes into force
Businesses involved agree that the adoption of this new Law will influence positively the growth of the construction industry and encorage other investments and thus significantly improve the business climate in Serbia. Minister of Construction, Transport and Infrastructure Zorana Mihajlović said that the Law is simple and easy to implement, allowing conversion to be carried out within 30 days.