Buying property in Bosnia and Herzegovina
For those who would like to spice up their property portfolio, Bosnia and Herzegovina certainly have some staggering scenery and a good selection of properties suitable for buyers with fairly modest budgets.
Off plan property prices are still relatively low, especially when compared to neighbouring markets like Croatia , and the political stability and market growth suggest that now is the right time to capitalise on an investment in the country.
Foreigners have the same rights to property ownership as citizens of Bosnia and Herzegovina. The purchasing process in Bosnia-Herzegovina is surprisingly straightforward, although title can be an issue, so it is important that this is thoroughly checked in advance of any purchase.
At present, no lender offers foreigners mortgages secured on property in Bosnia and Herzegovina, as it would be difficult to pursue borrowers in default due to the court back log.
There is no capital gains tax payable at the moment but there are no guarantees that this will not be a feature of the market in the future. A real estate transfer tax of 6 per cent applies to all purchases.
Where to buy
The areas generating most interest have been the ski resorts around Sarajevo which hosted the Winter Olympics in 1984. Bosnia and Herzegovina is recognised as having some of the best skiing in Europe, as well as one of the longest ski seasons. There has also been strong interest in development land in the resorts, where plenty of plots in prime locations are still available at attractive prices.
Other areas that can be a good investment include Medjugorje, a popular pilgrim site, Travnik in central Bosnia near Vlasic ski resort, and towns in southern Herzegovina close to the border with Croatia and Adriatic sea. Properties in old town of Sarajevo are rarely available as most are rent to embassies and foreigners.