Three business associations submitted a proposal for resolving the issue of conversion to the Minister of of Civil Engineering, Transportation and Infrastructure and Deputy Prime Minister, Mrs. Mihajlović
Resolution of this issue in a transparent and implementable way would significantly improve regulatory framework in real estate and contribute to higher level of legal certainty on the Serbian market.
After recent meetings with representatives of the Ministry of Construction, Transportation and Infrastructure, as well as with representatives of the EU/European commission, the Associations were familiar with the new conditions that process of conversion shall satisfy, affecting primarily at Law on State Aid Control.
Associations agreed that compensation fee for the conversion shall correspond with the amount of additional value that is created in process of conversion. So for example, conversion of construction land for regular usage of the buildings should be without fee, since the process of conversion does not create additional value, and conversion of undeveloped construction land should be with fee (from 20% to 100% of its current market value - value of the right to use over the land).
To see the full proposal of AmCham, FIC and NALED for land conversion, please follow this link.