Can Foreigners Buy Property in Bosnia?
Yes. Under the principle of reciprocity established in the Law on Property Rights of the Federation of BiH, foreign nationals from eligible countries can legally purchase real estate in Bosnia and Herzegovina.
Reciprocity means: if your country allows Bosnian citizens to buy property on its territory, then you – as a citizen of that country – have the legal right to buy property in Bosnia. This applies to citizens of all EU member states, the USA, UK, Turkey, UAE, Saudi Arabia, Qatar, Kuwait and many others.
Why Bosnia and Herzegovina?
Bosnia is quietly becoming one of the most attractive real estate destinations in Europe:
- Affordable prices: Mostar averages 1,800–3,500 BAM/m² – a fraction of Dubrovnik or Split
- Mediterranean climate: 2,700+ sunshine hours per year in Herzegovina
- UNESCO heritage: Mostar's Old Town and the Stari Most bridge
- Growing tourism: Record visitor numbers drive short-term rental yields of 7–12% in Mostar
- EU candidate status: Bosnia's EU membership trajectory is adding long-term value confidence
Legal Basis: The Reciprocity Principle
The Ministry of Justice of BiH issues a written reciprocity confirmation for foreign buyers. This document confirms that your country allows BiH citizens to purchase property – and therefore you may do the same in Bosnia.
For EU citizens and nationals of most Western and Middle Eastern countries, this is a routine step. Arimes guides every foreign client through obtaining this confirmation.
The Buying Process Step by Step
1. Find the Right Property
Arimes searches available properties based on your criteria. We coordinate viewings in person or remotely via video call.
2. Legal Check
We verify the land registry extract (ZK izvadak), confirm there are no mortgages or encumbrances, and check that all building permits are in order.
3. Preliminary Contract (Kapara)
You sign a preliminary agreement and pay a deposit (typically 10% of the price) to secure the property.
4. Reciprocity Confirmation
Arimes assists you in submitting the required documents to the Ministry of Justice for reciprocity confirmation.
5. Final Notarial Contract
The purchase contract is signed before a certified Bosnian notary. If you cannot travel to Bosnia, power of attorney allows your representative to sign on your behalf.
6. Transfer Tax Payment
The buyer pays 5% property transfer tax within 30 days of notarization.
7. Land Registry Registration
Ownership is registered with the Municipal Court, typically completed in 15–30 working days.
Costs Summary
| Cost Item | Amount |
|---|---|
| Property Transfer Tax | 5% of property value |
| Notary Fees | 200–500 BAM |
| Agency Commission | 2–3% of price |
| Land Registry Fee | 100–200 BAM |
| **Total extra costs** | **~6–8% of price** |
Power of Attorney
If you are purchasing remotely, you can sign a notarised and apostilled power of attorney in your home country, authorising a representative in Bosnia to complete the purchase on your behalf. This is a common and fully legal solution for international buyers.
Why Arimes?
Arimes is Mostar's leading real estate agency, ranked #1 on Google Business for "real estate agency Mostar". We work with international buyers daily, providing full English-language communication, remote purchase coordination, legal due diligence, and end-to-end transaction management. Contact us to start your property search.