Bosnia's Rental Yield: The Numbers That Matter
Rental yield in Bosnia Herzegovina ranges from 5–8% gross for long-term rentals to 10–16% gross for short-term (Airbnb) properties in Mostar's tourist centre. Combined with capital appreciation of 5–10% per year, Bosnia offers one of the strongest property ROI profiles in Southeast Europe.
Rental Yield by City and Strategy
Mostar — Short-Term Rentals (Airbnb)
Mostar receives 1.5–2 million tourists annually, growing at 15–20% per year. The Old Town area generates the highest short-term rental income in the country.
| Property | Purchase Price | Monthly Income (Peak) | Gross Annual Yield |
|---|---|---|---|
| Studio, Old Town | €70,000–€90,000 | €1,200–€2,000 | 10–14% |
| 1-bed, centre | €90,000–€130,000 | €900–€1,500 | 8–12% |
| 2-bed, centre | €120,000–€180,000 | €1,200–€2,000 | 8–10% |
Peak occupancy (June–September): 80–90%
Annual occupancy (well-managed): 65–75%
Sarajevo — Long-Term Rentals
Sarajevo has a growing professional tenant base. Quality furnished apartments in central neighbourhoods see consistently high demand.
| Property | Purchase Price | Monthly Rent | Gross Annual Yield |
|---|---|---|---|
| 1-bed, centre | €110,000–€160,000 | €550–€750 | 5–7% |
| 2-bed, centre | €140,000–€200,000 | €650–€900 | 5–6.5% |
Trebinje — Emerging Market
| Property | Purchase Price | Monthly Rent | Gross Annual Yield |
|---|---|---|---|
| 2-bed apartment | €40,000–€80,000 | €300–€450 | 6–9% |
Comparison: Bosnia vs European Markets
| Market | Price/m² | Annual Gross Yield |
|---|---|---|
| Mostar, Bosnia | €1,200–€2,000 | 8–16% |
| Sarajevo, Bosnia | €1,500–€2,800 | 5–10% |
| Dubrovnik, Croatia | €4,000–€7,000 | 4–6% |
| Warsaw, Poland | €2,500–€4,500 | 4–6% |
| Berlin, Germany | €5,000–€8,000 | 2.5–4% |
| Vienna, Austria | €5,000–€9,000 | 2–3.5% |
5-Year Investment Simulation: Mostar Apartment
Property: 2-bed apartment, Mostar centre
| Item | Amount |
|---|---|
| Purchase price | €70,000 |
| Transfer tax (5%) | €3,500 |
| Notary + legal | €1,500 |
| Renovation + furniture | €7,000 |
| **Total invested** | **€82,000** |
Annual Airbnb income (net after management 20%): ~€7,000–€9,000
5-year rental income: ~€35,000–€45,000
Capital appreciation (~5%/year × 5 years): ~€17,500
Total 5-year return: ~€52,500–€62,500 on €82,000 = ~64–76%
Tax on Rental Income
| Tax | Rate |
|---|---|
| Rental income tax (Bosnia) | 10% flat |
| Annual property tax | €100–€400/year |
| Transfer tax (one-time) | 5% of purchase price |
Risk Factors
- Seasonality in Mostar: 70–80% of Airbnb revenue concentrated in 5 months
- Title issues: Always verify land registry before purchase
- Liquidity: Less liquid than Western European markets — plan 5+ year horizon
- Management dependency: Remote ownership requires a reliable local management company
Frequently Asked Questions
What is the net yield after costs?
Subtract 1.5–2.5% for management fees, maintenance, and taxes. Net yields: 6–12% (Airbnb Mostar), 4–6% (long-term Sarajevo).
How much to start investing in Bosnia?
From €50,000–€60,000 for a small studio in Mostar.
Can I manage the property remotely?
Yes. Property management companies in Mostar and Sarajevo charge 15–25% of rental income and handle everything.