Dealing with Construction Permits in Serbia

The table below summarizes the procedures, time, and costs to build a warehouse in Serbia.

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Building a warehouse

Data as of: January 2009
Estimated Warehouse Value: USD 650,300
City: Belgrade

Requirements Summary:


  Procedure Time to complete: Cost to complete:
1 Request and obtain extract from the urban plan or act on zoning conditions 30 days RSD 60,000
*2 Request and obtain proof of ownership of the construction land 6 days RSD 130
3 Request and obtain main construction project clearance from the electric energy authority 45 days RSD 10,000
*4 Request and obtain main construction project clearance from the water and sewerage authority 60 days RSD 159,500
*5 Request and obtain main construction project clearance from the labor inspection – department for safety at work 60 days RSD 2,000
*6 Request and obtain main construction project clearance from the heating authority 45 days RSD 12,500
*7 Request and obtain main construction project clearance from the telecommunications authority 45 days RSD 20,000
*8 Request and obtain main construction project clearance from the traffic authority 60 days RSD 5,900
9 Request and obtain building permit 90 days RSD 450
*10 Request and obtain technical control of the main project 10 days RSD 92,071
11 Notify and obtain approval for commencement of works from municipality and pay city building land tax 1 day RSD 5,379,281
12 Nominate expert supervisor of the work 1 day RSD 455,000
13 Request and obtain consent regarding the connection of the plot of land to the nearest public road 30 days RSD 61,000
*14 Request and obtain consent regarding regulations on environmental protection 30 days RSD 80,000
*15 Request and obtain water and sewerage connection 10 days RSD 159,500
*16 Request and obtain electricity connection 7 days RSD 508,200
*17 Request and obtain phone connection 7 days RSD 12,000
18 Request technical examination of the building from municipality commission 1 day RSD 120
19 Receive technical examination of the building from municipality commission and obtain use permit 15 days RSD 25,686
20 Register the building 45 days RSD 4,000
* Takes place simultaneously with another procedure.

Requirement Details

Procedure 1.
Request and obtain extract from the urban plan or act on zoning conditions
Time to complete:
30 days
Cost to complete:
RSD 60,000
Name of Agency:
Belgrade City Municipality
Comment:
A request for either of these documents should be submitted to the municipality in the area where the building plot is situated. The extract from the urban plan can be obtained only if an urban plan for the site exists. An excerpt from an urban plan contains all the conditions and data necessary for the development of a conceptual project design and, in particular, construction line and height restrictions, and conditions, in accordance with regulations.

If BuildCo is interested in building a structure in an area for which development of an urban plan is not envisioned, on the request of the interested party, the municipality issues an act on zoning conditions, in accordance with the space plan. However, if the construction site is located within an area for which an urban plan exists (adopted on the basis of old laws), the act on zoning conditions must be issued in conformity with this urban plan, until the new urban plan takes effect. The required plans and documents for connecting to roads and other communal infrastructure must be obtained, at the investor’s expense, from the municipality that has jurisdiction for issuing a building permit for the warehouse.
Procedure 2.
Request and obtain proof of ownership of the construction land
Time to complete:
6 days
Cost to complete:
RSD 130
Name of Agency:
Municipal Court
Comment:
Proof of ownership is provided either by the appropriate municipal court (with a land register extract) or the Republic Geodesy Institute (an extract from the newly established cadastre).

It takes on average upto 10 days for issuance of the land register extract by the appropriate municipal court; the cost is RSD 130. The cadastre extract can be obtained in a day from the Republic Geodesy Institute at a cost from RSD 1,300 to RSD 1,500 (the price depends on the number of pages). Some areas of Belgrade are now updated and incoporated in the cadastral system. However, in the case considered here, only proof of ownership from the municipal court is needed.
Procedure 3.
Request and obtain main construction project clearance from the electric energy authority
Time to complete:
45 days
Cost to complete:
RSD 10,000
Name of Agency:
Electricity Energy Authority
Comment:
The timelimit for issuing the technical project clearances from various authorities is 30 days, concurrently. However, in practice it takes much longer and requires various follow-ups from applicants.
Procedure 4.
Request and obtain main construction project clearance from the water and sewerage authority
Time to complete:
60 days
Cost to complete:
RSD 159,500
Name of Agency:
Water and Sewage Authority
Comment:
Preparation of the conditions regarding water and sewerage service costs RSD 70,500; consent (clearance) costs RSD 44,000; and connection to the public network costs RSD 45,000. These figures cover the costs of connection.

The timelimit for issuing the technical project clearances from various authorities is 30 days, concurrently. However, in practice it takes much longer and requires various follow-ups from applicants.
Procedure 5.
Request and obtain main construction project clearance from the labor inspection – department for safety at work
Time to complete:
60 days
Cost to complete:
RSD 2,000
Name of Agency:
Department for Safety at Work
Comment:
The timelimit for issuing the technical project clearances from various authorities is 30 days, concurrently. However, in practice it takes much longer and requires various follow-ups from applicants.
Procedure 6.
Request and obtain main construction project clearance from the heating authority
Time to complete:
45 days
Cost to complete:
RSD 12,500
Name of Agency:
Heating Authority
Comment:
The building authority will not approve the project without a clearance from the heating authority.

The timelimit for issuing the technical project clearances from various authorities is 30 days, concurrently. However, in practice it takes much longer and requires various follow-ups from applicants.
Procedure 7.
Request and obtain main construction project clearance from the telecommunications authority
Time to complete:
45 days
Cost to complete:
RSD 20,000
Name of Agency:
Telekom Serbia
Comment:
The telecommunications authority makes a list of conditions after 10 days from when the application was submitted. After that, the company (BuildCo) prepares the relevant drawings and designs according to the specified norms. The overall time has decreased from 60 days to 45 days because of more efficient internal document processing.

The timelimit for issuing the technical project clearances from various authorities is 30 days, concurrently. However, in practice it takes much longer and requires various follow-ups from applicants.
Procedure 8.
Request and obtain main construction project clearance from the traffic authority
Time to complete:
60 days
Cost to complete:
RSD 5,900
Name of Agency:
Traffic Authority
Comment:
According to oral information provided by the traffic authority, this clearance can be obtained within 30 days at a cost of RSD 5,900.

The timelimit for issuing the technical project clearances from various authorities is 30 days, concurrently. However, in practice it takes much longer and requires various follow-ups from applicants.
Procedure 9.
Request and obtain building permit
Time to complete:
90 days
Cost to complete:
RSD 450
Name of Agency:
Secretariat for Urbanism and Construction Affairs of Belgrade City Municipality
Comment:
Since Dec 31, 2008, by the new Statute of City of Belgrade, municipalities only handle building permits for projects below 800 sqm. This particular reform made the different districts of Belgrade more equal and defined the types of activities that are handled by the City versus the municipal offices. Everything above 800 sqm is now handled by the the City of Belgrade Secretariat for urbanism and construction work (Sekretarijat za urbanizam i građevinske poslove).

A request for a building permit should be submitted to the Secretariat for Urbanism and Construction Affairs of Belgrade City Municipality in charge of the territory on which the building plot is situated, along with the following documentation:
- Extracts from the urban plan issued within 6 months before the filing of the request for a building permit.
- Preliminary design project plan that conforms to the urban plan mentioned above.
- Evidence of the ownership status or rental status of the building plot.

Although, the law stipulates the time limit of 15 days, the Construction Department of Municipality of Belgrade takes on average anywhere between 2-6 months, and sometimes even more.
Procedure 10.
Request and obtain technical control of the main project
Time to complete:
10 days
Cost to complete:
RSD 92,071
Name of Agency:
Licensed Company
Comment:
A duly licensed company other than the one that furnished the main construction project plan must verify whether the main construction project has been made in accordance with the law and with the technical standards, and whether it has all necessary clearances described in Procedures 3–9. The main construction project must be certified and stamped to that effect.
Procedure 11.
Notify and obtain approval for commencement of works from municipality and pay city building land tax
Time to complete:
1 day
Cost to complete:
RSD 5,379,281
Name of Agency:
Belgrade City Municipality
Comment:
The start of construction activities must be reported to the municipality at least 8 days before commencement. The notification must be accompanied by all necessary documentation described in Procedures 1–10 above, including the main construction project design and description of the equipment to be used, to be certified by the municipality within eight days of submission. After this certification has been obtained, construction may commence.

The company must pay the land usage tax that is charged by the City Building Directorate and varies from EUR 50 to EUR 60 per sq. m. of the building plot. Construction activities cannot begin before this fee is paid. Proof of payment of this fee (if not agreed otherwise with the City Building Directorate) is submitted to the municipality along with the other documents mentioned above, which are submitted as attachments to the notification to the municipality.

The cost depends on the city suburb in which the facility is built. Prices of land tax differ from one suburb to the other. Assuming a cost of EUR 50 (RSD 4,136) per square meter, the total cost in this case would be RSD 4,136 x 1,300.6 sq. m. = RSD 5,379,281.

In practice it may take anywhere around 10 days to undertake all necessary steps to complete this procedure.
Procedure 12.
Nominate expert supervisor of the work
Time to complete:
1 day
Cost to complete:
RSD 455,000
Name of Agency:
Licensed, independent engineer
Comment:
Expert supervision of the construction must be provided during the entire period of construction by a licensed independent engineer. This person cannot be affiliated with BuildCo. The expert supervisor visits the site once a week on average.
Procedure 13.
Request and obtain consent regarding the connection of the plot of land to the nearest public road
Time to complete:
30 days
Cost to complete:
RSD 61,000
Name of Agency:
Comment:
BuildCo must undertake this procedure should it require access to or use of the nearest public road.
Procedure 14.
Request and obtain consent regarding regulations on environmental protection
Time to complete:
30 days
Cost to complete:
RSD 80,000
Name of Agency:
Comment:
Procedure 15.
Request and obtain water and sewerage connection
Time to complete:
10 days
Cost to complete:
RSD 159,500
Name of Agency:
Srbijavode
Comment:
Procedure 16.
Request and obtain electricity connection
Time to complete:
7 days
Cost to complete:
RSD 508,200
Name of Agency:
Elektroprivreda Srbije (EPS)
Comment:
The cost is RSD 3,630 per kilowatt.
Procedure 17.
Request and obtain phone connection
Time to complete:
7 days
Cost to complete:
RSD 12,000
Name of Agency:
Telekom Srbija a.d.
Comment:
Procedure 18.
Request technical examination of the building from municipality commission
Time to complete:
1 day
Cost to complete:
RSD 120
Name of Agency:
Belgrade City Municipality
Comment:
After all construction work has been completed, a municipal commission examines whether the constructed building complies with the issued building permit, all applicable laws and regulations, and technical standards. The municipality issues the use permit within 7 days after the commission responsible for the technical examination reports that the building is suitable for use.

The municipal commission does not issue the use permit if the building is not in compliance with technical standards and technical documentation. Instead, it orders BuildCo to correct all irregularities and, after re-examining the building, it issues the use permit. If the irregularities cannot be fixed and use of the building is dangerous, the commission orders the demolition of the building.

The City of Belgrade's administrative tax (the cost to complete this procedure) is now RSD 120.
Procedure 19.
Receive technical examination of the building from municipality commission and obtain use permit
Time to complete:
15 days
Cost to complete:
RSD 25,686
Name of Agency:
Belgrade City Municipality
Comment:
BuildCo must submit a formal request along with the building and the use permits. If there is a cadastral register in the area where the warehouse is constructed, the company should register the building at the cadastral registry. Otherwise, the building should be registered in the land books. Article 125 of the Law on Planning and Construction provides for a time limit of 7 days for this permit to be issued following the issuance of technical examination. However, there is no time-limit for the commission to perform technical examination. In practice, therefore it may take upto 6 months for the commission to convene and issue its decision.
Procedure 20.
Register the building
Time to complete:
45 days
Cost to complete:
RSD 4,000
Name of Agency:
Cadastral Registry or Land Books
Comment:
BuildCo must submit a formal request along with the building permit and the use permit. If there is a cadastral register in the area where the warehouse was constructed, the company should register the building in the cadastral registry. Otherwise, the building should be registered in the land books.