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Ease of Doing Business in

Bosnia and Herzegovina

Bosnia and Herzegovina Download Profile (1777.9KB, pdf)
Region Europe & Central Asia
Income Category Upper middle income
Population 3,810,416
GNI Per Capita (US$) 4,680
City covered Sarajevo

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 81 79 down
2
63.87 63.07 down
0.80
Starting a Business 174 175 up
1
65.09 63.60 up
1.49
Dealing with Construction Permits 170 168 down
2
52.54 51.54 up
1.00
Getting Electricity 123 120 down
3
60.05 60.00 up
0.05
Registering Property 99 97 down
2
61.54 61.52 up
0.02
Getting Credit 44 42 down
2
65.00 65.00
-
Protecting Minority Investors 81 78 down
3
55.00 55.00
-
Paying Taxes 133 151 up
18
60.08 55.15 up
4.93
Trading across Borders 36 36
-
91.87 91.87
-
Enforcing Contracts 64 63 down
1
60.60 60.60
-
Resolving Insolvency 41 40 down
1
66.93 66.42 up
0.51

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB 2017 Rank:

99

DB 2016 Rank:

97

Change in Rank:

down2

DB 2017 DTF (% points):

61.54

DB 2016 DTF (% points):

61.52

Change in DTF (% points):

up0.02

STANDARD PROPERTY TRANSFER
Property value BAM 373,935
City Sarajevo
Indicator Bosnia and Herzegovina Europe & Central Asia OECD high income
Procedures (number) info_outline 7 5.3 4.7
Time (days) info_outline 24 20.6 22.4
Cost (% of property value) info_outline 5.2 2.5 4.2
Quality of the land administration index (0-30) info_outline 12.5 19.8 22.7
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Obtain the land registry extract as proof of ownership

    Agency: Municipal Court in Sarajevo (Land Registry Office)

    The seller requests and obtains the land registry excerpt from a competent court land registry office as the proof of ownership and to check the property against encumbrances. In practice, the excerpt must be obtained by the seller before starting the transaction formally. This information need to be obtained in hard copy and be sealed to have legal validity. The seller may hire a lawyer to perform this task.

    1 day (simultaneous with Procedure 2) BAM 5
    * 2

    Parties obtain the court extract certifying that company representatives are authorized to act on behalf of each company

    Agency: Municipal Court in Sarajevo (Companies Registry)

    Both the seller and the buyer submit the request for obtaining the court extract certifying the person authorized to act on behalf of each company to the court that keeps the Registry of Commercial Companies. They may hire a lawyer to perform this task. The parties have to provide the set of registration documents, which prove that the person who will sign on behalf of the company is authorized to do it.

    5 days (simultaneous with Procedure 1) BAM 5 (each request) + BAM 10 per page (Court Extract, about 4-5 pages each)
    3

    Notarization of sale-purchase agreement

    Agency: Notary

    The law on Notary of the Federal Republic of Bosnia & Herzegovina that passed in 2002 and became applicable in May 2007 prescribes notaries as the competent authority in the process of transferring a real estate or acquiring the ownership rights over the same or other real rights. According to the law, the purchase agreement of the real estate must be prepared as a notary deed. The cost of the procedure of notarization of the sale-purchase agreement depends on the value of the real estate at the time of purchase. Parties provide the notary with the land registry excerpt (obtained in Procedure 1) and well as with a court excerpt (obtained in Procedure 2). The presence of both parties is necessary at the notary's office or verification of the signatures should be based on a special power of notary. The notary needs to be provided with the following documents:
    (1) The land registry excerpt as well as the copy of the cadastre plan proving the ownership over the property;
    (2) The extract from the company’s court registry certifying the person is authorized to act on behalf on the company and to sign the purchase agreement;
    (3) The approval of the founder (i.e. the General Assembly or Supervisory Board if applicable) for selling the property in case that the value of the property exceeds the amount of 1/3 of the company’s book value.

    New Notary Tariff has been passed on July 2013 (and replace previous one No. 71/07) and the same effected to the decresing of cost of notarization of sale-purchase agreement
    New Tariff of Notary Fees and Compensations has been passed on July 24, 2013 and published in Official Gazzete of FB&H No. 57/13 and the same in general decresed the notary fees and compensations. Thus, the notary fee depends on the value of the property and will be calculated as follows:

    Value of property notary fees in BAM
    above BAM to BAM
    0 5.000,00 200,00 BAM
    5.000,00 50.000,00 270,00 BAM
    50.000,00 100.000,00 350,00 BAM
    When the value of the subject of a legal transaction or other official action is over 100,000 BAM, notary is, besides the fee of 350,00 BAM, obliged to charge an additional fee of 50,00 BAM for every started 100.000,00 BAM in the part in which the value of the official action exceeds 100.000,00 BAM, but in the amount not greater than 2.000,00 BAM.

    1 day 500 BAM
    4

    Submit the request for an evaluation of the property for tax purposes

    Agency: Municipal Tax Authority

    Parties file the request for the evaluation of the real estate regarding the payment of the tax for the transfer of the ownership on real estates at the competent municipal Tax Authority. The deadline for filing the request is 15 days from the verification of signatures on the sale agreement. This Procedure can be done by a lawyer or by the buyer and/or the seller. The documentation shall include a copy of sale contract (obtained after Procedure 3).

    1 day no cost
    5

    On-site inspection of a property

    Agency: Tax Office Commission

    Upon submission of the purchase agreement the tax office commission performs on-site inspection of the real estate and takes notes from that inspection. Based on the notes, the tax office adopts an official decision on tax duty of the tax payer (in practice it is always the buyer).

    5-15 days no cost
    6

    Payment of transfer tax at the commercial bank

    Agency: Commercial Bank

    The transfer tax is paid, usually by the buyer, at a commercial bank in favor of the municipal budget. Following an amendment to the Law on Transfer Tax of the Real Estates and Rights as published in the Official Gazette of Canton Sarajevo on March 31st, 2005, the transfer tax of 5% came into effect on April 8th, 2005. The tax has to be paid according to the tax authority's instructions within 15 days from receiving payment instructions from the tax authority.

    1 day 5% of property value (transfer tax)
    7

    Apply for registration at the Land Registry

    Agency: Municipal Court of Sarajevo (Land Registry Office)

    Parties submit the application and other documentation for the transfer of the ownership to the competent court land registry office. The registration of the transfer of ownership is handled by the authorized court officer. Time length of the Procedure is not prescribed by the law. However, the Procedure can last less than indicated above in case the party sends the urgency letter, especially in case of larger investments, explaining the grounds for such urgency, which happens often in practice. Computerization efforts at the Municipal Court in the past years have significantly sped up the process of registration. Registry is now completely computerized and all data on companies are now stored in electronic form, so issuing of the court extract requires only printing of already stored data on concrete company. The land registry will forward information to the Cadastre.
    The documentation shall include:
    (1) Purchase agreement
    (2) Certificate of tax payment

    3-9 days BAM 30

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer Score
    Quality of the land administration index (0-30) 12.5
    Reliability of infrastructure index (0-8) 4.0
    What is the institution in charge of immovable property registration? Municipal Court Sarajevo-Land Registry Office
    In what format are the majority of title or deed records kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Computer/Scanned 1.0
    Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions and the like)? Yes 1.0
    In what format are the majority of maps of land plots kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Computer/Scanned 1.0
    Is there an electronic database for recording boundaries, checking plans and providing cadastral information (geographic information system)? Yes 1.0
    Is the information recorded by the immovable property registration agency and the cadastral or mapping agency kept in a single database, in different but linked databases or in separate databases? Separate databases 0.0
    Do the immovable property registration agency and cadastral or mapping agency use the same identification number for properties? No 0.0
    Transparency of information index (0–6) 3.0
    Who is able to obtain information on land ownership at the agency in charge of immovable property registration in the largest business city? Freely accessible by anyone 1.0
    Is the list of documents that are required to complete any type of property transaction made publicly available–and if so, how? Yes, on public boards 0.5
    Link for online access:
    Is the applicable fee schedule for any property transaction at the agency in charge of immovable property registration in the largest business city made publicly available–and if so, how? Yes, on public boards 0.5
    Link for online access:
    Does the agency in charge of immovable property registration commit to delivering a legally binding document that proves property ownership within a specific time frame–and if so, how does it communicate the service standard? Yes, in person 0.0
    Link for online access:
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the agency in charge of immovable property registration? No 0.0
    Are there publicly available official statistics tracking the number of transactions at the immovable property registration agency? No 0.0
    Number of property transfers in the largest business city in 2015:
    Who is able to consult maps of land plots in the largest business city? Freely accessible by anyone 0.5
    Is the applicable fee schedule for accessing maps of land plots made publicly available—and if so, how? Yes, online 0.5
    Link for online access: http://www.fgu.com.ba/sr/492.html
    Does the cadastral or mapping agency commit to delivering an updated map within a specific time frame—and if so, how does it communicate the service standard? No 0.0
    Link for online access:
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the cadastral or mapping agency? No 0.0
    Geographic coverage index (0–8) 0.0
    Are all privately held land plots in the economy formally registered at the immovable property registry? No 0.0
    Are all privately held land plots in the largest business city formally registered at the immovable property registry? No 0.0
    Are all privately held land plots in the economy mapped? No 0.0
    Are all privately held land plots in the largest business city mapped? No 0.0
    Land dispute resolution index (0–8) 5.5
    Does the law require that all property sale transactions be registered at the immovable property registry to make them opposable to third parties? Yes 1.5
    Is the system of immovable property registration subject to a state or private guarantee? Yes 0.5
    Is there a specific compensation mechanism to cover for losses incurred by parties who engaged in good faith in a property transaction based on erroneous information certified by the immovable property registry? Yes 0.5
    Does the legal system require a control of legality of the documents necessary for a property transaction (e.g., checking the compliance of contracts with requirements of the law)? Yes 0.5
    If yes, who is responsible for checking the legality of the documents? Registrar; Notary; Lawyer.
    Does the legal system require verification of the identity of the parties to a property transaction? Yes 0.5
    If yes, who is responsible for verifying the identity of the parties? Registrar; Notary.
    Is there a national database to verify the accuracy of identity documents? No 0.0
    For a standard land dispute between two local businesses over tenure rights of a property worth 50 times gross national income (GNI) per capita and located in the largest business city, what court would be in charge of the case in the first instance? The Municipal Court in Sarajevo
    How long does it take on average to obtain a decision from the first-instance court for such a case (without appeal)? Between 1 and 2 years 2.0
    Are there any statistics on the number of land disputes in the first instance? No 0.0
    Number of land disputes in the largest business city in 2015:
    Equal access to property rights index (-2–0) 0.0
    Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0
    Do married men and married women have equal ownership rights to property? Yes 0.0