The Law on the conversion of rights of use to rights of ownership on construction land with compensation August 24, 2015 On July 16, 2015 the National Assembly of the Republic of Serbia adopted the Law on the conversion of rights of use to rights of ownership on construction land with compensation. The scope of this law is 5,310 hectares, or 0.80 percent of the total 661,015 hectares of construction land. According to the Law, half of the compensation for the conversion will go to the Restitution Fund, and other half will go to the budget of Serbia, autonomous province or local government. The Law on conversion provides that the right of use can be converted into property rights in two ways: conversion at market value or 99 years lease. The scope of conversion shall be construction land acquired in the privatization process, bankruptcy or enforcement. The right of conversion is also given to those who have acquired the right of use on the undeveloped building land in state ownership for the construction according to the laws in 2003. The law is primarily intended for investors who have acquired construction land in bankruptcy proceedings and privatization, where the companies only had the right of use. The new Law will allow the conversion to the right of ownership, but to a long term 99 years lease as well, for compensation at the market value of the land. It also stipulates the right to a reduction of the compensation depending on the degree of development of local government. The subject of conversion cannot be a construction land defined as a construction land that cannot be alienated from public ownership by a special law as well as land and public facilities in public ownership on the basis of special laws.
