Art. 38a of the Law on Property Taxes (”Official Gazette of RS”, no. 26/01...78/11) provides that registration of property rights in land, cadastral and other public records can not be made without evidence of paid transfer tax, or inheritance and gift tax.
The Constitutional Court of the Republic of Serbia found in its Decision No. IUz-225/2005 (”Off. Gazette of RS”, no. 57/2012) that this provision of the Law on Property Taxes, is not in conformity with the Constitution, and that it is terminated at the date of publication of Decision in “Off. Gazette of RS”.
The Constitutional Court in its Decision, amongs the other, held that the legislator prescribe additional conditions for the acquisition of title to real property, in contrast with, the Law on Basic Property Law, and thus limit the constitutionally guaranteed right to property as defined by Art. 58 of the Constitution.
The Constitutional Court also found that prescribing the fulfillment of tax obligations as a condition for transfer of ownership from owners (seller) to buyer limits the freedom of the legal disposal of special powers as owners and, consequently, limits the property right guaranteed by Art. 58 of the Constitution of the transferor. The same goes for the contracts of gift of immovable property, because it restricts freedom to dispose of the assets of the donor as a property owner, regardless of the fact that in these contracts the taxpayer is donee.