GUIDE FOR INVESTORS: How to find a good construction land in Bosnia?
Often we meet different investors, some of them looking for some big new investment, some of them looking simply to buy a piece of land and build a house for their family. Theme of this post will be the second category, and we will try to provide some basic insight to anybody who wants to buy a land and build a house in Bosnia and does not know what is the legal procedure here.
Be aware that these are basic guidelines and do not represent a rule book or anything, it is our way to try simplify the whole process and explain the investors all steps necessary.
First important thing is to know which land you can buy and expect to get the permission for the house construction. There are different categories of land:
Construction land – land that is meant for construction. It still does not mean that you can buy construction land in some small village and build 10-floors building, but there are existing guidelines in which you will be able to construct something. It is possible to check if the land belongs to the category of Construction lands, and get information about possibilities to build in every Municipality. This category of land belongs to most expensive ones, and it is the reason why most of the GCC investors buy Agricultural land believing they will easily transform it to the construction land. It is not always the case, and very often they end up solving it for years or not at all.
Agricultural land – this land is obviously meant for different fields of agriculture, but good things for all potential investors is that there are 8 different categories of this type of land and some of them are possible to be transferred to construction land. Since there is different quality of the soil, that can be used for different agricultural activities, like: planting of various types of vegetables, planting of various types of fruits, growing grass for breeding animals, etc. From above mentioned categories 1st is the best one, and 8th is the worst. Soil types from category 1-4b are not possible to be transferred to construction lands, and from category 5 (in special cases, not always) until the last one is possible to transfer to construction land. You wander how can you know the category of the land? You can easily ask the seller to hire the Agropedological Institute to perform these tests for you, price varies from the area of the land, but it is way cheaper than to buy a land you can not use the way you wanted. Unless you were planning to grow potatoes, carrots and have a nice farmer life, it is great and you should definitely buy from category 1-4b.
Forest land – You DO NOT want to buy forest land and build there, not even if you don’t see that many trees there, but especially if you are planning to cut some. Forests are protected by special law and special Ministry and inspection, this land is not meant to be build and that is why it will always be the cheapest one, which again means it will attract many investors who want to buy cheap land. If you want to own a forest, that is perfect, you will get yourself some nice deals, but in case you want to construct, our advice is not to even look at these lands.
In our next post we will try to explain how to go through total procedure of licensing, construction and registering of your future house.