Essential legal highlights for Q3 2025 in the Western Balkans, all in one place!
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Vladan Lazarević
National Bank of Serbia Introduces Relief Measures for Debtors in Crisis Situations
The National Bank of Serbia (NBS) has adopted a Decision on Loan Repayment Relief, which sets out the conditions, criteria, and methods for implementing “reasonable measures” of support for loan users who find themselves in serious financial difficulty. Banks are required to apply these measures before initiating enforcement proceedings.
The Decision outlines a range of possible relief options, such as extending the repayment period, reducing interest rates, changing the type of loan contract, temporarily postponing installment payments, changing the loan currency, and even partial debt forgiveness. One of the most notable new provisions is the possibility of granting a grace period during which the borrower is not required to make payments, and the bank is not allowed to charge either regular or default interest during this time.
These relief measures apply to borrowers affected by circumstances such as job loss, significant income reduction, serious illness, injury affecting work ability, and certain family situations (such as the death or illness of a spouse/children, or divorce if the spouses were joint debtors).
The process can be initiated by the borrower, but the bank is also obligated to offer relief proactively if it identifies that a client is experiencing financial difficulties. In such cases, there is no need to reassess the borrower’s creditworthiness, provided that the relief does not increase the total obligation by more than 15%.
Once a request is submitted, the bank must respond within 30 days, during which time it cannot terminate the contract or declare the loan due. A request may be rejected if the circumstances are not deemed justified, if the relief would not significantly improve repayment ability, or if the bank would be placed in a worse position compared to other creditors. However, for mortgage loans secured by the borrower’s sole residence, the bank is required to offer at least a two-month relief period.
If the bank rejects the request or fails to act within the deadline, the borrower has the right to file a complaint with the Relief Commission, and subsequently with the NBS. The NBS will only verify whether procedures were followed, not assess the merits of the request itself. Banks are required to report all approved and rejected requests to the NBS on a quarterly basis.
The Decision comes into force on October 15, 2025, and banks must submit their first report by April 15, 2026. Although this Decision marks an important step toward protecting borrowers and enhancing banks’ social responsibility, its effectiveness will be proven only in practice. Broad discretionary powers granted to banks could limit the application of the relief measures, so the true impact will become clearer after the initial reports in 2026.
Amendments to the Consumer Protection Law Underway
Following the conclusion of the public consultation on 3rd September, Consumer Protection has entered its final stage of review within the Ministry of Internal and Foreign Trade. The new regulation, which is intended to replace the 2021 Law, has been proposed with the aim of addressing shortcomings identified in its implementation and aligning the legal framework with the modern digital market.
For the first time, the draft introduces provisions on digital services and digital content, clearly regulating the liability of traders in cases of non-conformity, as well as the consumer’s right to request conformity, a price reduction, or unilateral termination of the contract. A significant novelty is the equalization of obligations between online marketplace providers and traditional traders, thereby extending greater legal protection to e-commerce.
Stricter measures are also proposed against unfair business practices, including fake reviews and covert advertising, with the introduction of the consumer’s right to compensation for damages caused by such actions. At the same time, the draft highlights the need to strengthen mechanisms for out-of-court dispute resolution and to improve the transparency of Consumer Protection Associations.
However, some legal experts warn that certain changes may substantially reduce the level of consumer protection, as they allow for the application of other regulations even in situations where those do not offer a higher level of consumer protection.
The National Assembly is expected to make a final decision on the new Law by the end of the year, at which point it will be clear which of the proposed amendments will be officially adopted and which will be excluded from the final text of the new Consumer Protection Law.
What Does the Long-Awaited Law on Special Conditions for Registration and Registration of Rights to Real Estate Bring?
On October 24, 2025, the Law on Special Conditions for Registration and Registration of Rights to Real Estate came into force. The law is intended to enable the registration of owners of illegally constructed buildings. It represents the state’s attempt to finally close the chapter on illegal construction and ensure legal security in the real estate market.
The law allows the registration of most buildings constructed and visible before its adoption, except those built on land intended for public use, within protected natural and cultural zones, water source areas, and similar locations, where ownership rights are automatically registered in favor of the Republic of Serbia. The provisions of the law clearly define what can be recorded and to which buildings it applies, thereby covering a wide range of situations in which real estate and ownership rights have not been properly established.
The application procedure will be fully digitalized.
Local self-governments are required, within 45 days from the law’s entry into force (by December 8, 2025), to submit a digital zoning plan to the Spatial Planning Agency. The purpose of submitting zoning plans is to clearly separate those properties for which ownership rights will not be registered under this Law and which will become public property.
After local governments submit their zoning plans, a 60-day period begins (until February 6, 2026) during which owners can submit applications via a digital platform to register their buildings and ownership rights.
The law specifies procedures depending on the ownership status of the land:
- If the building is constructed on publicly owned land, both the ownership right to the building and the ownership right to the land beneath it will be recorded;
- If the building is constructed on the applicant’s own land, registration of ownership proceeds smoothly after verification of evidence. The same applies to registered usage rights.
- If the building is on land privately owned by another person, and the applicant has no proof of ownership of that land, the Agency will notify them that the conditions for registration have not been met and direct them to resolve the ownership issue before the competent authority within five years;
- If the land belongs to a socially-owned enterprise in bankruptcy, and the applicant has submitted an act from a competent authority or another document proving acquisition of rights to the land that is not suitable for registration in the real estate cadastre — the Agency may issue a certificate of ownership registration for the building, with a note obliging the owner to register ownership of the land within five years;
- If there are multiple applications for the same building, the Agency will confirm ownership to the person who provides indisputable proof of ownership. If the owner cannot be determined, applicants will be instructed to resolve the ownership status of the land and building before the registration can continue.
After verifying the data, the Agency issues a certificate based on which the Republic Geodetic Authority directly performs the registration of ownership rights.
It is also stipulated that the Republic Geodetic Authority will carry out these registrations with priority, without issuing administrative decisions and without charging fees, which is expected to speed up and simplify the process.
Investors will pay a fee for the development of construction land, while citizens will pay a special fee ranging from €100 to €1,000, depending on the zone and type of building. Certain categories – persons with disabilities, veterans, families with three or more children, single parents, and social welfare beneficiaries – are exempt from payment.
It remains to be seen whether the law will be implemented efficiently and digitally in practice, or whether its application will raise new questions in the enforcement of this matter of particular public interest for the state.
Increase of the Minimum Wage: Legal Frameworks and Obligations
The Social and Economic Council of the Republic of Serbia adopted a decision on July 15, 2025, increasing the minimum net wage per working hour from RSD 308.00 to RSD 337.00, effective as of October 2025.
This is an extraordinary increase in the minimum wage, while the Government of the Republic of Serbia, on September 11, 2025, after unsuccessful negotiations between social and economic partners, adopted a decision on a regular increase of the minimum wage effective from January 2026, raising it to RSD 371.00 net per working hour.
These changes are most significant for employers who pay their employees the minimum wage or an amount below it, as they are required to amend employment contracts in order to align them with the new hourly wage rate. Furthermore, they must adjust the actual amounts paid to employees. Failing to do so may expose employers to employee claims for back pay along with statutory interest, as well as misdemeanor liability and monetary penalties.
The Labor Law stipulates that an employee is entitled to a minimum wage for standard performance and time spent at work. However, based on other provisions of the Labor Law, as well as relevant case law, employers should bear in mind that the payment of the minimum wage should be an exception rather than the rule. This is also supported by a provision of the Labor Law which states that the reasons for introducing the minimum wage must be defined in a general act or employment contract.
In addition to the requirement that employers must predefine the conditions for introducing the minimum wage and comply with the prescribed procedure, they must also take into account the rights of employees receiving the minimum wage. In this regard, and based on our practical experience, the relationship between the minimum wage and reduced work performance is of particular interest to employers. Specifically, the question arises whether an employee’s wage may be reduced below the minimum wage due to poor performance. There is currently no harmonized stance on this issue among the courts and the competent ministry.
A Crossroads between Company and Family Law: Shares in Companies as Joint Property
In the Republic of Serbia, the issue of the conflict between company law and family law in the area of joint spousal ownership of a share in a company has recently been brought back into focus. Several round tables and panel discussions have been held to examine the inconsistencies in legal regulations, the manner in which courts handle such disputes, and to propose solutions for addressing this very complex legal issue in the future.
Family law regulations, which stipulate that everything spouses acquire through work during the course of their marital cohabitation is considered joint property (legal term: joint marital property), are in conflict with company law provisions, which state that there are no “hidden” members of a company. Only the person registered as a member in the appropriate register can be considered a member of the company.
Court practice in the Republic of Serbia regarding claims seeking a declaration that a share in a company constitutes joint marital property is consistent, and such claims are routinely dismissed. Courts typically refer the claimant to file an obligation-based claim to recover the portion of the contribution invested in the company by the spouse who is not the registered member. However, despite being consistent and longstanding, this court practice has recently come under reconsideration, and new solutions, both legislative and practical, have been proposed. As a result, the topic has come into the focus of the academic and professional legal community.
Preparations for 2026: New Ecology Taxes and Compliance with EU Regulations
In the Republic of Serbia, the Draft Law on Greenhouse Gas Emissions Tax and Draft Law on Import Tax on Carbon-Intensive Products were published, and will be publicly debated in October 2025. Both drafts were enforced with the aim of aligning domestic regulations with EU standards, specifically with the Carbon Border Adjustment Mechanism (commonly known as the CBAM regulation).
According to the draft, the carbon tax would apply to large emitters in the energy and industrial sectors. The tax rate proposed in the draft amounts to four euros per ton of CO₂ (or equivalent), with the possibility of certain reliefs or credits for investments aimed at reducing emissions.
When it comes to the tax on the import of carbon-intensive goods, the goal is to tax products whose production generates significant emissions. Importers who can prove that equivalent taxes have already been paid in the country of origin could be exempted from payment or receive tax credits. The import tax would apply only to importers exceeding certain annual thresholds and would initially target sectors most exposed to the problem of carbon leakage.
These new tax obligations are expected to come into effect starting in 2026, and the purpose of the regulation is to bring order to greenhouse gas emissions and encourage domestic businesses to use cleaner technologies, all as part of a broader plan to align with European environmental standards and respond to the global trend of pollution taxation.
Adnan Sarajlić, Edna Basara
New Era of Personal Data Protection in Bosnia and Herzegovina
Alignment of domestic legislation with the General Data Protection Regulation (GDPR), strengthening the institutional framework for privacy protection, and fulfilling obligations from the European integration process are the main reasons for the adoption of the new Law on Personal Data Protection of Bosnia and Herzegovina (hereinafter: “the Law“).
The Law was published in the “Official Gazette of BiH”, No. 12/2025, and its implementation began on October 5, 2025.
Key novelties of the Law compared to the previous regulation:
- Broader rights and obligations – more clearly defined terms such as genetic and biometric data, the right to be forgotten, strengthened obligations of controllers, and special protection of children.
- Increased control and accountability – obligations to report personal data breaches, appoint data protection officers, and designate representatives in BiH for foreign companies.
- Expanded powers of the Personal Data Protection Agency – supervision, control, and imposition of sanctions to prevent misuse and ensure lawful data processing.
- Prohibition of sending promotional content without consent – sending newsletters, advertisements, and other promotional materials without obtaining prior explicit consent from users is considered a violation of the law.
- Right to withdraw consent and delete data – users have the right to withdraw consent and request the deletion of their data, and service providers are obliged to act on the request immediately.
- Right to protection and objection – data subjects may object to the processing of personal data for direct marketing purposes, including profiling, in which case the processing must cease immediately.
- Stricter penalties and sanctions – financial penalties of up to 40 million BAM, personal liability of responsible individuals within legal entities, and fees for expert opinions provided by the Agency.
The Law strengthens institutional and procedural guarantees for the protection of personal data and establishes clear mechanisms for control, transparency, and accountability in data processing. This significantly improves the legal security of citizens and raises the level of alignment of Bosnia and Herzegovina with European Union standards in the field of privacy protection.
Note: Individuals that process personal data are required to align their internal acts, procedures, and practices with the new legal provisions by that date.
New Law on Legalization of Illegal Buildings: Terms, Deadlines and Consequences
The new Law on Legislation of Illegal Buildings, which came into power on 14th August 2025 (“Official Gazette of Montenegro”, no. 91/2025), was adopted with the aim of protecting public interest and increasing legal security of property owners and investors, as well as ensuring the protection of owners’ property and halting further expansion of illegal construction.
Namely, owners of illegal buildings have an obligation to submit a request for legalization and initiate the registration process in the cadaster within 6 months, i.e., by 14th February 2026.
Per Article 6 of the Law, legalization is possible under the condition that the building was built prior to the Law’s entry into force, that it is visible on satellite imagery, that there is proof of right to ownership or an ongoing procedure for ownership right resolution, that it has access to a public road, that it was not built on land designated for public infrastructure or within protected zones, and that it meets technical stability requirements.
The request for legalization is to be submitted to the competent administrative body or the local self-government (depending on the building’s surface area), with an as-built survey report, photographs of the façade and proof of registration or an initiated procedure for registration in the cadaster.
Within the framework of the new Law, special attention is paid to Article 33, which stipulates that objects built without authorization, as well as objects not registered in the cadaster or not within the scope of the legalization decision, cannot be subject to transactions, nor can any commercial or other activity be conducted within them.
The Law prescribes fines ranging from EUR 1,000 to EUR 40,000 for legal persons, while for natural and responsible persons may be fined between EUR 60 and EUR 4,000.
Failure to comply with these obligation leads to a prohibition of sale and building demolition at the owner’s expense, making timely initiation of the legalization process is the only way for owners to preserve and protect their assets, under the current regulative.
The purpose of the new Law is to strengthen legal security and introduce orderliness within spatial planning, however, it remains to be seen whether its implementation will prevent new illegal construction or merely reward existing unlawful developments.
New Rulebook for Influencers – Obligation of Registration and Tax Aspects
In accordance with the Law on Audio and Audiovisual Media Services (“Official Gazette of the Republic of North Macedonia” Nos.184/13…193/24), the Council of the Agency for Audio and Audiovisual Media Services, at its fifth session held on July 21, 2025, adopted the Rulebook for Natural Persons Providing On-Demand Audiovisual Media Services (Influencers/Vloggers/Creators), which entered into force on August 8, 2025.
The purpose of this Rulebook, apart from aligning with European standards and regulations, is to establish clear rules for the operation of influencers, increase their transparency, regulate and monitor their activities, all with the aim of protecting the general public.
The Rulebook establishes an obligation for the provider of audiovisual media services to register before commencing the provision of a particular type of audiovisual media service, i.e., to submit an application for registration in the Register maintained by the Agency, upon which the Agency issues a Certificate of Registration.
“Influencers” who have more than 10,000 followers or subscribers and who meet the other conditions prescribed by the Rulebook are obliged to submit a Registration Application to the Agency by the end of this year. The focus is primarily on Instagram, TikTok, and YouTube, though other platforms are not excluded.
In addition to the Application, influencers are also required to submit a written Statement guaranteeing that all data provided in the Application are true, accurate, and complete.
The greatest public reaction and interest was caused by the information that influencers who earn material benefits or income from their activities will be required to pay a tax of 0.5%, which will be allocated to the supervisory sector within the Agency.
At present, in the Republic of North Macedonia, there are no official or precise data on the number of influencers in the country, nor on the amount of their income generated from followers or advertising.
Although these new rules have sparked strong reactions across the Macedonian influencer community, the adoption of the Rulebook and the new requirements are not intended to limit the freedom or creativity of creators and influencers. On the contrary, their purpose is to establish clear and responsible operating standards, to create a safe and accountable media environment and a level playing field in the media market, in order to protect the younger audience, which is most affected by this type of content.
National Strategy on Foreign Interference and Disinformation (2025–2030)
The draft law “On the Approval of the National Strategy Against Foreign Interference and Disinformation” was introduced to the Albanian Parliament in February 2025, initiated by a group of Members of Parliament. On July 3, 2025, the Parliament of Albania approved the draft with 72 votes in favor, despite debates, controversies, and even a boycott of the session by the opposition.
The strategy was presented by the Parliamentary Committee on National Security and represents the first coordinated state effort to address the growing risks of disinformation and foreign influence in public and political processes.
According to the document, the Albanian Government is committed to strengthening the institutional infrastructure of cybersecurity, increasing transparency in political financing, and creating new verification mechanisms for public information. The strategy foresees the establishment of a Special Inter-Institutional Unit, which will monitor media content and social networks, in close cooperation with international partners from NATO and the European Union.
As a partner country, Albania aims to intensify its collaboration with NATO and the EU in addressing hybrid threats, which includes information exchange, sharing of best practices, and coordination of responses to hostile information campaigns at the regional and global level.
The approval of this draft law seeks to raise public awareness against media manipulation, protect electoral integrity, and ensure transparency in governance.
The National Strategy constitutes the first comprehensive document in Albania directly addressing these phenomena. The cyberattacks that occurred in 2022, during which a wave of attacks targeted Albanian government networks—attributed, according to reports from the U.S. FBI and the Albanian National Cybersecurity and Infrastructure Agency, to hackers operating on behalf of Iran served as a catalyst for the establishment of parliamentary commissions and the subsequent drafting and successful adoption of this legislation.
Disclaimer: This newsletter provides general information and should not be construed as legal advice. Please consult our legal experts for specific guidance tailored to your unique circumstances.