Foreigners can easily buy real estate in Montenegro—this applies to both individuals and legal entities. Continue reading for information on a step-by-step transaction process, apartment costs, taxes, and mortgage.

Important. Land with a surface area greater than 5,000 square meters cannot be purchased by foreigners in Montenegro. If you want to acquire land in this country, you must register a company in Montenegro.

Step-by-step procedure for buying property in Montenegro

1. Choose a property to buy and check it thoroughly.

You should make sure that there are no debts on the property, and you should check the documents to make sure there are no mistakes or inaccuracies. A notary usually performs all of these tasks before you sign the contract.

To find an attractive option for housing in Montenegro, you can use the catalog of REALTING; here are some examples of properties:

Morinj, Montenegro
€220,000
2 Bedrooms 2 bath 83 m² 1/6 Floor
 
Bar, Montenegro
€230,000
4 Rooms 3 Bedrooms 2 bath Number of floors 2
 
Đenovići, Montenegro
€115,000
1 Rooms 1 Bedrooms 1 bath 47 m² 3/3 Floor

2. Reserve the property by making an offer to the seller.

Once you have chosen the right object, make an offer to the seller, preferably in writing. You also need to pay a deposit of 10% of the purchase price to reserve the object.

3. Prepare the contract of sale.

There are two options—to sign a preliminary (predugovor) or main (ugovor) contract. A preliminary agreement is usually signed when purchasing an object under construction or if one of the parties insists on it for one reason or another. Both types of contracts shall be made and certified by a notary.

Important! If the buyer refuses the deal after signing the contract, by law the deposit will not be returned. If the seller is responsible for the failure of the deal, he must return the deposit in double.

4. Pay all transaction costs (the value of the property, taxes, and fees).

Usually, the payment for the object is made in non-cash form from an account opened in a bank in any country to the seller’s or notary’s account.

Notary fees are up to 0.01% of the value of the property.

Also, after signing the contract of sale, the buyer must pay property turnover tax—3% of the market value of the object. Purchase of new buildings from a legal entity—a VAT payer—is not taxed.

Important. From January 1, 2024, tax policy in Montenegro must change slightly. The fact is that on February 10, 2023, the government proposed amending the law on real estate transfer tax. The essence of the amendments is as follows:

  • The tax rate for properties worth up to €150,000 will not change and will be 3%. 
  • For properties worth between €150,000 and €500,000, the tax will consist of two parts: €4500 in fixed taxes plus 5% of the difference in property value. 
  • New owners of secondary luxury real estate will have to pay a fixed rate of €22,000 and add 6% of the difference in value. 

5. Register the title of ownership.

Within 30 working days after signing the contract, you need to register your ownership with the cadastral office of Montenegro. The registration fee is 0.5% of the cadastral value of the property.

The average cost of real estate in Montenegro

A 90-square-meter apartment in Montenegro can cost between $113,000 and $150,000.

The price to rent a one-bedroom apartment in Montenegro is about $330–450. It is possible to rent a two-bedroom apartment in the country for $650-960.

In Montenegro, average monthly utility costs are $112 (plus $27 for internet).

Buying a home in Montenegro with a mortgage

Foreigners have the right to take a loan from a Montenegrin bank for the purchase of real estate, and to do this is not difficult. At the same time, the bank may request various documents confirming the solvency of the buyer.

When you sign a mortgage agreement, the money will automatically be transferred to the seller’s account after the transaction is completed. The transaction will go faster if you have previously opened an account with a Montenegrin bank.

Loan terms are usually 20 or 25 years. The interest rate on a 20-year fixed-rate mortgage is 5.19%.