Frequently asked Questions

Frequently asked Questions - Montenegro
Can foreigners purchase a property in Montenegro?

Any foreign citizen can buy real estate in Montenegro. In order to do this, they must provide their international passport and a deposit for the selected object. Generally, the prepayment is 10% of the transaction, but if the sum is large, the amount of the deposit is further negotiated. 

Can I buy real estate in Montenegro in installments and are there any options for purchasing real estate for a mortgage?

Quite often, property owners offer their objects on a condition of payment by installments. Interest-free installments, all payment terms are set forth in the contract. An entry in the cadastre prohibits any possibility of resale, donation, or any other re-registration of this object as long as the installment agreement is valid. This contributes to the protection of the buyer. 

Mortgages are not common in Montenegro. There are only a few mortgage options for luxury complexes under construction, where the cost of apartments starts from 200,000 euros. 

Is it possible to purchase a jointly owned property in Montenegro? How many people can become co-owners?

Yes, it is possible. The number of people involved in the purchase and further co-ownership is not limited. However, only the owner and his close relatives can get a residence permit in Montenegro on the basis of real estate ownership. 

How to bequeath a real estate object in Montenegro to a foreign citizen?

Testate succession. The persons mentioned in the will receive the inheritance regardless of their citizenship. 

Intestate succession. As a matter of priority, the spouse claims the property, then the children and parents, and only then all other relatives. The citizenship of the owner and heir does not matter. 

Legalization of unauthorized construction objects (built without a construction permit). What is legalization and why is it needed?

The law on the legalization of real estate objects was issued in 2016. 

Legalization in Montenegro is based on the application form. The owner or his representative must submit a certain list of documents, including an application for registration of an object that does not have a construction permit. Then the local administration must add on the tax (land tax) to the payment. When the payment for this tax is provided, the entry saying that the object was built without permission is removed. 

Land tax can be paid in installments in the course of 10 years (maximum).

If the object does not have a construction permit, can it be sold/bought or demolished?

The real estate property that does not have a construction permit, but is included in the cadastre, can be bought and sold without any restrictions. The same conditions are applied to an object that holds a permit. 

In Montenegro, the objects for demolition may include those that:

  • are located in places where the urban development plan provides for other construction objects;
  • do not correspond to a building constructed without permission;
  • are located on the first coastline (if Morsko Dobro Ministry or a detailed urban plan provided for the construction of a hotel or other objects there, and a building constructed without permission does not correspond to the urban development plan).

If the building was built in a place where there is no detailed urban plan, if it is listed in the cadastre and submitted for legalization, then it is legal. All actions of purchase and sale, donation, inheritance, and obtaining a residence permit are legal and have no restrictions. 

Can I register the title in the name of a child in Montenegro?

Yes, you can register the property in the name of your child. If you decide to sell your property before the child reaches his or her full age, you will need to deal with the guardianship authorities. 

What is the language used in the contract of sale of real estate in Montenegro? How can I exclude the possibility of misunderstanding the terms of the contract?

The contract is signed in the Montenegrin language. During the conclusion of the contract, there is a lawyer who speaks two languages, as well as a court interpreter who reads out the contract in your native language prior to its signing. If you need a translation of the contract into Russian, you can get it for an additional fee. 

When does the ownership transfer to the buyer according to the law of Montenegro?

The transfer of ownership occurs after the buyer makes a 100% payment. 

What is the potential income from renting out properties in Montenegro?

Average annual income from renting out real estate is 6-10% of the cost of housing (depending on the type of property). 

Is it possible to conclude a purchase and sale transaction by proxy?

Yes, it is possible. For example, the company ««MontBel»» has a broad experience in conducting transactions through remote registration by proxy. The seller and buyer are contacted via video call. A lawyer and a court interpreter must be present on the deal. The conclusion of a contract in a remote format is no different from one conducted in person. The client uses a video link to monitor the terms and conditions of the contract signing process. 

Is there a real estate tax in Montenegro? How much does it cost to maintain real estate?

In Montenegro, there is a tax on the purchase of the real estate. It is 3% of the estimated cost of the purchased object (but more often the contract amount is taken into account). This is a non-recurrent tax that must be paid within 14 days after the purchase of the property. In Montenegro, there is also an annual property tax + tourist tax (paid once a year). The amount of payment depends on: 

  • the location of the object; 
  • its proximity to the sea and the city; 
  • availability of urban communications; 
  • quadrature; 
  • plottage (if it is a house or villa).
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