Telephone Numbers
Telephone Numbers
Real Estate in Montenegro - Buying Property
For detailed information +90 542 381 3868 'Call.
Our law firm can assist foreign citizens and investors interested in acquiring real estate in Montenegro for residential or commercial purposes.
Our immigration lawyers in Montenegro can answer questions regarding the laws for foreigners purchasing property.
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Quick Facts |
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Applicable specific legislation (Yes/No) |
Yes, the Law on Real Estate Transactions |
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Possibility for foreigners to acquire Montenegrin properties (Yes/No) |
Yes, it is possible |
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Types of properties that can be purchased in Montenegro |
Apartments, houses, plots of land, commercial properties, etc. |
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Real estate due diligence required (Yes/No) |
Yes, essential due diligence is required for: Title search; Property inspection; Zoning and land use; Environmental assessment; Legal compliance; Tax and financial review |
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Documents to be drafted for property acquisition |
Sale and purchase agreement; Power of Attorney for representation; Ownership certificate; Title deeds; Tax and fee certificates; Power of attorney for utilities, etc. |
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Availability of financing options (Yes/No) |
Yes, personal loans, mortgages, and business loans |
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Special property acquisition programs for foreign citizens (YES/NO) |
Montenegro Citizenship by Investment Program; Residence Permit Program; Tourism Development Program; Agricultural Land Acquisition Program; Montenegro Real Estate Investment Program |
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Timeframe for acquiring property in Montenegro (approx.) |
Varies depending on the type of real estate |
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Taxes to consider when buying a property |
Value Added Tax (21%), transfer tax (3%) |
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Title deed registration requirement (Yes/No) |
Yes, it is required |
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Major cities to buy real estate in Montenegro |
Podgorica, Budva, Kotor, Herceg Novi, etc. |
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Residency requirements for foreign citizens buying real estate |
Not required |
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Possibility of appointing a representative in Montenegro during the transaction (Yes/No) |
Yes, it is possible |
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Real estate tax rates in Montenegro |
3% of the real estate value as transfer tax; 0.1% to 5.5% as annual property tax; 15% of income for renting and 15% of capital gains tax for sale |
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Support for buying property in Montenegro (Yes/No) |
Yes, offered by our company formation representatives in Montenegro |
Several steps need to be completed to buy property in Montenegro:
Our law firm in Montenegro can provide real estate due diligence services to anyone interested in buying a property in this country. It is highly recommended to investigate the property and assess any potential risks associated with it before buying a property in a foreign country. When you choose a property you like, a purchase agreement is drawn up and signed by both the buyer and the seller. Our lawyers in Montenegro can write a legally binding contract that suits the buyer's needs and prevents disputes. Their signatures need to be certified by a court in Montenegro.
The local Municipal Offices must verify the ownership of the property and determine the property's value. A transfer tax of 3% of the property value must be paid by the buyer. After this tax is paid, the contract needs to be registered with the Area Property Registry. The payment of the purchase price is the final step in owning property in Montenegro.
When deciding to buy a property in Montenegro, the first step to complete is to search for and gather information on properties for sale in the desired area. Many properties are listed by their owners on private websites or promoted by real estate agencies.
Finding real estate for sale for residential purposes is not difficult, but when it comes to commercial buildings, the buyer needs to pay attention to several factors.
When the interested party finds the right property, it is best to seek help from a law firm to have it checked with the Land Registry.
It is also possible to immigrate to Montenegro by acquiring a property. Although the visa application procedure is quite demanding, it is possible to do it online with the support of our lawyers. The maximum time the visa procedure takes is 10 days. Your passport and a copy of your travel itinerary are the primary documents required. After immigrating to Montenegro, you should always carry your visa with you.
After finding the property and agreeing with the seller on the purchase, the buyer must make an offer. It is important to note that the price can be negotiated in some cases, but it is advisable to consult with a lawyer first. Foreign citizens who have settled in Montenegro and are interested in buying property for residential purposes can usually negotiate the price of the selected property to a certain degree.
Once the final price is agreed upon, the buyer can make an offer, preferably in writing. A down payment should also be considered when buying a residential Montenegrin property. Typically, a 10% down payment on the purchase price is required so that the property can be taken off the market and both the seller and the buyer can be sure the transaction will take place. It should also be noted that an agreement in this sense is usually signed by both parties.
In the case of commercial real estate purposes, the process is more complex. However, it depends on whether the property to be purchased is sold by the contractor or by a Montenegrin company.
Regardless of the type of property purchase you are about to enter, it is recommended that the documents related to that property be verified by a law firm in Montenegro.
Our lawyers, who have extensive experience in real estate matters, can also verify various types of contracts, including sale-purchase agreements. In addition to this, your desire to move to the Balkan country will require you to take a significant first step to obtain a Montenegro residence permit. Since Montenegro has a solid understanding that immigration will be the driving force behind future economic development, obtaining a residence permit is undoubtedly possible. Although getting residence in this country is relatively difficult, there are a few key processes that must be followed. Contact our lawyers to learn more.
One of the options for those interested in acquiring a property in this country is to get a loan from a Montenegrin bank. In this case, a mortgage agreement needs to be signed, and after the transaction is completed, the money is automatically transferred to the former owner's account.
It is important to note that the bank may request various documents proving the buyer's solvency, but obtaining such a loan in Montenegro is not complicated.
Another point to consider to speed up the transaction is to open a bank account in a Montenegrin bank. This will shorten the duration of the money transfer. Foreign nationals or investors can also transfer money from their bank accounts in their own countries.
Our immigration lawyers in Montenegro can assist with the opening of bank accounts in this country. We can also help those who want to apply for citizenship in Montenegro. Montenegro offers a safe lifestyle supported by infrastructure in the European tradition. The fact that Montenegro is on its way to joining the EU is a factor for many foreigners to gain citizenship here. Montenegro has one of the lowest personal income tax rates in the world, ranging from 9% to 11%. A temporary resident who stays in Montenegro for 183 days in a specific tax year is eligible for tax residency. However, gaining Montenegro citizenship will increase the clarity of your tax situation and resolve challenging instances of double taxation.
After the initial stages of the property purchase process are completed, the parties need to prepare and sign the final sale-purchase agreement. The contract must contain the following information:
The sale-purchase agreement must be prepared and signed in the presence of a Montenegrin notary, who will also notarize the document. Fortunately, there are no language tests or prerequisites for the citizenship by investment program. Furthermore, the fact that this offer provides freedom of movement throughout the entire Schengen area and EU member countries makes it particularly attractive for non-Europeans. In general, it is a compelling offer for wealthy non-Europeans who want to securely bet on Montenegro's EU membership in 2025, which will strengthen the Montenegrin passport.
The total cost of selling and buying a property in Montenegro ranges from 6% to 9% of the property value. The 3% transfer tax is paid by the buyer, and the real estate agent's commission is borne by the seller. For the transfer of newly built real estate, a Value Added Tax (VAT) of 19% must be paid. Notarization on purchase-sale agreements is mandatory; notary fees reach 0.01% of the property value.
No, it is not. Foreign nationals can easily buy real estate for residential purposes in Montenegro.
Depending on the agreement with the seller, the transaction can take from a few weeks to a few months.
After the procedure is completed, you will need to register the title deed of the property in your name with the Land Registry.
You will need to consider the real estate agent's fee (if any) and the lawyer's fee after purchasing a property.
You do not need to be there, but you will need to appoint a proxy and give them a power of attorney to represent you.
The common practice in Montenegro requires a hired lawyer to prepare the transaction documents.
Foreign individuals and legal entities can purchase real estate in Montenegro. Buying a house or apartment is straightforward for foreigners, but if they wish to purchase land in Montenegro, they must establish a company in the country. The Montenegro Property and Property Rights Act provides the legal framework governing the conditions under which foreigners may purchase property in Montenegro. If you require professional expertise in real estate transactions, our lawyers in Montenegro are ready to assist you.
+90 542 381 3868
+971 58 5204103