FAQs when Buying a Property in Montenegro


When buying a property in Montenegro, even though it’s an easy and straightforward process, there are still some questions you need an answer to. Here is a list of questions we are asked very frequently: 

Question: Can foreigners buy a property in Montenegro under their own name? 

Answer: Yes, you can buy a property as a foreigner. Currently there are no restrictions and all you need to buy a property under your name is a passport. 

Question: What are the fees I need to pay when buying a property in Montenegro? 

Answer: On top of the purchased price you agree with the Seller, Buyer should pay:

  • Property Transfer Tax - 3% of the purchased price if the property is a Resale unit (0% if you are buying it in Primary Market, directly from the Investor), 
  • Notary fees - This fee depends on the purchase price but it is government controlled price, It is approx. around 0.05-0.20% of the purchase price. As an example: If your property price is 495,000 EUR, the notary fee will be 600 EUR + VAT (21%).  
  • Translation - Translation costs are around 50 EUR for every starting hour.  If you are buying a property in Montenegro and Montenegrin is not your native language, you will need a translator to be present at the notary. 
  • Legal fees - Although the system has much improved with the introduction of notaries, it is still very important to hire a lawyer to protect your own interests. Real Estate Agent is responsible to get you the best price for the house of your dreams, and is there to facilitate the process, but only the lawyer is working solely for you. Legal fees vary of the complexity of the deal but they are from 1,000 EUR and up. List of all lawyers in Montenegro can be found on the official website HERE

Question: Can I get a residence permit in Montenegro if I own a property? 

Answer: Yes, you can get a temporary residence permit if you own a property in Montenegro. There are certain steps to obtain a residence permit through owning a property and best is to consult with experts who are familiar with the process. 

Question: What are annual property taxes in Montenegro?

Answer: Annual property taxes in Montenegro vary from town to town, but they range from 0.01 - 1% depending on town to town. Property tax for non-resident in Tivat is 0.56% of the market value of the property. 

Question: How much is inheritance tax in Montenegro? 

Answer: If the property is transferred from immediate family members (parents, kids), you are exempt and it is 0%, however, Property Transfer Tax is 3%. 

Question: Who pays the Real Estate Commission? Buyer or Seller? 

Answer: Real Estate Commission is paid by the Seller. 

Question: Do I need to go to the Land Registry to register my ownership when I purchase a home? 

Answer: It is the responsibility of the Notary Office once you sign the Sales and Purchase agreement and pay the Purchase price to send the required documents to register the property in the Land Registry within 48 hours. However, if you want to obtain the Title Deed to the property under your name, you should go by yourself to the Municipality Land Registry office and request for a Title Deed. You can also check the ownership online on website: www.nekretnine.co.me 

Question: Do I have to be present at the signing of the Sales and Purchase Agreement? 

Answer: Yes, you do. If you are unable to attend the signing of the Sales and Purchase Agreement at the Notary Office, you can give the Power of Attorney to someone you trust who will represent you. 

Question: Once I buy the property, how do I change the electric/water and other bills to be on my name? 

Answer: You would need to go to the local electric company (EPCG) with a copy of your Sales and Purchase Agreement or Title Deed and request the change of ownership. Also for other providers, the process is similar. Your Real Estate Agent can assist you with the process. 

Question:  Do I need a Real Estate Agent when buying a property in Montenegro? 

Answer: No, legally you don’t. However, we would encourage you to have one. A professional Agent will add value as they know the process in detail, can negotiate the best possible price and you will have someone to answer any questions and help with the many small issues that always seem to come up. Good agents value their reputation and the damage of one unhappy client is much bigger compared to one lost sale. Montenegro is a small country and bad reputation is very hard to change. 

Question: Do I pay the Property Purchase price directly to the Seller? 

Answer: We encourage our clients to use a Notary Bank Account (Escrow) for exchange of money. Notaries have high insurances they pay to protect their clients and procedures they follow, and they are a third entity that is not in favor of buyer or seller. Escrow Accounts are the safest way. You can also pay to Seller directly, if that is how you agree. 

Question: What are bank fees when transferring money to Montenegro? 

Answer: Bank transfer fees in Montenegro are high. To transfer money from and to Montenegro, you will pay a bank fee of approximately 0.02-0.03% of the amount. Different banks charge different fees - check with your Notary office which bank they work with and find out this information prior to deciding. 

Question: Can I get a mortgage loan for buying a property in Montenegro?

Answer: Currently the only bank that provides loans for foreigners is CKB  bank, they provide loans up to 50% Loan to Value. Please call them to check on the process. 

Question: How long does it take to complete the property purchase procedure in Montenegro?

Answer: Depending on the complexity of the deal and also availability of the Seller, but standard process can take 2-4 weeks.

Question: Do I need to be in Montenegro when signing the Sales and Purchase Agreement?

Answer: You don’t need to be present, but you will need to appoint a proxy and grant them a power of attorney to represent you.

Here we have listed several questions that we get asked by people when they decide to purchase a property in Montenegro. If you have any additional questions that you want us to answer, please feel free to contact us and we will happily answer them. 

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