Montenegro is becoming a popular spot for property buyers, thanks to its stunning landscapes, growing tourism, and affordable real estate.
Whether you’re looking for a holiday home, a long-term investment, or a permanent move, this beautiful Balkan country offers plenty of options.
But before you dive into the property market, it’s essential to understand the process, legal requirements, and potential costs involved.
In this guide, we’ll walk you through everything you need to know about buying property in Montenegro.
Who Can Buy Property in Montenegro?
According to Montenegro’s Law on Property (Zakon ovlasništvu i drugim stvarnim pravima), foreign citizens can buy property in Montenegro under the same conditions as Montenegrin nationals, with a few exceptions.
These include restrictions on purchasing land near military zones or agricultural land exceeding a certain size, which may require special government approval. For most residential and commercial properties, however, foreigners can purchase without restrictions.
Legal Process
for Property
Purchase
The process of buying property in Montenegro involves several key steps and should be handled with the help of a local lawyer.
Your lawyer will conduct a title check to ensure the property is free of debts or legal issues. They will also assist in obtaining the necessary documents, such as the List of Ownership (Izvod iz Lista Nepokretnosti), a legal document confirming the property’s ownership and status.
After agreeing on the purchase price, the transaction must be notarized by a Montenegrin Notary, and both parties must sign contract of sale. The entire process is regulated under Article 419 of the Montenegrin Civil Code.
Property Taxes and Additional Costs
When purchasing property in Montenegro, expect to pay a 3%property transfer tax based on the market value of the property, as stated by Montenegro's Tax Administration (Poreska Uprava Crne Gore). This tax applies to all property transactions, except for new builds where VAT (Value-added Tax) is already included in the price.
Other costs include notary fees, legal fees (usually around1-2% of the property value), and possible real estate agent commissions. According to the Central Bank of Montenegro, transaction fees are generally lower compared to other European markets, which adds to the appeal for international buyers.
Financing
Options
While many property buyers in Montenegro pay in cash, there are mortgage options available, albeit limited for foreign nationals. Montenegrin banks, such as CKB and NLB, offer loans to foreigners, but they typically require a larger down payment—around 40-50% of the property’s value.
Interest rates vary but tend to be slightly higher than those in Western European markets. For long-term investors, it’s essential to carefully evaluate the financial requirements and speak with local banks or mortgage brokers.
Property Market Trends
Montenegro's real estate market has been growing steadily, especially in tourist hot spots like Budva, Kotor, and Tivat, where property prices have increased due to high demand from international buyers.
According to data from the Statistical Office of Montenegro (MONSTAT), real estate prices in coastal regions have risen byground 5-7% annually over the past few years.
However, prices remain more affordable than in Western Europe, with the average cost per square meter in the coastal region ranging from €1,500 to €3,000, depending on the location and type of property.
Conclusion
Buying property in Montenegro is a fantastic opportunity, but like any major purchase, it’s essential to do your research.
Work with local expert, such as lawyers and real estate agents, understand the laws, and make sure you’re aware of all the costs involved.
With careful planning, you can find your dream property in this beautiful, up-and-coming destination.
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