How to Buy a House in Tivat as a Foreigner.

Did you know that Montenegro has one of the most foreigner-friendly property markets in Europe?

With its stunning coastline, rich culture, and growing real estate opportunities, it’s no wonder Tivat has become a hotspot for international buyers.

But navigating the process of buying property as a foreigner can seem daunting. Don’t worry – this guide will walk you through every step to make the process seamless.

Why Choose Tivat for Your Next Property Investment?

Tivat, located in the heart of Montenegro’s Bay of Kotor, offers a unique blend of luxury living and natural beauty. Here are just a few reasons why Tivat stands out:

Stunning Scenery: Crystal-clear waters, mountain views, and picturesque villages.

Growing Infrastructure: Home to Porto Montenegro, a world-class marina and lifestyle destination.

Attractive Tax Benefits: Montenegro’s property tax rates are among the lowest in Europe.

Residency Opportunities: Purchasing property in Montenegro can make it easier to obtain residency.

Whether you’re looking for a holiday home, an investment property, or a permanent residence, Tivat has options for every buyer.

The Step-by-Step Process to Buy Property in Tivat

Understand the Legal Framework

Montenegro’s laws are favorable to foreign buyers. As a non-citizen, you can purchase most types of properties, except for land designated as agricultural or bordering national interest areas. Always check the property’s legal status before proceeding.

Tip: Work with a local lawyer to ensure the property is free of legal issues and confirm ownership rights.

Set a Budget and Arrange Financing

The cost of properties in Tivat varies depending on location and type. Apartments in Porto Montenegro, for instance, can be more expensive than houses in nearby villages. If you need financing:

Local Banks: Some Montenegrin banks offer mortgages to foreigners, though terms may differ from those for locals.

International Options: Explore financing from your home country if local options aren’t favorable.

Find a Trusted Real Estate Agent

A local real estate agent can be invaluable in helping you navigate the market and understand the nuances of Tivat’s neighborhoods. Ensure your agent has experience working with foreign clients and can communicate fluently in your language.

Search for Your Dream Home

Here are some factors to consider:

Location: Do you prefer to be near the marina, in the city center, or in a quieter village?

Amenities: Check for proximity to schools, healthcare, and recreational facilities.

Condition: Decide if you want a turnkey property or are open to renovation projects.

Tip: Visit properties in person whenever possible to get a true sense of their potential.

Make an Offer and Sign a Preliminary Contract

Once you’ve found the right property, submit your offer. If accepted, a preliminary contract will be drafted. This agreement typically includes:

Price and payment terms.

Deposit amount (usually 10% of the purchase price).

Deadlines for completing the sale.

Tip: Have your lawyer review the contract before signing.

Complete Due Diligence

Before finalizing the purchase, ensure:

The property has no outstanding debts.

All permits and legal documents are in order.

Ownership rights are clearly defined.

Transfer Ownership and Register the Property

Once all checks are complete, you’ll sign the final sales contract in front of a notary. After payment is made, your lawyer will handle the registration of the property in your name with the local Land Registry.

Additional Tips for Foreign Buyers

Tax Considerations: Property transfer tax in Montenegro is 3% of the property’s market value. Factor this into your budget.

Residency Options: Owning property in Montenegro doesn’t automatically grant you residency, but it’s a step toward obtaining it.

Local Support: Work with professionals who understand Montenegro’s property market, including real estate agents, lawyers, and notaries.

Common Mistakes to Avoid

Skipping Legal Assistance: Always consult a local lawyer to avoid unexpected issues.

Ignoring Hidden Costs: Factor in taxes, notary fees, and potential renovation expenses.

Rushing the Process: Take your time to evaluate properties and neighborhoods thoroughly.

Final Thoughts

Buying a house in Tivat as a foreigner is a rewarding experience, provided you approach it with the right knowledge and support. With its breathtaking scenery, favorable tax policies, and welcoming atmosphere, Tivat is the perfect destination for your next property investment.

Ready to start your journey? Contact Objekta Real Estate today to find your dream home in Tivat, Montenegro!

‍