Buying Property in Budva: What Foreigners Need to Know

Buying Property in Budva: What Foreigners Need to Know

Buying property in Budva can seem like a big task, especially for foreigners unfamiliar with local laws. Hidden fees, legal steps, and market trends can impact your investment.

But with the right information, you can secure a great deal in one of Montenegro’s most sought-after locations. This guide breaks down everything from legal requirements to the best areas for investment.

Key Takeaways:

Foreigners can buy property in Budva with minimal restrictions.

Hiring a local lawyer ensures a secure transaction.

Expect to pay 3% property transfer tax on purchases.

The market favors buyers, with prices ranging from €2,000 to €5,000 per square meter.

Opening a local bank account is essential for smooth transactions.

Can Foreigners Buy Property in Budva?

Unlike many European countries, Montenegro allows foreigners to buy property without restrictions. However, land purchases over 5,000 square meters require government approval (gov.me). When buying, you’ll need a passport, proof of funds, and a signed sale contract. The entire process typically takes 30 to 60 days, depending on due diligence.

How Much Does Property in Budva Cost? Current Market Prices

Budva’s real estate market varies by location. Prices per square meter are around:

€2,000–€3,500 in residential areas.

€4,000–€5,000 for sea-view apartments.

Luxury villas start at €500,000+.

The market remains buyer-friendly, with prices lower than many Western European hotspots.

Steps to Buying Property in Budva

Find a Property – Use local real estate agents or online listings.

Hire a Lawyer – A local lawyer ensures legal security and conducts due diligence.

Sign a Pre-Contract – This agreement secures the deal with a 10% deposit.

Complete Notary Verification – All contracts must be notarized.

Pay the Property Transfer Tax – A mandatory 3% tax applies to all purchases.

Register the Property – Ownership registration at the local cadastre office is the final step.

Hidden Costs to Watch Out For

Beyond the property price, additional expenses include:

Notary Fees – 0.01% to 0.05% of property value.

Legal Fees – 1% of the purchase price.

Agent Commission – 3% to 5% of the property value.

Renting Out Your Property: Can Foreigners Do It?

Foreigners can rent out their property in Budva but must register with the Montenegrin Tax Authority. Rental income is taxed at 9%, one of the lowest rates in Europe. Short-term rentals require a tourist license, which costs around €30–€50 per year.

Final Thoughts on Buying Property in Budva

Budva remains a top choice for foreign buyers due to its affordable prices and investment potential. The buying process is straightforward, but working with a local lawyer helps avoid legal issues.

Whether you're purchasing a vacation home or a rental property, understanding the costs, taxes, and legal steps will make the process easier.

‍