What to Look for When Buying an Apartment in Herceg Novi

Thinking about buying property in Herceg Novi? Montenegro’s real estate market is drawing more foreign buyers thanks to its stunning coastline, low taxes, and straightforward buying process.

But before you commit, it’s important to understand the legal steps, hidden costs, and potential risks. This guide covers everything you need to know to make a smart, hassle-free investment.

Key Takeaways:

Foreigners can buy property in Montenegro, but there are legal steps and potential restrictions to consider.

Property prices vary by location, with coastal areas generally costing more than inland spots.

Expect additional costs, including taxes, notary fees, and agent commissions.

Residency options exist for property buyers, but owning property doesn’t automatically grant residency.

Due diligence is crucial, from checking property ownership records to understanding zoning laws.

Can Foreigners Buy Property in Herceg Novi?

Yes, Montenegro allows foreigners to purchase real estate with minimal restrictions. Unlike some countries, there’s no requirement for a local partner. However, if you plan to buy land (rather than an apartment), you may need to register a company.

Before purchasing, verify property ownership and ensure no outstanding debts. A local real estate lawyer can help navigate the legal process.

What Are the Costs Beyond the Listing Price?

The purchase price is just the beginning. Expect additional costs such as:

Property Transfer Tax – 3% of the property’s market value.

Notary Fees – Typically 0.01% to 0.05% of the property price.

Real Estate Agent Commission – Usually between 3% and 5%.

Legal Fees – Can range from €500 to €1,500, depending on the lawyer.

Annual Property Tax – Generally 0.1% to 1% of the assessed value.

Where to Buy: Best Areas in Herceg Novi

Herceg Novi offers diverse neighborhoods, each with unique advantages:

Igalo – Known for its health tourism and sandy beaches, it’s a great option for rentals.

Topla – A mix of old and new, with good infrastructure and easy access to amenities.

Savina – Offers sea views and proximity to the Old Town, making it a premium location.

Baošići and Bijela – Quieter areas popular with families and retirees.

How to Check Property Legitimacy

Before committing to a purchase, verify that the seller has clear ownership. Key steps include:

Land Registry Check – Ensures there are no disputes over the property.

Utility Debt Check – Unpaid bills can sometimes be transferred to new owners.

Construction Permit Verification – Essential if buying a newly built apartment.

Can Buying Property Help You Get Residency?

Buying property in Montenegro can support a residency application, but it doesn’t grant residency automatically. Foreign buyers can apply for a temporary residence permit, typically valid for one year and renewable.

If Montenegro joins the EU, residency rules may change, so staying updated on policy shifts is important.

What to Watch Out for When Buying

Unregistered Properties – Some properties lack proper documentation, leading to legal complications.

Outdated Ownership Records – Ensure the seller is the rightful owner.

Hidden Costs – Factor in renovations, furnishing, and service fees.

Final Thoughts

Buying an apartment in Herceg Novi is an exciting investment, but due diligence is essential. Understanding legal requirements, additional costs, and market trends can help you avoid pitfalls.

Working with a reputable agent and legal expert ensures a smooth transaction, helping you secure a property that fits your needs and budget.

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