Property Purchase in Montenegro - FAQ
Once you've decided on the property you'd like to purchase, your personal sales manager and our in-house lawyer will negotiate all the terms and sort out the required documentation at the notary. The purchase and sales contract is signed in front of a notary who is assigned for the region where the property is located and the following documents are signed and registered:
- Purchase and sales contract, which can be signed either personally, or by power of attorney (POA);
- Clausula Intabulandi: Permitted Property
- Registration Clause
- Purchase and sales payment schedule - The amount can be paid straight away or can be paid in stages through a certain period of time, depending on the agreement between the parties.
- The advice on how to register your property in Montenegro
When you buy a property in Montenegro, it will consist of a deposit, the agreed sales price, as well as the taxes and legal fees.
There is a property purchase tax at the rate of 3% ( if it's a re-sale property) as well as the fees for drafting the agreement at the notary 's, which depending on the length of the contract will vary from €300 to €500 euros.
This rate depends also on the price. For instance, if the price is €100.000 euro, the fee could be approximately €350 euro +21% VAT.
According to the Montenegrin law, a court interpreter specilised in your native language shall be present during signing of the agreement.
The temporary residence permit can be obtained through either purchasing a property in Montenegro or forming & starting a company here – both of which our consultants can help you with, guiding you through the process.
You can also gain Montenegrin citizenship and a passport which will enable you travel to 124 countries visa-free. You can apply for the Montenegro Citizenship by Investment Program, and further information can be found here.
Here you need to put an average of property prices throughout Montenegro, so:
Depending on what and where you buy, a one bedroom apartment can cost anywhere from €50,000 to €150,000, a villa can cost anywhere from €300,000 to over €1M, the prices of the cozy holiday houses costs from €80,000 to €200,000 etc.
The property purchase tax is 3% if you buy a property from an owner.
On the other side, if you purchase your property from the investor/developer, the tax is 0%.
Montenegro has introduced rather favourable and investment-oriented tax policy.
The corporate and personal income tax rates are both 9%.
The capital gain tax rate is also 9%.
Inheritance and pension tax rate is 0%.
Value Added Tax (VAT) rate is 21%.