Buying property in Montenegro - all you should know

If you are considering buying a property in Montenegro, you’ve come to the right place. Montenegro is an idyllic destination fast becoming a popular choice for property investment.

Its beautiful coastline and stunning mountains make it easy to see why. Apart from its natural beauty, Montenegro has many up-and-coming prominent and luxurious areas to pick for your next property purchase, such as Porto Montenegro.

However, buying property in Montenegro can be a complex process. It’s essential to thoroughly understand the legal requirements and how to navigate the buying process. Fortunately, a wealth of information is available to help guide you through the process.

This article will delve into buying property in Montenegro. We’ll offer practical advice and share valuable insights to help you make an informed decision and invest in a property that will provide you with years of joy and satisfaction.

Can foreigners buy property in Montenegro?

In short, absolutely. For international investors, Montenegro is an excellent location. This Southeast European nation, which is little but formidable, has a lot to offer, from its breathtaking coastline to its mountainous landscape. Also, the country provides a tax structure ideal for real estate investment.

Moreover, the Montenegrin government strongly encourages buying property in Montenegro or investing in a project. Why, might you ask? Because through property ownership and investment you can even become eligible for Montenegro citizenship by investment.

If you’re considering property investment in Montenegro or even purchasing, the procedure is simple and comparable to that in other European nations. But, it’s usually advisable to deal with a trustworthy local real estate agent to guide you through the procedure.

Foreigners can buy property in Montenegro, but they must acquire a TIN (tax identification number). This number is mandatory and allows for property registration, paying taxes and opening a bank account.

Foreigners who purchase property in Montenegro are subject to the same property taxes as locals, including a transfer tax of 3% of the price paid for the property. The buyer is liable for paying this tax, as well as an annual property tax which ranges between 0.25% to 1% based on the location and value of the property.

How to buy property in Montenegro?

Buying property in Montenegro can be a straightforward process with the proper guidance. Suppose you are considering purchasing a property in Montenegro -we will provide you with the steps you need to take and the details you need to remember when buying a property in Montenegro.

Steps for completing the buying process

  1. Find a reliable local real estate agent to assist you in finding the ideal property. They can offer valuable details on the purchasing process and the Montenegrin real estate market.
  2. The next step after finding the property you want to buy in Montenegro is to get a lawyer to prepare a due diligence report. Using this report, you may determine if the property has legal problems or liabilities.
  3. You can sign the final draft once you get a clean report. The price, payment terms, and other pertinent purchasing information should all be specified in the contract.
  4. Pay the deposit between 10% – 30% of the purchase price. This will secure the property for you and take it off the market.
  5. After this, you must sign the final contract, including all the agreed-upon terms in the preliminary contract.
  6. Pay the purchase price set in the Sales and Purchase agreement, including the 3% Real Estate Turnover Tax (due within 15 days after the sales and purchase agreement is signed), and the property will be transferred to your name.
Palms, Tivat Bay

Buying property through a mortgage in Montenegro

One of the ways a foreigner can buy a property is through a mortgage. The process is fairly simple. Once you acquire your TIN (tax identification number), you can open your bank account in Montenegro. However, you can also take out a mortgage without a bank account, but the process will take much longer.

The loan amounts depend on the bank and can go anywhere from €200,000 to €400,000, and the terms are set to anywhere from 240 to 300 months or 20 to 25 years. Different banks offer different interest rates, usually around 5%.

It is important to mention that once you sign the mortgage paperwork, the money will directly be transferred to the seller’s account. Another tidbit is that if you choose to participate in an investment project, a mortgage will not be an option to conduct a transaction.

What is property purchase tax in Montenegro?

There are taxes that purchasers should be aware of when buying property in Montenegro. The property transfer tax is the most significant in buying property in Montenegro. The buyer is responsible for paying this tax, which has a fixed rate of 3% of the property’s value. The tax is subtracted from the agreed-upon final purchase price by the buyer and seller.

However, this tax is only applied to already existing properties. Different taxes in Montenegro apply if you wish to build a property of your own or even invest in one that is being built. You must pay a mandatory VAT of 21% of the purchase price. On top of that, there are notary fees in the height of 0.01% of the property value, lawyer fees between €100 to €1,000 per transaction and a real estate agent fee of 3 to 6% of the property value.

In comparison, as a buyer of an already existing property, you would pay less than 3.1% in taxes and fees, vs building or investing in a new property which will cost you around 19.1%.

It’s crucial to remember that residents and non-residents who purchase property in Montenegro are subject to the country’s property purchase tax. Every property, including homes, apartments, and vacant land, is liable for the tax.

The fact that there are no age limitations when purchasing property in Montenegro is also essential to remember. Nonetheless, buyers must be of legal age (18 or above) or have a guardian present to sign the contract.


Where to buy property in Montenegro?

Porto Montenegro is one of the most prominent locations for buying property in Montenegro. It’s a marina and luxury residential development located in Boka Bay. The marina has over 450 berths and can accommodate yachts up to 250 meters long. There are also residential options, ranging from studios to four-bedroom apartments.

Within Porto Montenegro, there are two prominent property locations you might want to consider:

#1 Boka Place – Porto Montenegro

This is an excellent option if you’re looking for a luxurious home in Montenegro. The Adriatic Sea and captivating mountains surround it as it sits in the centre of Kotor Bay. The residential complex features spacious apartments and penthouses, which are modern and stylishly designed and offer stunning views that will take your breath away. Two-bedroom apartments start at €620,000. On the other hand, a three-bedroom penthouse might cost well above €1,000,000 if you’re looking for something more upscale. Boka Place apartments for sale encompasses more than just residences. You may use the marina, spa, swimming pool, fitness centre, and private beach.

#2 South Village – Porto Montenegro

South Village is another excellent option. It is located in Tivat’s thriving town near the famous Porto Montenegro harbour. The project is a multi-use development with residences, shops, and a hotel. With one-bedroom apartments starting at €418,000, they also offer two to four-bedroom homes built to the best sustainability and comfort standards. South Village has dining options, a swimming pool, a gym, and a private beach club. It’s also an excellent location to learn about the local activities and amenities.

The property prices in Porto Montenegro correlate to their quality which is on the highest level. The marina’s reputation and luxury amenities make it an attractive location for property investment. This luxury complex is perfect for families, newlyweds and even singles. The fantastic views of the marina and sea perfectly sync with the spaciousness and comfort. There are many properties for sale in Porto Montenegro, so make sure you find your perfect one.

#3 Budva Riviera

Another popular area for property investment is the Budva Riviera, which provides a variety of property choices, including flats and villas. For instance, a house with a private pool in Budva may cost up to €1,200,000, while a two-bedroom apartment there can cost about €150,000.

#4 Kotor Bay

Kotor Bay is another well-liked option due to its breathtaking vistas and UNESCO World Heritage Site designation. Property prices in the area range from €100,000 to over €1,500,000 for flats and homes.

Why should you invest in a property based in Montenegro?

Buying a property in Montenegro has become increasingly popular over the years, and for a good reason. The country’s strategic location on the Adriatic coast and proximity to popular tourist destinations, such as Croatia, make it an ideal spot for property investment. However, here are some more reasons to consider Montenegro as your next home location:

  • A unique blend of natural beauty – Montenegro has one of the oldest churches in Europe and undisturbed natural reserves such as Durmitor National Park, which has glacial lakes, and the deepest canyon in Europe. Skadar Lake – the largest lake in the Balkans and The Bay of Kotor – a magnificent bay surrounded by mountains and stunning old towns
  • Diverse regions – Montenegro is filled with diversity, and one of many is the Adriatic coast which has lively cities, beautiful beaches, and vibrant nightlife. North Montenegro has charming villages, traditional culture, and winter ski resorts. Central Montenegro – is a region with historical sites, beautiful landscapes, and diverse natural attractions.
  • Growing economy – Besides the obvious popularity of tourists visiting from all over the world, Montenegro is also investing in wind and solar power, focusing more and more on clean energy.

Besides the above-mentioned reasons, the government has implemented various reforms to improve the business environment and attract foreign investment, resulting in a growing economy. Additionally, Montenegro is a member of NATO and has EU candidate status, further enhancing its credibility as a safe and stable location for investment.

Furthermore, the property market in Montenegro offers a range of options, from luxury marina developments to quieter mountain and coastal regions, catering to different preferences and budgets.

The prices are generally lower than in other European countries, with a stable market and a positive trend in recent years. Whether looking to invest in a holiday home or a long-term investment opportunity, buying a property in Montenegro can be a smart move for personal and financial reasons.

Final Thoughts

In summary, buying a property in Montenegro can be wise, considering the diverse options available.

Foreign investors have various property locations to choose from, such as Porto Montenegro, the Budva Riviera, Kotor Bay, the capital city of Podgorica, and the northern region of Montenegro. Each location offers different investment opportunities, depending on the investor’s preference and budget.

It is essential to work with a reputable real estate agent to help navigate the process of buying property in Montenegro and understand the country’s property purchase tax and other legal requirements.

With Montenegro’s stable economy and growing tourism industry, investing in property in this beautiful country could be an excellent opportunity for long-term investment and a chance to own a piece of paradise in the heart of the Balkans.

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