Buying a Property in MontenegroWhether you’re looking for a sunny bolthole of your own or an investment property, Montenegro is definitely one of the best, and most affordable, locations in Europe.
Montenegro’s central European location and many opportunities for those with entrepreneurial spirit has made it an attractive destination for those looking for sunny skies and a slower pace of life. There are a lot of people moving to Montenegro. Highly qualified foreign workers and self-employed people have been finding their way to Montenegro for many years now.
With its gorgeous scenery and cheap cost of living, Montenegro has even become a favorite base for digital nomads. Many of these people have decided to buy a property here and haven’t looked back.
Purchase of real estate
Foreigners in Montenegro have the right to purchase real estate under the conditions fulfilled by domestic entities and by presenting an identification document. However, according to the Law on Property Relations, a foreigner can not own natural resources, public goods, agricultural land, forests and forest land, cultural monuments of great and special importance, real estate in a land-border area up to a depth of one kilometre and islands, real estate located in an area which was declared by law an area in which foreigners can not have right of ownership in view of protecting the interests and security of the country.
Exceptionally, foreigners may also acquire the right of ownership on agricultural land, forests and forest land having a surface area of up to 5,000 m2, only if a residential building located on that land is subject to the contract of divestiture (sale, gift, exchange, etc.).
Foreigners may be entitled to a long-term lease, concession, BOT and other arrangements of public-private partnership, over the above mentioned real estate.
By means of legal transactions, foreigners may transfer the right of ownership to domestic persons, as well as to foreign persons that may acquire the right of ownership.
Here’s a list of the common expenses and who pays them:
Seller pays the real estate agent.
Buyer pays for notarising documents.
Buyer pays 3% title transfer tax.
Cost of company formation and registration for land purchases.
Property Purchase Costs
Usually €5,000 – €10,000
Approximately €1,000 for a purchase of mid-size apartment and confirmed before appointment
Power of Attorney
Approximately €50 to €120 including the translation
Notary Fee for the verification of the Main Sales Contract
0 – 5,000 = 70 €
5,001 – 20,000 = 120 €
20,001 – 40,000 = 170 €
40,001 – 60,000 = 250 €
60,001 – 80,000 = 300 €
80,001 – 120,000 = 350 €
For the property valued above €120,000 for each increase of property price of €15,000 the fee is increased by €10. The maximum Notary fee chargeable is €5,000.
Translation of the Power of Attorney & Contract
Translation of these documents is done by a certified court translator. The average price per page is approximately €20, depending on the number of characters per page.
A standard agreement is usually written on 5 pages. Any additional changes to the contract requested by buyers, are also chargeable. Usually translation costs in total, can be calculated at approximately €100-€200.
Cadastre taxes and expenses
Cadastre taxes are €15 on average.
Prices of the apartments in Montenegro
The average price per square meter of an apartment in the capital of Montenegro, the city of Podgorica - 1,056 euro / sq m, in resort towns on the coast of the country - 1,576 euro / sq m, in the central region - 650 euro / sq m, in the northern areas of Montenegro, the average cost per square meter of an apartment in a new building - 875 euro/ sq m. data released by local real estate agencies
We hope you find this information helpful – should you have any questions, please do not hesitate to contact us