Buying real estate in Montenegro for foreigners is a process that requires careful preparation and understanding of local legislation. In this guide, we will cover everything from choosing a property to registering ownership and obtaining a residence permit.
1. Selecting an object
The first step to purchasing real estate is determining the type of property that best suits your needs. Various types of real estate are available in Montenegro: apartments, houses, villas, land plots, as well as commercial real estate. Consider the following options:
Budget: Determine how much you are willing and able to spend.
Location: Do you want to live by the sea, in the mountains or in an urban environment?
Purpose of purchase: Property for own residence, rental or resale.
Infrastructure: Availability of schools, shops, medical facilities and transport accessibility.
2. Document verification
To avoid legal problems in the future, it is necessary to conduct a thorough check of all documents of the object. This includes:
Ownership: Make sure the seller actually owns the property.
No encumbrances: Check to see if there are any liens or encumbrances on the property.
Cadastral extract: Confirmation of real estate data in the state register.
3. Signing the contract
The contract for the purchase of real estate must be signed in the presence of a notary, who will certify the authenticity of signatures and documents. The contract must include:
Description of the object
Price and payment terms
Rights and obligations of the parties
Conditions for terminating the contract
4. Registration of ownership
After signing the contract, the notary must submit documents for re-registration of property rights to the local cadastre. This is a formality that confirms you as the new owner of the property.
5. Payment
You can pay for real estate via bank transfer or through specialized payment systems. It is important to use only official financial channels to prevent fraud.
6. Obtaining a residence permit
Foreigners purchasing real estate in Montenegro can apply for a residence permit. This document provides the right to long-term stay in the country and access to various social amenities and services. The process of obtaining a residence permit includes the submission of the following documents:
Proof of ownership of real estate.
Confirmation of financial stability.
Medical insurance.
Certificate of no criminal record.
Please note the changes in legislation in 2024:
Montenegro has introduced new rules regarding the taxation of real estate purchases. Now the progressive tax scale depends on the value of the object:
Up to 150,000 euros - tax 3%.
From 150,000 to 500,000 euros - 4,500 euros + 5% tax on the difference in price.
Over 500,000 euros - 22,000 euros + 6% tax on the difference in price.
Property prices:
Despite the high interest in the cost of real estate in Montenegro, the answer to this question may be ambiguous, since prices depend on many factors, including the region, the condition of the property, the level of infrastructure development and other aspects.
Regional cost differences:
Podgorica: In the capital, the cost per square meter in new buildings starts from 2,000 euros.
Coast (Budva and Bar): On the coast, prices start from 2,500 euros per square meter for apartments in new buildings.
Secondary market: Apartments on the secondary market may cost less, especially if they are in good condition. However, potential buyers should consider the possible costs of repairs and upgrades.
Coastal villas: Prices for new villas start from 450,000 euros, but can increase significantly depending on location and proximity to the sea.
Average real estate prices:
Budva Riviera: from 2500 to 6000 euros per square meter.
Tivat: from 3400 to 7000 euros per square meter.
Kotor: from 3000 to 7000 euros per square meter.
Bar Riviera: from 2200 to 4000 euros per square meter.
Building a house from scratch: You can also purchase a plot of land and build a house from scratch. Our managers will help you find a reliable developer who will take into account all your financial and individual needs, as well as compliance with Montenegro construction standards. We offer comprehensive turnkey investment services, from site selection to complete completion of construction.
Individual selection: If you have not found a suitable object on our website, contact our manager to organize a personal selection, because physical limitations do not allow us to load data on all available objects into the database.
Costs when purchasing real estate:
Notary costs and fees: Determined depending on the value of the object, but do not exceed 5,000 euros.
Agency services: The commission of a real estate agency usually ranges from 3% to 5% of the cost of the property.
Court interpreter: The cost of simultaneous interpretation services per hour may vary depending on regions and language (from 40 to 50 euros).
Remote purchase
For those who cannot come to Montenegro, there is the possibility of remote purchase through a trusted person. This is convenient and practical, but requires careful selection of an agent and detailed execution of a power of attorney.
Key points when buying property in Montenegro:
When buying an apartment or villa in Montenegro, there are several key points to consider:
Purchase of real estate by foreigners: Foreigners can buy almost any type of real estate in Montenegro. The main exception applies to land plots of more than 5,000 square meters and any buildings on them.
Purchasing land plots: You can purchase a plot without buildings only if it is included in the urbanization plan of the city or region. This ensures the possibility of future construction on the acquired land.
Residence permit: Foreigners buying property in Montenegro are automatically entitled to a residence permit. Interestingly, to obtain a residence permit there are no requirements for the minimum value of the purchased property, however, the right of residence is canceled when the property is sold.
Notarization of contracts: All sales contracts must be certified by a notary operating in the territory of Montenegro. The presence of all parties to the transaction or their official representatives with notarized credentials is required.
Mortgage lending: Banks in Montenegro generally do not provide mortgages to foreign citizens, making the purchase of real estate only available in cash or through financing from other sources.
It is recommended to use the services of qualified specialists to comply with all norms and legal requirements when making real estate transactions. Our website managers are always ready to help you with organizing and carrying out your purchase, providing full support for the transaction.