Foreigners Buying Property in Montenegro 2025
Montenegro’s real estate market continues to attract foreign investors in 2025 due to its affordable prices, favorable tax policies, and expanding tourism industry. Whether you're seeking a vacation home, rental investment, or luxury property, understanding Montenegro’s legal requirements and costs is essential. This guide outlines everything foreign buyers need to know in 2025.
1. Can Foreigners Buy Property in Montenegro?
Yes, Montenegro has one of the most accessible property markets in Europe. Foreigners can purchase apartments, villas, and commercial properties directly in their name with minimal restrictions.
Key Exception: Buying agricultural land may require setting up a Montenegrin company for the transaction.
2. Step-by-Step Guide for Foreign Buyers
Step 1: Find a Trusted Real Estate Agency
Working with experts like Boka Real Estate ensures you access verified listings, expert guidance, and a secure transaction process. Contact us at +38266195383 or visit bokarealestate.me for assistance.
Step 2: Legal Due Diligence
Hire a qualified lawyer to:
Verify property ownership status.
Confirm there are no outstanding debts or disputes.
Ensure building permits and legal documents are valid.
Step 3: Sign a Preliminary Sales Agreement
This contract outlines:
The agreed purchase price.
Payment terms and deadlines.
Deposit requirements (typically 10% – 30%).
Step 4: Final Contract & Notarization
The final sales contract must be notarized to be legally binding.
Upon signing, the remaining balance is paid.
Step 5: Property Registration
Your lawyer will submit the finalized contract to the Cadastre (Property Registry Office) to secure your ownership rights.
3. Costs Involved When Buying Property in Montenegro
Purchase-Related Taxes:
Property Transfer Tax: 3% of the property’s market value.
VAT: 21% for new-build properties purchased directly from developers.
Additional Costs:
Notary Fees: Typically 0.01% – 0.05% of the property value.
Legal Fees: Approximately 1% – 2% of the purchase price.
Registration Fees: Small fees for official ownership registration.
Ongoing Expenses:
Annual Property Tax: Between 0.1% – 1% based on location and property type.
Rental Income Tax: Flat 9% on net rental income.
Capital Gains Tax: 9% applies to profits from property sales unless reinvested.
4. Montenegro’s Property Regulations for Foreign Buyers
Buyer Responsibilities:
Ensure your property purchase contract is notarized.
Register your ownership with the local Cadastre office.
Seller Responsibilities:
Disclose property conditions, legal obligations, and tax responsibilities.
Provide proof of ownership and valid building permits.
5. Residency Opportunities for Foreign Buyers
Foreign investors who purchase property in Montenegro may qualify for a Temporary Residence Permit. This permit offers:
The ability to reside in Montenegro for extended periods.
Easier travel within the Schengen zone.
Key Requirement: Proof of property ownership and sufficient financial means.
6. Why Choose Boka Real Estate for Your Montenegro Property Investment?
Boka Real Estate specializes in helping foreign investors navigate Montenegro’s property market. Our experienced team offers expert advice, property sourcing, and legal support to ensure a smooth buying process.
Contact Boka Real Estate Today
For expert guidance and exclusive property listings, contact Boka Real Estate at +38266195383 or visit bokarealestate.me.
Secure your dream property in Montenegro with Boka Real Estate — your trusted investment partner in 2025.
