Montenegro Real Estate Laws 2025: Taxes & Rights

Navigating Montenegro's real estate laws is essential for successful property investments in 2025. Whether you're an international investor or a local buyer, understanding taxes, regulations, and ownership rights ensures a secure and profitable property purchase. This guide covers all key aspects of Montenegro’s real estate laws in 2025.

1. Property Ownership Rights in Montenegro

Can Foreigners Buy Property in Montenegro?

Yes, Montenegro has an open real estate market that allows foreigners to purchase properties with minimal restrictions. Foreign investors can own:

• Apartments and Villas – Direct ownership with no special requirements.

• Commercial Properties – Open to foreign buyers.

Key Exception: Foreigners seeking to buy agricultural land may need to establish a Montenegrin company to complete the purchase.

2. Step-by-Step Process for Buying Property in Montenegro

Step 1: Work with a Trusted Real Estate Agency

Partnering with experts like Boka Real Estate ensures access to verified listings, legal guidance, and professional market insights. Visit bokarealestate.me or call +38266195383 for expert support.

Step 2: Legal Due Diligence

Your lawyer should verify:

• Ownership rights and legal status.

• Absence of debts or legal disputes on the property.

• Building permits and licenses are in place.

Step 3: Sign a Preliminary Sales Agreement

This contract outlines:

• Agreed purchase price.

• Deposit amount (typically 10% – 30% of the property value).

• Payment schedule and transaction terms.

Step 4: Final Sales Contract & Notarization

• The final contract must be signed before a public notary.

• Upon signing, the remaining payment is completed.

Step 5: Property Registration

Your lawyer will register the finalized contract with the Cadastre (Property Registry Office) to confirm your legal ownership.

3. Real Estate Taxes in Montenegro (2025)

Purchase-Related Taxes:

• Property Transfer Tax: 3% of the property's market value (paid by the buyer).

• VAT: 21% applies to newly built properties sold directly by developers.

Ongoing Taxes:

• Annual Property Tax: Ranges between 0.1% – 1% depending on the property type and location.

• Rental Income Tax: Flat 9% rate on net rental income.

• Capital Gains Tax: 9% on property sale profits (exemptions may apply if reinvested).

Additional Costs:

• Notary Fees: Typically 0.01% – 0.05% of the property value.

• Legal Fees: Approximately 1% – 2% of the purchase price.

• Registration Fees: Minimal fees apply for property ownership transfers.

4. Montenegro’s Property Regulations for Buyers and Sellers

Buyer Responsibilities:

• Conduct property inspections before purchase.

• Verify the property's legal status through a trusted lawyer.

Seller Responsibilities:

• Disclose property conditions, taxes, and debts.

• Provide proof of ownership and building permits.

5. Residency Opportunities for Property Owners

Foreign investors who purchase property in Montenegro may qualify for a Temporary Residence Permit. This offers:

• Extended stays in Montenegro.

• Easier travel within the Schengen region.

Key Requirement: Proof of property ownership and financial stability.

6. Why Choose Boka Real Estate for Property Investment in Montenegro?

Boka Real Estate offers expert advice, legal support, and access to Montenegro's most profitable property opportunities. Our experienced team ensures seamless transactions and provides personalized investment strategies tailored to your goals.

Contact Boka Real Estate Today

For expert guidance on Montenegro’s property laws, contact Boka Real Estate at +38266195383 or visit bokarealestate.me.

Invest confidently with Boka Real Estate — your trusted partner for secure property purchases in 2025.