Montenegro Real Estate Taxes & Rules 2025
Understanding Montenegro’s real estate taxes and regulations is essential for property buyers and sellers looking to navigate the market in 2025. Montenegro’s favorable tax system continues to attract international investors, but it’s crucial to stay informed about costs, legal requirements, and compliance. Here's a comprehensive guide for 2025.
Real Estate Taxes in Montenegro (2025)
1. Property Transfer Tax
Rate: 3% of the property’s market value.
This tax is payable by the buyer and must be settled within 15 days of signing the final sales contract.
2. Value Added Tax (VAT)
Rate: 21% for new-build properties sold directly by developers.
VAT replaces the property transfer tax for new properties and is included in the purchase price.
3. Annual Property Tax
Property tax rates vary from 0.1% – 1% of the market value, depending on location and property type.
Coastal properties and tourist hotspots like Budva, Tivat, and Kotor may have higher tax rates than inland areas.
4. Rental Income Tax
Flat 9% tax on net rental income.
Property owners renting out apartments or villas are required to declare rental earnings.
5. Capital Gains Tax
9% tax applies to profits earned from selling property at a higher value than its purchase price.
Property owners who reinvest profits into new property within 12 months may be eligible for tax reductions.
6. Inheritance & Gift Tax
Montenegro does not impose inheritance tax for close family members (spouses, children, parents).
Non-family members may face a 3% tax on inherited or gifted property.
Regulations for Property Buyers in Montenegro (2025)
1. Foreign Ownership Laws
Foreign nationals can purchase apartments, houses, and commercial properties without restrictions.
Buying land for development may require forming a local company if the land is classified as agricultural or protected.
2. Due Diligence & Legal Support
Before purchasing, conduct thorough legal checks to ensure clear ownership, debt-free status, and valid building permits.
Boka Real Estate partners with expert legal advisors to simplify this process. Contact us at +38266195383 or visit bokarealestate.me for assistance.
3. Sales Contract and Notarization
All property sales require a notarized contract to be legally binding.
Buyers typically pay a 10% deposit upon signing the preliminary agreement.
4. Registration Process
After the sale is complete, the buyer must register the property with the local Cadastre Office to finalize ownership.
Registration fees are minimal but essential for securing legal rights.
Regulations for Property Sellers in Montenegro (2025)
1. Disclosure Requirements
Sellers must disclose property conditions, legal disputes, and pending tax obligations.
Failure to provide accurate information can result in contract cancellation or fines.
2. Capital Gains Tax Reporting
If selling at a profit, sellers must submit capital gains declarations within 30 days of the transaction.
3. Obtaining an Energy Performance Certificate (EPC)
In 2025, Montenegro requires sellers to provide an EPC, which assesses the property’s energy efficiency.
Expert Tips for Buyers & Sellers in 2025
Consult a Trusted Real Estate Agency: Partner with Boka Real Estate for expert advice, property guidance, and legal support.
Budget for Hidden Costs: Factor in registration fees, legal services, and potential maintenance expenses.
Understand Your Rights: Familiarizing yourself with tax deductions and residency options can maximize your investment.
Contact Boka Real Estate for Expert Support
Navigating Montenegro’s real estate taxes and regulations can be complex. Rely on Boka Real Estate for tailored advice, secure transactions, and access to exclusive property listings.
Contact us today at +38266195383 or visit bokarealestate.me to simplify your property journey in Montenegro.
