fbpx
shutterstock_779298199.jpg
news-article news-article news-article news-article news-article news-article news-article news-article news-article news-article

How to buy Real Estate in Montenegro – Property Guide 2019

31st January 2019

To buy Real Estate in Montenegro is an excellent choice if you are looking for either an investment or a property for your own use. Buying Real Estate in Montenegro is fairly simple and standardized. Foreign nationals can buy property in Montenegro on the same terms as the Montenegrin citizens. There are no restrictions for foreign property ownership. The land and Property registers are available to public and all contract administration and submission for the registration of the property is handled by a public notary. The process has never been more straightforward and secure, so lets look at what are the main steps in order that you can buy real estate in Montenegro.

PROPERTY SEARCH

If you wish to buy Real Estate in Montenegro, the process starts with a property search. You can  SEARCH REAL ESTATE IN MONTENEGRO and have a look at our published properties in Montenegro. You can check our map search feature on the following  MAP SEARCH LINK so you can search the properties based on their location.  If you cannot find what you like, not to worry, our website contains only around a third of available properties, so please do not hesitate to contact us at [email protected] and one of our friendly staff would be happy to share our off market properties. If you are still unhappy with the choice of properties, we have access to an extensive number of additional properties through our partner agents so, be sure that we will find something suitable for you.

SHORTLISTING YOUR FAVOURITES AND ARRANGING A VISIT TO MONTENEGRO

Once you have been through the property search process, now is the time to shortlist some of your favorites. During this process, our sales advisers will assist with any questions you may have in relation to your chosen properties and will advise accordingly.
As soon as you finalize your shortlist, you are ready to book your trip to Montenegro. Visiting a foreign country, especially if it is your first time, can be quite stressful. Having this in mind, one of our sales advisers will make sure that you chose the right flight route, book the right hotel and if necessary, arrange an airport pickup and drive to your hotel.

VIEWING THE PROPERTIES

Once you settle and have some rest, its time to view the properties from the shortlist. We will pick you up from the hotel and start your property viewings. We will make sure that, apart from seeing the actual property, you would get information about the local area, amenities and everything else necessary for you to make the right decision. The property viewings can be quite stressful but we try and make them as relaxing as we can. A Lunch on the beach or a sightseeing point is a must and the time to reflect on experiences during property viewings and answer any potential questions. After the viewings, we recommend a break and time to gather your thoughts before making the final decision. We would be happy to recommend options for your leisure time.

CHOOSING AND RESERVING A PROPERTY

When you finally make the choice to buy Real Estate in Montenegro, the process is as follows. First you have to agree the terms of sale with the seller, we advise that you sign a standard Reservation Agreement (RA). This as well as place a deposit (usually €5.000 – €10,000) to reserve the property for a limited period of time. This is typically a non-refundable deposit so it is necessary that you read the terms of the reservation agreement carefully and ask about anything that is unclear.

DUE DILIGENCE

When Reservation Agreement is signed, the client and his lawyer will carry out the due diligence and prepare the Sales and Purchase Agreement (SPA). If you need help finding a lawyer, we are at your disposal to provide a list of experienced lawyers. Once the lawyer has finished with the draft version of the SPA, it will be sent to translation. Finally, it would then be sent to you for final review.

SALES AND PURCHASE AGREEMENT

The Sales & Purchase Agreement is signed in one of the notary offices in the city where the property is located. Purchasing procedure typically lasts a week or two. For this reason, many buyers choose to leave a Power of Attorney (POA) to their appointed lawyer to act on their behalf during the process.

Once you sign the main sales and purchase contract, and the full price of the property is paid, the seller provides the client with a document that confirms that the seller received the entire amount from the client (clausula intabulandi) ,which gives the right to register the client as the new owner of the property. Your lawyer will follow this process through until you receive title deeds in your name. There are two conditions necessary to complete the purchase of a property and confirm ownership. These conditions are: “Justus titulus” (legal entitlement to the property), and “modus aquirendi” (the registration of the property with the Area Property Registry).

The only document you need for the purchase is your passport. You can issue a power of attorney to one of our company’s employees, who would perform all the necessary tasks so you do not waste your time doing administrative work. If you wish to buy Real Estate in Montenegro, we offer to do the hard work for you.

 

AND WHAT ARE THE ADDITIONAL COSTS WHEN YOU  BUY REAL ESTATE IN MONTENEGRO?

On top of the sales price, there are additional costs if you are  considering buying real estate in Montenegro.

REAL ESTATE TRANSFER TAX (RETT)

This presents 3% of the value of the property and it only applies if you are buying a re-sale property. Newly completed buildings do not attract the payment of this tax.. Buyer has an obligtaion to make a payment of the RETT within 15 days from the signing of the contract. The value of the property determines the Local Municipality Tax Authority. This  usually matches the price listed in the sales contract. If the Tax Authority estimates the market value of the property to be higher than the one stated in the Sale and Purchase Contract, the buyer will receive an invoice from the Tax Authority for the difference in the amount of RETT.

LAWYERS FEES

Preparation of the sales and purchase agreement together with all associated activities would come to around € 1,000 on average. This also  depends on the complexity of the purchase. Issuing the notarized Power of Attorney usually amounts to around €120 including translation. Translation: €20 per page or approximately €120-€200 per contract.

NOTARY FEES

If you wish to buy Real Estate in Montenegro, the signing of the contract has to be executed at the notary. The cost of verification of the main Sales & Purchase agreement is calculated based on the value of the contract as per the following table:

0,00 – 5.000,00 = 70 €
5.001,00 – 20.000,00 = 120 €
20.001,00 – 40.000,00 = 170 €
40.001,00 – 60.000,00 = 250 €
60.001,00 – 80.000,00 = 300 €
80.001,00 – 120.000,00 = 350€

For the property valued above €120,000, for each increase of property price of €15,000 the fee increases by €10. The maximum Notary fee chargeable is €5,000.

REGISTRATION FEES

Land Registry: approximately €20 Taxes for the registration of ownership in the Land Registry.

REAL ESTATE AGENCY FEES

The agent’s commission ranges from 3% to 5%. Buyers do not pay the agency fee it is a responsibility of the seller!

COSTS AFTER YOU BUY REAL ESTATE IN MONTENEGRO

Once you finalize the purchase of your Real Estate, the average running costs for an apartment  are as follows:

  • ANNUAL PROPERTY TAX – 0.1% to 1% of the property market value
  • UTILITIES – Generally between €70 – €100 per month
  • LANDLINE TELEPHONE – €10 per month
  • CABLE AND INTERNET – Packages start from €20 Per month
  • GARBAGE DISPOSAL AND COMMUNAL CHARGES – €10 per month
  • PROPERTY MANAGEMENT – from €50 per month depending on the project

 

We hope that you have found this guide helpful, please don’t hesitate to contact us for additional information. Alternatively, should you wish to arrange a call, we would be happy to talk through the Real Estate buying process.

For British buyers we recommend reading the British Embassy Guide on how to buy Real Estate in Montenegro.

You may also like our post on Citizenship by Investment in Montenegro

About IM Property Group

IM Property Group is  Property Adviser and an Investment Specialist operating in Montenegro.

LEARN MORE

Contact Us

IM Group Limited

Ulica XVI Zgrada CFSSI
Rozino
85310 Budva

Montenegro





I wish to receive future offers and news from the IM Property Group.