This just gives you a broad outline as to what is entailed when you purchase a property in Montenegro. You will get a more detailed guide to the buying process when you decide to buy or when you travel to Montenegro
River TaraUnder current legislation there are not many restrictions when you buy property in Montenegro. Foreign investors have the same rights as local people. There is one difference, if you plan to buy land as opposed to a house, apartment etc., in order to do so, you need to register a company. This company then becomes the owner of the land until, if and when you build on it. Once the land is built on, ownership can revert back to the person, your lawyer will advise you on this.
Steps Involved
the following procedure will need to be carried out.
1. Choose a lawyer (you need to give them Power of Attorney to continue with purchase).
2. Open a bank account (locally).
3. Pay reservation fee of 5% which is normally in cash.
4. The lawyer will draft a pre-contract which the client will sign.
5. The balance of money needed to complete the purchase will need to be transferred to your bank in Montenegro. This could take up to two weeks.
6. The contract is then signed and exchanged.
7. There is a 2% Purchase Tax on property. (The Revenue office put a value on the property).
8. After the 2% tax is paid the contracts and documents are given to the local Cadastre requesting change of ownership. This can take up to 60 days. When that happens you are registered as owner.
This is only an outline of the buying procedure, contact us for full details.
Our fee is 3% plus VAT (17%) . Lawyers fee's range in price from €600 - €2,000. Capital gains tax has recently been introduced but as yet, it is not being implemented. When it does actually come into force it will be 15%. Purchase tax is 2% plus 17% VAT and for new developments it is 2% (VAT is included in the cost of building).Should you decide to travel to Montenegro to view properties we will help you with your travel arrangements, accommodation, car hire if you so wish. Our agent there will meet with you to discuss your requirements and show you the properties you are interested in. You can direct any enquiries to our email.