Buying real estate in Montenegro can be an exciting, but also a complex process, especially for those coming from abroad. Whether you're looking for the ideal permanent home, seaside cottage, rental investment or long-term asset security, it's crucial to get the foundations right before you start your search.
The first step is to clearly define your goals - do you want a property for personal use, do you plan to generate rental income, or is your primary focus on a long-term investment? Also, it is important to realistically assess the budget, including not only the purchase price, but also additional costs such as taxes, fees, notary services and potential renovations.
If you are planning finance the purchase through credit, keep in mind that they are mortgage loans in Montenegro more limited for non-residents, so it is necessary to research the available options in advance. Apart from the financial aspects, it is important to think about the desired way of life - do you prefer urban life in Podgorica, the peace of coastal cities like Kotor and Budva, or the idyllic surroundings of the Montenegrin mountains?
One way to make the buying process easier is to engage reliable real estate agencies, which can help with search, legal certainty and all administrative steps. Buyers in Montenegro can consider cooperation with Luxury Homes doo agency, of which the page is an integral part real estate.me. This agency has been present on the real estate market for more than 15 years and leads it Mr. Niko Lakovic.
Luxury Homes doo offers a wide range residential and investment properties, as well as professional support in all phases of the purchase. Clients can visit real estate.me page in order to explore the current offer of real estate in Montenegro and find an option that suits their needs.
This guide will take you through the key steps of buying real estate in Montenegro, helping you make informed decisions and avoid potential obstacles along the way.
Real estate market research in Montenegro
After defining your goals and budget, the next step in the real estate buying process is thorough market research. Montenegro offers a variety of locations, each with its own specifics, prices and legal regulations. With proper research, you can find the ideal property that suits your needs, whether it's a seaside villa, an apartment in an urban center or a house in a quiet rural setting.
Research regions
The Montenegrin real estate market can be divided into several key regions, each of which has unique characteristics and advantages:
- Budva Riviera - The most popular tourist destination in Montenegro, known for luxury apartments i to the villas, developed infrastructure and high real estate prices. It is also attractive for investors due to the potential for rental.
- Bay of Kotor - It includes Kotor, Perast, Risan and surrounding towns, with a rich historical heritage and unique landscapes. It is ideal for those looking for an authentic Mediterranean atmosphere and a quieter environment.
- Bar - A modern city with a combination of coastal and urban life, more affordable real estate prices compared to Budva and Kotor, and a developed infrastructure for living all year round.
- Herceg Novi – A city with a long tradition of tourism, attractive due to its proximity to Croatia and the international airport in Tivat. It offers a wide range of properties, from apartments to luxury villas.
- Ulcinj - Known for its long sandy beaches and oriented towards summer tourism. Real estate prices are more favorable, but the market has specific challenges, including legal regulations related to land ownership.
- Tivat – A fast-growing destination with luxury projects like Porto Montenegro, which makes it attractive to investors and those looking for a high standard of living.
- Podgorica - The capital of Montenegro offers a stable real estate market, favorable prices compared to coastal areas and good connections with the rest of the country.
- Northern mountain regions – Regions like Žabljak and Kolasin are increasingly popular due to winter tourism and the possibility of investing in mountain cottages and apartments.
Market trends
Before making a purchase decision, it is important to monitor real estate price trends, expected rental yields and future development projects. Coastal areas like Budva and Tivat record a constant increase in prices, while cities like Bar and Ulcinj are still more affordable, but with potential for growth. Also, it is important to analyze the seasonal demand for rentals, because tourist-oriented regions offer high incomes during the summer, but may have lower occupancy in the off-season.
Legal framework
Buying a property in Montenegro is relatively simple and accessible to foreign citizens, but it is necessary to familiarize yourself with the property laws. Foreigners can buy apartments and houses without restrictions, while it is land purchase subject to certain rules. Also, when buying real estate, you need to take into account real estate sales tax and notary fees.
The purchase contract is drawn up by a notary public in charge of the region where the desired real estate is located.
The notary is the only institution that is in charge of transferring ownership to the buyer after signing the sales contract and that submits the necessary information to the State Cadastre.
In addition, buying real estate allows obtaining a residence permit, which is an important aspect for those planning a long-term stay in Montenegro.
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Negotiations and required verification of important documentation
After you have found the ideal property, you need to follow certain steps before finalizing the sale. This process includes the submission of an offer, negotiations with the seller, the conclusion of a pre-contract and the final formalization of the transaction by signing the purchase agreement.
In order to ensure that everything runs smoothly and without legal ambiguities, you can implement this process through our agency, which provides its clients with professional support in negotiations, harmonization of contractual obligations and legal protection.
Representing your interests, after choosing the desired property, we will present you with the final price, terms and conditions of payment and ensure that yes the real estate will be freed from all encumbrances before finalizing the purchase or to submit certain documents before concluding the contract.
Your lawyer can perform all the necessary legal checks and deliver documentation before signing the pre-contract and the purchase contract itself.
If you wish, our agency will be happy to recommend an experienced lawyer with whom our clients cooperate.
Check by a lawyer
A lawyer specialized in real estate law performs a comprehensive check of the legal status of the real estate before the buyer pays the rest of the purchase price and formally takes ownership. Key aspects of the review include:
- Registration in the cadastre - The lawyer checks whether the real estate is properly registered in the cadastral books and whether the seller really has the right to dispose of it. This information can be obtained from Real estate list, issued by the Real Estate Administration of Montenegro.
- Permits - The buyer should make sure that the real estate has all the necessary permits:
- Building permit - Confirms that the building is legally built.
- Usage permit - Proves that the facility is safe for use and meets the prescribed technical conditions.
- Urban planning parameters - It is checked whether the land is intended for residential, business or some other purpose.
- Encumbrances on real estate - The lawyer checks whether the property has active mortgages, lawsuits, notes or other legal obstacles that can make the purchase difficult. This information is also found in Real estate list.
- Existing contracts - If the property already has tenants or there is a maintenance contract (eg in apartment complexes with shared costs), the lawyer analyzes the existing contracts so that you know all the obligations that you may assume as a new owner.
After the lawyer confirms that the property is legally clean and safe to buy, the buyer can move on to the next step.
Survey (Optional)
For real estate that includes land, it is recommended to hire a surveyor to check the exact boundaries and surface area of the land. This is especially important if you are buying a building plot or larger plots of land.
A geodetic survey may include:
- Comparing cadastral data with the actual situation on the ground.
- Checking whether the building or plot enters neighboring properties.
- Creation of a new geodetic survey if necessary for future conversions or construction.
Although not mandatory, a geodetic survey can help avoid disputes over land boundaries and problems during possible future construction.
Once the agreement on the terms of the purchase has been reached, you can sign the appropriate pre-contract in front of the competent notary.
Pre-contract and main sales contract
The pre-contract defines the key terms of the transaction and serves as a legal framework before the final purchase.
A preliminary contract usually contains:
- Identification of buyer and seller
- Property description (location, square footage, legal status, as well as details from the Cadastre)
- The agreed purchase price
- Payment terms (method and terms of payment)
- Down payment (deposit) - It is standard around 10% of the total price of the property, but it can vary. A deposit ensures that both parties are serious about the purchase. If the buyer cancels without a valid reason, the deposit usually remains with the seller; if the seller refuses, he is obliged to return double the down payment.
- Deadline for signing the main contract - It is usually agreed within a period of 30 to 60 days, but it can be longer if additional checks or financing are needed.
When signing the pre-contract, the competent notary can answer any of your legal questions related to the legal act itself.
This phase ensures that the transaction is clearly defined and prepares the ground for the final step - signing the main sales contract.
Main purchase agreement
After all the legal checks have been completed, the purchase is finalized by signing the main sales contract.
Basic features of the contract:
- It is drawn up by a notary. - The document must precisely define all terms of the transaction, including information about the buyer and seller, description of the property, amount and method of payment, terms of transfer of ownership and responsibilities of the parties.
- Contract language - The main contract is usually drawn up in the Montenegrin language, but a translation can be provided for foreign buyers. In some cases, the notary can provide an official translation or certify the translated version.
- Signing at a notary's office - The sales contract is certified by notary public, which guarantees its legal validity. The notary checks the identity of the buyer and seller, as well as the consent of all parties before signing. Our colleagues will be happy to advise you on all aspects of this process and be present at the signing of the purchase agreement at the notary.
Payment and registration
After the purchase agreement has been signed at the notary, the key final steps remain in order for you to officially become the owner of real estate in Montenegro. This phase includes payment of the purchase price, payment of ownership transfer tax, registration in the cadastre and post-purchase procedures such as insurance and connections.
Payment
Payment for real estate in Montenegro is made exclusively by bank transfer, for security and legal reasons.
Key steps when paying:
- After signing the contract, the customer makes the payment the remaining amount of the purchase price on the seller's account.
- A notary may have special deposit account to which the buyer pays funds, which are released to the seller only after registration of ownership.
- For international buyers, it is important to check banking procedures for foreign currency transfers and ensure that there are no restrictions on sending money.
After the payment is made, the buyer can proceed to pay the transfer tax.
Property transfer tax
The buyer is obliged to pay property transfer tax which is calculated according to the following model:
- For real estate that costs up to €150,000.00, up to 3% value is paid;
- For real estate that costs more than €150,000.01, €4,500.00 + 5% is paid for the amount over €150,000.01;
- For real estate worth more than €500,000.01, €22,000.00 + 6% is payable on the amount above €500,000.01
Tax payment procedure:
- The notary delivers the sales contract to the competent tax administration, which estimates the value of real estate.
- Based on the assessment, the tax administration issues tax decision which needs to be paid.
- The buyer pays the tax to the account of the tax administration within 30 days from the signing of the contract.
Note: If you are purchasing new construction directly from the investor, you are exempt from paying real estate transfer tax
Post-purchase steps
After completing the registration, it is important to take a few additional steps to secure and take full control of the property.
- Obtaining official ownership documents
- Real estate certificate from the cadastre as proof that you are the registered owner.
- Tax decision confirming the tax paid.
- Real estate insurance
- It is recommended to insure the property against potential risks (fire, flood, earthquake, burglary).
- There are several insurance companies that offer policies for residential and commercial buildings.
- Connections (electricity, water, internet)
- If you're buying a new home, you may need to close new contracts with utility companies.
- If you are buying a property that has already been used, it is essential transfer existing connections to your name.
- Check the conditions and documentation required for switching electricity, water, internet and other services.
After completing all these steps, the real estate purchase process is completely completed, and you can enjoy your new home or investment in Montenegro.
Long-term liabilities and maintenance
After you have successfully completed the purchase of real estate in Montenegro, it is important to familiarize yourself with the long-term obligations that come with ownership. These obligations include paying taxes, potentially renting, maintaining the property and being able to obtain a residence permit.
Taxes
Owners of real estate in Montenegro are obliged to pay annual property tax, the amount of which depends on estimated real estate value and locations.
- Tax is calculated. annually and ranges from 0.1% to 1% market value of real estate.
- The local self-government determines the exact tax rate for each municipality.
- Property tax can be paid in several installments or at once, and failure to pay may result in penalties and interest.
It is recommended that owners check regularly tax solutions in order to avoid debts and additional costs.
Rental (if applicable)
If you plan to rent the property, it is important to be familiar with the legal regulations and obligations that come with it.
- Rental registration - According to Montenegrin law, real estate rental (especially to tourists) must be registered with local tourist organizations and tax authorities.
- Payment of tax on income from issuance - Owners who rent real estate pay tax on income from publishing, which amounts to 9% of income.
- The option of hiring a management company - If you do not live in Montenegro, you can hire a company for property management, which deals with rental, maintenance and communication with guests.
Compliance with legal obligations ensures that renting is legal and profitable, without the risk of fines.
Maintenance
Regular maintenance of the property is key to preserving its value and functionality.
- Budget planning for maintenance – An annual repair budget is recommended, which may vary depending on the type of property.
- Utility costs – Owners are responsible for electricity, water, internet, garbage collection and other utility costs.
- Common costs (for apartments in buildings) - If you are buying an apartment in a building, it is possible that you will pay common maintenance costs (elevator, cleaner, building insurance).
- Regular inspections and repairs - Inspection of installations, remediation of possible problems with moisture, roof or facade in order to avoid higher costs in the future.
If you don't stay in the property often, you can hire local maintenance company, which can perform inspections and manage maintenance for you.
Read also: Porto Montengro, Investment and Lifestyle 2025
Residence permit (if applicable)
Owners of real estate in Montenegro can qualify for temporary residence permit, which enables legal long-term residence.
- Residence permit based on real estate ownership - Foreign citizens who own real estate in Montenegro can apply for one-year residence permit, with the possibility of renewal.
- Documentation required for application:
- Purchase agreement and proof of ownership (Real estate deed)
- Proof of health insurance
- Proof of financial ability
- Registration of residence in Montenegro
- The process of obtaining a permit takes several weeks, and the license can be renewed every year.
A residence permit does not automatically lead to Montenegrin citizenship, but it does enable it easier access to banking services, health insurance and long-term residence without visa restrictions.
Conclusion
Buying real estate in Montenegro is not just a one-time investment, but a long-term commitment that requires planning and responsible management. Paying taxes, maintaining the property and potentially renting are key aspects that every owner should consider.
If you are planning a long-term stay in Montenegro, research possibilities for a residence permit can be an added advantage of property ownership.
With proper management and information, your property can become not only a home, but also a valuable investment in the future.
Feel free to contact us in order to conduct the first, free consultation, which you can schedule at info@nekretnina.me.
