Taxes and costs
Real estate transfer tax in Montenegro
What the transfer tax costs, how it is calculated bracket by bracket, and which value it applies to.
Since 1 January 2024 Montenegro's real estate transfer tax is progressive, no longer a flat 3%. On a tax base up to €150,000 the rate is 3%; above €150,000 and up to €500,000 the tax is €4,500 plus 5% of the excess; above €500,000 it is €22,000 plus 6% of the excess. The base is the market value of the property as assessed by the Tax Administration, not necessarily the advertised or contract price.
Last legal review: · Sl. list CG 028/23
Transfer tax is due when a property is acquired on the secondary market — that is, bought from an existing owner. The taxpayer is the acquirer, meaning the buyer.
New-build bought directly from a VAT-registered developer is treated differently: VAT applies instead of transfer tax, and it is normally already included in the price. Two properties with the same advertised price can therefore end up at a different final cost, which is why a comparison is only meaningful on the final figure rather than the asking price.
Brackets
| Tax base | Rate | Calculation |
|---|---|---|
| up to €150,000 | 3% | 3% × base |
| over €150,000 up to €500,000 | 5% on the excess | €4,500 + 5% × (base − €150,000) |
| over €500,000 | 6% on the excess | €22,000 + 6% × (base − €500,000) |
Why the threshold sits at 150,000, not 150,000.01
The law reads “up to €150,000.00 — 3%”, then “over €150,000.01: €4,500.00 + 5% on the amount over €150,000.01”. Read literally, that leaves a gap between the two figures and shifts the calculation by one cent.
The fixed amounts in the law itself prove the round threshold is what was meant: 3% of €150,000 is exactly €4,500, and €4,500 plus 5% of €350,000 is exactly €22,000. Both only match if €150,000.00 and €500,000.00 are the amounts subtracted. This calculator therefore does exactly that, and the result is continuous at each boundary — no jump and no gap.
Calculator
Enter the estimated tax base in euro. The calculation runs in your browser — nothing is sent to a server and nothing is stored.
For example: 450000 or 450,000
This is an informative estimate at the rates in force. The final amount is determined by the Tax Administration in its assessment, based on the appraised market value.
Examples
| Base | Tax | Effective rate |
|---|---|---|
| €100,000 | €3,000 | 3% |
| €150,000 | €4,500 | 3% |
| €250,000 | €9,500 | 3.8% |
| €500,000 | €22,000 | 4.4% |
| €750,000 | €37,000 | 4.93% |
| €2,000,000 | €112,000 | 5.6% |
What the tax base is
The base is the market value of the property at the time of acquisition. It is assessed by the Tax Administration and need not equal the price written in the contract. Where the agreed price differs materially from the assessed market value, the tax is calculated on the assessed value.
For a buyer that means an estimate built on the advertised price can come in below the actual liability. This calculator therefore asks for the base rather than the price — where the two differ, the base is what counts.
Who determines the liability
The Tax Administration of Montenegro determines it by formal assessment. The acquisition is reported to the competent tax authority, and the acquirer receives the assessment.
We do not state the filing or payment deadline as a number here: the sources we checked describe them differently, so naming one would be a claim stronger than the evidence. The applicable deadline for a specific case is confirmed by the notary or the Tax Administration.
Exemptions and special cases
The law provides for exemptions and special cases — the best known being new-build from a VAT-registered developer, where VAT applies instead of transfer tax. Others exist, but we do not list them here: their exact scope is not confirmed from an official source, and an incomplete list would be worse than none.
If you believe your case falls under an exemption, it should be checked before signing rather than after. The notary checks this as part of the process.
What may have changed since
Tax legislation changes. The rates on this page were verified against the official source on the date shown below and were in force at that time. For a transaction completed today, the law in force on the date of acquisition governs.
Land and new-build warrant particular care: the VAT treatment in that area has been amended relatively recently, and for a specific plot it should be confirmed with a notary or tax adviser.
Frequently asked questions
How much is real estate transfer tax in Montenegro?
Since 1 January 2024 the rate is progressive: 3% on a base up to €150,000; €4,500 plus 5% of the amount above €150,000 for a base up to €500,000; and €22,000 plus 6% of the amount above €500,000. Before that it was a flat 3%, which is why older guides still quote that figure.
Is the tax calculated on the contract price?
Not necessarily. The base is the market value of the property as assessed by the Tax Administration. Where the agreed price differs materially from the assessed market value, the tax is calculated on the assessed value — so an estimate built on the advertised price can come in below the actual liability.
Does transfer tax apply to new-build?
New-build bought directly from a VAT-registered developer is as a rule subject to VAT instead of transfer tax, and that VAT is already included in the price. Two properties at the same advertised price can therefore carry a different final cost. For a specific building the notary confirms which applies.
Who pays the transfer tax?
The acquirer of the property — the buyer. The liability is determined by the Tax Administration in a formal assessment based on the appraised market value.
Source
Government of Montenegro: “Amendments to the Real Estate Transfer Tax Act — in application from 01.01.2024.” Published in the Official Gazette of Montenegro no. 028/23 of 10 March 2023, applicable from 1 January 2024. gov.me
Last legal review:
Disclaimer
- This page is informative and is not individual legal or tax advice.
- The figure the calculator shows is an estimate at the rates stated above. The final calculation should be confirmed by the buyer with the Tax Administration, a notary or a tax adviser.
- Legislation may change after the date of the last review.
Published by
nekretnina.me — the portal of LUXURY HOMES d.o.o., Budva. The data and text on this page are prepared and checked by the agency editorial team.
Last reviewed: · an expert reviewer has not yet been confirmed