Buying Property in Montenegro: What to Pay Attention To?

In recent years, Montenegro has become one of the most attractive destinations for real estate purchases in the Balkans. Whether you are looking for an apartment by the sea, a luxury villa with a sea view, or an investment property in a tourist zone, it is crucial to approach the purchase carefully and well-informed. In this blog, we share key tips on what to consider when buying property in Montenegro.

1. Legal Aspects and Ownership

Before making a purchase decision, it is essential to check the ownership documentation. The key document is the real estate title deed, which you can obtain from the land registry. It confirms ownership, indicates whether the property has any encumbrances (mortgages, debts, disputes), and ensures that everything is legally registered.

If you are buying a new development, verify the building and occupancy permits. Properties without these permits might face legal issues or even demolition. Additionally, if purchasing an apartment in a new building, check whether the developer has all the necessary documentation and experience in construction.

2. Location and Infrastructure

Whether you are buying a property for living, vacationing, or investment, location plays a crucial role. Consider:

Proximity to the sea and beaches (if purchasing on the coast)

Accessibility of roads and public transport

Nearby amenities such as shops, schools, hospitals, and other important services

Rental potential if purchasing for investment purposes

Properties near popular tourist destinations like Budva, Tivat, and Kotor have high rental potential but come at a higher price. If you prefer a quieter place to live, Herceg Novi, Bar, or smaller municipalities might be better options.

3. Prices and Purchase Costs

Real estate prices in Montenegro vary depending on location, property type, and proximity to the sea. Luxury developments have significantly higher price per square meter compared to older buildings or properties further from the coast.

Besides the purchase price, consider additional costs:

Real estate transfer tax – 3% of the agreed price, unless buying directly from a developer, in which case this tax does not apply.

Notary and legal fees – notary services are mandatory in the transaction process, and hiring a lawyer can be beneficial for verifying documentation.

Registration and ownership transfer costs – include administrative fees for the land registry and other institutions.

4. Property Condition Inspection

If purchasing an older property, it is advisable to hire an expert to inspect the condition of electrical and plumbing installations, walls, windows, and the roof. Hidden damages may lead to significant renovation costs later.

For new developments, research the developer’s reputation and construction quality. Some projects use lower-quality materials, which can cause problems in the future.

5. Purchase Process and Contract

Once you decide on a property, the buying process involves several steps:

1. Signing a preliminary agreement – defining the purchase conditions, payment terms, and delivery deadlines.

2. Paying a deposit – usually 10% of the agreed price.

3. Signing the final purchase agreement – notarized by a public notary, followed by the ownership transfer process.

4. Full payment of the purchase price – can be in installments or a lump sum, depending on the agreement.

5. Registration in the land registry – once the purchase is complete, the new ownership details are recorded in the land registry.

Conclusion

Buying property in Montenegro can be a great investment, but it is essential to approach the process carefully and well-informed. Checking the documentation, evaluating the location, hidden costs, and the quality of the property are crucial factors for making the right decision. If you are unsure about any aspect of the purchase, hiring professionals can save you time and help you avoid potential issues.

If you are looking for a property in Montenegro, Crassula Estate can help you find the best option based on your preferences and budget. Contact us for more information and expert advice!