Navigating Real Estate Transactions in Montenegro: A Guide for Foreign Investors

Montenegro, with its stunning landscapes and burgeoning real estate market, has become an attractive destination for foreign investors looking to purchase residential and commercial properties. However, navigating the legal and logistical aspects of real estate transactions in this beautiful country requires a clear understanding of the local regulations. Here are some important points to consider:

1. Property Ownership by Foreign Citizens: Foreign nationals have the right to purchase both residential and commercial properties in Montenegro. However, there is an important exception – an individual can only own land up to 5,000 square meters with a building on it.

2. Land Purchase without Construction: Buying land without an existing building is only possible if the plot is included in the detailed urbanization plan.

3. Residency Permit Eligibility: Foreigners can apply for a residency permit in Montenegro (with the right to extend) upon purchasing any type of real estate. However, selling the property will nullify the residency permit.

4. Notarized Contracts: All contracts (preliminary and final) must be drawn up and notarized by a Montenegrin notary, in the presence of both parties or their representatives with notarized powers of attorney, as well as a translator if necessary.

5. Property Transfer Tax: When purchasing a resale property, the buyer is required to pay a property transfer tax, calculated as follows:

• For purchases up to 150,000 euros, the tax rate is 3% of the property price.
• For purchases above 150,000.01 euros, there's a fixed tax of 4,500 euros plus 5% of the amount exceeding 150,000.01 euros.
• For purchases exceeding 500,000.01 euros, there's a fixed tax of 22,000 euros plus 6% of the amount exceeding 500,000.01 euros.

6. Remote Transactions: Remote property transactions are possible through a power of attorney.

7. Non-Resident Loans: It's important to note that Montenegrin banks do not provide loans to non-residents for real estate purchases.

Navigating the real estate market in Montenegro as a foreign investor can be complex, but with the right information and guidance, it can also be highly rewarding. At CRASSULA Estate, we specialize in providing comprehensive support and assistance to clients seeking to invest in Montenegrin real estate. Contact us today to learn more about our services and how we can help you achieve your investment goals in this vibrant market.