How foreigners buy property in Montenegro: step by step

What a foreigner can buy

Foreign nationals can buy apartments, houses, commercial premises and building land in Montenegro, without a special permit and without having to live in the country.

However, the law does not allow foreigners to acquire in their own name:

• agricultural land and forests (exception: up to 5,000 m² if bought together with a residential building on that land)
• property on islands and within 1 km of the land border
• natural resources and cultural assets of exceptional importance

These restrictions do not apply to a company registered in Montenegro, so some foreign buyers purchase through their own company.

The purchase, step by step

1. Choosing and checking the property

Before any payment, the title deed (list nepokretnosti) is checked: who the owner is, whether the apartment is registered, and whether there are mortgages or other encumbrances. For new builds, the developer's permits are checked too.

2. Preliminary contract and deposit

Once the price is agreed, a preliminary contract is signed and a deposit is paid. The amount of the deposit and the deadline for the main contract are agreed between buyer and seller.

3. Contract before a notary

The sale contract is concluded before a notary, as a notarial deed. A foreigner needs a passport. If you do not speak the local language, the contract is signed with a court interpreter.

4. Payment

The price is paid through a bank, to the seller's account. A foreigner can open an account with a Montenegrin bank or pay from an account abroad.

5. Transfer tax

The buyer pays real estate transfer tax within 15 days of the contract: 3% up to €150,000, 5% on the part up to €500,000 and 6% on the part above that. On the first purchase of a new build from a VAT-registered developer, VAT applies instead, and it is already included in the price.

6. Land registry

The notary sends the contract to the Real Estate Administration. You become the owner only when you are entered in the title deed, not when you sign the contract or receive the keys.

Costs after the purchase

The owner pays an annual property tax, which each municipality sets between 0.25% and 1% of market value. Utilities and building maintenance come on top.

The most common problems for foreigners are unregistered encumbrances and slow land registry deadlines. That is why the checks come before the deposit, not after.

How Horizon helps

We check the documents before any payment, handle negotiations, arrange the notary and interpreter, and follow the land registry entry. We speak English and Russian.

This article is for information only and is not legal advice. Check your case with a notary or lawyer.