Buying a Property in Montenegro

Montenegro is a European destination attracting expats and digital nomads with its sunny climate, scenic beauty, and affordable living, leading many to consider buying a property in Montenegro for a permanent or seasonal home.

Legal Framework for Foreign Property Ownership

Foreigners in Montenegro have the right to purchase real estate under the same conditions as domestic entities, requiring only an identification document. However, the Law on Property Relations restricts ownership of certain assets. Indeed, foreigners cannot own natural resources, public goods, agricultural land, forests and forest land, cultural monuments of great and special importance, real estate in a land-border area up to one kilometre deep, islands, or properties in areas designated for national security.

Exceptionally, foreigners may acquire ownership of agricultural land, forests, or forest land up to 5,000 m2 if a residential building on that land is part of the sale, gift, or exchange contract. Moreover, they may be entitled to long-term leases, concessions, BOT arrangements, or other public-private partnerships for these restricted properties. By legal transactions, foreigners can transfer ownership to domestic persons or other eligible foreigners.

Common Expenses in Property Transactions

Here’s a list of the common expenses and who pays them:

  • Lawyer’s fees.
  • Seller pays the real estate agent.
  • Buyer pays for notarising documents.
  • Buyer pays 3% title transfer tax.
  • Cost of company formation and registration for land purchases.

Detailed Breakdown of Property Purchase Costs

Reservation Deposit

Usually €5,000 – €10,000

Lawyer Fees

Approximately €1,000 for a purchase of mid-size apartment and confirmed before appointment

Power of Attorney

Approximately €50 to €120 including the translation

Notary Fee for Verification of the Main Sales Contract

  • 0 – 5,000 = 70 €
  • 5,001 – 20,000 = 120 €
  • 20,001 – 40,000 = 170 €
  • 40,001 – 60,000 = 250 €
  • 60,001 – 80,000 = 300 €
  • 80,001 – 120,000 = 350 €

For properties valued above €120,000, the fee increases by €10 for each €15,000 increase in price, with a maximum charge of €5,000.

Translation of Documents

Translation of the Power of Attorney and contract is done by a certified court translator at about €20 per page. A standard agreement is usually 5 pages, so total costs range from €100 to €200, with additional changes chargeable.

Cadastre Taxes and Expenses

Cadastre taxes average €15.

Real Estate Market Prices in Montenegro

The average price per square meter of an apartment in Podgorica is 1,056 euro/sq m, in coastal resort towns 1,576 euro/sq m, in the central region 650 euro/sq m, and in northern areas 875 euro/sq m for new buildings. Consequently, this variety offers options for different budgets when buying a property in Montenegro.