How to buy a property in Montenegro (from someone who’s done it)

The process of buying a property in Montenegro

Property transactions here are governed by The Law of Proprietary and Ownership Rights 2009. Here is what to expect when you buy a property in Montenegro.

Once a property is found, the buyer makes an offer and the buyer and seller (or usually the agent) negotiate the details.

A deposit of up to 10% of the purchase price is paid by the buyer. When I bought my apartment in Kotor in 2005, the seller and I signed a preliminary contract when I paid the deposit in person at the courts in Kotor. This gave both of us some protection if either party pulled out. (At that time the seller had to pay back my 10% and pay me a further 10% if they pulled out). This preliminary contract is not obligatory, but it is usually signed by both parties before the public deed is granted.

The buyer’s solicitor now does the checks and confirms that the property is fit for sale. Some properties have a complicated ownership record, as many properties have been handed down through families for generations. If your solicitor finds that it is not fit for sale, your deposit will be refunded.

The purchase contract (ugovor o kupoprodaji nepokretnosti) is prepared and signed by both parties. The buyer pays for it to be notarised.

I found the buying process to be very straightforward and quick.

The public notary requires the presence of an official interpreter when foreigners (at least those not fluent in Montenegrin) are buying property to ensure that they fully understand the terms of the contract. All legal documents (ie the contracts) must also be translated into the buyer’s language (and paid for by the buyer). The court or solicitor can recommend an official interpreter and the cost is usually very reasonable.

The final payment is made at the same time as the purchase contract is signed by both buyer and seller.

Now that the legal ownership is confirmed, a department within the Local Council determines the value of the property. The property transfer tax is calculated at 3% of this agreed valuation and is due within 15 days of the purchase contract.

Once done, the buyer’s solicitor registers the transaction and has the title deed (list nepokretnosti) transferred. (Note that the list nepokretnosti is an important document that authorities and banks will require to see when asking for evidence that you own a property in Montenegro).

Fees for buying property in Montenegro

Real estate transactions in Montenegro involve a standard set of taxes and fees, pretty much what you might expect to also pay elsewhere. They are:

Property transfer tax – 3% of the assessed value
Property transfer tax is for existing properties only. If you are buying a new property, VAT of 21% of the purchase price is payable instead.

Notary fees – around 0.01% of the property value

Solicitor’s fees – generally about €100 to €1,000 per transaction

Official translator’s fees – typically quite low (mine were less than 80 euros)

Estate agent ‘s fees (if one) are paid by the seller and are generally 3-6% of the property value

My experience of buying a property in Montenegro

In my experience being informed about the process of buying a property in Montenegro (or anywhere!) before you embark on it is a wise thing to do. There will be people along the way to explain and assist you – my solicitor, Radojka Popovic, was very helpful in this. But I still made sure that I did my own research beforehand.

I found the buying process to be very straightforward and quick compared to the long drawn out and uncertain conveyancing system that we have here in England. The whole process in Montenegro only took around 6 weeks.

A simple and smooth process. How refreshing.

Exactly what we like here on Montenegro Girl! 😊