Montenegro is quickly becoming a hotspot for property buyers, thanks to its stunning landscapes, growing tourism industry, and favorable property prices. Whether you're looking for a vacation home or an investment property, understanding the buying process in Montenegro is essential for a smooth transaction. In this guide, we’ll walk you through the practical steps involved in purchasing an apartment in Montenegro, including legal requirements, costs, and tips for a successful purchase.
1. Can Foreigners Buy Property in Montenegro?
Yes, foreigners are allowed to buy property in Montenegro with minimal restrictions. As a non-Montenegrin citizen, you can own property in your name, with the exception of certain agricultural or protected land. This makes Montenegro an attractive option for international buyers looking for a hassle-free property purchase in a foreign country.
2. Finding the Right Property
The first step is to find the right property for you. Whether you're searching for a beachfront apartment, a home in a quaint coastal village like Denovici, or an investment near Portonovi Marina, it's important to do thorough research. You can either work with a local real estate agent who knows the area well or search online platforms that specialize in Montenegrin properties.
3. Legal Requirements and Due Diligence
Once you’ve found a property you love, it’s crucial to conduct due diligence before committing to the purchase. Here are the main steps:
- Hire a Lawyer: It’s highly recommended to hire a local lawyer who specializes in real estate transactions. They will conduct a thorough title search to ensure that the property is free of any debts, liens, or legal issues.
- Preliminary Agreement: Once you’re satisfied with the property’s legal standing, a preliminary agreement (Predugovor) is signed between you and the seller. At this stage, you’ll usually be required to pay a deposit, typically around 10% of the purchase price.
4. Property Taxes and Fees
In addition to the purchase price, there are several taxes and fees associated with buying property in Montenegro:
- Property Transfer Tax: This is typically 3% of the property’s market value and is paid by the buyer. It must be paid within 15 days of the purchase.
- Lawyer Fees: Legal fees for property transactions in Montenegro are generally around 1% of the purchase price.
- Notary Fees: A notary public will draft the final sales contract, and the cost of this service is usually based on a sliding scale, depending on the value of the property.
- Agency Fees: If you’ve worked with a real estate agent, their fees typically range from 2% to 5% of the property price.
5. Signing the Sales Contract
Once all the legal checks are completed and the deposit is paid, the final sales contract (Kupoprodajni ugovor) is signed in front of a notary. This document will transfer ownership of the property from the seller to you. It’s important to have your lawyer present to ensure that everything is in order.
6. Registering Your Ownership
After signing the sales contract, the property must be registered in your name at the local Land Registry (Katastar). This process can take several weeks, but once completed, you will officially be the owner of the property. Your lawyer will usually handle the registration on your behalf.
7. Payment and Property Transfer
Once the property is registered, the remaining balance of the purchase price is paid, and you will receive the keys to your new apartment. Make sure that all payments are documented, and ensure that the property is delivered to you in the agreed-upon condition.
8. Ongoing Costs
Owning property in Montenegro comes with some ongoing costs, such as:
- Maintenance Fees: If you own an apartment in a building, there will usually be a monthly fee for maintenance of common areas. For example, in the Norwegian Village in Denovici, the cost is around €0.30 per m² per month.
- Property Tax: Montenegro’s property tax is quite low compared to other European countries, typically ranging from 0.25% to 1% of the property’s market value.
9. Renting Out Your Property
If you’re buying the apartment as an investment, Montenegro is a great location for generating rental income, especially during the summer months when tourism is at its peak. You can rent out your property either long-term or short-term through platforms like Airbnb. Your lawyer can assist with the necessary permits and registrations for rental purposes.
Conclusion
Buying a property in Montenegro is a relatively straightforward process, especially with the right legal guidance. Whether you’re purchasing a home for personal use or as an investment, Montenegro offers excellent value and an enviable lifestyle. With a growing property market and rising tourism, now is the perfect time to secure your place in this beautiful corner of the Adriatic.
Add comment
Comments