How to buy real estate in Montenegro? What documents are needed for this? How is payment made? Is the security of the transaction guaranteed and how does it work? We will try to answer all these questions in this article.

1. Choosing a future house or apartment

Immediately, as soon as you have looked for an apartment, house or villa on our website, contact us for up-to-date information on this object. In addition, tell us the parameters of the desired object - how many bedrooms, distance from the sea, what budget; Based on these parameters, we will be able to make you a selection of the most suitable options. After that, we will draw up a detailed plan for viewing all the objects that are of interest to you and that we recommend. We will definitely meet you at the airport, place you in the apartment where you will live, and in the next few days we will show you all the objects that we agreed with you in advance.

2. Signing the contract at the notary and paying the advance

Once you have decided on the property and we have discussed all the details with the seller, you can proceed directly to the purchase and sale transaction. You will need to provide an international passport (which does not expire in the next 6 months), we will prepare the rest of the documents. The procedure for signing the main contract according to Montenegrin laws must be carried out in the presence of a licensed notary and a court interpreter, who also has a valid license. Our company will arrange a meeting at the notary's office and provide an interpreter, as well as draw up a package of documents necessary for certification. Each notary is fully responsible for the certified documents with his property, as well as criminal liability in case of illegal actions. So, the notary certifies the contracts (and other related documents), and from that moment the transaction is considered completed. Upon signing the contract, an advance payment in the amount of 5-10% (or a fixed amount as agreed by both parties) is paid, which is fixed in the sales contract. An advance payment is a partial payment for a property transferred to the buyer under the contract. If the buyer later changes his mind and does not pay the remaining amount, the advance remains with the seller. In the opposite case: if the seller's plans change, the advance payment, already in double size, is returned to the buyer. This is the generally accepted world practice of making deals.

3. Further payments under the contract

The transfer of the principal amount under the concluded sale and purchase agreement is made by bank transfer. A money transfer is usually carried out by transferring to the seller's account from a foreign bank (for example, from a Russian bank) or to a notary's account

To transfer funds abroad, it is necessary to provide a basis to the sending bank - a concluded and notarized contract for the sale of foreign real estate (the original contract with a notary's seal and its translation into the state language of the country where the sending bank is located). Transfer of funds is usually carried out within 2 weeks from the date of conclusion of the sales contract. If the parties have agreed on an installment plan, then the contract specifies a payment schedule.

4. Additional pexpenses

  • Real estate turnover tax (3% of the value of the property)

Note: tax is not paidif you are purchasing a new property from a developer who is a legal entity. person and who pays the state VAT in the amount of 21%. If you purchase a resale property, then the payment of tax is mandatory - this must be done within 15 days from the date of conclusion of the contract. You can pay the tax both in Montenegro and from another country by bank transfer to the tax account. If the tax is not paid within 15 days, then a penalty in the amount of 0.3% is charged for each day of delay.

  • Notarial services

Notarial fees when signing the main contract of sale are as follows:

Object value Tax (+21% VAT)

EUR 60,000-80,000 EUR 300

EUR 80,001-120,000 EUR 350

If the value of the object is more than 120,000 euros, then for every 15,000 euros increase in value, the amount of the notary's fee increases by 10 euros. It is also necessary to take into account that the tax amount does not include VAT in the amount of 21% and is added separately. The maximum notary fee is 5,000 euros.

  • Court interpreter services

When signing the contract of sale, a court interpreter must be present. Interpreting will cost 50 euros/hour (usually 1 hour is enough), and translation of the contract - 25 euros per page (standard contract is 7-10 pages).

  • Power of attorney (optional)

If for any reason you cannot be present at the transaction, you can issue a power of attorney to your agent or lawyer to complete the transaction on your behalf. The power of attorney and its translation usually cost 70-100 euros.

  • Lawyer services (optional)

If you have an expensive purchase coming up and you want to further protect yourself, then we advise you to contact an independent lawyer who will represent your interests. The services of a lawyer usually range from 1,000 to 1,500 euros, depending on the value of the property.

4. Re-registration of property rights in the cadastre

Only after the fulfillment of all obligations of the buyer and the transfer of funds to the account of the seller, i.e. payment of the full price of the property, the seller may issue a Clausula Intabulandi (confirmation) to the buyer. In other words, this document speaks of the absence of any kind of claims between the two parties. The notary sends this document to the cadastre for re-registration of ownership. At this stage, the presence of the seller is no longer necessary. The law prescribes the maximum period for re-registration of property rights in 60 days (but in practice it can take up to 3 months, depending on the region).

After that, the new owner can receive the so-called "List of integrity". In other words, just an extract from the register proving the buyer's ownership of real estate in Montenegro. In fact, the buyer becomes the owner already at the stage of signing the contract of sale and after fulfilling his obligations to pay for the acquired property and receive Clausula Intabulandi from the seller. But legally, the buyer of the object is considered the new owner of the acquired housing only after the registration of the sale and purchase agreement in the Cadastre.

5. Congratulations, you are the happy owner of a piece of paradise in Montenegro!

  • After receiving a list of inaccuracies, it will be necessary to re-register water and electricity meters to a new owner, as well as sign a new contract for the provision of Internet services.
  • Now you can start the process of obtaining a residence permit based on real estate ownership if you plan to spend most of the year in Montenegro.