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

As soon as you've found an apartment, house, or villa on our website, contact us for up-to-date information on the property. Additionally, let us know the parameters of your desired 1-bedroom, 2-bedroom property, its distance from the sea, and your budget. Based on these parameters, we'll select the most suitable options for you. We'll then create a detailed viewing plan for all the properties you're interested in and which we recommend. We'll meet you at the airport, check you into your apartment, and over the next few days, we'll show you all the properties you've previously agreed upon.

PROPERTY FOR SALE

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

Once you've selected a property and discussed all the details with the seller, we can proceed directly to the purchase and sale transaction. You'll need to provide an international passport (valid for at least six months), and we'll prepare the remaining documents. Under Montenegrin law, the signing of the main contract must be conducted in the presence of a licensed notary and a certified translator, also holding a valid license. Our company will arrange a meeting at the notary's office, provide a translator, and prepare the necessary documentation for certification. Each notary is fully responsible for the documents they certify, using their property, and is also liable for criminal liability in the event of unlawful actions. Once the notary certifies the contracts (and other related documents), the transaction is considered complete. Upon signing the contract, an advance payment of 5-10% (or a fixed amount agreed upon by both parties) is required, which is specified in the purchase and sale agreement. An advance payment is a partial payment for the property transferred to the buyer under the contract. If the buyer subsequently changes their mind and does not pay the remaining amount, the advance payment remains with the seller. Otherwise, if the seller changes their mind, the advance payment, now doubled, is returned to the buyer. This is a generally accepted practice in international transactions.

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, you must provide the sending bank with a completed and notarized foreign real estate purchase and sale agreement (the original agreement with a notary seal and its translation into the official language of the sending bank's country) as the basis for a – transfer. The transfer is usually completed within two weeks of the execution of the purchase and sale agreement. If the parties have agreed to an installment plan, the payment schedule is specified in the agreement.

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 and pays VAT to the state in the amount of 21%. If you are purchasing a resale property, the mandatory tax payment is –, which must be made within 15 days of signing the contract. You can pay the tax in Montenegro or from another country by bank transfer to the tax office account. If the tax is not paid within 15 days, a penalty of 0.3% is charged for each day of delay.

Notarial services

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

Property price Tax (+21% VAT)

60,000-80,000 euros 300 euros

80,001-120,000 euros 350 euros

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 proud 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.