Buying Property in Montenegro: Complete Guide for Foreigners

Buying property in Montenegro as a foreigner is straightforward, with no restrictions on ownership. Here's your complete guide to the process.

Can Foreigners Buy Property?

Yes! Montenegro has no restrictions on foreign property ownership. Citizens of any country can buy:

• Apartments
• Houses
• Villas
• Commercial property
• Land (with some restrictions on agricultural land)

This applies whether you're EU, UK, US, or any other nationality.

The Buying Process

Step 1: Find Your Property

• Work with licensed agents
• View multiple options
• Consider location, access, and amenities
• Check legal status and permits

Step 2: Make an Offer

• Offers typically verbal initially
• Negotiate price and terms
• Agree on timeline
• Consider including fixtures/furniture

Step 3: Legal Due Diligence

Your lawyer should verify: - Clear title (no encumbrances) - Valid building permits - No outstanding debts - Property boundaries - Utility connections

Step 4: Pre-Contract (Predugovor)

• Preliminary agreement
• Typically 10% deposit
• Sets out terms and timeline
• Usually 30-60 days to completion

Step 5: Final Contract

• Signed before notary (notar)
• Both parties present
• Full payment arrangements
• Power of attorney if needed

Step 6: Registration

• Contract certified by notary
• Submitted to Real Estate Cadastre
• Transfer tax paid
• Title transferred to your name

Costs to Budget

One-Time Costs:

Budget 5-8% on top of purchase price for total transaction costs.

Timeline

Total: 2-4 months from starting search to keys in hand.

Required Documents

From You: - Valid passport - PIB (tax identification number) - Proof of funds - Power of attorney (if not present)

From Seller: - Title deed (list nepokretnosti) - Building permits - Utility bills (showing no debt) - Energy certificate

Getting a PIB (Tax Number)

Required before purchase. Process:

1. Visit local tax office
2. Bring passport
3. Fill out application form
4. Receive PIB same day or within 3 days
5. Free of charge

Financing Options

Cash Purchase - Most common for foreigners - Simpler process - Stronger negotiating position

Montenegrin Mortgage - Available to non-residents - Typically 50-70% LTV - Interest rates 4-6% - Requires local income or substantial deposit

Home Country Financing - Remortgage existing property - Personal loan - Often more favourable rates

Key Tips

1. Always use a lawyer - Essential, not optional
2. Verify everything - Don't trust verbal assurances
3. Visit in person - Photos can be deceiving
4. Check permits - Especially for newer builds
5. Budget for extras - Transaction costs add 5-8%
6. Consider currency - Montenegro uses Euro

After Purchase

Immediate: - Transfer utilities to your name - Inform municipality (for property tax) - Set up property management if needed

Ongoing: - Annual property tax (0.1-1% of value) - Utility payments - Maintenance and insurance

Common Mistakes to Avoid

1. Not getting independent legal advice
2. Skipping due diligence
3. Underestimating transaction costs
4. Not checking building permits
5. Rushing the process

Property Types Explained

Apartment (Stan) - Most common purchase - Part of building with shared areas - Monthly fees for building maintenance

House (Kuća) - Standalone property - Includes land - Full responsibility for maintenance

Villa - Larger detached property - Often with pool/garden - Usually in suburbs or coastal

Getting Help

Essential Team: - Licensed real estate agent - Independent lawyer - Notary (assigned) - Translator (if needed)

Montenegro makes property ownership accessible to foreigners - the process is clear, costs are reasonable, and professional support is readily available.