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Today, anyone can buy real estate in Montenegro - whether he is a local citizen or a foreigner. This country continues to be one of the most popular among Russians who buy housing abroad. In addition to the exceptional landscape and environmental characteristics, friendly local people, etc., many are attracted here by the local tax legislation - the spending on real estate for foreign citizens who own squares in Montenegro will be the same as for its citizens.
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Thus, the average cost of concluding a deal will be around 300 euros. In addition to these costs for the registration of the sales contract and the fee for entering data into the real estate cadastre, translation services are also paid - about 50 euros per hour..jpeg)
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Taxes and fees when buying real estate
Each future owner of real estate in Montenegro, in addition to the cost of the acquired object, must budget the amount for the purchase and sale transaction, as well as clearly calculate the costs that he will have to regularly incur for the maintenance of housing. In each case, these amounts will be different - and depend on a number of key factors, including the value of the property, its location, area, etc. And it should be borne in mind that all costs and taxes associated with the registration of real estate are paid by the buyer. Non-residents can acquire ownership of real estate and land plots with an area of not more than 5,000 square meters with buildings. When making a transaction for the sale and purchase of real estate in Montenegro between two individuals, the buyer must pay a one-time tax of 3% of the assessed value - this is done at a time after the transaction. The tax must be paid within 15 days after its establishment, otherwise a penalty will be charged. The state cadastral appraisal of the object is carried out on the basis of its market value. It is important to bear in mind that a special commission of representatives of the municipality may overestimate or agree with this amount. The calculation of this tax is important for the buyer: it is on its basis that the amount of the annual property tax is subsequently calculated. With regard to the acquisition of real estate by an individual from a legal entity (developer) on the market of new buildings, in this case the buyer is exempt from paying tax, since the seller pays VAT. The registration of the purchase of real estate is carried out by a notary - an official representative of the authorities in the region where the purchased object is located. The buyer pays fees at the rates established by law, depending on the amount of the transaction.| Object cost | Notary fees |
| up to 40,000 euros | 120 euros |
| from 40,000 to 100,000 euros | 180 euros |
| from 100,000 to 200,000 euros | 300 euros |
| from 200,000 to 500,000 euros | 500 Euro |
| from 500,000 euros and more | 800 euros |
Regular expenses and taxes
The main expenses for the maintenance of real estate in Montenegro are the annual real estate tax, utility bills and tourist tax..jpeg)
Annual tax
The annual property tax, which depends on the location and type of property, is 0.08-0.8% of the property value. For example, his payment for an apartment worth 110,000 euros will be 330 euros. The tax amount is calculated based on the market value of the property as of December 31 of the previous year. If there have been changes in the property during the year, then 10 days before the filing of the tax return, the owner can affect the amount of tax. Annual property tax must be paid within 30 days of the date the tax decision is made. For apartments and residential premises, the tax rate is 0.25% of the tax base. But if a taxpayer or his relatives live in the apartment, the tax is reduced by 30%, the tax from each family member is reduced by 10%. Real estate data must be submitted to the municipal authorities by the end of February this year. On average, the annual property tax in Montenegro ranges from 50 to 500 euros.Communal payments
In Montenegro, the amount of utility bills depends on the meter readings. Utilities are billed monthly, the invoice arrives in the mailbox and is paid at the nearest post office or directly at the offices of companies providing utilities.- electricity - 40 - 50 euros per month. In case of delay in payment for more than two months, disconnection is possible (but, as a rule, non-residents are treated loyally and are allowed to pay utility bills upon arrival);
- water (over the counter) - 10 - 30 euros per month;
- garbage collection - 2.5 euros per month;
- satellite TV - 15 euros per month;
- telephone subscription fee - 5 euros per month.
Tourist tax
Foreign citizens or citizens of Montenegro, for whom the purchased housing is a second home (that is, holiday housing), and if this housing is located in the zone of tourist activity, pay the tourist tax. The entire coastline belongs to this territory. The tax is set by the local municipality and paid annually until the end of September of the current year. The tax is calculated based on the area of the property (number of places, one place - 15 sq. M), and the amount of accommodation fees set by the local authorities. For example, on the Barskaya Riviera for a house with an area of 200 sq. m with a plot of 10 acres 600 m from the sea, a tax of 280-350 euros per year is paid, for the same house on the first line 300-350 m from the sea - 1000 euros. On the Budva Riviera, the tax can be up to 1500 euros per year..jpeg)
