Purchase a Property in Montenegro

Purchase a Property in Montenegro

Updated on Thursday 23rd April 2020

Rate this article

based on 3 reviews.

Purchase a property in MontenegroForeign individuals and legal entities can purchase a property in Montenegro. Houses and apartments are easy to acquire by foreigners, but they have to register a company in Montenegro if they want to purchase land in this country. The Law on Proprietary and Ownership Rights in Montenegro is the legal framework to regulate the conditions for purchasing a property in Montenegro by foreigners. If you want professional experience in property conveyance, our lawyers in Montenegro are willing to assist you.

Our law firm can help foreign citizens and investors interested in acquiring real estate in Montenegro for residential or commercial purposes.

How to purchase a property in Montenegro?

Several steps have to be fulfilled for buying a property in Montenegro:

  • •    find a property that fits your budget;
  • •    make an offer for it;
  • •    hire a solicitor and a surveyor;
  • •    confirm the offer/mortgage;
  • •    sign the buying/selling contract;
  • •    complete the transaction.


Our law firm in Montenegro can provide real estate due diligence services to anyone interested in buying a property in this country. Having the property investigated and assessing eventual risks attached to it is highly recommended before purchasing a property in a foreign country. Once you choose a property of your liking, a buying contract is drawn and signed by both buyer and seller. Our lawyers in Montenegro can write a legally bounding contract that suits the buyer`s needs and prevents litigious situations. Their signatures have to be authenticated by a court in Montenegro.

The Local Council Offices have to confirm the ownership and establish the value of the property. A transfer tax of 3% of the property value has to be paid by the buyer. After this tax is paid, the contract has to be registered with the Area Property Registry. The payment of the buying price is the final step in owning property in Montenegro. If you need legal help with the property acquisition process, our attorneys in Montenegro are ready to represent you.

Finding real estate for purchase in Montenegro

The first step to be completed when deciding to buy a property in Montenegro is to search and inform on the properties for sale in the desired region. Many properties are listed on specialized websites by the owners or are promoted by real estate agencies.

It is not hard to find a property for sale for residential purposes, however, in the case of commercial buildings, the buyer must pay attention to several factors.

Once the interested party has found the right property, it is best to ask for assistance from a law firm in order to have it checked with the Land Register. Our lawyers in Montenegro can perform such inquiries with the Land Register.

The offer when buying real estate in Montenegro

After finding the property and agree with the seller on the purchase, the buyer will need to make an offer. It is important to note that in some cases the price can be negotiated, however, it is advisable to discuss with a lawyer first. Foreign citizens relocating to Montenegro and interested in buying properties for residential purposes can usually negotiate up to a certain degree the price of the chosen property.

Once the final price has been agreed, the buyer can make an offer which is best to be in writing. An advance payment should also be considered when buying a Montenegro property for residential purposes. Usually, 10% of the purchase price must be paid in advance for the property to be taken off the market and for both the seller and buyer to be sure the transaction will take place. It should also be noted that an agreement in this sense is usually signed by both parties.

In the case of commercial real estate purposes, the procedure is more complex. However, it depends if the property to be bought is sold by the developer or by Montenegrin company.

No matter the type of property purchase you are about to enter, it is recommended to have the documents related to that property verified by a law firm in Montenegro.

With a vast experience in real estate matters, our lawyers can also verify various types of agreements, including sale-purchase contracts.

Buying real estate through mortgage in Montenegro

One of the preferred options for those interested in acquiring a property in this country is by accessing a loan with a Montenegrin bank. In this case, a mortgage agreement must be signed, and the money will be automatically transferred to the former owner’s account upon the completion of the transaction.

It is important to note that the bank can ask for various documents which prove the solvency of the buyer, however, obtaining such a loan in Montenegro is not complicated.

Another aspect to consider in order to speed up the transaction is to open a bank account with a Montenegro bank. This way the duration of the money transfer will take less. Foreign citizens or investors can also have the money transferred from the bank account in their home countries.

Our lawyers in Montenegro can assist with the opening of bank accounts in this country.

The sale-purchase agreement when buying a Montenegrin property

Once the initial phases of the property purchase process are completed, the parties must have the final sale-purchase agreement drafted and signed. The contract must contain the following information:

  1.           the name of the buyer – the personal information in the case of natural persons or information related to the company;
  2.           the name of the seller – personal information about the seller must be comprised in the contract;
  3.           the total amount the property was sold for (if any advanced payment was made, this must appear in the contract);
  4.           specific terms under which the contract was signed must also be mentioned in the agreement;
  5.           the date and the signature of both seller and buyer must be found on the contract in order for it to be valid.


The sale-purchase agreement must be drafted and signed before a Montenegro public notary who will also notarize the document.

Costs and taxes involved when purchasing a property in Montenegro

The total costs of selling and purchasing a property in Montenegro range between 6% and 9% of the property value. The 3% transfer tax is paid by the buyer and the real estate agent`s commission is shouldered on the seller. The Value Added Tax (VAT) tax of 19% has to be paid for the transfer of newly built properties. Notarization is compulsory for buying-selling contracts; the notary fees reach 0.01% of the property value.

FAQ on buying a property in Montenegro

1. Is it hard to buy a property in Montenegro if I am a foreigner?

No, it is not. Foreign citizens can easily purchase real estate for residential purposes in Montenegro.

2. How long does it take to complete the property purchase procedure in Montenegro?

Depending on the agreement with the seller, the procedure can take from a few weeks to a few months.

3. What do I need to do after I have bought the property?

Once the procedure is concluded, you will need to register the property title on your name with the Land Register.

4. Are there any additional fees that I need to pay when buying a property in Montenegro?

Once you have bought a property you will need to consider the real estate fee (if any) and the lawyer’s fee.

5. Do I need to be in Montenegro when signing the sale-purchase agreement?

You don’t need to be present, but you will need to appoint a proxy and grant them a power of attorney to represent you.

The common practice in Montenegro requires a hired lawyer to prepare the transaction papers. If you want honest and affordable legal services, please contact our law firm in Montenegro.