Purchasing real estate in Montenegro brings with it a series of additional costs that can significantly increase the final amount. You need to include an additional 5-10% in your budget for all related costs, but realistically you can expect costs of 4-6% above the purchase price.
The most important changes in 2024 brought progressive real estate transfer tax which amounts to 3% for properties up to €150,000, 5% for the portion of value from €150,000 to €500,000 and 6% for the portion over €500,000.
Basic real estate purchase costs
- ✓ Transfer tax: 3-6% (progressive)
- ✓ VAT on new construction: 21%
- ✓ Notary fees: around €450 for a €100,000 property
- ✓ Lawyer: 1-1.5% of purchase price
- ✓ Agency commission: 5% (paid by seller)
Real Estate Transfer Tax - New Rules 2024/2026
The biggest change in purchase costs came with the introduction of progressive real estate transfer tax. From January 1, 2024, Montenegro has a progressive tax system that applies to the purchase of real estate on the secondary market.
| Property value | Tax rate | Calculation method |
|---|---|---|
| Up to €150,000 | 3% | Fixed rate |
| €150,001 - €500,000 | 5% | €4,500 + 5% on difference over €150,000 |
| Over €500,000 | 6% | €22,000 + 6% on difference over €500,000 |
VAT on New Construction - 21%
When purchasing directly from the developer, VAT of 21% is paid, while transfer tax is not paid. This is a significant item that can drastically increase the costs of purchasing new real estate.
VAT is calculated and paid at the general rate of 21% on every turnover of products, services and import of products, which includes new construction.
Did you know?
Buyers who are solving their housing issue for the first time for an area up to 20 m² per household member may be exempt from tax on new construction.
Notary Fees and Costs
Notary fees represent a mandatory item when purchasing real estate. Notary fees vary depending on the purchase price of the property. For purchasing a property worth €100,000, the notary fee would amount to around €450, including all taxes.
Notary services
- • Drafting the purchase agreement
- • Signature authentication
- • Submitting documentation to the cadastre
- • VAT on notary services is additionally charged
Additional costs
- • Document translation: €300-400 additional
- • Interpreter: €40-50 per hour
- • Court and administrative fees, postal services
Lawyer and Legal Assistance
Although not mandatory, engaging a lawyer is recommended for a safe purchase. The typical cost for this service is around €1,000 for a €100,000 property, on average approximately 1 to 1.5% of the total purchase price.
Fees range from €200 to €1,500, depending on the complexity of the transaction and legal issues.
"Legal assistance is especially important for foreigners buying real estate, as it helps in understanding local regulations and procedures.
— Real estate expert advice
Agency Commission
In most cases, the seller pays the agency commission. Its size amounts to 5% of the sale price. Therefore, for the buyer, real estate agent services are free.
When purchasing on the secondary market, some agencies may pay commission to either the buyer or the parties. This difference emphasizes the importance of clarifying the commission structure with the agent in advance.
Practical Cost Example
| Type of cost | €100,000 apartment (secondary) | €100,000 apartment (new construction) |
|---|---|---|
| Transfer tax | €3,000 (3%) | €0 |
| VAT | €0 | €21,000 (21%) |
| Notary fees | €450 | €450 |
| Lawyer | €1,000 | €1,000 |
| Additional costs | €400 | €400 |
| TOTAL | €4,850 (4.85%) | €22,850 (22.85%) |
Deadlines and Procedures
If you are buying real estate for resale, then tax payment is mandatory - you must do this within 15 days from the date of contract conclusion. 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 of 0.3% is charged for each day of delay.
The law prescribes a maximum deadline for re-registration of ownership rights within 60 days (but in practice it can take up to 3 months, depending on the region).
Tips for Buyers
✓ Recommended
- • Include an additional 5-10% in your budget
- • Engage experienced lawyers and real estate agents
- • Check if you are entitled to tax exemptions
- • You will be informed about all costs before signing the contract
✗ Watch out for
- • Hidden costs that are not specified in advance
- • Clarifying commission structure with the agent
- • Missing deadlines for tax payment
- • Purchasing without legal verification
Important for 2026
Foreigners are treated the same way as Montenegro citizens when purchasing real estate, and taxes and fees are the same for everyone. The purchase process can be completed very quickly, often within 1-2 days.
Real estate purchase costs in Montenegro vary significantly depending on whether you are buying on the secondary market or new construction. While the secondary market brings costs of 4-6% above the purchase price, new construction can be significantly more expensive due to 21% VAT. It is crucial to plan all costs in advance and engage professional help for a safe purchase.
