Buying real estate in Montenegro

Montenegro is one of those countries where the legislation does not impose any serious restrictions on the purchase of real estate by a foreigner. A foreign citizen, non-resident of the country can purchase real estate of any type and size, in any region of Montenegro. You can find out the details of obtaining a residence permit in Montenegro here.

The only exception is the purchase of land for agriculture, as well as strategic objects.

The purchase of real estate in Montenegro can be carried out by both individuals and legal entities. Moreover, the acquisition of real estate in Montenegro is possible remotely using a power of attorney issued to the person representing the interests of the buyer. In all real estate transactions, a notary must be present, and if the buyer does not speak Serbian, a translator must be present.

Stages of purchasing real estate in Montenegro

The process of purchasing real estate in Montenegro is quite simple and consists of the following steps:

  1. selection of a property and oral discussion of the terms of purchase with the seller;
  2. verification by a notary of the legal purity of the transaction – the seller must have a Certificate of Ownership (List Nepokretnosti), which indicates all the data about the property, existing restrictions and encumbrances;
  3. signing by the parties of a preliminary agreement and making a deposit (usually from 5,000 euros to 10% of the cost); signing and certification of the main purchase and sale agreement by a notary.
  4. transfer of the full amount under the contract to the seller;
  5. receiving confirmation of full payment from the seller (clausula istabulandi);
  6. transfer of the purchase and sale agreement and clausua istabulandi to the Cadastral Chamber for registration of the transfer of ownership rights. Registration takes up to 60 calendar days.
  7. a few days after signing, the buyer can receive his own certificate of ownership – Lista Nepokretnosti.
  8. The last step is the transfer of all utility payments to the new owner of the property.

The buyer should also note that the tax and cadastral chambers in Montenegro operate independently. After signing the purchase and sale agreement with a notary, one of the copies of the agreement is sent to the tax office to receive a receipt for payment of tax on the purchase of real estate in Montenegro.

The tax inspector checks the transaction amount and the real market value of the property. If they do not match, a tax of 3% is paid on the amount determined by the appraiser. The receipt must be picked up at the tax office. An alternative way is to receive it by email. The receipt is due within 15 days of receipt. It is possible to pay for it from Russia or another country. The tax must be paid before receiving the title deed.

You can find out more about real estate taxes in Montenegro here.

Source link