Buying Property in MontenegroA Guide for Foreigners

Foreign natural and legal persons may buy an apartment, house, holiday home or business premises in Montenegro. For the property transfer tax, domestic and foreign buyers are treated equally.

Under the Law on Property Relations, a foreigner cannot own agricultural land, forests and forest land, natural resources, goods in general use, cultural assets of exceptional or special importance, nor property within a one-kilometre belt from the land border and on islands. Exception: a foreign natural person may acquire up to 5,000 m² of agricultural or forest land if the subject of the contract is a residential building located on it. Long-term lease of such property is permitted to foreigners.

By the 2025 amendment to the law, citizens and companies from European Union countries will be able to buy under the same conditions as domestic buyers, but only from the day Montenegro becomes an EU member. If you are considering buying land through a company registered in Montenegro, first check this with a lawyer.

Ownership and encumbrances are checked in the property list, the official excerpt from the cadastre issued by the Real Estate Administration (formerly the Administration for Cadastre and State Property). Anyone can obtain the list for any property. Check that the seller is registered as the owner, and in the G list whether there is a mortgage, easement, lease, note of dispute or other restrictions.

For a building, request the use permit or the legalisation decision. A new Law on Legalisation of Illegal Structures has been in force since 2025, and the Real Estate Administration has received more than 80,000 applications for registration of illegal structures. For a plot, also check the type of land, because whether a foreigner may buy it depends on that.

1. Property check: excerpt from the cadastre (property list), permits and land type.
2. Preliminary agreement: not mandatory, but it is also drawn up before a notary as a notarial record.
3. Payment: for amounts of €10,000 and above, the money must go through an account with a bank in Montenegro at least on one side. The notary may hold the money in a special account (notary deposit).
4. Contract before a notary: the sale and purchase agreement must be a notarial record, otherwise it has no legal effect. If you do not speak Montenegrin, arrange a court interpreter in advance. A proxy may sign on your behalf.
5. Transfer tax: the notary sends the contract to the municipal tax authority, and the buyer submits a tax return and pays the tax within 15 days of concluding the contract.
6. Registration in the cadastre: ownership is acquired only upon registration. The application may be submitted by the notary (electronically from July 2026) or by the buyer, and the Administration decides by law within 30 days at the latest.
7. Annual tax declaration: within 30 days of purchase, report the property to the municipality.

Property transfer tax is paid by the buyer. Since 1 January 2024 the rate is progressive: 3% up to €150,000, then €4,500 and 5% on the part of the price above €150,000, and above €500,000 €22,000 and 6% on the part above €500,000. For an apartment of €200,000 the tax is €7,000. The basis is the agreed price; if it is lower than the market price, the municipality assesses the market value. The exemption for a first apartment applies only to Montenegrin citizens with residence in Montenegro.

When you buy a new property from an investor in the VAT system, no transfer tax is paid, but VAT, which is included in the price.

The notary fee depends on the value of the property, under the tariff in force since April 2026: for example €480 for a property worth €80,000 to €119,999, and for a property worth €200,000 €558, plus VAT. The maximum fee is €8,000.

Annual property tax is set by the municipality: from 0.25% to 1% of the market value, and for an apartment or house that is not your residence, for example for holidays, from 0.3% to 1.5%. The decision arrives by 30 April, and the tax is paid in two instalments, by 30 June and by 31 October.

Cash payment of €10,000 or more is not allowed. For real estate, such payment must go through an account with a bank in Montenegro at least on one side; the notary may not draw up a contract that circumvents this and requires proof of payment made before signing. For a housing loan as a non-resident, ask banks in Montenegro directly, as conditions depend on the bank.

An owner of property in Montenegro may obtain temporary residence for up to one year, with extension. Since 17 January 2026, the property must be worth at least €150,000 (proof is the transfer tax decision), and the foreigner must own at least half of the property. Citizens of the EU, the European Economic Area and Switzerland are exempt from that threshold. This permit does not grant the right to work. After five years of continuous temporary residence, permanent residence may be requested.

The economic citizenship programme was closed to new applications at the end of 2022, so purchasing property does not grant Montenegrin citizenship.

Renting to tourists requires registration of accommodation with the municipality, guest registration and payment of the tourist tax. Rental income is taxed at a rate of 15%. On sale, capital gains tax of 15% is paid on the difference between the selling and purchase price, unless the property was your only residence.

This guide is general information according to regulations in force in October 2026 and is not legal advice. Before purchasing, consult a notary or lawyer.