Buying Property In Montenegro – A Guide

Montenegro, with its stunning coastline, vibrant culture, and favorable climate, has become an attractive destination for property buyers. In this guide, we’ll explore everything you need to know about how to buy property in Montenegro, including the legality for foreigners, costs, and investment opportunities.

Foreigners can easily buy real estate in Montenegro as the process is fairly straightforward. This applies to both residential and commercial real estate, as well as land plots. 

Minor restrictions are still present. For example, a foreigner can buy land with a registered company. 

Best place to buy a property in Montenegro

The best place to buy a property in Montenegro is the one you like the most. Every location has its unique characteristics, as well as pros and cons. Also, take into account where the offer will be the best value for money.

If you have never been to Montenegro and do not know where you want to buy real estate, it is best to visit several places first before making a decision.

Can foreigners buy property in Montenegro?

One of the most common questions prospective buyers ask is, “Can foreigners buy a property in Montenegro?” The answer is a resounding yes! Montenegro allows foreign nationals to purchase property, making it an appealing option for international investors and those seeking a second home or a holiday house.

Foreigners can own property in Montenegro, either through direct purchase or by establishing a local company.

How to buy a property in Montenegro

The process of buying a property in Montenegro involves several steps:

Before you begin the process of selecting properties, it is important to do at least some market research. Read about the pros and cons of each location that interests you in terms of your long-term goal. If you are looking to invest in a property to rent it out, you should pay attention to the coastal region. If you are looking for a property in the city, you might be interested in the capital city Podgorica.

Secondly, consider the help of a knowledgeable agent, who can guide you through the process, including finding suitable houses for sale in Montenegro that meet your criteria. 

1) The first stage is the most difficult –  you need to choose a property. To do this, go to our catalog of real estate, choose your favorite objects, and let us know which objects you want to see. We will organize the viewing of properties.

*Showings of all properties with our help are free of charge. We do NOT take a commission from the buyer, we are paid a percentage from the sale by the seller.

2) Once you find the perfect property, we will help you negotiate a fair price with the seller. Don’t hesitate to compare different listings to ensure you’re getting a fair deal. At this stage, you and the seller usually agree on a deposit to take the property off the listing registry and make sure it doesn’t get sold in the meantime. The deposit is commonly around 10% of the sale price.

3) After agreeing on the price, we book a meeting at the notary’s office. The next steps involve signing a Sale and Purchase agreement, paying a deposit, and eventually finalizing the sale through a notary. On the day of the transaction, the seller takes in the cadastre “fresh” certificate of ownership.

This ensures that the property does not have any restrictions (all restrictions are specified in the certificate). If the property has restrictions or tax debts, the notary draws the buyer’s attention to this.

The conclusion of the Sale and Purchase agreement takes about an hour. At the end of the process you receive your copy of the contract, pay the court interpreter and notary.

The Sale and Purchase contract specifies all important aspects of the transaction, including the stages of payment. The content of the contract is translated into your language by a court interpreter, whom we invite to the transaction in advance.

4) After you have paid the full price for the property, you need to bring the necessary proof of payment to the notary and the notary will initiate the change of ownership of the property in the cadastre. This process takes about 2 months, at the end of which you will receive a certificate of ownership of the purchased property.

*Another nuance, real estate can be bought for one or more people. In this case, it does not matter whether all buyers are family members or not. But, you can not register real estate in a minor’s name in Montenegro.

How much does a house cost in Montenegro?

When asking how much does a house cost in Montenegro, consider that prices can vary significantly based on location and property type. Generally, you can find:

– Affordable Homes: Prices for cheap houses start around 50,000€. Do keep in mind that this kind of price reflects the quality of the property. Houses usually cost from 100,000€ and upwards.

– Luxury Properties: If you’re looking to buy a luxury house in Montenegro or a waterfront residence, expect to pay from 200,000€ to several million, particularly in sought-after areas like Porto Montenegro.

– Holiday Homes: For those wanting to buy a holiday home in Montenegro, prices can range from 80,000€ to 500,000€, depending on the proximity to the coast and amenities.

Can foreigners buy land in Montenegro?

Another question that often comes up is, “Can foreigners buy land in Montenegro?” Yes, they can, but it is subject to specific regulations. Foreigners may acquire land for construction purposes if they intend to develop it. Again, consulting with a local lawyer is advisable to navigate any legal intricacies. If you want to buy land, you will need to do it as a registered company.

Investing in real estate in Montenegro

Investing in real estate in Montenegro presents numerous opportunities. The country is experiencing growth in tourism, and with its EU candidate status, property values are on the rise. The country is also experiencing an influx of foreign investors and expats. Here are a few investment avenues:

– Vacation Rentals: With an increasing number of tourists, purchasing properties for rental purposes can yield lucrative returns.

– Residential Developments: As the population grows, there’s a demand for residential properties, making it a solid investment. Buy a property for less in a new building and you will not have to pay the purchase tax. Moreover, you can sell it for a higher price or rent it out once the development is finalized. 

– Commercial Properties: Consider investing in commercial spaces as Montenegro’s economy develops further. Foreign and local entrepreneurs and businesses are looking for office spaces for rent or purchase.

Conclusion

Buying property in Montenegro is an achievable dream for many, especially foreigners looking for investment opportunities or a holiday getaway. Whether you’re keen on houses for sale in Montenegro, luxury homes, or land, understanding the local market and legal procedures is essential. With the right guidance and research, you can navigate the process smoothly and make a sound investment in this beautiful country.

If you’re ready to start your property search in Montenegro, don’t hesitate to reach out to us so we can help turn your dream into reality!