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How to Buy Property in Montenegro
Learn how to buy property in Montenegro, and information for foreigners buying property in Montenegro
How to buy property in Montenegro – Purchasing property in Montenegro can be an overwhelming and a daunting process. There are plenty of agents in Montenegro who very often do not have the buyers interest at heart.
The real estate industry is largely unregulated and you usually learn your mistake when its too late. Don’t let that be you. We believe both parties need to be in full agreement through having all the information and particulars of the transaction.
Not all properties in Montenegro are “legal”, for lack of a better word, meaning you will purchase the property at your own risk. For the buyer this means the property will not have the necessary paperwork to apply for Temporary Residency, or you will be unable to sell, or, you will struggle to sell the property should you ever wish to.
Some sellers may believe they are the legal owner where in fact they are not. We are here to assist you with the buying process as well as protect your interests and ensure the transaction is fair to both buyer and seller. Being a team of expats and having gone through the process, we understand the fears and we will be here for you every step of the way. Lets quickly touch on the process below:
1
Once you have found the perfect property we advise you to appoint a lawyer who is licensed to practise in Montenegro (we can recommend one for you so no need to worry). Your appointed lawyer will inspect the List Nepokretnosti or Posjedovni List (the title deed of the property) and ensure the legality and what you are entitled to do with that property. They would check the property deeds and negotiate the contract terms.
2
A deposit is usually placed to take the property off the market (10% of the purchase price is the recommended average rate). This is typically held by the agent or appointed lawyer, but sometimes by the seller or the notary (we advise that the lawyer or notary be appointed custodian of the deposit).
If you are not in Montenegro when purchasing the property you can appoint someone and give them Power of Attorney to sign on your behalf. Don’t worry, this can be your appointed attorney and purchasing property through power of attorney is quite common in Montenegro.
3
The purchase price is paid via bank transfer either to the seller directly or to the notary’s account according to the terms stated in the Contract. After the Sales and Purchase Agreement is signed, and the purchase price paid in full, the notary sends all documents to the land registry for change of title to be processed.
At this point 3% of the purchase price is paid in title tax (percentage depends on the Municipality but 3% is the highest and average) Within a few weeks the property is registered in your name. You or your appointed lawyer are now able to change any utility bills into your name.
A registered translator will need to be present when signing the purchase agreement and is a rewuirement for all foreigners. We will assist you with this.
4
As a buyer you will be responsible to pay all costs for the Notary and the Translator in order to conclude the sale and change ownership. Changing Ownership can be a lengthy process and can take anywhere from a few weeks to a few months. We will be more than happy to discuss any questions or concerns you may have. We are here to help you and make the buying process as simple and stress free ass possible.
As a buyer you will be responsible to pay all costs for the lawyer if you appoint one, notary and the Translator in order to conclude the sale and change ownership. Changing Ownership can be a lengthy process and can take anywhere from a few weeks to a few months (typically done in a few weeks).
We will be more than happy to discuss any questions or concerns you may have. We are here to help you every step of the way and make the buying process as simple and stress free ass possible.
We will keep you updated and informed. There are always risk involved in purchasing property in a foreign country and we will ensure you avoid risk and protect your interests.
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what are the Costs Involved when buying property in montenegro?
- Property Purchase Price
- Attorney Fees ( depends on the complexity of the purchase, on average between €400 and €1000)
- Notary Fees (depends on the value of the purchase price but is capped at €5,000)
- Translator Fees ( €25/page, usually 5pages, and €30/hour for oral discussion)
- Property Tax (3% of property price, there are exceptions in certain instances)
- Agent/Broker Fees (Paid by Seller)
These are average estimates and may vary from time of purchase as prices can fluctuate
Should you appoint an attourney to act on your behalf, you will need to signe a power of attourney to allow them to act on your behalf. There are separate costs involved (between €70 and €100), Your appointed attorney will negotiate the terms of the contract as well as do all the necessary background checks to ensure the legality of the property. As mentioned we do advise you to appoint an attorney but again this is your choice and should you request we will gladly appoint one of our trusted preferred attorneys for you. Alternatively power of attorney can be given to your agent to sign and act on your behalf.
Purchasing Vacant Land
it is also important to mention that there are no restrictions on person with EU nationality to purchase property in Montenegro. Should you be a foreigner and wish to purchase vacant land, you may (depending on the type of land) need to first register a company in montenegro before you do so. This can also be arranged through us at your request. This will also affect the manner in which you apply for Temporary Residency should you wish to (refer to Temporary Residency and Company Formation).
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Should you have any questions please feel free to ask and we will gladly assist where we can.