Who can buy property in Montenegro?

There are no restrictions for foreigners wanting to purchase houses or apartments in Montenegro. However, to purchase land, a local company must be registered. 

Whilst Montenegro offered a path for citizenship by investment, the program closed in December 2022. 

Do the research

Montenegro offers a lot of variety when it comes to real estate. Whether you want to purchase a cabin in the mountains in Kolašin to ski and hike or a beachside property in Budva - Montenegro offers it all. Most foreigners tend to focus their investments on the coastal areas and the capital:

• Podgorica - The famous capital of Montenegro that sits on the banks of Ribnica and Moraca rivers. Its architecture is heavily influenced by its complex past and has Austro-Hungarian, Ottoman and socialist influences. The city retains a relaxed atmosphere despite being the administrative and economic center of the country.
• Budva - Located on the coast of the Adriatic Sea, Budva is a popular tourist destination that offers pristine waters and beautiful beaches coupled with historical landmarks. 
• Tivat - A charming coastal town situated on the Bay of Kotor. It’s part of the wider Kotor Bay area which is a UNESCO World Heritage Site. From a lifestyle perspective, Tivat is home to the Porto Montenegro marina which is a glamorous yachting destination that offers a variety of luxury properties, upscale restaurants and boutiques.

To find properties online, visit:

• Indomio
• Realitica

Financing

Financing has become available for foreigners in the past couple of years. It is highly recommended to consult with multiple different banks when searching for a mortgage as the terms, interest rates and requirements vary significantly.  Loan-to-value ratios can be as low as 50% so have some cash set aside beforehand. Periods are up to 25 years and interest rates can vary anywhere from 3-7%. If opting for a variable interest rate loan, make sure to check the historical Montenegro Bank Lending rate to understand what your payments might look like in the future. 

Property Visits and Preliminary Contract

When suitable properties have been found online (or by your estate agent), the next step is to visit them in person. This helps you get the best overview of the actual condition of the property. An architectural survey is also recommended.If a property is chosen to move forward with and a price agreed by the buyer and seller, a preliminary sales contract is drafted. In most cases a 10% down payment is needed to take the property off the market. It’s important to engage with a local real estate lawyer in this stage as well.

Due Diligence and Sales Contract 

After the preliminary contract is signed, the lawyer will make the necessary legal checks in the Land Registry and if everything is in order, the final sales contract is drawn up. The signing will happen in front of a Montenegro public notary who will also notarize the document. Then the rest of the purchase price is transferred to the seller and the documents are registered in the Land Registry after which the property belongs to the buyer.

Property Buying Costs and Taxes in Montenegro

Transaction Costs
		Who Pays?
Transfer Tax	3%	buyer
Notary Fees	0.01%	buyer
Real Estate Agent´s Fee	3% - 5%	seller
Costs paid by buyer	3.01%
Costs paid by seller	3% - 5%
ROUNDTRIP TRANSACTION COSTS	6.01% - 8.01%
Source: Global Property Guide