How a foreigner can buy property in Montenegro: a step-by-step guide

Foreign nationals can buy property in Montenegro without obtaining citizenship and without having to set up a local company. In most cases, an apartment, house or villa can be registered in the name of a private individual. However, restrictions apply to certain categories of land and property.

In this article we explain how buying property in Montenegro works: from choosing a property and checking the documents to signing the contract at the notary and registering ownership in the cadastre.

Buying property in Montenegro with FinessKA Real Estate

FinessKA Real Estate supports buyers at every stage of purchasing property in Montenegro: from finding a property and arranging viewings to checking the documents, completing the transaction and registering ownership.

We help you understand the features of a property, confirm the registered floor area, identify the additional costs and prepare the documents needed for the transaction. Viewings can be arranged in person or remotely.

Below we explain in detail how buying property in Montenegro works, which documents need to be checked and which costs to plan for in advance.

1. Choosing a property

When choosing a property, it is important to consider the purpose of the purchase, the location, the local infrastructure and the running costs.

If you plan to live in Montenegro all year round, it is worth looking at towns with well-developed infrastructure, schools, medical facilities and shops that stay open. These include Budva, Tivat and Bar.

If the main goal is to let the property, what matters most is the distance to the sea, the number of bedrooms, transport links and rental demand in the particular area.

You also need to set your purchase budget in advance. In addition to the price of the property, you should allow for taxes and transaction costs.

Buying property and obtaining a residence permit

Buying property and obtaining a residence permit are separate legal procedures. The purchase of an apartment or house does not in itself mean that a residence permit will be granted automatically.

From 2026, new applications for temporary residence on the basis of property ownership are subject to a minimum property value of €150,000. What counts is the tax value of the property, determined in accordance with the established rules, and not only the price in the contract. There are exceptions for certain categories of applicants. Separate renewal rules may apply to permits issued earlier.

If a residence permit is part of your plans, check that the property meets the requirements before paying a deposit.

2. Viewing the property

A property can be viewed in person or remotely by video call.

During a remote viewing it is important to assess not only the apartment or house itself, but also the entrance, the condition of the building, the grounds, the surrounding development, the access roads and the view from the windows.

If necessary, an additional video viewing can be arranged and the details of the property clarified before you decide to buy.

3. Checking the property documents

Before paying a deposit, you need to check the legal status of the property and the documents on which the transaction will be based.

The first things to examine are:

• The cadastral extract (list nepokretnosti). It is used to check the registered owner, the description of the property, the recorded floor area, the ownership shares, and any mortgage, seizure or other registered encumbrances.
• The property documents. These include the existing permits, information on whether the building was lawfully built and, where required, the occupancy permit. For an apartment in an existing building, it is also important to compare the actual layout and floor area with the registered data.
• Alterations and extensions. If a terrace has been converted into a room, an extension has been added or the layout has been changed, you need to find out whether these changes have been properly approved and registered.
• The basis on which the seller acquired the property. The documents confirming ownership are examined and, where necessary, additional documents relating to the transfer of ownership.
• The authority of the parties. If the property belongs to several owners or the contract is signed by a representative, the necessary consents and powers of attorney are checked.
• Payments for maintenance and utilities. Check whether there are any debts for building maintenance, water, electricity or other services.

Pay particular attention to any discrepancies between the actual state of the property and the cadastral records. For example, an extra room created in place of a terrace does not always mean that the change has been properly registered.

If you find encumbrances, unregistered changes or inconsistencies in the documents, their legal consequences must be clarified before the transaction is concluded.

4. Preliminary contract and deposit

Once the terms have been agreed, the parties can sign a preliminary contract and set out how the transaction will proceed.

The document should record:

• the price of the property;
• the amount of the deposit and how it is paid;
• the deadline for signing the main contract;
• the procedure and deadline for the final payment;
• the obligations of the parties;
• the conditions for returning the deposit and the consequences of withdrawing from the transaction.

The deposit terms must be worded unambiguously. It is important to distinguish between a deposit, an advance payment and other forms of prepayment, as their legal consequences may differ.

It is advisable to complete the document checks and agree the terms of the transaction before transferring any money. Do not rely on verbal agreements alone.

5. Sale and purchase contract at the notary

The property sale and purchase contract is drawn up in accordance with the requirements of Montenegrin law, including the requirement for notarisation of the transaction.

The notary checks the documents and the authority of the parties within the scope of their duties, explains the content of the notarial deed and completes the transaction in the established manner.

If the buyer or another party does not speak the language in which the notarial deed is drawn up, a court interpreter may need to take part. Whether a translation is needed and how it will be arranged should be agreed with the notary in advance.

The contract can be drawn up with a translation into the buyer's language. A bilingual set of documents makes it easier to understand the terms of the transaction, but the specific requirements for the form and translation of documents are determined by the applicable rules and notarial practice.

Can you buy property remotely?

The buyer does not always have to be present in person. In the cases provided for by law, the transaction can be completed through a representative acting under a properly executed power of attorney.

Before the power of attorney is drawn up, its content must be agreed with the notary who will handle the transaction. You should also check in advance the requirements for certifying the document, its translation and, where applicable, legalisation or an apostille.

6. Paying for the property

The payment procedure must be agreed before the contract is signed.

For property transactions of €10,000 or more, payments must be made through a bank account in Montenegro held by at least one of the parties. The procedure for transferring the funds should therefore be agreed with the bank and the notary in advance.

The bank may request documents confirming the source of funds, as well as information about the purpose of the payment and the parties to the transaction. The list of documents depends on the specific situation.

The buyer should check in advance the terms of the international transfer, whether the funds can be credited, the bank's processing times and the requirements for supporting documents. This helps avoid delays with the final payment.

7. Taxes when buying property

Tax costs depend on the type of property and the nature of the transaction.

When buying a resale property, if the transaction is subject to property transfer tax, a progressive scale applies:

For example, if the tax base is €200,000, the calculation is as follows:
€4,500 + 5% × €50,000 = €7,000.

Bear in mind that the tax base may differ from the price stated in the contract. The competent authority is entitled to determine the value of the property for tax purposes in accordance with the established rules.

Buying an apartment in a new building

When buying property directly from the developer, VAT may apply instead of property transfer tax. However, the tax treatment depends on the circumstances of the particular transaction, the status of the seller and the property.

So before signing the preliminary contract, you need to find out which tax applies in your case and what costs the buyer will face.

Deadlines for filing the return and paying the tax

Where there is an obligation to pay tax, the statutory deadlines must be met. The tax return is filed within the prescribed period, and the assessed tax is paid in accordance with the decision of the competent authority and the applicable rules.

Before completing the transaction, it is advisable to check the current deadlines and the procedure for submitting documents with the relevant municipality.

8. Registering ownership in the cadastre

Once the contract has been signed, the documents are submitted to the real estate cadastre to register the transfer of ownership.

After the entry has been made, the buyer can check the registered details and make sure that ownership is recorded in their name.

Until registration is complete, it is important to keep the contract and the documents confirming the payments and the fulfilment of the obligations under the transaction.

9. Costs after the purchase

After buying a property, the owner bears the costs of owning and maintaining it.

These may include:

• annual property tax;
• utility bills;
• maintenance of the common parts of the building;
• insurance and routine repairs;
• property management costs if the property is let.

The amount of the annual tax depends on the established rules and the characteristics of the property. Building maintenance costs depend on its condition, equipment and management arrangements.

What to pay particular attention to when buying

The most important questions are best settled before paying a deposit:

• check the registered ownership and any encumbrances;
• compare the actual state of the property with the cadastral records;
• find out whether alterations and extensions have been registered;
• agree the payment procedure and prepare the documents for the bank;
• determine the tax treatment of the transaction and calculate the additional costs;
• check the conditions for returning the deposit;
• find out in advance the requirements for the power of attorney and the translation of documents if the buyer will not be present in person;
• check the requirements for the property separately if the purchase is linked to obtaining a residence permit.

If you are planning to buy an apartment, house or villa in Montenegro, contact FinessKA Real Estate. We will help you find a property that matches your budget and goals, arrange viewings and go through the main stages of the purchase, from choosing a property to registering ownership.