Guide to Buying Real Estate in Montenegro
Step-by-step instructions with examples and case studies
Montenegro has become one of the most attractive destinations for foreign property buyers. A mild climate, the Adriatic coast, relatively affordable prices and the possibility of obtaining a residence permit on the basis of property ownership (from January 2026 — subject to a confirmed tax value of the property of at least €150,000 for citizens outside the EU/EEA/Switzerland) make the market compelling — but before acting, it is important to understand the procedure.
1
Defining goals and budget
- •Investment and rental — demand analysis in coastal areas (Budva, Kotor, Tivat, Bar)
- •Permanent residence — infrastructure: shops, schools, hospitals, transport
- •Country house for holidays — scenic views, proximity to the sea
- •Additional costs: purchase tax 3–6%, real estate agent, notary, translator fees
2
Search and working with an agent
- •Specialised websites, agencies, recommendations from acquaintances
- •Since August 2025 the Law on Intermediation in Real Estate Sales and Rentals has been in force (adopted 30 July 2025): mandatory licensing, an exam for agents, a register of intermediaries and liability insurance. Existing agencies were given one year to register — from August 2026 operating without registration is not allowed. Check the agency’s number in the register.
- •Check location, condition of utilities and legal status of the property
- •Ensure there are no encumbrances or utility debts
3
Legal due diligence
- •List nepokretnosti (property register extract) — owner details, encumbrances
- •Check via the cadastre: ekatastar.me or Goodroom service (app.goodroom.me)
- •For new builds — building permit and occupancy permit (Upotrebna dozvola)
- •Land plots: available to foreigners, but restrictions apply in protected zones
4
Preliminary agreement and deposit
- •Sporazum (preliminary agreement): price, timelines, deposit terms
- •Deposit — usually from €5,000 to 10% of the property value
- •Terms for refund or forfeiture if the deal falls through
5
Notarial deed
- •Signing the main contract (Ugovor o kupoprodaji) at a notary
- •Present: seller (or authorised representative), buyer, translator (if needed)
- •Notary cost: 0.1–0.5% of the transaction amount (usually €300–400 for a property worth €80,000)
6
Payment options
- •Bank transfer (SWIFT or SEPA) — the safest option
- •Notarial escrow — funds are released to the seller only after conditions are met
- •Cash — the anti-money-laundering law sets a limit on cash payments (around €10,000); handle real estate transactions by bank transfer or notary escrow
Useful resources
State cadastre
ekatastar.meDocument verification — Goodroom
app.goodroom.meRemember the additional costs
- • Purchase tax on secondary market property: 3–6% of the market value as assessed by the municipal tax authority (progressive: 3% up to €150,000, then 5% and 6%). The same assessment decision also serves as proof of value for the real estate residence permit
- • New builds — VAT is already included in the developer's price
- • Notary: 0.1–0.5% of the transaction amount
- • Translator: €50–100
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