No matter your reason, you have decided to purchase a flat, house, holiday home, or fancy rental building in Montenegro. Therefore, you should know that the Montenegrin property market offers many opportunities. Besides, a very convenient fact is that foreigners can easily buy real estate as an individual. Furthermore, foreigners have the same rights as locals when purchasing the property unless it is cultural heritage, forest, agricultural land, etc.
There are several steps if you opt to buy land in Montenegro as a foreigner. We present to you some of them.
No specific legal restrictions for a foreign person
The first convenience is that there are no legal restrictions for foreigners buying land in Montenegro except for those regulated by the Law on Ownership Rights. They include a few limitations, such as the one that disables foreigners from acquiring agricultural land bigger than 5000 sqm. However, when purchasing that kind of agricultural property, a foreign person can buy it by forming a company. Furthermore, as Montenegro signed the Agreement on Stabilization and Association, EU nationals have been granted a national treatment when purchasing real estate on its territory.
Finding the property
Having trustworthy sales consultants is essential if you don’t have experience purchasing a property in Montenegro. They should do several things for you: check if the property deeds are correct, introduce you to local urbanization plans, check the property in the local cadaster, etc. In addition, you have to know that buying land is more complicated than purchasing an apartment, and that requires cautiousness. Once you have all the data about the town and neighborhood, your agent should check the validity of urbanization plans in that area and inform you when is the right time to buy the property.
Once you have thoroughly studied, for example, a list of flats for sale in Montenegro and picked a perfect property, you should make sure that all the documentation is clean. Therefore, you need excellent urban-technical conditions, an impeccable property deed, and maybe even a geometer if you opt for buying land. Moreover, it is time to hire a good lawyer to double-check the documentation. You need a professional to provide you with official legal information. It is good to ask an architect for an opinion about the property you have bought. They can advise you, for example, whether that land is suitable for your desired building or not. The architect will need an analysis from the geometer and the urban-technical specs to do that.
Deposit and reservation agreement
Suppose you and your real estate agent agree on the vendor’s purchase price. The next step is to place a deposit with the vendor, their lawyer, or agents in order to take the property off the market. Furthermore, both parties should sign a reservation agreement, which must be done in a notary’s office.
In addition, you have to pay a 3% purchase tax upon buying. This percentage is based on the property’s value, which is determined by the Inland Revenue office.
When you sign the contract and verify it with the notary, the notary will send the land registry one copy of the agreement. Re-registration of ownership can last from two to three months. After that, the buyer and seller receive the cadastre’s decision to transfer the property ownership. If the transfer is approved, the cadaster must give the buyer a certificate of new ownership within seven days.
There are costs related to the process of registration: surveying fee (€0.70 – €1.50/sqm), filing the registration request (€35 – €70), and obtaining the property deed – €12.
We have presented you with several basic steps if you decide to buy a property in Montenegro as a foreigner. But, in addition, we have to inform you that the use of the property is not allowed before registering it in the real estate cadastre. Besides, the deadline for the handover is two months after submitting the Final Engineering Supervision Report.