How to buy property in Montenegro?
How to buy property in Montenegro?
It’s not hard to understand why investors have been focusing on Montenegro lately. After gaining its independence from Serbia in 2006, Montenegro experienced a tourism boom. The most visited region of the country is the Adriatic Coast. Budva, Kotor, Tivat and Herceg Novi are among the most beautiful of these cities and towns. According to the latest report of the World Travel and Tourism Council (WTTC), Montenegro is one of the leading countries in the world in terms of real and long-term growth in the tourism industry. Montenegro has lots of beaches and beautiful Mediterranean-style coastal areas and is ideally situated between Eastern and Western Europe, making it a perfect destination for a holiday or a living.
Moreover, property prices are cheaper than other countries around, and the country’s expectation to be one of the European Union countries is a distinct advantage for both the country’s citizens and those who want to invest or live here. Although Montenegro is not yet part of the European Union, it uses the euro as its currency. Since the real estate in the country is not affected by the devaluation of the final currency, this is an important advantage for real estate investors.
Foreign nationals can buy and sell property in Montenegro under the same conditions of Montenegro citizens. Foreign citizens can also buy houses or apartments easily, even if they are not engaged with commercial activities. However, a company which wants to buy land in Montenegro is required to be registered. Property can then be transferred to a person with a simple procedure.
To purchase a property in Montenegro, two stages are required: – “Justus titulus” (obtaining legal right of ownership) and “modus aquirendi” (registration of the property with the Regional Property Authority). Once you have found the property you intend to buy, a purchase contract is prepared and signed by both parties or their authorized representatives. All signatures must be approved by a court of competent jurisdiction in Montenegro. Once the court confirms that legal ownership is yours, it sets the value of a department property within the Local Council Offices. The buyer then pays the property transfer tax of the accepted valuation. After this tax is paid, the purchase contract is confirmed with an official stamp, and after this stage the property can be registered in the Local Area Property Registration Regulation. The purchase is then completed by paying the remaining balance. Besides this tax, there are other costs such as transfer tax, registration and notary fees and value added tax. Regarding the payment, you may alternatively pay a deposit, wait for up to one month and then pay the remainder. This depends on the agreement you made with your property owner (s). If you buy property in Montenegro, you will have to pay an annual tax depending on the location and size of the property.
If you would like to know more about buying property in Montenegro, please feel free to contact us for more information and visit our website at https://www.homeinmontenegro.com/en to see available for sale properties.
