How to Buy a Property in Montenegro as a Foreigner

Montenegro is a small Balkan nation with a big heart. Located on the Adriatic coast, it offers a mix of sandy beaches, towering mountains, and historic towns. Known for its deep blue sea, natural beauty, and diverse landscapes. The cities like Budva, Kotor, Bar, and Tivat preserved their cultural inheritance and old town centers very well. It's a peaceful European country that has visa-free travel for all over the world citizens.

The country will be soon a member of the European Union. Therefore it will be a Schengen visa rules will be applicable. This increases the interest of foreign property buyers outside the non-EU property buyers.

The country has a population of 620 thousand people.

Historical heritage gives the Montenegro kitchen a different flavor because of its Albanian and Ottoman ties. Montenegro is a well-known gastronomic hub for seafood and vegetables.

There are also many music events in Montenegro. Cities like Budva and Kotor have festivals all year. Some festivals play modern music like at the Sea Dance Festival in Budva. Others, like the Kotor International Klapa Festival, play more traditional songs. These music events bring in people from Montenegro and from other countries. Budva nightlife is famous whole Europe.

People in Montenegro are known for being friendly. Visitors often talk about how warm and welcoming everyone is. This is true whether you're buying something in Budva, having coffee in Tivat, or visiting a small village. This friendliness, along with the country's beauty and culture, makes Montenegro a great place for tourists and people looking to buy property.

Real Estate Market in Montenegro

The visa-free travel policy of the country attracts many visitors from all over the world. It is a complicated and time-consuming process to get a Schengen visa to visit a European Union member country. Montenegro is the first destination to visit Europe for those who can not get a visa. The Adriatic Sea is an alluring center for central and east European tourists who can access the country by car for affordable holidays. The yacht owners prefer to tie their boats at the Montenegro harbors as it has one of the cheapest taxes and maintenance fees in the Mediterranean Sea.

The country is developing its infrastructure of transport, airports, harbors, and hotel investments. At the marvelous bay of Kotor, there are giant real estate projects next to Tivat Airport; Porto Montenegro, and Porto Novi. They are ultra-luxury properties with great bay and mountain views together. High-profile villas and apartments have their own harbor, open-air shopping amenities, and gourmet restaurants.

• Booming Tourism

Tourism in the country is growing every year with new hotels constantly being built on the coast. Clean sea like the Adriatic, visa-free. Along with tourism, foreign property buyers are coming to the country in increasing numbers year by year.

• Tax Advantage & Access to Europe

The central characteristic of the Montenegro tax system is its low tax rates. Personal Income Tax Rate: Under the Montenegrin Personal Income Tax Law, the individual income tax rates are progressive – ranging from 9% to 15%, regardless of the type of income.

The fact that it will become a member of the European Union in a few years and that real estate prices are considerably cheaper than in other EU countries creates great investment potential. For these reasons, non-Eu citizens use the country as a bridge to open companies easily and invest in companies here for easy access to Europe.

• Mild Climate and Natural Beauty

The beauty of the climate, the sun, the mountains and forests with magnificent views, and the clear blue sea make it a yacht and tourism destination.

Popular Property Destinations in Montenegro

• Budva

The city is often dubbed the "Miami of Montenegro" due to its vibrant nightlife and stunning beaches. Properties here range from modern seafront apartments to traditional homes in the old town. The city offers a mix of historical landmarks, like the Budva Citadel, and modern amenities such as upscale restaurants and clubs. Its coastal location provides a beach lifestyle.

• Kotor

Nestled in one of the world's most beautiful bays, Kotor is a blend of history and scenic beauty. The old town, a UNESCO World Heritage site, is a maze of medieval architecture, offering properties with historical significance. The city is surrounded by fortifications and offers a tranquil lifestyle, punctuated by cultural events, festivals, and a vibrant local market.

• Tivat

The city is the epitome of luxury living in Montenegro. With the Porto Montenegro marina as its centerpiece, properties here are upscale and modern. The town offers a mix of luxury apartments, villas, and townhouses. The lifestyle is cosmopolitan, with high-end shops, restaurants, and yachting events dominating the scene.

• Bar

It is a unique blend of the ancient and the modern. While the old town of Stari Bar offers historical properties and ruins, the newer parts of the city have modern apartments and houses. The town is surrounded by olive groves, giving it a serene and green ambiance. The local lifestyle is laid-back, with local markets, traditional eateries, and beautiful beaches.

• Herceg Novi

Situated at the entrance to the Bay of Kotor, Herceg Novi is known for its fortresses and rich history. Properties here offer stunning bay views. The town is adorned with botanical gardens, historic squares, and a seafront promenade. The lifestyle is relaxed, with a mix of cultural events and beach activities.

• Petrovac

A tranquil coastal town, perfect for those seeking peace and quiet. Properties are predominantly sea-facing, offering breathtaking views. The town is known for its sandy beaches, old Venetian fortress, and the small islands of Katič and Sveta Neđelja. The lifestyle here is slow-paced, ideal for relaxation and nature lovers.

How to Buy Property in Montenegro

In the realm of international real estate, the essence of a successful transaction often lies in the expertise and integrity of your chosen agency. TEKCE possesses a global presence in 5 countries with 20 offices. We proceed with your property purchasing with our company lawyers and local expert agents.

At the heart of every property transaction with TEKCE is our commitment to due diligence. The expression "Clean Property", which is a common usage in Montenegro, is actually mostly valid for second-hand real estate, and this term refers to some of the complications that real estate can create for the buyer in the title deed. There might be problems with the legal status of many buildings in Montenegro. In legal status, sometimes all the houses in a block may be declared as a single real estate or as a company. Or, the commonality of electricity, internet and water lines, and the mortgage status are among the qualities that prevent real estate from being evaluated as "clean". As the registry documents are all in the Montenegrin language, it is crucial to work with our local legal team. They check deep into the history and ownership details of every property, ensuring that what you see is precisely what you get.

Once you've set your sights on a property, the process of making it yours begins with the reservation deposit. This step, more than just a formality, is a testament to your commitment to the purchase. It's a gesture that sets the wheels in motion, with TEKCE guiding you at every turn. We help you to get a tax identification number or facilitate the opening of a bank account in Montenegro. Our sales agreement will be the transaction document at the notary. The notary informs the land registry and it might take 2-4 months time.

Please read our step-by-step property purchase and costs pages.

Legal Aspects of Property Ownership and Registration

The ownership status in Montenegro is divided into two categories: Leasehold, and freehold. There are properties few in number that are leasehold when the owner holds the rights of the property but not the land it's built on. And the majority of properties are freehold in Montenegro. It is the highest level of ownership when both the land and the property are owned by the deed holder.

Foreigners can buy real estate in Montenegro by following the state-determined legal procedures. They can either get full ownership of the property or share a part of it via co-ownership or joint ownership. There are a couple of restrictions on where foreigners can purchase real estate. Most of these regard preservation areas such as natural reserves, lands in public use, agricultural lands or forests over 5000 sqm, cultural monuments, land-border areas, islands, or any land prohibited by the government to protect the country's interests and security. Other than mentioned above, foreigners are free to buy real estate in Montenegro, including apartments, houses, and commercial properties.

The title deed, or “List nepokretnosti” in Montenegrin, is an authenticated document that states and safeguards the ownership. The certificate of ownership contains identity information of the owners, their share as a percentage, and more details such as the land parcel’s size, additional structures on the plot, and any encumbrances over the property.

The ownership transfer process of a property is conducted in the notary office in Montenegro, with the supervision of an authorized notary and sworn translator. Then, the title deed issued by the name of the new owner will be granted and recorded by the “Uprava za katastar i državnu imovinu” (Administration of Cadastre and State Property).

At this point, it is essential to cooperate with an experienced real estate company to smoothen the legal transactions. The expert team of TEKCE will follow every step of the process from A to Z, with attention to detail. In this way, the team of professionals will assist all transactions according to the law by making no room for failure.

Property Financing & Mortgage in Montenegro

In Montenegro, both locals and foreigners have the opportunity to apply for property financing. While the options might be more extensive for locals, foreigners are by no means excluded from obtaining mortgages, though the terms might be slightly different.

A typical requirement for property financing is a down payment, which can vary but often falls between 20% to 50% of the property's total value. The exact percentage can be influenced by factors such as the bank's policies and the financial standing of the applicant.

Interest rates in Montenegro are competitive and are often influenced by the rates set by the European Central Bank. These rates can either be fixed or variable, depending on the specific loan agreement. As for the duration of the mortgage, it can span anywhere from 10 to 30 years, with the exact term being dependent on factors like the bank's policies and the age and financial health of the applicant.

When applying for a mortgage, banks will typically require various documents. These can include proof of income, employment status, and a record of credit history. For foreigners, there might be an additional need to provide paperwork that showcases their financial standing in their home country.

There are few off-plan properties that give installment options by the property developers. If you can not afford to pay the whole sales amount, you may consider these reputable construction company project launches.