Buying property in Montenegro is a legally clear and relatively simple procedure. With proper guidance, the process can be completed within just a few days. This article explains the step-by-step procedure of buying real estate in Montenegro, covering all legal requirements for both local and foreign buyers.
1. Property Selection and Document Check
The first step is to choose a property and verify its legal documentation.
This includes reviewing the Title Deed (List nepokretnosti) issued by the Real Estate Administration to confirm:
- ownership rights,
- possible encumbrances (mortgages, court disputes, annotations),
- restrictions on property disposal.
2. Agreement on Terms and Contract Preparation
Once the buyer and seller agree on conditions (price, deadlines, method of payment), a sale and purchase agreement is drafted by a public notary, who must be locally competent for the municipality where the property is located.
3. Presence of Contracting Parties
For the notarization of the contract:
- Both parties (or their legal representatives with a valid power of attorney) must be present.
- If a legal entity is involved, it must provide an extract from the CRPS (not older than 3 months), Articles of Association, and proof of representation.
- If one of the parties is a foreign citizen, a sworn court interpreter must be present.
4. Real Estate Transfer Tax (3%)
The buyer is obliged to pay a real estate transfer tax of 3% of the agreed or market value.
- The tax declaration is submitted to the Tax Administration.
- Payment must be made within 15 days of signing the contract.
5. Registration of Ownership Rights
Ownership is legally acquired only after registration in the Real Estate Cadastre.
The application for registration can be submitted by:
- the notary (immediately after certification), or
- the buyer personally at the Real Estate Administration.
Important: Payment of the purchase price alone does not establish ownership. In Montenegro, ownership rights are acquired only through cadastre registration.
6. Costs and Fees
- Notary fees depend on the property value and are set by the official Notary Tariff.
- Geodetic services (boundary checks, land surveying) are charged separately by licensed surveyors.
7. Buying Land – Additional Considerations
When purchasing land, it is recommended to:
- obtain an Urban Planning Certificate (PUP, DUP, GUP) to verify the status and purpose of the plot (construction, agricultural, forest land, etc.),
- check boundaries and surface area on-site with a licensed surveyor.
Note for foreign citizens: Foreigners may freely buy apartments and houses in Montenegro. However, ownership of agricultural and forest land is restricted and usually requires purchase through a Montenegrin legal entity.
Conclusion
The procedure for buying property in Montenegro is transparent and straightforward when all legal steps are followed. From title deed verification, through notary certification and tax payment, to cadastre registration, each stage is regulated by law.
If you are planning to buy property in Montenegro, our agency Kolašin Property offers complete support – from document verification and contract preparation to final registration of ownership.
Contact us today to complete your property purchase in Montenegro safely and efficiently.
