Purchasing property in Montenegro is a straightforward process, regulated by law and typically completed within a few days. Below is a breakdown of the standard procedure:
1. Property Selection and Document Verification
Once you choose a property, the first step is to verify its legal status. This includes checking the Title Deed (List of Immovable Property) issued by the Real Estate Administration of Montenegro. The title must confirm:
- Clear ownership,
- No active liens, mortgages, or legal disputes,
- No restrictions on sale or use.
2. Agreement and Contract Preparation
After negotiating terms (price, payment conditions, deadlines), a Sale and Purchase Agreement is drafted and certified by a public notary.
The notary must be territorially competent (based on the property’s location) and ensures the contract is legally sound.
3. Presence of Contracting Parties
Both parties must be present at the notary’s office to sign the contract. If one or both parties are represented by proxies, a notarized Power of Attorney must be provided.
- If one party is a legal entity, they must provide an extract from the company registry (CRPS), a founding act or statute, and evidence of legal representation.
- If one party is a foreign citizen, an authorized court interpreter must be present during signing, in accordance with Montenegrin law.
4. Real Estate Transfer Tax
Buyers are obligated to pay 3% real estate transfer tax (based on the contract price or market value, whichever is higher).
The tax is filed with the Tax Administration, and must be paid within 15 days of contract certification.
5. Registration of Ownership
Ownership is legally acquired only after registration in the Cadastre of Real Estate.
The request for registration can be submitted:
- By the notary (automatically after certification), or
- Directly by the buyer at the local office of the Real Estate Administration.
Ownership rights become valid only after registration, regardless of full payment, as per the Montenegrin property law.
6. Costs and Fees
- Notary fees depend on the property value and are regulated by a national tariff.
- Geodetic services (e.g., land surveying, boundary marking) are charged separately by licensed surveyors.
- Buyers may also incur translation costs, especially if a court interpreter is required.
7. Buying Land – Additional Steps
When purchasing land, the buyer is advised to:
Obtain an Urban-Planning Certificate (Planning Extract) confirming the land’s designated use (residential, agricultural, forest, etc.) and building regulations, if any.
Verify physical boundaries on-site with the help of licensed geodetic firms,
