For many Germans and other Europeans, Montenegro is more than a holiday destination: the Adriatic coast, the euro as currency, short flights from major European hubs and property prices well below Croatia or Italy. If you want to buy property in Montenegro, the process differs from what you know at home. This guide walks you through it step by step.
Can foreigners buy property in Montenegro?
Yes. Foreigners can buy apartments, houses and commercial premises with full ownership on the same terms as locals. Restrictions apply only to certain categories, such as agricultural land or border areas; in those cases purchases are often made through a Montenegrin company. We clarify this before any reservation.
Step 1: Define your goals and budget
- Own use, rental or both?
- New build or resale? This determines the taxes (see below).
- Total budget including costs – plan roughly 1–7% on top of the price.
Step 2: Choose the region and the property
Most popular with foreign buyers: the Budva Riviera (lively, strongest rental demand), the Bay of Kotor and Tivat (marina, upper segment) and Bar and Utjeha (calmer, lower prices per m², lived in all year). View shortlisted properties in person or via video tour.
Step 3: Legal due diligence
- the title deed (List nepokretnosti) from the cadastre: is the seller the registered owner, are there mortgages or encumbrances?
- for new builds: building permit and project status, later the occupancy permit;
- whether the building is legalised and fully registered;
- outstanding service charges and property tax.
We recommend an independent lawyer licensed in Montenegro.
Step 4: Tax ID and bank account
You need a Montenegrin identification number for foreigners, usually obtained by your lawyer under power of attorney. Cash payments above €10,000 are prohibited by law; the price is paid by bank transfer and the source of funds must be documented.
Step 5: Reservation and preliminary contract
The property is secured with a reservation fee or preliminary contract. Developers commonly offer instalments tied to construction progress. Make sure deadlines, payment schedule and exit terms are clearly written.
Step 6: Purchase contract at the notary
The contract is executed before a Montenegrin notary (javni bilježnik) as a notarial deed, in the local language with a court interpreter. If you cannot travel, a notarial power of attorney allows a representative to sign. Since April 2026 notary fees follow a fixed tariff: for a €200,000 apartment, about €558 plus VAT.
Step 7: Transfer tax and cadastre registration
For resale property the buyer pays transfer tax, filed within 15 days of signing, based on the market value assessed by the Tax Administration:
- up to €150,000: 3%
- €150,000–500,000: €4,500 + 5% on the excess
- above €500,000: €22,000 + 6% on the excess
Example: about €7,000 for a €200,000 apartment. On the first sale of a new build by a VAT-registered developer there is usually no transfer tax, as VAT is included in the price. Ownership is then registered in the cadastre.
Step 8: After the purchase
Register the property with the municipality for annual property tax within 30 days. If you rent it out, local registration and tourist tax apply. Adriom helps with furnishing, rental and property management. For taxation in your home country, please consult your tax adviser.
FAQ
Do I need a residence permit to buy? No. Residence matters are a separate procedure with its own rules.
Do I have to attend the notary in person? No – a notarial power of attorney is enough.
How long does it take? Often two to six weeks from reservation to the notary for verified resale properties; cadastre registration can take longer.
What are the total costs? Transfer tax (3–6% for resale) or none for new builds from a developer, plus notary, lawyer, translation and registration.
Can I pay in instalments? With many new-build projects, yes.
Your next step: talk to Adriom
Contact Adriom – we select three properties that fit your budget, organise viewings and support you until registration in the cadastre. Send an enquiry
