Foreign nationals can freely purchase property in Montenegro with the same rights as local citizens. The process is straightforward but requires careful attention to legal requirements and documentation.
Step 1: Obtain a Fiscal Number (PIB) The first step involves obtaining a fiscal number (PIB) from the tax administration. This unique identifier is required for all property transactions and can be obtained with a valid passport. The process takes 1-2 days and costs approximately €5.
Step 2: Engage Professional Legal Assistance While not legally required, professional legal assistance is highly recommended to navigate the complexities of property law and ensure proper due diligence. Legal fees typically range from €800-1,500 for standard transactions.
Step 3: Property Due Diligence Property searches should include verification of ownership, checking for liens or encumbrances, and confirming building permits and compliance with local regulations. Your lawyer will conduct thorough title searches and verify all documentation.
Step 4: Purchase Agreement and Notarization The purchase agreement must be notarized and registered with the local cadastre office. Notary fees are approximately 1% of the property value. The agreement should include all terms, conditions, and payment schedules.
Step 5: Property Registration and Taxes Property taxes and registration fees typically amount to 2-3% of the purchase price. The registration process takes 30-60 days. Once completed, you receive official ownership documents.
Financing Options Local banks offer mortgages to foreign buyers with rates ranging from 3.5-6% annually. Required documentation includes proof of income, bank statements, and property valuation. Down payments typically start at 20-30%.
Ongoing Obligations Property owners must pay annual property tax (0.1-1% of assessed value) and utility connection fees. Consider property management services for rental properties or vacation homes.