Montenegro - Property Buyers Guide

Buying Property in Montenegro

Buying Montenegro property is a fairly fuss free process; there are no restrictions on foreigners buying property in Montenegro, but they can only buy land through a company.

There are a few very subtle differences between buying off plan and resale property in Montenegro, but both can be completed in less than 10 steps. Off plan property is typically paid for in 4 stages

Buying Resale Property in Montenegro

The difference between off plan property and resale is that you pay for resale property in just two stages; deposit to reserve and then the remainder in full. Finance is not very easy to obtain in Montenegro, so it is wise to sort out your financing beforehand. This is then transferred into a Montenegro bank ready for transfer to the vendor.

Buying a Resale Property in Montenegro - Step by Step

• Negotiate a price acceptable to you and the vendor
• Appoint a lawyer. The lawyer needn't be based in or operating from Montenegro, but they should be licensed
  in the country and able to act on your behalf.
• Place a deposit (between 1000 Euros and 10% of purchase price) to take the property off the market. A
  reservation agreement is signed by both parties and the deposit held by the vendor
• Open a local bank account
• Pay the balance of your deposit within 10 days. This is usually 10% of the agreed price minus the initial deposit
• Sign the contract in the local county court and immediately transfer the outstanding balance to the vendor from
  your Montenegro bank account. Your lawyer can sign the contract on your behalf if given power of attorney.
• Pay the 3% purchase tax. The value of the property is determined by the Inland Revenue office
• Submit the papers to the local land registry
• The property is then registered in your name

Buying Off Plan Property in Montenegro

As with everywhere, off plan property in Montenegro is paid for in stages, but in Montenegro the property tends to really be off plan. Off plan property around the world is bought at various stages of development, but in Montenegro it is usually bought before work has begun.

A typical example of staged payments on an off plan property in Montenegro is:
30% Pre-contract (less initial deposit)
30% Foundation level
30% Roof level
10% Snagging and hand over

According to reports there are currently a lot of developers in Montenegro holding substantial land banks. Now, whether these are sold, or developed by their current owners, either way there will be a fresh wave of off plan properties coming onto the market as the international recovery gathers pace in the coming year.

Buying Off Plan Property in Montenegro - Step by Step

Negotiate a price acceptable to you and the developer

• Appoint a lawyer. The lawyer needn't be based in or operating from Montenegro, but they should be licensed in
  the country and able to act on your behalf
• Pay a deposit, sometimes called a reservation fee (usually around 5000 Euros). Like with resale properties,
  a reservation agreement is signed by both parties, unlike a resale purchase the deposit is usually held in a
  Client Account
• Approve specifications, and sign pre-contracts unless advised otherwise by your lawyer. This agreement will
  tie you into a staged payment plan
• Sign the contract in the local county court and immediately transfer the outstanding balance to the developer's
  account. Your lawyer can sign the contract on your behalf if given power of attorney
• Submit papers to the local land registry
• The property is then registered in your name

Montenegro Mortgages Options

When considering the options for a mortgage on your Montenegro property there are a couple of choices to consider.

For more details on Mortgages in Montenegro visit our Mortgage page.