This is another emerging real estate market in Europe, if much
smaller than that of Croatia. But being one of Croatia's neighbours, it's worth exploring for its potential. This
article should help you make your aware of some of the formalities and "peculiarities" of buying a property in
Having got themselves well on the road to recovery after the
Balkans war (with billions of dollars of foreign aid), Montenegro has become a property investors dream. Sharing a
border withCroatia meant that it has
been a logical step for property investors to move further along the Adriatic coast to find a new, untapped market.
Especially for those investors who missed out on getting in at the ground floor of the Croatian property
Villa in Budva,
Montenegro - luxury stone clad 3-level villa offers
elegant living, set in olive grove on the hills above Budva (Montenegro's leading holiday destination), with
great sea and mountain views. This is an example of prime coastal properties in Montenegro.
Property Price in
Montenegro seaside town houses are an attractive
Without an official price index, many properties are advertised
with a price that is determined by what the vendor wants rather than by a market value.
If you find a property in a particularly popular area (or in an
area like an Old Town where there can be no more development), it is most likely that market has been determined by
the price paid for a similar property.
If you are looking at a renovation project in an area away from
the main towns, then the price you pay will most likely be a result of your negotiation skills.
Get Local Legal
As is the case with Croatia, getting a local lawyer is
imperative. Many properties have multiple owners (i.e. owned by whole families) and all parties must be in
agreement of the sale. When the lawyer has this in writing, the title of the property can be yours. In other words,
make sure you obtain title clearance certificate before you proceed.
Paying for Your
Generally, all real estate purchases are cash purchases. The
vendor will require a cash deposit of at least 10% of the agreed price and you will need to pay the rest in 30
days. If you cannot complete the deal, you lose the deposit. If the vendor pulls out of the deal, they will have to
pay back the deposit plus the same again. Therefore, if you put down €5000 and the vendor defaults, you will
receive a total of €10000.
Real Estate Agent
In Montenegro, it is the buyer that pays the real estate agent
- Property tax: 2% (on the sale price, payable to the
government.) - Agent fees: 4% (approx.) - Legal fees: €750 (approx.)
Example Agreed sale price = €45000 + €900 tax + €1800 agent fees + €750 legal fees =
Originating its name from the Latin Catarum, Kotor town and its harbour
are one of the most recognized places in Montenegro -photo by
It is not necessary to carry the whole amount of money to
Montenegro as cash. Although you may wish to carry enough cash for the deposit. You can transfer the outstanding
amount electronically to a bank in Montenegro and withdraw the money when you are there.
Some banks don't have any method of direct transfer to
Montenegro, so you may have to use a currency exchange to do this for you. Currency exchange often will get better
exchange rates, too. Once you have the money with currency exchange, it can be transferred to a bank in Montenegro.
Some banks will charge you a percentage for a handling fee, while others will charge you a set handling fee. This
can be €15 or higher.
Once you have decided on your real estate property (or
properties), seek the proper legal advice and look forward to your new holiday home, capital growth or rental
This article is meant to be used as a guide only. Please check
with your local contact in Montenegro about current procedures and fees, before you endeavour on buying property in