Buying Property in Montenegro |
Since a reciprocal arrangement exists between
the UK and Montenegro there are no restrictions in buying and
selling
property (except for land which requires a company to be registered
in Montenegro).
What is the process for buying real estate in Montenegro?
Deposit -
Once the price has been agreed a deposit of typically 10% is
paid to secure the property. Please note:
- If buyer fails to provide the balance of the funds by agreed
date stated in the pre-contract, the deposit is lost.
- If the seller fails to complete the sale by the date stated
in the pre-contract, the deposit + a 10% penalty
is paid to the buyer
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Verify Property
Titles and Land Registry - The buyers’ lawyers will carry
out all required steps to confirm ownership of the property.
Change in Ownership - Once all outstanding amounts are paid, the
change in ownership id registered in court
What
fees are paid during the purchase process?
- Legal fees – typically 1% of the property prices
- Stamp Duty – 2% of the property prices
What property taxes are liable?
- There is no capital gains tax in Montenegro
- Corporate Income Tax (CIT) is applied at 9% on the profits of
Montenegro resident companies and non-resident entities operating
through
a permanent establishment in Montenegro
- Rental income derived
by non resident entities in relation to real estate in Montenegro
is subject to withholding tax
at the standard rate of 15%, subject to the provisions
of any relevant double taxation treaties
- An annual property tax
of between 0.08% and 0.8% is applied on the book value (of the
previous year) of real estate located
in Montenegro. The tax rate on buildings is typically
0.2%
View our range of property for sale in Montenegro.
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