Before Purchasing Property in Montenegro: A Comprehensive Guide

Before Purchasing Property in Montenegro: A Comprehensive Guide

Are you considering obtaining a residence permit in Montenegro through property investment? The price of the house doesn’t affect your eligibility, whether it’s 30,000 euros or 3 million euros. However, it’s crucial to understand the process and considerations involved.

1. Residence Permit Details:

Purchasing a property grants you a residence permit, but not work rights or permanent residency. The permit must be renewed annually, a straightforward process.

2. Tax Considerations:

When buying from individuals, expect a 3% transfer tax. Purchasing from construction firms can avoid this tax, making it a cost-effective option.

3. Property Condition:

Properties from construction firms are typically unfurnished, except for basic installations like bathrooms and combi boilers. Additional fixtures, such as kitchens, need to be purchased separately.

4. Legal Checks:

Ensure the property has necessary permits verified by a notary or through the cadastre’s title deed document. Unauthorized constructions, common in coastal areas like Budva, may lead to higher utility costs and resale challenges.

5. Notary Procedures:

As a foreigner, a sworn Turkish translator is required during notary procedures, typically costing around 35€. Notary fees vary based on property size, starting from 300€.

6. Documentation:

Document all furnished items and utility payment agreements in the notary contract to avoid post-purchase disputes.

7. Financial Transactions:

Money transfers from Turkey involve bank commissions starting at €150 via Swift. Opening a Montenegrin bank account may require a residence permit. Alternatively, notary-guaranteed transfers ensure seamless transactions.

8. Cash Payments:

Inform the bank in advance for large cash withdrawals due to daily limits.

For a smooth property purchase in Montenegro, understanding these details is essential. Contact us at Violet Investment for expert advice tailored to your needs.

After Purchasing Property in Montenegro: Essential Steps

Successfully purchasing a property in Montenegro is just the beginning. To ensure a smooth transition of ownership and avoid legal issues, follow these key steps:

1. Paying the Transfer Tax:

If you are not the first owner of the property, you must visit the tax office within 15 days to pay the 3% transfer tax based on the price stated in the notary contract. After making the payment, you will receive confirmation within one to two months. If officials determine the property’s value to be lower than the declared amount, you will be refunded the excess tax paid.

2. Utility Transfers:

Once the tax process is completed, visit the cadastral office to obtain a document verifying that the house is in your name. Use this document to transfer utility services such as electricity and water to your name at their respective administration offices.

3. Annual Property Tax:

Property tax varies based on the size and location of your home. If your property is under 20m², you are exempt from annual tax. Generally, property taxes start at around €300 and can be paid in installments.

Get Expert Assistance:

Managing post-sale procedures can be complex, but our team at Violet Investment is here to assist you every step of the way. Contact us today for hassle-free property ownership in Montenegro!