THE PURCHASING PROCESS

Upon the buyer’s decision, the Sales and Purchase contract is certified by a local notary. Contracts of Sale and Purchase are prepared in the Montenegrin language, translated as required. Signing of the final Contract of Sale and Purchase takes place in the presence of the seller, the buyer and, where necessary, a court appointed interpreter. Lawyers for both parties may also be present.
 

In keeping with Montenegrin law, a property owner may be a naturalized citizen or a corporation, regardless of the buyer’s nationality or the country in which their company is incorporated, respectively.
 

When the buyer is not available to sign the final Contract of Sale and Purchase in person, they may appoint a representative or trustee to sign on their behalf before the notary. In which case, the buyer must provide a notarized Power of Attorney authorizing a proxy to act as their signatory.

TAKING POSSESSION

Buyers transfer funds to the seller according the Contract of Sale and Purchase. Alternatively, the buyer may transfer funds to an account held by a notary, who, in turn, acts as guarantor for the transaction. The buyer’s status as an owner will be registered  upon full payment of the purchase price.

After transferring funds to the seller’s account, or to the notary (guarantor), buyers are provided with a Statement of Consent for Registration (‘Clausula intabulandi’), which serves as the seller’s consent for the registration of ownership and transfer of property rights into the buyer’s name. The buyer shall be recorded as the owner of the apartment with the Land Registry office.

Buyers receive full ownership rights, which imply the status of sole owner, as the title holder of the apartment registered in their name with the Real Estate Register

CONTRACT OF SALE AND PURCHASE FEES

Notary and related service fees to complete a Contract of Sale and Purchase depend on the value of the transaction and whether translation services are required. 

TAXES

If the property is being sold for the first time, the vendor is subject to VAT, buyers are not obliged to pay any sales tax. Nevertheless, according to Montenegrin law, return of VAT is not applicable to sale and purchase of real estate. 

If the property is not being sold for the first time, after the signature of the Contract of Purchase and Sale, the Buyer shall be obliged to pay single property sale tax in the amount of 3% of the total contract value.

Buyers are subject to Montenegro’s annual municipal property tax as calculated by local tax authorities and based on the market value of their dwelling. The tax cannot exceed 1% of the value od the property. Sale and Purchase.