Taxes and costs of buying property in Montenegro

Use this guide to ask the right people for figures before you sign. Transfer tax, VAT, professional fees and recurring ownership costs are separate questions. A broad percentage or a quote copied from another property is not a transaction budget.

Identify the kind of sale

Ask who the legal seller is, what right is being transferred and whether the transaction is treated under real-estate transfer tax or VAT. A resale and a sale by a developer can have different treatment; the phrase “new build” alone does not decide the tax. Request written confirmation of whether VAT is chargeable and included in the quoted amount, and whether any land component changes the analysis under the 2026 VAT amendments.

For transfers subject to transfer tax, the current progressive scale is 3% up to a €150,000 taxable base, €4,500 plus 5% of the excess up to €500,000, and €22,000 plus 6% of the excess above €500,000. The competent authority determines the applicable base under the law. Read the purchase tax article for the calculation and current official law links.

Ask how the tax base is determined

Do not substitute the advertisement, a private appraisal or a negotiated price for the official tax basis. Gather the draft contract, property description and any available valuation documents, then ask the relevant local authority or tax professional what value and filing apply to the exact transfer. Keep the written assessment and payment evidence with the contract.

The Government’s consolidated real-estate transfer-tax law was published by the Tax Administration in June 2026. Check its current version and the Official Gazette amendments before relying on an older guide or calculator.

Request a complete professional-fee estimate

Ask the notary and your independent lawyer for itemised current estimates. Identify which fees cover drafting or review, notarial services, interpretation, translations, filings and any mortgage or security registration. Confirm which party pays each charge and whether the quote includes taxes or third-party costs. Agency commission is contractual: read the written agency terms and confirm when it becomes due rather than assuming one universal rate.

If you are arranging finance, request the lender’s valuation and fee schedule, and ask your bank about transfer and currency-conversion costs. Keep these separate from taxes so you can compare offers on the same basis.

Budget for ownership after closing

Annual immovable-property tax is separate from transfer tax. The Government says the annual tax applies to land, buildings and individual units; the municipality’s current rules and the assessed value determine the bill. Ask the municipality which record, rate and payment dates apply to your property, using the Government’s immovable-property tax guidance as a starting point. Check utilities, building-management charges, insurance, maintenance and any planned repairs with the relevant provider or manager.

If you plan to rent the property, obtain separate advice about rental registration, income tax and local tourist requirements. If you plan to seek residence, the purchase is not a permit: review the property-residence article and current statutory conditions before relying on that plan.

Keep a dated budget file

For each estimate, write down the amount, currency, date, source, payer and assumption. Mark whether it is an official assessment, a provider quote or a provisional estimate. Update the sheet when the contract, tax decision or fee schedule changes. The buying-process guide shows where to request these figures; the Kotor catalogue is a starting point for property viewings, not a source for tax or legal conclusions.