21 November 2018 - During this year, real estate worth about 130 million EUR will be sold in Budva, which is the highest amount in the last five years.
The fact that the real estate market has been revived is confirmed that this year, according to the rebalance, the municipality's cash register sum will increase by three million EUR for the collection of the real estate tax. If it is assumed that this figure is 80% of the total tax collected, the actual collection amounts to about 3,8 million EUR.
A fifth of the remaining tax collected goes to the state treasury. Although initially it was planned that the charge would amount to 2,5 million EUR, the revision led to the increase of this figure by half a million. Budva has retained its leadership position on the coast, when it comes to real estate business, but also construction, judging by the construction sites that “sprout” day by day, according to the local newspapers “Vijesti”.
The revival of the real estate market is certainly influenced by buyers who in recent years often come from Turkey. During 2018, Turkish real estate buyers have become owners of more than a hundred real estates - apartments, commercial buildings, and land. There are almost no residential buildings nor luxury apartment complexes in Budva, where Turkish citizens have not been registered as tenants.
Companies established in Montenegro by Turkish citizens are increasingly appearing as investors in the construction business, as evidenced by the interest of the Turkish businessmen to build a hotel on a plot in front of the Adriatic Fair.
In the period from 2014 to 2017, according to the Ministry of Finance, the Municipality of Budva calculated a total of 9,043,237 EUR in the name of the real estate tax.
According to data, the highest turnover was in 2014, when the real estate tax amounted to 3,566,549 EUR. During the same year, 2,253 real estate sales contracts were concluded. The turnover was somewhat lower in 2015 when the tax was calculated at 2,552,135 EUR, while 2,342 contracts were concluded. A decline in real estate transactions is visible in 2016 when only 1,070,081 EUR were charged for taxes, but 2,399 contracts were concluded. The recovery in real estate transactions is evident in 2017 when 2,221 contracts were concluded and 1,854,472 EUR were collected in the name of the real estate tax.
This data is not precise, since there are contracts from previous years, and also in the calculated amounts there are taxpayers who are exempt from payment.
The collected tax amounts exceed the amounts calculated, keeping in mind that many debtors settled debts from previous years in this period, and so in the period from 2014 to 2017, the Municipality of Budva collected as much as 12 million EUR in the name of the real estate tax.
Read more about Turkish influence on the Budva's real estate market here.
