October 14, 2019 - Thinking of buying a property in Montenegro and wondering what the costs are?
So what are the costs of buying a property in Montenegro, in addition to that headline asking price? A question we put to local specialists, RE/MAX Montenegro.
We all know that when buying a property, apart from its price, we have to pay additional costs. Here we give you an overview of the related costs:
Notary fees*
Sales & Purchase agreement is drafted by the notary and the fees depend on the price of the property that’s being purchased:
- for properties between €20.000 and €40.000, notary fees are €170 + VAT
- for properties between €40.000 and €60.000 notary fees are €250 + VAT
- for properties between €60.000 and €80.000 notary fees are €300 + VAT
- for properties between €80.000 and €120.000 notary fees are €350 + VAT
- for properties over €120.000, for every additional €15.000 the fee is increased by €10, but it must not reach the amount over €5000
*information on fees taken from the official web page of Notaries chamber
Notary fees are usually covered by the buyer, however, they can be split between the buyer and seller if they reach such an agreement. When signing the contract, the buyer should present a valid ID document (ID card or passport) and the seller should present the ownership document and a valid ID.
Two-bedroom apartment in Bar - €68,000
One-bedroom apartment in Kotor - €79,538
Administrative tax (registration for transfer of ownership) is €16 and is usually paid to the notary who will make the official payment and registration for you.
Property tax is 3% of the official value of the property which is determined by the official evaluator and it can sometimes be slightly different from the purchase price. If you’re buying the property from the investor, you don’t have to pay the property tax (but the investor has to be officially registered tax payer).
One-bedroom apartment in Podgorica - €49,500 (exempt from property tax)
Studio in Budva - €39,600 (exempt from property tax)
If you are financing your purchase through a housing loan, keep in mind that you will probably have to pay for the property insurance, in some cases a life insurance as well, bill of exchange (cca €2), access to the Credit registry of the Central Bank of Montenegro (€3-3.50). A detailed and precise overview of costs related to the housing loan will be provided by your bank.
If you are transferring money from one bank to another when paying for the property keep in mind that you will have to cover the costs for the bank transaction.
When buying a property that needs renovation, a rough calculation of the renovation works is €150 - €300/m2.
Studio in Tivat - €80,121 (exempt from property tax)
Detailed information on sale, purchase or rent of real estate is available with RE/MAX Montenegro agents who will help you throughout the entire sales and purchase process.
