Taxes in Montenegro when buying property
In Montenegro, the lowest taxes are considered, in comparison with the countries of Western Europe. Real estate tax in the secondary market is 3% of the cadastral value of the object.
If an object is purchased on the primary market, there are no taxes, which greatly simplifies the purchase procedure.
The annual tax for foreigners in Montenegro is called the "Property Ownership Tax" when buying on the primary or secondary market - 0.6% of the cadastral value per year.
Since Montenegro is a candidate for EU membership in 2025, the legislation is now changing in accordance with the requirements of the EU Commission. This also applies to taxes. An additional tax is being discussed for those property owners who cannot prove the legality of their income. When selling undeclared real estate, the seller will have to pay additional tax deductions, the amount of which is currently being discussed in the Government.
Photo by Polina Tankilevitch: Pexels