Real Estate Transactions in Montenegro: What You Need to Know When Buying a Property

National parks with rare endemic species and unspoiled nature offering hiking opportunities, clean and well-equipped beaches, and sailing opportunities, as well as the country's healthy social climate—a combination of conditions, attitudes, relationships, and values ​​that shape the atmosphere in society and influence the overall well-being of citizens—continue to attract new investors from around the world to invest on the Adriatic coast.

According to the latest report from the Central Bank of Montenegro (CBCG) for 2025, the real estate market continues to be the most attractive for foreign investors. In the first five months of 2025, approximately 86% of all foreign equity investment in the country was directed to this sector, underscoring its importance to the economy.

According to preliminary data from the CBCG, the total volume of foreign direct investment for the period amounted to EUR 354.33 million. This is only a 3% decrease compared to the same period last year. These figures indicate that despite a slight decline in overall investment volume, interest in the Montenegrin real estate market remains high, making it an attractive investment destination.

In this article, we will discuss the key aspects of real estate transactions in Montenegro in 2025, how legal services can help you avoid risks and ensure a successful transaction, and where to find legal services.

Contents:

1. What you need to buy real estate in Montenegro
2. The cost per square meter of housing in Montenegro in 2025
3. How to protect yourself when concluding a transaction. Legal advice
4. Property taxes in Montenegro when purchasing a property
5. How to obtain a Montenegrin residence permit when purchasing real estate
6. Why you should contact a lawyer when concluding a purchase agreement
7. Legal services for real estate transactions. Support for sellers and buyers

1. What you need to know when buying real estate in Montenegro

Before deciding to move to a new country and buy a home, consider the following:

Before buying real estate in Montenegro, it's important to familiarize yourself with the country's legal system. Foreigners are allowed to purchase real estate, but certain conditions and restrictions apply. It's recommended to work with an experienced lawyer who can help you understand local laws and prepare all the necessary documents.

Determine the purpose of your property: long-term rental or seasonal rental, vacation rental, or permanent residence. This will not only help you narrow your search but also understand the required square footage, develop a strategic home acquisition plan, and find a competent lawyer to handle your needs.

Location is one of the most important factors. If you plan to rent out your apartment during the summer tourist season, it's advantageous to consider coastal towns such as Petrovac, Sutomore, Budva, and the surrounding area. Consider the infrastructure, accessibility to transportation, and proximity to the sea, landmarks, and nature reserves. If you're looking for a permanent residence, small suburban towns might be a better option, as they offer similarly developed infrastructure but lower prices. Browse our catalog of properties on our website: gomonte.me

Don't forget to factor in all financial expenses. This includes not only the property price itself, but also additional costs such as taxes, notary fees, and title registration, as well as possible repairs and improvements. If you're considering a quiet country life in a cottage with a garden or in the mountains, then you should consider purchasing a car and the cost of gasoline, as well as vehicle taxes, and plan a budget for annual driver's license renewals along with residence permit renewals. A vehicle will help you be mobile and make your life easier. For example, hospitals and large supermarkets with home and garden supplies aren't available in every small town.

Before purchasing, be sure to check all property documents. Ensure the seller is the legal owner and that the property is free of encumbrances or debts. Our real estate lawyers can assist you with this.

Contact us for a consultation: +382 67 322 888 (Viber, WhatsApp, Telegram) Email: gomonte3000@gmail.com

Property transfer taxes and annual taxes are discussed in more detail below.

If you plan to rent out your property, research the rental market in your chosen region. Learn about seasonality, prices, and tenant requirements. You may need the help of a management company to effectively manage your property. We also handle rentals and can assist you with any questions related to this.

Last but not least, it's best to first familiarize yourself with the traditions and culture, learning the language and mentality of the locals. If you plan to send your children to local schools or kindergartens, or engage in other activities, knowing the language will help you adapt more quickly and establish new social connections.

2. Housing Prices in Montenegro in 2025

Monstat (the Statistical Office of Montenegro) has published data on new-build apartment prices in 2025. The average price per square meter of a new-build apartment in Montenegro in the first quarter of 2025 was €2,158, with €2,328 in the coastal region, €2,066 in Podgorica, and €1,050 in the central region. In the northern region, the average price of a new-build apartment is lower than in other regions, at €1,209.

A more detailed analysis of real estate market statistics can be found on the website: monstat.org

View a catalog of properties for sale on the secondary or primary market with prices on our website: gomonte.me

3. How to protect yourself when concluding a transaction. Legal advice

A review of the Montenegrin real estate market in 2025 shows that there are still properties with unresolved legalization issues (illegal extensions), unrecorded encumbrances, or old litigation. These pitfalls pose key risks for foreign investors unfamiliar with local legislation. Therefore, it is important to engage professionals and lawyers whose primary task is not simply to prepare the paperwork, but to ensure the complete legal integrity of the transaction by thoroughly reviewing each document to ensure your investment is fully protected and secure.

Gomonte lawyers recommend adhering to the following rules to minimize risks:

1. Check passport information and ensure that the person you are concluding the transaction with is who they claim to be.

• Ensure that the other party has the legal right to enter into the transaction. For example, the seller is the sole owner, and the company representative has the appropriate power of attorney.
• Check the subject of the transaction for encumbrances and request a Cadastre extract.
• If necessary, verify the counterparty's financial solvency to ensure they can fulfill their obligations.
• All agreements must be recorded in writing. Never rely on verbal promises.
• The contract must contain as detailed a description of the subject of the transaction as possible, as well as the rights and obligations of each party, terms, payment procedures, and liability for breach of terms.
• Be sure to include in the contract a procedure for resolving potential conflicts (e.g., through negotiations, mediation, or court).

2. For large transactions, especially real estate, use secure methods of transferring funds. Prefer non-cash payments, as they leave a paper trail that is easy to verify.

3. Consult a lawyer before concluding the transaction. A lawyer's presence is essential at the signing stage; they will review all documents, ensure the legality of the procedure, and protect your interests.

Get a statement from GoMonte lawyers: +382 67 322 888 (Viber, WhatsApp, Telegram) Email: gomonte3000@gmail.com

4. Property Taxes in Montenegro When Purchasing Property

According to the law of the Government of Montenegro (Vlada Crna Gora), property taxes in Montenegro in 2025 must be paid at a proportional rate of 0.25% to 1.00% of the market value of the property. Government website: gov.me

5. How to Obtain a Residence Permit in Montenegro by Purchasing Property

Obtaining a residence permit in Montenegro by purchasing property grants foreign citizens the right to live in the country for the entire validity of the document, namely, one year, but no less than 183 days per year, subject to subsequent renewal and permanent residence after five years. The main requirement is that the property must be registered in your name in the Cadastre, and you must have a certificate of ownership.

Residence permit application process:

Step 1: The transaction must be properly executed. After registering your ownership with the Cadastre, you will receive a certificate of non-residence. Step 2: You must collect the following documents:

• International passport.
• Certificate of non-residence confirming your ownership of the property.
• Criminal record certificate from your country of citizenship.
• Proof of sufficient funds in your account.
• Medical insurance valid in Montenegro.

Step 3: Submitting your application

For more information on the cost of obtaining a residence permit, visit our website: gomonte.me

6. Why should you consult a lawyer when concluding a residential purchase agreement?

A property purchase or sale without legal support does not guarantee your safety and security in controversial matters.

You may encounter the following problems:

• Hidden encumbrances: Liens, mortgages, or litigation that the seller fails to disclose.
• Illegal construction: Part of the property may be built without permits, which may result in fines or demolition requirements.
• Incorrect contract: Clauses that do not protect your interests, unclear deadlines for transfer of rights and payments.
• Fraud: Incorrectly executed documents can deprive you of your property rights.

Why is it important to consult a lawyer:

1. Before you sign the contract, a lawyer will conduct a thorough review of all documents: they will check for any encumbrances in the Cadastre, whether the building is legal, and whether the seller has full ownership. This property inspection by a lawyer is a key step that eliminates any unpleasant surprises.
2. They will also draft or amend the property purchase agreement to ensure it best protects your interests. The document will clearly outline the rights and obligations of the parties, payment terms, deadlines, and liability for breach of obligations.
3. Accompanying you at the notary office, overseeing the entire process and answering any questions that arise. This ensures that all actions comply with the law.

A specialist familiar with local regulations and Montenegrin law, whether in Budva, Kotor, Podgorica, or Bar, will guide you through the entire process—from property inspection to obtaining the title deed.

7. Legal Services for Real Estate Transactions. Support for Sellers and Buyers

Our company offers professional legal services to help both sellers and buyers navigate every stage of the real estate transaction with maximum benefit and minimal risk.

Services for Property Sellers:

1. Document Preparation

Sellers need to collect and prepare a number of documents, including title deeds, cadastral passports, and technical specifications of the property. Our team of lawyers will help you correctly prepare all the necessary paperwork to avoid delays and misunderstandings.

2. Property Valuation and Tax Consulting

A proper valuation of your property is the key to a successful sale. We will also provide detailed information on the taxes that must be paid.

3. Transaction Support

We will provide full legal support: from drafting a preliminary agreement to registering the property in the name of the new owner. Our team will represent your interests at every stage, ensuring the protection of your rights.

Services for Property Buyers:

1. Property Legal Status Verification

Before purchasing, it's important to verify the property's legal status. We conduct a detailed document review to ensure there are no encumbrances, debts, or other risks.

2. Transaction Terms Consultations

Our experts will help you understand all the terms, including the rights and obligations of the parties. We will explain the nuances of the purchase agreement so you can make informed decisions.

3. Negotiation Support

We will represent your interests in negotiations with the seller, ensuring the most favorable purchase terms. Our goal is to achieve the best possible terms for you and minimize risks.

4. Title Registration

After the transaction is completed, we will help you register your title with government authorities. This is an important step that guarantees your legal ownership of the purchased property.

Contact us for a consultation: +382 67 322 888 (Viber, WhatsApp, Telegram) Email: gomonte3000@gmail.com