Buying Property in Montenegro with Installments: The Best 2025 Offers and Legal Considerations

Installment plans for real estate in Montenegro are becoming one of the most attractive and flexible investment and homeownership options on the Adriatic. Unlike traditional mortgages, which require strict proof of solvency from the bank, installment plans are offered directly by the developer or seller. This mechanism significantly simplifies and expedites the transaction, making it particularly popular among foreign buyers looking to bypass complex banking bureaucracy. Installment plans are an effective way to lock in a price in euros during the construction phase and pay for the property gradually.

The current market situation in 2025 demonstrates that installment plans are particularly accessible in the new-build and premium complexes segment. Developers are actively using this tool to raise capital in the early stages of projects, which is beneficial for both them and investors. This allows buyers to begin receiving income from the asset's appreciation before the full payment is made.

Our GoMonte agency has exclusive agreements with leading developers and offers a wide range of apartments with installment plans in the most liquid areas. Don't miss your chance to secure a great price today with flexible payment terms. Browse our catalog of installment offers and take the first step toward owning a seaside property!

Montenegro Real Estate Installment Catalog from GoMonte Real Estate

ID S7098 Property with installment plans in Budva

3% down payment, 12 months

More details: gomonte.me/properties/s7098

ID S7289 Premium apartment with installment plans in Tivat, new building, 1 bedroom

Installment plan: 40% upon signing the contract, balance due until completion of construction.

More details: gomonte.me/properties/s7289

ID S7391 Real estate for sale in Tivat with installment plan, Kavač district, one bedroom

50% down payment

More details: gomonte.me/properties/s7391

Book an apartment viewing: +382 67 322 888 Viber/WhatsApp/Telegram

1. Legal Framework and Terminology of Installment Plans

Purchasing real estate with installment plans in Montenegro has a clear legal structure that differs significantly from traditional financing methods. Understanding these fundamentals is critical to the security of your investment.

1.1. Installment Plan (From the Developer/Seller): Difference from a Loan

Installment plans in Montenegro are a direct agreement between the buyer and the seller (developer).

Difference from a bank loan (mortgage): The main difference is that with an installment plan, the bank is not involved. The buyer does not need to gather a huge package of documents or prove income and credit history. An installment plan typically has no interest (or minimal interest), while a mortgage always includes an interest rate. An installment plan typically lasts from 1 to 5 years, while a mortgage can extend for 20–30 years.

1.2. Legal Registration of the Transaction: Preliminary Agreement and Encumbrance

The legal registration process for an installment plan maximally protects the interests of both parties:

• Preliminary Agreement: The transaction begins with the signing of a preliminary agreement (Predugovor), which sets out the price, payment schedule and terms, and the completion date.
• Registration of Encumbrance: After making the down payment (usually 30-50%), the buyer receives legal protection through the registration of an encumbrance (Zabilježba) in the Land Registry (List nepokretnosti). This encumbrance, or notation of right of claim, is registered in the buyer's name and ensures that the seller cannot sell or transfer the property to a third party until the terms of the contract are fulfilled. Full ownership transfers to the buyer only after the final payment is made.

Our company provides legal support for the transaction. Request a consultation with our specialists: +382 67 322 888 Viber/WhatsApp/Telegram

1.3. Risks for the Buyer and Seller When Arranging an Installment Plan

Despite its popularity, installment plans carry certain risks that must be specified in the contract:

• Risks for the Buyer: The main risk is associated with the developer's failure to meet the deadline for delivery. The preliminary contract must clearly outline penalties for delays.
• Risks for the seller: The risk of the buyer failing to pay the agreed-upon installments. In this case, the contract typically stipulates that the seller may terminate the transaction by retaining a portion of the amount already paid (usually up to 10-20% of the total price) as a penalty, and the encumbrance in the cadastral register is cancelled.

2. Installment Plan Types and Terms in Montenegro

Installment plans are a flexible financial instrument available in Montenegro that can be adapted to different stages of construction. Understanding installment plan terms is crucial to maximizing your investment benefits.

2.1. Installment Plans from the Developer (Primary Market)

The most favorable installment plan terms in Montenegro are traditionally offered in the primary market, directly from the developer.

Terms at the foundation stage (most favorable): Purchasing a property with installments at the early stage of construction (the foundation stage) provides the investor with the greatest benefit. At this stage, developers offer the longest payment terms (up to 2-3 years) and the lowest price per square meter, guaranteeing significant capital gains by the time the property is completed.

• 50/50 or 30/70 Payment Plans: Developers use standard payment plans that define the payment schedule:
• 30/70 Payment Plan: The buyer makes a 30% down payment upon signing the preliminary contract, and pays the remaining 70% in equal installments until construction is completed.
• 50/50 Payment Plan: 50% payment upon signing, 50% upon completion of construction or commissioning.

Price Lock in Euros: One of the key advantages is the ability to lock in the price in euros upon signing the preliminary contract. This protects the buyer from inflation risks and rising construction costs during the installment period.

3. Properties with Installment Plans: Locations and Projects

The availability of installment plans for real estate in Montenegro directly depends on developer activity and the region's liquidity. Installment plans are most often offered in rapidly developing areas with high investment potential.

3.1. Key Regions: Where Installment Plans Are Most Often Offered

• Budva Riviera: This region leads in the number of offers. Developers in Budva and Becici are actively offering installment plans for new residential and apartment complexes, as demand here is consistently high both from investors and for personal use.
• Luštica Bay: A flagship premium development, installment plans are used as a tool to attract early investors to large-scale projects such as residential neighborhoods or golf residences.
• Tivat (surrounding area): Due to the rapid pace of construction around Porto Montenegro, properties with flexible payment terms can also be found here.

3.2. New Developments: List of Residential Complexes with Flexible Payment Terms

In 2025, we highlight a number of new developments offering attractive terms:

• Complexes in Becici: Many modern residential towers and complexes in this area offer "30% down, balance until completion" plans (1-2 years).
• Lustica Bay: Special low-interest installment plans tied to construction stages are often available here, offering the best deal for long-term investors.

3.3. Examples of Luxury Properties Available with Installment Plans

Installment plans are not limited to standard apartments. This financial instrument is also available for the luxury segment:

• Luxury Apartments: Many premium apartments in complexes with hotel services, and sometimes even individual villas, can be purchased using a customized payment plan. This allows the investor to lock in the price of an exclusive property right away.
• Penthouses: In several new high-rise projects in Budva and Tivat, penthouses are also available with installment plans, a unique offer for high-budget buyers.

View luxury Montenegro real estate with installment plans in our catalog: gomonte.me/apartments

Properties are marked with the word "Installment Plan" in the first photo.

3.4. Residence Permit Conditions for Purchasing Real Estate with Installment Plans

To obtain a residence permit in Montenegro through the purchase of real estate, a key legal condition must be met:

Transfer of Ownership: A residence permit can only be issued after the full ownership transfer has been made to the buyer. This occurs after the final installment payment has been made and the final document, the Real Estate List (List nepokretnosti), has been received. During the installment period, while the property is not yet registered in the buyer's name, it is impossible to obtain a residence permit on this basis. During this period, we recommend applying for a residence permit based on opening a company.

4. Taxes and Transfer of Ownership with an Installment Plan

The procedure for purchasing real estate with an installment plan in Montenegro has its own tax and legal peculiarities regarding the deadlines for paying fees and registering ownership in the state Cadastre.

4.1. When is the buyer obligated to pay the transfer tax?

Tax payment deadline: The buyer is obligated to pay a one-time transfer tax (Porez na promet nepokretnosti) of 3% only after the transaction is fully completed, namely, after full payment of the property price. The tax is paid before the final transfer of ownership in the buyer's name is registered in the Cadastre. Therefore, an installment plan allows the buyer to defer payment of this tax until the final payment is made.

4.2. Value Added Tax (VAT)

Purchase from a developer: When purchasing real estate in installments on the primary market from a developer who is a VAT payer (PDV), the buyer is completely exempt from paying the 3% property transfer tax. Value Added Tax (VAT) is already included in the total price of the property, which is a significant financial benefit for the buyer.

4.3. Registration of Ownership in the Cadastre

Ownership transfer during installment payments occurs in stages:

• Registration of Encumbrance: After the down payment is made, an encumbrance (Zabilježba) is registered in the Cadastre (List nepokretnosti). This legal notation confirms that the property is bound to a specific buyer and protects it from sale to third parties.
• Transfer of Ownership: Full registration of ownership in the buyer's name occurs only after the final payment, all taxes (if applicable), and the signing of the final purchase and sale agreement. Only after this is the object fully considered your property.

5. Financial Benefits and Legal Risks of Installment Plans

Using installment plans when purchasing real estate in Montenegro is a powerful financial tool, but it requires understanding and mitigating the associated legal risks.

5.1. Investor Benefit: Price Lock and Inflation Protection

Installment plans offer investors two key financial advantages:

• Price Lock: The biggest benefit is locking in the price in euros for the property at the time of signing the preliminary contract. This allows the investor to purchase the property at the current price, even if construction takes 2-3 years, protecting the investor from the constant rise in the price per square meter on the market.
• Inflation Protection: The investor receives an asset that appreciates in value, while paying for it in installments. Thus, installment plans act as an effective inflation protection mechanism, allowing for more flexible use of capital.

5.2. Legal Risks: What Happens in the Event of Late Payment

Despite its flexibility, installment plans impose strict obligations, and any violation may result in termination of the contract:

• Late Payment: The preliminary sales contract always includes a penalty clause. If payment is late for the agreed period (usually 30-60 days), the seller has the right to initiate termination proceedings.
• Forfeit: If the contract is terminated due to the buyer's fault, the seller may retain a portion of the amount already paid (usually 10-20% of the total property price) as a penalty, returning the remaining funds to the buyer.

5.3. Recommendations for Legal Support of the Transaction

For maximum protection of your interests in installment transactions:

• Full Legal Due Diligence: Before signing the preliminary contract, it is necessary to conduct legal support for the installment transaction, including an audit of the developer and the land title documents.
• Clearly outline penalties: The contract must clearly outline penalties not only for the buyer but also for the seller (e.g., for failure to meet construction deadlines).
• Registration of encumbrances: Ensure that after the down payment, the encumbrance (Zabilježba) is promptly registered in your name in the Cadastre (List nepokretnosti). This is your primary legal guarantee.

Installment plans in Montenegro are an ideal financial instrument for foreign buyers looking to quickly lock in the price of a liquid property without the need for a complex bank mortgage. A summary of the advantages for foreign buyers: you get the opportunity to quickly purchase on the primary market, lock in the price in euros (protection against inflation), and a flexible payment schedule, which is especially beneficial when investing in the early stages of construction. Installment plans lower the barrier to entry, making Montenegrin real estate as accessible as possible.

Don't miss the opportunity to purchase liquid real estate in Montenegro with installments on the most favorable terms while the foundation stone offers are still available. Get personalized property selection with installment plans and legal advice on completing the transaction from GoMonte experts. We will ensure complete legal clarity and financial security for your purchase.

Ask our consultants questions or schedule an apartment viewing: +382 67 322 888 Viber/WhatsApp/Telegram