Authored by the expert who managed and guided the team behind the Montenegro Property Pack
Yes, the analysis of Budva's property market is included in our pack
Budva is one of Montenegro's most popular coastal towns for foreign property buyers, but the rules around what you can actually own are often misunderstood.
This guide explains who can buy, what documents you need, and how taxes and mortgages work for foreigners in Budva in January 2026.
We keep this article updated as regulations change, so you always get the current picture.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Budva.
Insights
- In Budva, foreign buyers can legally own apartments and houses outright, but agricultural and forest land remains restricted, which catches many buyers off guard when they find a villa with a large plot.
- Property transfer tax in Montenegro now runs on a progressive scale of 3% to 6% depending on price, meaning a 400,000 euro apartment in Budva costs around 20,000 euros more in tax than a 150,000 euro unit.
- Montenegrin banks like CKB and NLB do lend to foreigners, but they typically require regulated residence status, which means most buyers from outside Montenegro need to pay cash or secure financing abroad.
- The cadastral extract, called the "list nepokretnosti," is your single source of truth for ownership in Budva, and failing to check it before signing is the most expensive mistake foreigners make here.
- Budva's legalization law from 2025 means many older buildings still lack proper permits, which can block your ability to get a mortgage, resell, or even connect utilities.
- Rental income tax for foreign owners in Budva typically lands in the low-to-mid teens as a percentage, but short-term tourist rentals also require guest registration and compliance steps that long-term leases do not.
- Annual property tax in Budva runs roughly 0.25% to 1% of assessed value, with second homes and rental properties often taxed at the higher end of that range.
- Late 2025 saw proposals to raise the minimum property value for residence permits to 200,000 euros, though this was still under revision as of the first half of 2026, making it risky to buy purely for residency reasons without confirming current rules.
What can I legally buy and truly own as a foreigner in Budva?
What property types can foreigners legally buy in Budva right now?
In January 2026, foreign individuals can legally buy and fully own apartments, houses, villas, and townhouse-style homes in Budva, with apartments being the most common choice for overseas buyers.
The main limitation is that certain land categories, specifically agricultural land, forest land, and some protected zones, are restricted for foreign ownership under Montenegrin law.
For practical purposes, this means that when you buy an apartment in Budva, the land issue is handled through the building's title structure, but if you are buying a standalone house or villa, you need to verify that the plot is classified as ordinary building land rather than a restricted category.
Most foreign buyers in Budva focus on apartments in mid-rise buildings near the coast because these properties have simpler title histories and fewer land-related complications than hillside villas with large plots.
Finally, please note that our pack about the property market in Budva is specifically tailored to foreigners.
Can I own land in my own name in Budva right now?
Yes, foreigners can generally own urban building land in their own name in Budva, but Montenegro restricts foreign ownership of agricultural land, forest land, and certain protected land categories.
This means that if you are buying a house or villa in Budva, you must confirm that the land parcel is classified as building land and not one of the restricted categories, because the title registration office will not allow foreign ownership of prohibited land types.
For apartments, you typically do not face this issue directly since the land ownership is tied to the building's condominium structure, but it is still worth checking that the building itself sits on properly registered building land.
As of 2026, what other key foreign-ownership rules or limits should I know in Budva?
As of early 2026, one of the biggest issues affecting purchases in Budva is the prevalence of unauthorized construction and properties that are in the legalization process, which can complicate your ability to get financing, resell the property, or even connect utilities.
There is no foreign-ownership quota for apartments or condos in Budva, so you do not need to worry about buildings being "full" of foreign owners or needing to wait for a quota slot.
However, you will need to register your ownership with the Real Estate Administration (Uprava za nekretnine) and obtain a local tax identification number to complete the purchase and handle tax filings.
One notable regulatory uncertainty in 2026 is that Montenegro's government proposed changes to foreigner residence rules in late 2025, including a possible 200,000 euro minimum property value for residence permits, and some of these proposals were still under revision at the start of 2026, so you should verify current rules before relying on property ownership for immigration benefits.
What's the biggest ownership mistake foreigners make in Budva right now?
The single biggest mistake foreigners make in Budva is buying based on what the agent or seller tells them rather than verifying the actual cadastral record, which often shows a different owner, different unit size, or existing mortgages that were never disclosed.
If you skip the cadastral check and later discover the property has a lien or is in a legalization dispute, you could end up in a legal battle for years, lose your deposit, or be unable to resell the property at any reasonable price.
Other classic pitfalls in Budva include buying properties that lack proper construction permits, underestimating the complexity of tourist rental compliance, and failing to get a sworn translator for the notary appointment when you do not speak Montenegrin.
We have made this infographic to give you a quick and clear snapshot of the property market in Montenegro. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which visa or residency status changes what I can do in Budva?
Do I need a specific visa to buy property in Budva right now?
In January 2026, you do not need a special visa just to sign a purchase contract in Budva, and many foreigners complete property purchases while visiting on a standard tourist entry.
The most common administrative blocker for buyers without local residency is opening a Montenegrin bank account, which you will typically need for the payment trail and sometimes for utility or tax setup.
You should expect to need a local tax identification number during the buying process, as this is required for property transfer tax filings and future property tax assessments.
A typical document set for a foreign buyer in Budva includes your passport, proof of funds, the cadastral extract for the property, the notarized sale contract, and often a power of attorney if you cannot attend the notary signing in person.
Does buying property help me get residency and citizenship in Budva in 2026?
As of early 2026, property ownership may support a temporary residence application in Montenegro, but the rules were actively changing in late 2025, and you should verify current requirements with the Ministry of Interior or a qualified immigration lawyer before buying for residency purposes.
Montenegro does not have a formal "golden visa" program like some other countries, but property ownership has historically been one of the grounds that can support a temporary stay permit application.
There were proposals in late 2025 to raise the minimum property value for residence-based applications to 200,000 euros, though these were under revision, so the actual threshold in January 2026 may differ from what blogs and older guides say.
Can I legally rent out property on my visa in Budva right now?
Owning a property in Budva does not automatically mean you can rent it out compliantly, as you will need to register for tourist rental purposes if you plan to do short-term lets, and there are tax reporting obligations regardless of your visa status.
You do not need to live in Montenegro to rent out your Budva property, and many foreign owners manage their rentals remotely through local property managers who handle guest registration, cleaning, and reporting.
The most important things foreign landlords need to know in Budva are that short-term tourist rentals require guest registration with local authorities, rental income must be reported under Montenegro's personal income tax rules, and Budva municipality actively enforces property tax collection, including blocking properties for unpaid taxes.
We cover everything there is to know about buying and renting out in Budva here.
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How does the buying process actually work step-by-step in Budva?
What are the exact steps to buy property in Budva right now?
The standard sequence to buy property in Budva in January 2026 is: agree on price and terms, run cadastral registry checks, sign an optional deposit agreement, sign the main sale contract at a notary, transfer payment, file for property transfer tax, and then register your ownership with the Real Estate Administration.
You typically need to be physically present at the notary appointment, though many foreign buyers use a power of attorney to have a local representative sign on their behalf if they cannot attend in person.
The deal becomes legally binding in Budva when you sign the notarized sale contract at the notary office, which is why it is critical to complete your registry checks before this step rather than after.
From accepted offer to final ownership registration, a standard Budva transaction takes roughly four to eight weeks, though it can stretch longer if there are title issues, legalization questions, or delays at the registry office.
We have a document entirely dedicated to the whole buying process our pack about properties in Budva.
Is it mandatory to get a lawyer or a notary to buy a property in Budva right now?
A notary is effectively mandatory for property purchases in Budva because Montenegrin law requires the sale contract to be notarized, but hiring a lawyer is optional, though strongly recommended if you are buying a house with land, dealing with any permitting questions, or need bilingual contract review.
The key difference is that the notary's job in Budva is to authenticate the contract and verify identities, while a lawyer's job is to protect your interests, review contract terms, and conduct due diligence on the property's legal status before you sign.
One thing you should explicitly include in your lawyer's scope is checking the cadastral extract for liens and encumbrances and verifying that the property matches its official registration, because the notary will not do this for you.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Montenegro versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What checks should I run so I don't buy a problem property in Budva?
How do I verify title and ownership history in Budva right now?
The official registry you use to verify title and ownership history in Budva is the Real Estate Administration (Uprava za nekretnine), which maintains the cadastral records that determine legal ownership of all properties in Montenegro.
The key document you need to request is the cadastral extract, called the "list nepokretnosti" in Montenegrin, which shows the registered owner, the property's exact designation and size, and any mortgages or encumbrances.
Most buyers in Budva check ownership history going back around 10 to 20 years, which helps uncover past disputes, inheritance issues, or unusual transfer patterns that might signal problems.
A clear red flag that should stop or pause your purchase is finding unregistered mortgages, enforcement notes from unpaid debts, ongoing legal disputes on the title, or discovering that the seller is not actually the registered owner of the property.
You will find here the list of classic mistakes people make when buying a property in Budva.
How do I confirm there are no liens in Budva right now?
The standard way to confirm there are no liens or encumbrances on a property in Budva is to request a current cadastral extract from the Real Estate Administration, which lists any registered mortgages, enforcement notes, or other charges against the property.
One common type of lien that buyers should specifically ask about in Budva is unpaid municipal property taxes, since the municipality actively blocks properties for tax debts and recorded over 600 such blocks in recent years.
The best written proof of lien status in Budva is a recently dated cadastral extract, ideally pulled close to your signing date rather than weeks before, which shows the current encumbrance status as of that moment.
How do I check zoning and permitted use in Budva right now?
The authority you use to check zoning and permitted use for a property in Budva is the municipal Secretariat for Urbanism and Sustainable Development, which handles planning confirmations and zoning information for the municipality.
The key document that confirms zoning classification in Budva is the urban plan extract or planning certificate from the municipality, which shows whether the land is designated for residential, commercial, or other use.
One common pitfall that foreign buyers frequently miss in Budva is purchasing a property that was built or expanded without proper permits and is now stuck in the legalization process, which can block financing, resale, and even basic utility connections until resolved.
Buying real estate in Budva can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Can I get a mortgage as a foreigner in Budva, and on what terms?
Do banks lend to foreigners for homes in Budva in 2026?
As of early 2026, Montenegrin banks do lend to foreigners for home purchases in Budva, but they typically require you to have regulated residence status in Montenegro and provable income that fits their underwriting criteria.
Foreign borrowers in Budva most commonly see loan-to-value ratios in the range of 50% to 70%, which means you should expect to provide a substantial cash down payment even if you qualify for financing.
The single most common eligibility requirement that determines whether a foreigner qualifies for a mortgage in Budva is having regulated stay or residence in Montenegro, as banks like CKB explicitly state their housing loans are intended for residents and non-residents with employment and regulated stay.
You can also read our latest update about mortgage and interest rates in Montenegro.
Which banks are most foreigner-friendly in Budva in 2026?
As of early 2026, the three banks with the clearest foreigner-friendly signals for mortgages in Budva are CKB Bank, NLB Banka, and Hipotekarna Banka, all of which publish housing loan products with transparent terms and eligibility information.
What makes these banks more foreigner-friendly in Budva is that they explicitly publish pathways for non-residents with regulated stay, show transparent rate structures like EURIBOR-linked pricing, and have English-accessible documentation for key products.
These banks will generally lend to non-residents in Budva, but you typically need to have regulated residence or employment in Montenegro, which means pure tourists or buyers with no local ties may not qualify without first establishing legal stay status.
We actually have a specific document about how to get a mortgage as a foreigner in our pack covering real estate in Budva.
What mortgage rates are foreigners offered in Budva in 2026?
As of early 2026, foreign buyers in Budva can expect mortgage interest rates in the range of roughly 5.5% to 7.5% for EUR-denominated loans, with the exact rate depending on your income documentation, residence status, and the property itself.
Most mortgages in Montenegro are variable rate and linked to EURIBOR plus a margin, so your rate will move with European benchmark rates, though some banks offer fixed-rate periods for the first few years at a slightly higher starting rate.
We made this infographic to show you how property prices in Montenegro compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What will taxes, fees, and ongoing costs look like in Budva?
What are the total closing costs as a percent in Budva in 2026?
In Budva in 2026, a realistic estimate for total closing costs when buying as a foreign individual is roughly 8% to 12% of the purchase price for most standard transactions.
The realistic range stretches from about 6% to 8% in a best-case scenario with a lower-priced property and no agency fee, up to 12% to 15% if you are buying a more expensive property with a real estate agent commission included.
The specific fee categories that make up total closing costs in Budva include the property transfer tax, notary fees, interpreter fees if you do not speak Montenegrin, registration and administrative fees, and often a real estate agency commission.
The single biggest contributor to closing costs in Budva is usually the property transfer tax, which runs on a progressive scale of 3% on the first 150,000 euros, 5% on the portion from 150,000 to 200,000 euros, and 6% on anything above 200,000 euros.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Budva.
What annual property tax should I budget in Budva in 2026?
As of early 2026, foreign owners of residential property in Budva should budget for annual property tax in the range of roughly 0.25% to 1% of the property's assessed market value, which for a 200,000 euro apartment works out to around 500 to 2,000 euros per year (roughly the same in USD given near-parity exchange rates).
Annual property tax in Budva is assessed by the municipality based on property category and use, meaning second homes and rental properties are typically taxed at higher rates than primary residences, and the exact rate depends on how your property is classified in the municipal records.
How is rental income taxed for foreigners in Budva in 2026?
As of early 2026, foreign owners renting out property in Budva should expect an effective tax rate on rental income in the low-to-mid teens as a percentage, after allowed deductions and standard cost treatment under Montenegro's personal income tax rules.
The basic requirement for foreign owners is that rental income must be reported to Montenegrin tax authorities, and if you are doing short-term tourist rentals, you will also need to comply with guest registration and tourism-related reporting requirements in addition to the income tax filing.
What insurance is common and how much in Budva in 2026?
As of early 2026, foreign owners of apartments in Budva typically pay around 120 to 400 euros per year (roughly 130 to 440 USD) for a basic home and contents insurance policy, while house and villa owners can expect to pay 300 to 1,200 euros or more depending on size and coverage.
The most common type of property insurance coverage that owners carry in Budva is a combined home and contents policy that covers fire, water damage, and theft, with many owners adding liability coverage if they plan to rent the property to guests.
The biggest factor that makes insurance premiums higher or lower for the same property type in Budva is whether the property is used for short-term tourist rentals, as rental properties typically require higher liability limits and may have higher risk premiums than owner-occupied homes.
Get the full checklist for your due diligence in Budva
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Budva, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Montenegro Real Estate Administration | Official government body responsible for cadastral records and property rights registration. | We used it to confirm what ownership means legally and how title registration works. We also anchored our title verification guidance to this authority. |
| eKatastar Portal | Public-facing portal tied to Montenegro's official cadastral records. | We used it to explain how buyers can access property records online. We also referenced it to show what the cadastral extract contains. |
| Montenegro Government Tax Page | Official government explanation of property transfer tax rules. | We used it to anchor the existence of transfer tax and its legal framework. We then verified specific rates through tax advisory sources. |
| KPMG Montenegro Tax Summary | Major global audit firm publishing accurate statutory summaries. | We used it to confirm the progressive transfer tax brackets of 3%, 5%, and 6%. We applied these rates to estimate closing costs at typical Budva prices. |
| Budva Municipal Property Tax Decision | Official municipal document describing local property tax categories and rates. | We used it to support annual property tax estimates specific to Budva. We also used it to explain why tax varies by property use and category. |
| Central Bank of Montenegro | Official central bank publishing measured interest rate statistics. | We used it to anchor mortgage rate expectations to real market data. We triangulated with bank product pages to form a realistic range for foreigners. |
| CKB Bank | Major retail bank in Montenegro publishing product eligibility information. | We used it to confirm banks do lend to non-residents with regulated stay. We identified what foreigner-friendly means in practice from their requirements. |
| NLB Banka | Major Montenegrin bank publishing loan structure mechanics. | We used it to support how mortgage rates are commonly set with EURIBOR linkage. We reinforced that headline rates move with market conditions. |
| Ministry of Interior | Official ministry responsible for residence and foreigner stay administration. | We used it to anchor the visa and residency section to the correct authority. We verified residence rules and recent regulatory proposals here. |
| PropisiNet Legalization Law | Legal aggregator publishing statutes with publication info and effective dates. | We used it to confirm unauthorized construction is a current buyer-relevant issue. We translated this into practical due diligence advice for Budva. |
| Budva Municipality Urbanism Portal | Municipality's own portal for planning and urbanism requests. | We used it to point to where zoning and planning confirmations are handled. We made the zoning section Budva-specific rather than generic. |
| Notary Chamber of Montenegro | Professional body for notaries who play a central role in property conveyancing. | We used it to anchor the concept that notarization is mandatory for property sales. We verified the notary's role versus a lawyer's role. |
| Multilaw Real Estate Guide | Cross-border legal network publishing technically accurate jurisdiction summaries. | We used it to support key legal mechanics including foreign ownership constraints. We treated it as a lawyer-grade triangulation source. |
| CMS Law Expert Guide | Major international law firm publishing conservative, current legal guides. | We used it to triangulate foreign ownership limitations and restricted land categories. We treated it as an independent legal cross-check. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Montenegro. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
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