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
If you're a foreigner thinking about buying property in Budva, understanding the full cost picture is one of the smartest things you can do before signing anything.
This guide covers every tax, fee, and hidden expense you might face when purchasing residential real estate in Budva as of early 2026.
We constantly update this blog post to reflect the latest regulations and market conditions in Montenegro's most popular coastal resort town.
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.
Overall, how much extra should I budget on top of the purchase price in Budva in 2026?
How much are total buyer closing costs in Budva in 2026?
As of early 2026, total buyer closing costs in Budva typically range from 5% to 9% of the purchase price for resale properties, which translates to roughly €7,500 to €13,500 (or $8,000 to $14,400) on a €150,000 apartment.
If you keep expenses to the bare legal minimum in Budva, meaning no buyer agent fee and only mandatory notary and tax costs, you could theoretically get away with around 3.5% to 4.5% extra, or approximately €5,250 to €6,750 ($5,600 to $7,200) on that same €150,000 property.
However, if you account for all potential fees including a buyer-side agent commission, extensive legal due diligence, and translation services, your maximum budget in Budva should realistically be 10% to 12% of the price, which means €15,000 to €18,000 ($16,000 to $19,200) on a €150,000 purchase.
The main factors that determine whether you fall at the low or high end in Budva are the transfer tax bracket your property falls into (3% to 6% depending on price), whether you pay a buyer agent fee (typically 3% to 5% when applicable), and how much legal work your specific transaction requires.
What's the usual total % of fees and taxes over the purchase price in Budva?
For most foreign individual buyers in Budva, the usual total percentage of fees and taxes over the purchase price sits between 5% and 9% for resale properties.
This range covers the vast majority of standard property transactions in Budva, though new-build purchases where VAT is already included in the contract price can see extras as low as 2% to 6%.
Of that total percentage in Budva, government taxes (transfer tax or VAT) typically account for 3% to 6%, while professional service fees such as notary, legal, and optional agent costs make up the remaining 2% to 4%.
By the way, you will find much more detailed data in our property pack covering the real estate market in Budva.
What costs are always mandatory when buying in Budva in 2026?
As of early 2026, the mandatory costs when buying property in Budva include one major acquisition tax (either the progressive transfer tax ranging from 3% to 6% for resale properties or VAT treatment for new builds), notary fees which are regulated by a fixed tariff, and basic cadastre registration fees.
While technically optional, an independent lawyer to verify title, check for liens, and review permits is highly recommended in Budva, as is certified translation services if you don't read Montenegrin fluently, because coastal properties often have complex paperwork histories.
Don't lose money on your property in Budva
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What taxes do I pay when buying a property in Budva in 2026?
What is the property transfer tax rate in Budva in 2026?
As of early 2026, the property transfer tax rate in Budva follows Montenegro's national progressive brackets: 3% on property value up to €150,000, 4% on value from €150,001 to €500,000, 5% on value from €500,001 to €1,000,000, and 6% on value exceeding €1,000,000.
Foreign buyers in Budva do not pay any extra transfer taxes compared to Montenegrin citizens, as the law explicitly treats domestic and foreign persons equally for this tax.
Buyers may pay VAT instead of transfer tax in Budva when purchasing a new-build property directly from a developer in what's considered the "first transfer," and the VAT rate is 21%, though this is typically included in the advertised price.
Montenegro does not have a UK-style stamp duty as a separate tax, so the transfer tax (or VAT for new builds) is the main acquisition tax you'll budget for in Budva, along with notary and administrative fees.
Are there tax exemptions or reduced rates for first-time buyers in Budva?
Montenegro's transfer tax law does not provide a specific "first-time buyer" exemption, so foreign buyers in Budva should plan on paying the standard progressive tax brackets unless their lawyer can identify a specific exemption that applies to their situation.
Buying property through a company in Budva does not automatically reduce your acquisition taxes, and in fact it often increases complexity, compliance steps, and professional fees for non-professional individual buyers.
There is a significant tax difference between new-build and resale properties in Budva: resale purchases typically attract transfer tax (3% to 6%), while new-build "first transfer" purchases may fall under VAT treatment (21%), which is usually included in the developer's price.
Since no standard first-time buyer relief exists in Montenegro, foreign buyers in Budva should focus on confirming whether their purchase is subject to transfer tax or VAT, as this determines the actual tax cost more than any exemption would.
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.
Which professional fees will I pay as a buyer in Budva in 2026?
How much does a notary or conveyancing lawyer cost in Budva in 2026?
As of early 2026, notary fees in Budva are set by a regulated tariff and typically cost around €350 to €700 including VAT for most transactions, which equals approximately $375 to $750.
Notary fees in Montenegro are charged based on a fixed tariff table that increases with property value, adding €10 for every €15,000 above €120,000, with a maximum cap of €5,000 plus 21% VAT.
Translation and interpreter services for foreign buyers in Budva typically cost €20 to €30 per page for written documents and around €50 per hour for oral interpretation during signing, adding roughly €200 to €500 ($215 to $535) depending on your needs.
A tax advisor is not always necessary in Budva, but if you plan to rent the property or sell later with capital gains implications, a setup consultation typically costs €200 to €600 ($215 to $640).
We have a whole part dedicated to these topics in our our real estate pack about Budva.
What's the typical real estate agent fee in Budva in 2026?
As of early 2026, the typical real estate agent fee in Budva ranges from 3% to 5% of the property sale price, which on a €200,000 apartment would mean €6,000 to €10,000 ($6,400 to $10,700).
In Budva, who pays the agent fee is negotiable, though many listings are structured as seller-paid commissions, but it is not unusual for buyers to be asked to pay or share the fee, so you must clarify this early in any transaction.
The realistic low-to-high range for agent fees in Budva is 3% at the competitive end to 5% at the higher end, with some agents willing to negotiate, especially for properties that have been on the market for a while.
How much do legal checks cost (title, liens, permits) in Budva?
Legal checks including title search, liens verification, and permits review in Budva typically cost between €500 and €2,000 ($535 to $2,140), with more complex properties involving older buildings or questionable permits pushing toward the higher end.
Property valuation fees in Budva, usually required if you're financing through a bank, typically range from €150 to €400 ($160 to $430) depending on the appraiser and property type.
The most critical legal check you should never skip in Budva is verifying the cadastre registration and confirming there are no hidden liens or undisclosed mortgages, because coastal properties in this market sometimes have murky paperwork histories from past constructions or additions.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in Budva.
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 hidden or surprise costs should I watch for in Budva right now?
What are the most common unexpected fees buyers discover in Budva?
The most common unexpected fees foreign buyers discover in Budva include the higher "holiday home" annual property tax rate (0.60% vs 0.25% for primary residents), accumulating translation and certified copy costs, and building maintenance fees that can be substantial in complexes with pools or concierge services.
Yes, unpaid property taxes or utility debts can technically follow a property in Montenegro, which is exactly why buyers in Budva pay for legal checks to ensure debts don't block registration or create problems after closing.
Scams with fake listings or fake fees do occur in Budva's high-tourism market, and the best way to avoid them is to never send deposits without a lawyer or notary-backed paper trail and to always verify ownership through official cadastre records.
Fees that are usually not disclosed upfront by sellers or agents in Budva include buyer-side agent commission expectations, the cost of extra legal work if documents are missing, and ongoing building management charges that only become clear after purchase.
In our property pack covering the property buying process in Budva, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Budva?
If the property has a tenant in Budva, you may face extra costs of €300 to €1,000 ($320 to $1,070) or more for additional legal review of the lease agreement, tenant notification procedures, and potential handover coordination.
When you buy a tenanted property in Budva, you inherit the existing lease agreement and must honor its terms until it expires, which means you step into the landlord's legal obligations immediately.
Terminating an existing lease immediately after purchase in Budva is generally not possible unless the lease itself includes early termination provisions, so you should factor in the lease timeline before buying.
A sitting tenant in Budva typically affects the property's market value negatively for buyers seeking immediate personal use, but can actually strengthen your negotiating position if you're an investor planning to keep the rental income flowing.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Budva.
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 fees are negotiable, and who really pays what in Budva?
Which closing costs are negotiable in Budva right now?
The closing costs that are negotiable in Budva include the real estate agent fee (and who pays it), your lawyer's package fee, which translation provider you use, and some administrative handling charges from service providers.
Closing costs that are fixed by law and cannot be negotiated in Budva include the statutory transfer tax rates (3% to 6%), the notary tariff which is regulated by the Notary Chamber, and basic cadastre registration fees.
On negotiable fees in Budva, buyers can realistically achieve discounts of 10% to 25% on agent commissions and legal fees, especially for straightforward transactions or during slower market periods outside peak summer season.
Can I ask the seller to cover some closing costs in Budva?
Asking the seller to cover some closing costs in Budva is possible and happens regularly, especially when properties have been sitting on the market for a while or when demand softens outside peak tourist season.
Sellers in Budva are most commonly willing to cover the agent commission (if they haven't already) or to agree to a price reduction that economically offsets your closing costs, rather than paying fees directly on your behalf.
Market conditions where sellers in Budva are more likely to accept covering closing costs include off-season periods from October to April, properties with cosmetic issues or paperwork complications, and resale units competing with abundant new-build inventory.
Is price bargaining common in Budva in 2026?
As of early 2026, price bargaining is absolutely common in Budva, as it's a negotiation market where asking prices are typically starting points rather than final figures, especially for resale properties.
Buyers in Budva typically negotiate 5% to 15% below the asking price depending on the specific property, with well-priced units in prime locations seeing less room for negotiation and overpriced or stale listings offering more flexibility.
Don't sign a document you don't understand in Budva
Buying a property over there? We have reviewed all the documents you need to know. Stay out of trouble - grab our comprehensive guide.
What monthly, quarterly or annual costs will I pay as an owner in Budva?
What's the realistic monthly owner budget in Budva right now?
The realistic monthly owner budget for an apartment in Budva ranges from €150 to €400 ($160 to $430) depending on the property size and building amenities, with higher-end managed complexes with pools and security pushing toward the upper range.
The main recurring expense categories making up this monthly budget in Budva are building maintenance and HOA fees, utilities (electricity, water, internet), and a monthly allocation toward your annual property tax.
The realistic low-to-high range for monthly owner costs in Budva is €100 to €250 ($107 to $268) for a modest apartment in a simple building versus €300 to €500 ($320 to $535) for a larger unit in a luxury complex with amenities.
The monthly cost that tends to vary the most in Budva is utilities, because electricity for air conditioning in summer and heating in winter can swing significantly based on season and how often you occupy the property.
You can see how this budget affect your gross and rental yields in Budva here.
What is the annual property tax amount in Budva in 2026?
As of early 2026, the annual property tax in Budva is calculated as a percentage of the taxable property value, with rates set at 0.25% for primary residences and 0.60% for secondary or holiday homes.
The realistic low-to-high range for annual property taxes in Budva is roughly €375 to €500 ($400 to $535) for a €150,000 primary residence versus €900 to €1,200 ($965 to $1,285) for that same property if classified as a holiday home.
Property tax in Budva is calculated based on the assessed taxable value of your property as determined by municipal authorities, which may differ from your purchase price.
Primary residence owners who officially register their Budva property as their main home benefit from the lower 0.25% rate, while foreign buyers using their apartment as a holiday home will pay the higher 0.60% rate set by Budva Municipality.
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.
If I rent it out, what extra taxes and fees apply in Budva in 2026?
What tax rate applies to rental income in Budva in 2026?
As of early 2026, rental income in Budva is taxed at a flat rate of 15% on the taxable base, which applies equally to both long-term and short-term rentals.
Landlords in Budva can deduct expenses from their rental income taxes, with options including a 30% standard-cost deduction for regular rentals, or higher deductions of 50% to 70% for tourism-purpose leasing under Montenegro's personal income tax framework.
After applying the standard deductions available in Budva, the realistic effective tax rate for typical landlords ranges from roughly 4.5% to 10.5% of gross rental income, depending on which deduction method you use.
Foreign property owners in Budva pay the same 15% rental income tax rate as residents, with no additional foreigner surcharge on rental earnings.
Do I pay tax on short-term rentals in Budva in 2026?
As of early 2026, yes, short-term rental income in Budva is taxable under the same 15% rate that applies to all rental income, though you may qualify for the higher tourism-purpose standard-cost deductions of 50% to 70%.
Short-term rental income in Budva is taxed under the same framework as long-term rentals, but short-term tourism rentals involve additional local registration requirements, tourism fees, and compliance steps that add operational complexity beyond just the income tax.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Budva.
Get to know the market before buying a property in Budva
Better information leads to better decisions. Get all the data you need before investing a large amount of money. Download our guide.
If I sell later, what taxes and fees will I pay in Budva in 2026?
What's the total cost of selling as a % of price in Budva in 2026?
As of early 2026, the total cost of selling a property in Budva typically ranges from 4% to 8% of the sale price, depending on your agent commission, legal fees, and whether you owe capital gains tax.
The realistic low-to-high percentage range for total selling costs in Budva is 4% for sellers who avoid agent fees and have no taxable gain, up to 10% or more for those paying full commission plus capital gains tax on a profitable sale.
The specific cost categories that make up this total in Budva include real estate agent commission (typically 3% to 5%), notary and legal fees for the sale deed, potential capital gains tax (15% on the profit), and any early mortgage repayment penalties if applicable.
The single largest contributor to selling expenses in Budva is usually the real estate agent commission, unless you've made a substantial profit, in which case capital gains tax can become the dominant cost.
What capital gains tax applies when selling in Budva in 2026?
As of early 2026, capital gains tax in Budva is charged at a flat rate of 15% on the profit from selling your property, calculated as the difference between the sale price and your original acquisition price.
Exemptions to capital gains tax in Budva include selling a property that served as your only and main place of residence, as well as certain family transfers such as gifts to spouses or first-degree heirs.
Foreigners selling property in Budva do not pay any extra taxes or a different capital gains rate compared to Montenegrin citizens, as the tax is based on the transaction and property type rather than nationality.
The capital gain in Budva is calculated by subtracting your original purchase price from the sale price, though some adjustments for documented improvement costs may be allowed under Montenegro's tax rules.
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 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 Law on Real Estate Transfer Tax | It's the official legal text governing property transfer taxes nationwide. | We used it to confirm the exact progressive tax brackets (3% to 6%) and verify equal treatment for foreigners. We then built our closing cost estimates around these statutory rates. |
| Notary Chamber of Montenegro Tariff | It's the official fee schedule that all notaries must follow. | We extracted the exact fee table by transaction value and calculated realistic notary costs including VAT. We then used these figures to anchor our professional fee estimates. |
| Municipality of Budva Property Tax Decision | It's Budva's own local tax rulebook for annual property taxes. | We used it to pin down the exact rates for primary homes (0.25%) versus holiday homes (0.60%). We then built Budva-specific annual ownership cost examples for foreign buyers. |
| PwC Worldwide Tax Summaries - Montenegro | PwC is a top-tier global tax firm with regularly updated references. | We used it to confirm the 15% rate for capital gains and rental income plus allowable deductions. We then converted these rules into practical tax estimates for landlords and sellers. |
| Montenegro Government VAT Law | It's the official government-hosted legal text for VAT rules. | We used it to confirm when property transfers are VAT-exempt versus when VAT applies for new builds. We then translated this into guidance for buyers choosing between resale and new construction. |
| Montenegro Official Gazette - Advocate Tariff | It's the official publication platform for binding legal regulations. | We used it to confirm that lawyer fees can be tariff-based in Montenegro. We then treated legal fees as a range depending on complexity rather than a fixed percentage. |
| Montenegro Government ePayment Portal | It's an official government page describing cadastral and administrative fees. | We used it to confirm that cadastre services have regulated administrative fees. We then budgeted these as small fixed costs in our closing cost checklist. |
| KPMG Montenegro Tax Alerts | KPMG is a major audit firm that tracks legislative changes. | We used it to verify that Montenegro has had recent tax amendments affecting property buyers. We then prioritized primary legal texts while using KPMG as corroboration. |
| Global Property Guide - Montenegro | It's a respected international property market research source. | We used it for market trend data and price benchmarks in Budva. We then incorporated these figures into our negotiation and cost context sections. |
| Omnia Capital Montenegro Buying Guide | It's a detailed professional guide from experienced Montenegro transaction advisors. | We used it to cross-check our cost estimates against their reported figures. We then validated our ranges against their transaction experience. |
Get fresh and reliable information about the market in Budva
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
Related blog posts