Authored by the expert who managed and guided the team behind the Montenegro Property Pack
Everything you need to know before buying real estate is included in our Montenegro Property Pack
Buying property in Montenegro as a foreigner comes with extra costs beyond the purchase price, including taxes, notary fees, and legal expenses that can catch first-time buyers off guard.
This guide breaks down every fee you will actually pay when purchasing residential real estate in Montenegro in 2026, from mandatory government taxes to optional but recommended professional services.
We constantly update this blog post to reflect the latest tax rates, fee schedules, and regulatory changes affecting foreign property buyers in Montenegro.
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 Montenegro.
Overall, how much extra should I budget on top of the purchase price in Montenegro in 2026?
How much are total buyer closing costs in Montenegro in 2026?
As of early 2026, total buyer closing costs in Montenegro typically range from 4% to 8% of the purchase price for resale properties (around €4,000 to €8,000 on a €100,000 home), though this can climb to 10% to 13% if you pay a buyer-side agent commission.
If you keep expenses to the bare legal minimum in Montenegro, you can get away with roughly 3.5% to 4.5% extra, which covers just the mandatory transfer tax, notary fees, and basic registration costs (approximately €3,500 to €4,500 on a €100,000 purchase).
On the higher end, you should realistically plan for up to 12% to 13% of the property price in Montenegro when you factor in a buyer agent fee, extensive legal due diligence, property valuation, and translation services (that could mean €12,000 to €13,000 extra on a €100,000 property).
The main factors that push your Montenegro closing costs higher include whether you hire a buyer-side agent (3% to 5% fee), the property price bracket affecting your progressive transfer tax rate, and how much legal due diligence you need, especially for older coastal properties with potential legalization issues.
What's the usual total % of fees and taxes over the purchase price in Montenegro?
For most standard residential purchases in Montenegro in 2026, the usual total percentage of fees and taxes over the purchase price falls between 5% and 8% for resale properties, or 2.5% to 5% on top of a new-build price where VAT is already included.
The realistic low-to-high percentage range that covers most Montenegro property transactions spans from about 4% (budget purchase, no agent, minimal legal work) to roughly 12% (higher-value property, full professional services, buyer agent).
Of that total, government taxes (transfer tax or VAT) typically account for roughly half to two-thirds of your extra costs in Montenegro, while professional service fees like notary, lawyer, and agent make up the remaining third to half.
By the way, you will find much more detailed data in our property pack covering the real estate market in Montenegro.
What costs are always mandatory when buying in Montenegro in 2026?
As of early 2026, the mandatory costs when buying property in Montenegro include the transaction tax (either progressive transfer tax for resales or 21% VAT for new-builds), notary fees for the sale contract, and cadastre registration fees to officially record your ownership.
Beyond those mandatory costs, optional but highly recommended expenses in Montenegro include hiring an independent lawyer for title and permit checks (especially important on the coast), certified translation services if you do not speak Montenegrin, and a property valuation if you are financing with a mortgage or want to verify the price is fair.
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What taxes do I pay when buying a property in Montenegro in 2026?
What is the property transfer tax rate in Montenegro in 2026?
As of early 2026, Montenegro uses a progressive Real Estate Transfer Tax for resale properties: 3% on the first €150,000 of value, then 5% on the portion between €150,000 and €500,000, and 6% on anything above €500,000.
There are no extra transfer taxes specifically for foreigners in Montenegro, as the tax is based on the transaction value rather than the buyer's nationality, though foreigners may face separate ownership restrictions on certain land types.
Buyers do pay 21% VAT on new-build properties purchased directly from a developer in Montenegro (the first sale), but this VAT is typically already included in the advertised price rather than added on top.
Montenegro does not have a traditional stamp duty like many common-law countries, so your main transaction taxes are either the progressive transfer tax (resale) or VAT (new-build), plus small administrative registration fees.
Are there tax exemptions or reduced rates for first-time buyers in Montenegro?
Montenegro does not offer broad first-time buyer tax exemptions like some European countries do; instead, any exemptions under the transfer tax law apply to narrow specific categories rather than simply being a first-time purchaser.
If you buy property through a company in Montenegro, the purchase itself is still subject to either transfer tax or VAT depending on the transaction type, but your ongoing rental income and capital gains will be taxed under the corporate income tax regime instead of personal income tax rules.
There is a significant tax difference between new-build and resale in Montenegro: new-builds from developers typically carry 21% VAT (usually included in the price), while resales are subject to the progressive transfer tax of 3% to 6% depending on value.
Since Montenegro lacks a general first-time buyer exemption, there is no specific documentation requirement for that purpose, though buyers seeking any narrower exemption under the transfer tax law would need to demonstrate eligibility through their lawyer and the notary.
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 Montenegro in 2026?
How much does a notary or conveyancing lawyer cost in Montenegro in 2026?
As of early 2026, notary fees in Montenegro are tariff-based and typically run around €350 plus 21% VAT (about €425 total, or approximately $465 USD) for a €100,000 property purchase, with costs scaling up for higher property values.
Notary fees in Montenegro are calculated using an official tariff that applies rates to the property value, so they function as a percentage-based system with step-ups at higher price bands and an overall cap.
Translation or interpreter services for foreign buyers in Montenegro typically cost between €80 and €250 (around $85 to $275 USD) per notary session, and you should budget more if you need bilingual contract packages or multiple signing appointments.
A tax advisor is not strictly necessary for a simple personal purchase in Montenegro, but if you plan to rent out the property or buy through a company, expect to pay €200 to €600 (about $220 to $650 USD) for a setup consultation and €300 to €1,200 per year for ongoing filing assistance.
We have a whole part dedicated to these topics in our our real estate pack about Montenegro.
What's the typical real estate agent fee in Montenegro in 2026?
As of early 2026, real estate agent fees in Montenegro typically range from 3% to 5% of the purchase price, which would mean €3,000 to €5,000 (approximately $3,300 to $5,500 USD) on a €100,000 property.
In Montenegro, both buyer-paid and seller-paid agent arrangements exist, so you should never assume the seller covers the commission unless your contract explicitly states you will not pay it.
The realistic low-to-high range for agent fees in Montenegro spans from around 3% (more common when the seller pays or for negotiated rates) to 5% or occasionally higher for dedicated buyer's agents sourcing off-market properties.
How much do legal checks cost (title, liens, permits) in Montenegro?
Legal checks including title search, liens verification, and permits review in Montenegro typically cost between €200 and €600 (around $220 to $650 USD) for basic registry checks, or €600 to €2,000+ (approximately $650 to $2,200+ USD) for comprehensive due diligence on properties with potential legalization issues.
A property valuation fee in Montenegro usually runs between €150 and €400 (about $165 to $440 USD) for a standard apartment or house, with higher fees for complex or high-value properties.
The most critical legal check that should never be skipped in Montenegro is verifying the property's legalization and permit status, especially for older coastal properties, because documentation problems can create costly delays or make the property difficult to resell.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in Montenegro.
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What hidden or surprise costs should I watch for in Montenegro right now?
What are the most common unexpected fees buyers discover in Montenegro?
The most common unexpected fees buyers discover in Montenegro include legalization and permit problems requiring extra lawyer or engineer time (especially on older coastal properties), unpaid building maintenance arrears inherited with apartments, and utility reconnection or account transfer fees that surface late in the process.
Yes, you could inherit unpaid property taxes or building charges when purchasing in Montenegro, which is why your lawyer or notary should confirm the seller is current on all municipal obligations and that the title is clean before you close.
While outright scams with fake listings are not extremely common in Montenegro, the most important protective habit is to never trust a listing as proof of ownership or legality, and always verify everything in the official cadastre and check documents before paying any significant deposit.
Fees that are usually not disclosed upfront in Montenegro include translation requirements that only become clear at the notary appointment, extra due diligence costs when properties have gray documentation, and buyer-side agent fees when you assumed the seller would pay.
In our property pack covering the property buying process in Montenegro, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Montenegro?
If the property has a tenant in Montenegro, you may face extra fees ranging from €200 to €1,000+ (approximately $220 to $1,100+ USD) covering legal review of the existing lease, tenant deposit reconciliation, notarized notices, and potentially a negotiated arrangement for the tenant to vacate.
When you purchase a tenanted property in Montenegro, you typically inherit the existing lease agreement and become the new landlord, which means you must honor the lease terms until the contract expires or can be legally terminated.
Terminating an existing lease immediately after purchase in Montenegro is generally not possible unless the lease includes specific early termination clauses or the tenant agrees to leave voluntarily, so you should factor this into your purchase timeline.
A sitting tenant in Montenegro usually affects the property's market value negatively and can give you negotiating leverage on price, though the discount depends on how long remains on the lease and how cooperative the tenant appears to be.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Montenegro.
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 Montenegro?
Which closing costs are negotiable in Montenegro right now?
In Montenegro, the closing costs that are typically negotiable include lawyer fee scope and pricing, real estate agent commission rates and who pays them, and translation service costs, while you may also negotiate some optional notary extras.
The closing costs that are fixed by law or regulation and cannot be negotiated in Montenegro include the statutory transfer tax rates (3%, 5%, 6% brackets), the core notary tariff basis set by the Notary Chamber, and government registration fees at the cadastre.
On negotiable fees in Montenegro, buyers can realistically achieve discounts of 10% to 30% on lawyer packages by comparing quotes, and sometimes 0.5% to 1% reduction on agent commission rates, especially in slower market periods or for higher-value transactions.
Can I ask the seller to cover some closing costs in Montenegro?
Yes, asking sellers to cover some closing costs in Montenegro is fairly common and often successful, especially when you have negotiating leverage such as making a quick cash purchase or when the property has been on the market for a while.
The specific closing costs sellers in Montenegro are most commonly willing to cover include their own agent fees (or a shared commission), and sometimes they will accept a price reduction that effectively offsets your transfer tax burden or post-inspection repair credits.
Sellers in Montenegro are more likely to accept covering closing costs when the market is slower, the property has sat unsold for months, or when documentation issues (like unclear permits) make the buyer's position stronger in negotiations.
Is price bargaining common in Montenegro in 2026?
As of early 2026, price bargaining is common in Montenegro but varies significantly by location, with more room for negotiation in Podgorica and Herceg Novi compared to prime coastal hotspots like Budva or Porto Montenegro where foreign demand keeps prices firmer.
In Montenegro's prime coastal areas like Budva, Kotor Bay, and Tivat near Porto Montenegro, buyers typically negotiate 0% to 7% below asking price for well-priced properties, while in Herceg Novi and Podgorica the more common range is 5% to 12% below asking (representing €5,000 to €12,000 off a €100,000 property, or approximately $5,500 to $13,000 USD).
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What monthly, quarterly or annual costs will I pay as an owner in Montenegro?
What's the realistic monthly owner budget in Montenegro right now?
A realistic monthly owner budget in Montenegro (excluding mortgage payments) typically falls between €150 and €400 (approximately $165 to $440 USD) for a standard apartment, covering utilities, building maintenance fees, and minor repairs.
The main recurring expense categories that make up this monthly budget in Montenegro include electricity, water, and internet (the largest chunk), building maintenance or HOA fees for apartments, and a reserve for periodic upkeep needs especially in coastal properties exposed to salt air and humidity.
The realistic low-to-high range for monthly owner costs in Montenegro spans from about €120 to €350 ($130 to $385 USD) for a typical apartment, up to €250 to €600+ ($275 to $660+ USD) for premium serviced developments, and €180 to €450 ($200 to $495 USD) for a standalone house without pool or garden complications.
The monthly cost that tends to vary the most in Montenegro is building maintenance or HOA fees, which can range from minimal in older unrenovated buildings to substantial amounts in new luxury developments with amenities like pools, gyms, and 24-hour security.
You can see how this budget affect your gross and rental yields in Montenegro here.
What is the annual property tax amount in Montenegro in 2026?
As of early 2026, annual property tax in Montenegro is set by municipalities and typically ranges from 0.25% to 1% of the assessed property value, which means a property assessed at €150,000 might pay roughly €375 to €1,500 per year (approximately $410 to $1,650 USD).
The realistic low-to-high range for annual property taxes in Montenegro depends heavily on your municipality and property classification, but most residential owners pay somewhere between €200 and €2,000 per year ($220 to $2,200 USD) based on property value and local rates.
Property tax in Montenegro is calculated based on the assessed value of the property (which may be lower than market value) multiplied by the municipal tax rate, with different municipalities applying rates within the legally permitted range.
Some exemptions or reductions to annual property tax may be available in Montenegro for certain categories such as agricultural land or specific uses, though these are narrow and fact-specific, so you should confirm eligibility with your local tax office or lawyer.
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 Montenegro in 2026?
What tax rate applies to rental income in Montenegro in 2026?
As of early 2026, rental income in Montenegro is typically taxed at 15% for non-residents earning Montenegro-sourced rent, with a standard expense deduction often cited at up to 30% available to reduce your taxable amount.
Yes, landlords in Montenegro can deduct expenses from rental income taxes, either through a standard deduction approach (commonly up to 30%) or by documenting actual expenses like repairs, management fees, and insurance, depending on your tax status and filing method.
The realistic effective tax rate after deductions for typical landlords in Montenegro often lands around 10% to 12% of gross rental income when using the standard deduction, though this varies based on your individual circumstances and documentation approach.
Foreign property owners in Montenegro generally pay the same 15% rental income tax rate as residents on their Montenegro-sourced rental earnings, though you should verify whether a tax treaty between Montenegro and your home country affects your situation.
Do I pay tax on short-term rentals in Montenegro in 2026?
As of early 2026, short-term rental income in Montenegro is subject to the same income tax rules as long-term rentals (typically 15% with deductions available), but you may also face additional registration requirements and local compliance obligations especially in tourist hotspots like Budva, Kotor, and Tivat.
Short-term rental income is not taxed at a fundamentally different rate than long-term rental income in Montenegro, but the administrative burden is higher because you may need to register your property for tourist accommodation and comply with local tourism regulations.
If you want to learn more about short-term rentals, you should read our tips and strategies for Airbnb in Montenegro.
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If I sell later, what taxes and fees will I pay in Montenegro in 2026?
What's the total cost of selling as a % of price in Montenegro in 2026?
As of early 2026, the total cost of selling a property in Montenegro typically ranges from 3% to 7% of the sale price, mainly depending on whether you pay an agent commission and how much legal or administrative work is required.
The realistic low-to-high percentage range for total selling costs in Montenegro spans from about 3% (if you sell without an agent and have minimal legal needs) to roughly 7% (with a full-service agent and standard professional assistance).
The specific cost categories that make up that total in Montenegro include real estate agent commission (typically the largest item at 3% to 5%), lawyer or notary fees for the sale documentation, potential capital gains tax on your profit, and any early mortgage repayment penalties if applicable.
The single cost that is usually the largest contributor to selling expenses in Montenegro is the real estate agent commission, which at 3% to 5% of the sale price often represents more than half of your total selling costs.
What capital gains tax applies when selling in Montenegro in 2026?
As of early 2026, capital gains from selling real estate in Montenegro are typically taxed at approximately 15% on the gain (the difference between your sale price and purchase price), subject to the personal income tax rules.
Exemptions to capital gains tax in Montenegro may be available in certain situations such as when the property was your primary residence and you meet specific holding or usage requirements, though the exact conditions are fact-specific and worth confirming with a tax advisor.
Foreigners in Montenegro generally do not pay an extra or different capital gains tax rate when selling property; the tax is based on the transaction and your tax status rather than your nationality.
The capital gain in Montenegro is calculated as the sale price minus your original purchase price, and in some cases you may be able to adjust for documented improvement costs or other allowable expenses, so keeping good records of your purchase and any renovations is important.
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 Montenegro, 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 | Official government publication of the transfer tax law. | We used it as the primary legal anchor for what tax exists and when it applies. We then cross-checked the brackets against professional tax summaries. |
| Montenegro Law on VAT | Official government version of the VAT law. | We used it to confirm that VAT is a statutory tax and to frame new-build versus resale correctly. We then triangulated the 21% VAT treatment using Big-4 guidance. |
| Notary Chamber of Montenegro Official Tariff | Official fee tariff that notaries bill from. | We used it to estimate realistic notary costs by price band. We then validated the common examples against multiple market explainers. |
| eRegulations Montenegro | Structured portal listing official registration steps and fees. | We used it to put hard numbers on administrative and registration fees. We cross-checked that these are nominal in practice using Chambers commentary. |
| PwC Tax Summaries - Montenegro | Major international tax firm with standardized country summaries. | We used it to triangulate current headline rates for residents and non-residents. We used it to sanity-check rental and capital-gains treatment. |
| KPMG Guide to Taxes on Real Estate | Big-4 firm providing transparent property tax overview. | We used it to validate the VAT versus transfer tax split. We used it as a cross-reference to reduce reliance on any single source. |
| Chambers and Partners Real Estate 2025 | Recognized legal market guide written by practitioners. | We used it for who-pays-what norms and to confirm there is no stamp duty. We used it as a practice cross-check against formal fee lists. |
| Montenegro Law on Personal Income Tax | Official legal basis for individual taxation including rental and capital gains. | We used it as the legal backbone for rental-income and capital-gains sections. We cross-checked rates with PwC summaries. |
| Global Property Guide - Montenegro | Long-running international reference for housing market and tax data. | We used it as a secondary cross-check for rental-income taxation. We used it to validate that our budgeting ranges are not outliers. |
| Value.ONE Legalization Commentary | Market-facing explainer tied to concrete legal deadlines. | We used it to flag Montenegro-specific hidden cost risks around legalization. We cross-checked the deadline messaging with independent sources. |
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