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
Yes, US citizens can legally buy residential property in Montenegro in 2026, and the process is more straightforward than many people expect.
This guide covers everything you need to know about buying rights, taxes, mortgages, and US tax obligations when purchasing a home in Montenegro.
We constantly update this blog post to reflect the latest rules and market conditions 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.
Can a US citizen legally buy residential property in Montenegro right now?
Can I buy a home in Montenegro as a US citizen in 2026?
As of early 2026, US citizens can legally purchase residential property in Montenegro, including apartments, houses, villas, and new-build units, following the same basic process that applies to other foreign buyers.
The standard buying process involves finding a property, conducting due diligence on the title and permits through the cadastre, signing a notarized purchase contract, paying the required taxes, and registering the ownership transfer with Montenegrin authorities.
What makes Montenegro's real estate market unique is that the coastal areas like Budva, Kotor Bay, and Tivat are heavily shaped by tourism and foreign demand, so you will encounter more new-build sales where VAT rules apply and more complex ownership histories in older coastal properties.
By the way, we've written a blog article detailing all the foreigner rights regarding properties in Montenegro.
Are there many Americans buying property and living in Montenegro in 2026?
As of early 2026, Americans represent a visible but relatively small minority of foreign property buyers in Montenegro, with our estimates suggesting several hundred US-citizen owner households nationwide.
The highest concentrations of American property owners in Montenegro are found in Tivat (especially the Porto Montenegro area), Kotor Bay (including Kotor, Dobrota, Perast, and Herceg Novi), and the Budva to Sveti Stefan coastal corridor, with some also settling in Podgorica for business reasons.
The top three reasons Americans choose to buy property in Montenegro are the country's use of the euro (which simplifies finances), the relatively affordable coastal real estate compared to Western Europe, and the appealing Mediterranean lifestyle with easy access to the rest of Europe.
The American expat community in Montenegro is growing steadily, driven by remote work flexibility, interest in EU-candidate countries, and Montenegro's welcoming stance toward foreign investment and property ownership.
Do foreigners have the same buying rights as locals in Montenegro?
Foreign buyers in Montenegro, including US citizens, can purchase residential property such as apartments and houses on equal footing with locals, and there are no special extra restrictions aimed at Americans compared to other foreign nationals.
The main property types or locations where foreign buyers face restrictions in Montenegro are agricultural land and certain protected or strategic land categories, while apartments and houses on properly zoned urban land are generally accessible to foreigners without additional hurdles.
We cover all these things in length in our pack about the property market in Montenegro.
Can I buy property in Montenegro without a residence permit?
You do not need a residence permit to buy property in Montenegro, as property ownership and the right to live full-time in the country are treated as completely separate matters under Montenegrin law.
If you are buying property in Montenegro while living abroad, the process typically involves hiring a local lawyer, granting them power of attorney to act on your behalf, and completing the notarization and registration steps remotely or during a short visit.
Buying a home in Montenegro does not automatically grant you a visa or residence permit, though property ownership can support your application by demonstrating ties to the country if you later apply for residency through official channels.
The main practical challenge non-resident buyers face when completing a property purchase remotely in Montenegro is coordinating document authentication, bank transfers, and notary appointments across different time zones, which is why most foreign buyers work with a local lawyer throughout the process.
Can US citizens own land in Montenegro?
US citizens can own land in Montenegro when it is properly zoned as urban or construction land, but restrictions apply to agricultural land and certain protected or strategic categories where foreign ownership may be limited or prohibited.
Montenegro uses a freehold ownership system for most residential property, meaning foreign buyers typically acquire full ownership rights to apartments (including a proportional share of common areas and underlying land) and houses with their plots, rather than leasehold arrangements.
The specific land categories in Montenegro where foreign ownership faces restrictions include agricultural land, forest land, and areas designated as strategically important or protected, so any purchase involving land should be verified through a cadastre check and reviewed by a local lawyer before committing funds.
Please note that we have a dedicated blog article about the land buying process in Montenegro here.
What documents will I need to buy in Montenegro?
The essential documents a US citizen needs to purchase property in Montenegro include a valid passport (with notarized translation if required), proof of funds such as bank statements, the signed and notarized purchase contract, and a power of attorney if you cannot be present for all steps.
A local tax identification number is not always required upfront for every step of the buying process in Montenegro, but you will need whatever identifier the municipality or tax authority requires for property tax billing and transfer tax filings, which your lawyer can help you obtain.
A local Montenegrin bank account is not legally mandatory to complete a property purchase, but it is highly practical for paying utilities, property taxes, and ongoing costs, and some notaries and sellers prefer buyers to have one.
Proof of funds documentation is required in practice due to anti-money laundering compliance by banks and notaries in Montenegro, and while a local address is not required to own property, you will need a reliable mailing setup (often through your lawyer or property manager) to receive tax bills and official notices.
We have a whole section dedicated to all the documents you need in our Montenegro property pack.
Can a foreign-owned company buy property in Montenegro?
A foreign-owned company registered in Montenegro can legally purchase residential property, and many foreign investors use company structures for operational reasons such as rental businesses, multiple investors, or estate planning.
Some Americans do use Montenegrin limited liability companies (DOO, similar to an LLC) to hold property in Montenegro, particularly when they plan to operate rental businesses or have multiple investors, though this is less common for simple personal home purchases.
Owning property through a company structure in Montenegro does not automatically lower taxes compared to personal ownership, and in many cases it adds complexity through accounting requirements, annual filings, and corporate bank compliance without meaningful tax savings for non-professional buyers.
The main drawback of using company ownership for residential property in Montenegro is the added administrative burden, including mandatory bookkeeping, annual financial statements, and corporate banking requirements, which can outweigh any benefits unless your situation specifically calls for a corporate structure.
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What taxes and fees will I pay in Montenegro in 2026?
What are buyer taxes in Montenegro in 2026?
As of early 2026, the buyer tax on a typical resale property purchase in Montenegro is the real estate transfer tax of 3% of the purchase price, so on a 150,000 euro apartment (approximately $157,500 USD), you would pay around 4,500 euros ($4,725 USD) in transfer tax.
The main tax components for buyers in Montenegro are the real estate transfer tax (3% on resales) and, for new-build properties purchased directly from a VAT-registered developer, VAT at 21% instead of the transfer tax, which makes asking "is this transfer tax or VAT?" essential before negotiating price.
Buyer tax rates in Montenegro do not differ for foreigners versus locals or for primary residences versus investment properties, but the distinction between resale (transfer tax) and new-build first transfer (VAT) is the critical factor that affects your total tax bill.
If you want to go into more details, we also have a page detailing all the property taxes and fees in Montenegro.
What are other closing costs in Montenegro in 2026?
As of early 2026, buyers in Montenegro should budget an additional 2% to 4% of the purchase price for closing costs beyond taxes, so on a 150,000 euro property ($157,500 USD), expect roughly 3,000 to 6,000 euros ($3,150 to $6,300 USD) in additional fees.
The main closing cost categories in Montenegro include notary fees (typically 0.5% to 1% of the price, around 750 to 1,500 euros on a 150,000 euro property), legal fees for due diligence (500 to 1,500 euros / $525 to $1,575 USD), cadastre registration fees (a few hundred euros), and agent commissions (typically 3% to 4%, though negotiable and sometimes paid by the seller).
The most negotiable closing costs in Montenegro are the real estate agent commission and, to some extent, legal fees, while notary and registration fees are generally fixed by regulation or scale.
The single closing cost item that tends to surprise foreign buyers most in Montenegro is the real estate agent commission, which can be 3% to 4% on top of other costs and is not always clearly disclosed upfront, so clarify who pays the commission before signing anything.
Are there hidden fees foreigners miss in Montenegro right now?
Foreign buyers in Montenegro commonly overlook between 1,000 and 5,000 euros ($1,050 to $5,250 USD) in unexpected costs, depending on property type and complexity, which can include document translations, permit legalization fees, and utility connection charges.
The top three hidden or unexpected fees that foreign buyers most often fail to budget for in Montenegro are: translation and apostille fees for documents (200 to 500 euros / $210 to $525 USD), building legalization or permit remediation costs if the property has irregularities (potentially thousands of euros), and utility connection or transfer fees (100 to 500 euros / $105 to $525 USD).
The ongoing annual costs that foreign property owners often underestimate after purchase in Montenegro include annual municipal property tax (0.25% to 1% of market value, so 375 to 1,500 euros per year on a 150,000 euro property), building maintenance or HOA fees (especially in coastal complexes with amenities), and utilities, which can add up to several hundred euros per month during peak season.
Getting surprised by hidden fees is one of the pitfalls people face when buying real estate in Montenegro.
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.
Can I get a mortgage as a US citizen in Montenegro in 2026?
Do banks lend to US citizens in Montenegro in 2026?
As of early 2026, some banks in Montenegro do offer mortgages to US citizens, but lending to non-residents is selective and typically easier if you have regulated stay, local income, or strong documentation.
US citizens generally receive similar treatment to other foreign nationals when applying for mortgages in Montenegro, meaning banks focus more on your income stability, documentation quality, and loan enforceability than on your specific passport.
The main reason some banks in Montenegro are hesitant to lend to American borrowers specifically is the added compliance burden from US regulations like FATCA, which requires foreign banks to report on American account holders and can make the administrative process more complex.
The typical approval likelihood for US citizens applying for property loans in Montenegro is moderate to good if you have strong documentation, stable income, and are willing to make a substantial down payment, but approval is not guaranteed and varies significantly by bank and individual circumstances.
There is a full document dedicated to mortgage for foreigners in our pack covering the property buying process in Montenegro.
What down payment do American people need in Montenegro in 2026?
As of early 2026, US citizens typically need a minimum down payment of 40% to 50% to obtain a mortgage in Montenegro as a non-resident, so on a 150,000 euro property ($157,500 USD), you should budget at least 60,000 to 75,000 euros ($63,000 to $78,750 USD) upfront.
The typical down payment range for foreign buyers in Montenegro spans from 40% (minimum for well-qualified applicants) to 50% or more (recommended to improve approval chances), with some banks requiring even higher deposits for applicants without local income or residency.
A larger down payment does generally improve mortgage terms for US citizens in Montenegro, as it reduces the bank's risk exposure and can lead to lower interest rates, faster approval, and better overall loan conditions.
You can also read our latest update about mortgage and interest rates in Montenegro.
What interest rates do US citizens get in Montenegro in 2026?
As of early 2026, US citizens can expect mortgage interest rates in Montenegro to fall within the 4.5% to 6% range for euro-denominated housing loans, depending on their risk profile, down payment size, and relationship with the bank.
Interest rates for foreign buyers in Montenegro are generally similar to or slightly higher than rates offered to local residents, with the premium reflecting the additional risk banks perceive when lending to non-residents without local income.
Both fixed-rate and variable-rate mortgages are available in Montenegro, but variable-rate loans tied to Euribor are more common for foreign buyers, with typical terms of 10 to 20 years and the option to refinance or pay off early in many cases.
The single factor with the biggest impact on the interest rate a US citizen will be offered in Montenegro is the size of the down payment, as a larger equity stake significantly reduces the bank's risk and typically unlocks better rates.
Can I use US income to qualify in Montenegro right now?
Many banks in Montenegro do accept US-sourced income for mortgage qualification, provided the income is well-documented with stable employment or business earnings, consistent bank statements, and verifiable tax returns.
Banks in Montenegro typically require American applicants to provide two to three years of US tax returns, recent pay stubs or employment verification letters, six to twelve months of bank statements showing salary deposits, and sometimes a letter from your employer confirming your position and income.
If standard US documentation is insufficient, some banks in Montenegro may accept alternative income verification such as certified accountant statements for self-employed applicants, asset-based qualification showing sufficient liquid reserves, or a larger down payment to compensate for less verifiable income.
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How do US taxes interact with owning property in Montenegro?
Do I have to declare the property to the IRS from Montenegro?
Owning property in Montenegro by itself does not trigger a standalone IRS reporting requirement, but any rental income, capital gains from a sale, or foreign financial accounts used to manage the property must be reported on your US tax return.
The specific IRS forms US citizens may need to file when owning foreign real estate in Montenegro include Schedule E (for rental income), Form 8938 (for foreign financial assets above certain thresholds), and potentially FinCEN Form 114 (FBAR) if you have Montenegrin bank accounts.
Simply owning a property in Montenegro for personal use does not require special IRS reporting, but once you earn rental income, sell the property for a gain, or hold foreign bank accounts exceeding $10,000 in aggregate at any point during the year, reporting obligations are triggered.
Will I pay tax twice in the US and Montenegro in 2026?
As of early 2026, there is a real risk of paying tax in both Montenegro and the United States on the same income, since Montenegro does not appear on the US Treasury's list of tax treaty partners, but mechanisms exist to reduce double taxation.
There is currently no income tax treaty between the United States and Montenegro, which means US citizens cannot rely on treaty provisions for automatic relief, but you should plan your tax strategy around available US tax credits instead.
The Foreign Tax Credit allows US citizens to offset taxes paid to Montenegro against their US tax liability on the same income, effectively preventing double taxation in most cases, though the calculation can be complex and works best when Montenegrin taxes are lower than US rates.
Whether property taxes paid in Montenegro are deductible on US federal tax returns depends on how you use the property: if it is a rental or business property, Montenegrin property taxes may be deductible as an expense, but for personal residences the deduction rules have changed and you should consult a CPA for current guidance.
Do I need FATCA reporting when buying in Montenegro?
FATCA reporting may be required when you buy property in Montenegro, not because of the property itself, but because you may open a Montenegrin bank account or hold other foreign financial assets that exceed reporting thresholds.
The FATCA threshold that triggers Form 8938 reporting depends on your filing status and residency, but for US citizens living in the United States, the threshold is generally $50,000 in foreign financial assets at year-end or $75,000 at any point during the year (higher thresholds apply to married couples filing jointly and those living abroad).
FATCA reporting (Form 8938) covers foreign financial assets including bank accounts, investment accounts, and certain other financial instruments, while FBAR (FinCEN Form 114) specifically covers foreign bank and financial accounts with a lower $10,000 aggregate threshold, and you may need to file both if your Montenegrin accounts are large enough.
Consulting a US CPA before buying property in Montenegro is strongly recommended, and the key questions to ask include: how will rental income be taxed in both countries, what documentation do I need for the Foreign Tax Credit, and what FATCA and FBAR reporting will apply to my Montenegrin bank accounts?
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.
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 |
|---|---|---|
| Government of Montenegro - Real Estate Transfer Tax | Official government page explaining how transfer tax works in practice. | We used it to confirm the legal framework for buyer taxes. We also verified that the 3% transfer tax rate applies to resale transactions. |
| Government of Montenegro - VAT Overview | Official government summary of Montenegro's VAT system and rates. | We used it to confirm the 21% standard VAT rate in early 2026. We then explained when VAT applies instead of transfer tax on new builds. |
| Government of Montenegro - Property Tax | Official government summary of annual property tax rules. | We used it to confirm the 0.25% to 1% annual property tax range. We included this in the ongoing costs section for foreign owners. |
| Central Bank of Montenegro - Interest Rate Statistics | Official central bank data on banking interest rates. | We used it to establish the 4.5% to 6% mortgage rate range for early 2026. We avoided relying on anecdotal agent quotes by using official statistics. |
| CKB - Housing Loan Page | Major Montenegrin bank stating its own eligibility rules publicly. | We used it to confirm that some banks lend to non-residents with conditions. We cited CKB as an example of a foreigner-friendly lender. |
| Erste Bank Montenegro - Foreign National Housing Loan | Bank product sheet specifically for foreign nationals. | We used it to show that foreigner-targeted mortgage products exist. We cited typical caps and requirements disclosed by the bank. |
| U.S. State Department - 2025 Investment Climate Statement | U.S. government assessment of investment conditions in Montenegro. | We used it to cross-check the overall stance toward foreign investment. We verified there are no special restrictions targeting Americans. |
| MONSTAT - Statistical Office of Montenegro | Official statistics agency for Montenegro. | We used it to understand foreign presence and tourism-driven demand. We noted that 96% of overnights are foreign tourists. |
| U.S. Treasury - Tax Treaty List | Official U.S. government list of income tax treaties. | We used it to verify there is no US-Montenegro tax treaty. We advised readers to plan for Foreign Tax Credit usage instead. |
| FinCEN - FBAR Filing Portal | Official U.S. government FBAR filing portal and guidance. | We used it to explain the $10,000 reporting threshold. We anchored FATCA and FBAR guidance to official requirements. |
| Government of Montenegro - Citizenship and Residency Portal | Official government entry point for stay and residency rules. | We used it to explain that property ownership does not grant residency. We kept residency statements tied to official channels. |
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