Over the last few years Montenegro has become more and more popular not just with tourists but also for people who wish to take advantage of the low purchase tax system here, among with the many other benefits on offer, and buy a property whether it’s for use as a holiday home, permanent home or as rental investment, so, we thought we’d put together a simple ‘how to’ article for you on the process of buying in Montenegro. It’s actually really simple buying a property here, so that’s good news, and really all you need is a valid passport. Once you’ve been shown around by your agent, and settled on a property, we can carry out the rest. Reservation Deposit As with most other countries, you will need to pay a reservation deposit, to secure the property and for it to be taken off the market. This also starts the sale & purchase process, and the amount is usually an agreed percentage of the total sales price. This is paid at the same time of the reservation agreement being signed. Vendor Information If the vendor of the property is a private individual, the next step is for them to provide firstly legal proof of ownership via the title deeds, and secondly their ID card or passport. If, in some circumstances, it’s owned via a company in Montenegro they would need to provide confirmation of the companies registration (as per the Montenegrin Central Register) together with a company stamp. Associated Documentation Once proof of ownership has been provided and checked over by the legal representative, the next step is the purchase and sales contract which can be signed personally or by power of attorney, then the Clausula Intabulandi (Permitted Property Registration Clause) and lastly the purchase and sales payment schedule, which can be paid all at once or via an agreed schedule by both parties. Purchase Taxes After the associated documentation stage comes the purchase tax, and that is 3% of the evaluated price of the property, which is due within 2 weeks after the contract has been signed. There is however no tax due if the property is bought direct from the developer. Property Registration The final step left is just to apply for the registration of your new property in Montenegro in the name of the new owner and be issued with the title deed! Then it’s a congratulations, all around, and a celebration. The whole process for buying a property in Montenegro is around 1-3 months, but of course CMM Montenegro will be here to help you all the way. Once you’ve bought your new home here, we can also put you in touch with our Management Department and they can help with renovation, furnishings or the rental of your new property in Montenegro. We hope this helps – but if you have any further questions, please do contact us, and we’d be happy to assist. We look forward to welcoming you to Montenegro soon.