Property · A practical guide
Buying property in Montenegro: a guide for international buyers
From apartments in Podgorica to villas on the Bay of Kotor, Montenegro attracts many international buyers. Here is how the process works, and what has changed recently.
Updated 2026-10-18
What foreigners can buy
Under Montenegro’s Law on Property Relations, foreign individuals and companies can own apartments, houses, business premises and building land. They cannot own agricultural land, forests and forest land, natural resources and goods in general use, certain cultural monuments, property within one kilometre of the land border or on islands, or property in areas closed for security reasons.
There is one important exception: a foreigner may buy agricultural or forest land of up to 5,000 square metres if a house stands on it and the house is the subject of the sale. Some buyers use a Montenegrin company for other purchases, which needs specialist advice.
The buying process
Property contracts in Montenegro are made before a notary, and ownership passes when the purchase is entered in the cadastre, the real estate register kept by the Real Estate Administration.
- Instruct an independent Montenegrin lawyer
- Check the title deed (list nepokretnosti) for the owner, mortgages and restrictions
- For a new build, check the building and use permits
- Sign a preliminary contract and pay the deposit
- Sign the final contract before a notary
- Pay the transfer tax or VAT
- Register the purchase in the cadastre
Taxes and costs
On resale property the buyer pays real estate transfer tax, now progressive: 3% on a value up to €150,000; €4,500 plus 5% of the amount above €150,000 up to €500,000; and €22,000 plus 6% of the amount above €500,000. The tax is assessed on market value, which the tax authority can set higher than the contract price.
A new home bought from a VAT-registered developer carries 21% VAT instead of transfer tax, usually included in the price. Budget also for the notary, your lawyer, translations and any agency fee, and confirm every cost in writing.
Owning property and residence
Owning property can support an application for a temporary residence permit. Since amendments to the Law on Foreigners in January 2026, citizens of countries outside the EU, the EEA and Switzerland need a property with a taxable value of at least €150,000 for a property-based permit; permits issued earlier can be renewed under the old rules. The permit lasts a year, is renewable and does not allow you to work. Check the current rules with a lawyer before you buy.
Where people buy
International buyers look mostly at the coast: Tivat and Porto Montenegro, the Bay of Kotor from Herceg Novi and Portonovi to Kotor and Perast, the Luštica peninsula, and the Budva riviera. In Podgorica, buyers look at the newer districts close to the centre.
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Choosing an estate agent
Ask any agent for a written agreement setting out their fee and services, and for references from international buyers. The agent usually works for the seller: rely on your own lawyer and the notary for the legal checks. We list agencies only after checking them.
Questions and answers
Can foreigners buy property in Montenegro?
Yes. Foreigners can buy apartments, houses and building land on largely the same terms as citizens. They cannot own agricultural land or forests (except a house on a plot of up to 5,000 m²), land within one kilometre of the land border, or islands.
How much is property transfer tax in Montenegro?
On resale property it is progressive: 3% up to €150,000, then 5% on the part up to €500,000 and 6% above that. New homes from a VAT-registered developer carry 21% VAT instead.
Does buying property give residence in Montenegro?
Property can support a one-year, renewable temporary residence permit. Since January 2026, non-EU, non-EEA and non-Swiss citizens need a property with a taxable value of at least €150,000.
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This guide is general information, not legal or tax advice, checked in October 2026. Rules change, so consult an independent Montenegrin lawyer before you buy.