Wiki | Frequently Asked Questions
Property Ownership
Yes, property ownership is permitted in Montenegro.
Since property rights are unrestricted in Montenegro, your property will be bequeathed to your family members as an inheritance after your death.
For long-term rentals (1 year and above), the maintenance fees are the responsibility of the tenant. For short-term rentals through Airbnb, Booking.com, or third parties, the maintenance fees are paid by the property owner.
If your property is located within an apartment building or a residential complex, paying maintenance fees is a legal obligation. The fact that the apartment is vacant or that you do not use the building’s facilities or amenities does not mean you are exempt from paying maintenance fees.
Financial Issues
Yes. Although it varies from bank to bank in Montenegro, a nominal fee is charged for opening a bank account.
Yes, banks do accept a power of attorney for financial transactions. However, the power of attorney must be notarized and must explicitly include clauses granting the authority to perform banking transactions, the authority to manage/dispose of accounts, and the authority to withdraw funds.
Yes, foreigners can purchase real estate in Montenegro using bank loans. However, the application is limited, selective, and conditional — there is no automatic system for every foreigner. Such loans are granted more easily and quickly to Montenegrin citizens. For foreign investors, however, strictly rigorous conditions and high collateral are required.
Not having a bank account in Montenegro beforehand does not prevent you from using a mortgage loan; however, opening an account at the bank where you apply for the loan is a legal and technical requirement to initiate the process.
According to the current 2026 market conditions and banking practices, the details are as follows:
- Bank Account and Application Process
- No Prior Account Requirement: You do not need an active account in Montenegro before applying for a loan. The bank will open an account in your name during the application phase.
- Tax Identification Number (TIN): You must obtain a tax identification number in Montenegro for account opening and credit transactions (this process is usually completed quickly).
- Loan Conditions for Foreigners Montenegrin banks (such as Erste Bank, CKB, Hipotekarna, etc.) generally apply the following criteria when lending to non-resident foreigners:
- Down Payment Rate: Foreigners are usually required to provide equity (down payment) of 40% to 50% of the property value. The bank typically finances a maximum of 50-60% of the property value.
- Proof of Income: You must submit documents showing your income in your home country (pay slips, bank statements, tax certificates, etc.), translated into the local language by a Montenegrin sworn translator.
- Maturity: Loan terms for foreigners generally range between 10 and 15 years (in some cases 20-25 years).
As a result, banks may request additional documents and collateral beyond the points mentioned above. It is important to note that not every application will necessarily result in approval.
Typical rates for foreigners:
- Down payment: 40% – 60%
- Bank loan rate: 40% – 60% LTV (Loan-to-Value)
While this rate can be between 20% and 30% for local citizens, it is much higher for foreigners.
Before Purchase
Before purchasing a property in Montenegro, the “Tereti i Ograničenja” (Encumbrances and Restrictions) section of the title deed, known as “List Nepokretnosti,” must be thoroughly examined. This inspection, conducted alongside a professional consultant, determines whether there are any mortgages, records of illegal construction (unauthorized building), or legal disputes on the property. A clean title deed is the legal guarantee of your investment.
The fact that a building is physically finished does not mean it is legally completed. You must verify whether the property you intend to buy has an “Upotrebna Dozvola” (Occupancy Permit); because this permit proves that the building was constructed in accordance with its project and that all taxes have been paid. Properties lacking this document may face serious obstacles in future residency applications or during the resale of the property.
According to Montenegrin law, foreigners who own residential property (excluding land) with a valuation of €150,000 and above are entitled to an annual renewable residency permit. This application, submitted after the title deed transfer is completed, can be renewed every year as long as ownership continues. However, for this right to be granted, it is mandatory that there are no legal restrictions (such as records of illegal construction, etc.) on the property.
During Purchase
The property purchasing process in Montenegro is highly transparent and secure when the correct steps are followed. As Maremont Real Estate & Construction, we offer legal and technical guidance to our clients at every stage of the process.
4 Basic Steps to Owning Property in Montenegro:
- Selection and Reservation (Pre-Contract): Once a property matching your investment goals is identified, a Reservation Agreement is signed to take the property off the market and fix the price. At this stage, a nominal deposit is usually paid. Simultaneously, our expert team examines the title deeds (List Nepokretnosti) to check for any encumbrances.
- Sales Contract Before a Notary: According to Montenegrin law, real estate sales contracts must be executed before an authorized notary in the region where the property is located. The sales contract (Ugovor o kupoprodaji nepokretnosti) is drafted to protect the rights of both buyer and seller. A sworn translator is mandatory for foreign buyers, and the notary re-confirms the legal cleanliness of the property at this stage.
- Payment and Title Deed Transfer (Clausula Intabulandi): The purchase price is transferred to the bank account specified in the contract. Upon confirmation from the seller that payment is complete (Clausula Intabulandi), the notary forwards the documents to the Administration for Real Estate (Uprava za nekretnine). The registration of the title deed in the buyer’s name is completed within a few weeks, depending on administrative workload.
- Tax and Registration Procedures: After title registration, the Real Estate Transfer Tax (3% with graduated increases for resale properties, generally exempt for new projects) is paid. Finally, the process is concluded by transferring utility subscriptions (electricity, water, etc.).
To manage the process on your behalf: We ensure that all these stages are completed under the assurance of Maremont with a power of attorney, without the need for you to travel to Montenegro.
In real estate acquisitions, you are normally expected to complete a down payment of 30% of the total sales price within one month following a 10% deposit. Many construction companies also offer the possibility of staged payments (payments upon completion of each construction phase), although this can vary depending on your payment capabilities. Payment terms are determined by the mutual decision of the buyer and seller during the preparation of the purchase contract and are added as specific clauses to the agreement.
In the Montenegrin legal system, real estate transactions are built upon the “Latin Notary” system. In this system, the notary is not merely an office for signature verification; they are the highest-level public authority of trust, directly responsible for the legal validity and security of the transaction, as well as the protection of the rights of all parties involved.
- Legal Due Diligence and Validity Assurance
Before signing the sales contract, the notary verifies the cadastral records of the property (List Nepokretnosti) in real time through the official digital system. If there is any mortgage, provisional injunction, or encumbrance (teret) such as “no occupancy permit,” the notary is legally obliged to formally inform the buyer. This control mechanism constitutes the most critical legal safeguard preventing the acquisition of a legally defective property.
- Notary Escrow Account System
Through the “Escrow” service, which represents the most concrete form of transactional security, the buyer may transfer the purchase price not directly to the seller, but into the notary’s escrow account. The funds are blocked in this account and are released to the seller only after the “Clausula Intabulandi” (Title Registration Authorization) is formally submitted to the notary. This mechanism completely eliminates the risk of “payment without title transfer.”
- Legal Formality and Evidentiary Authority of the Transaction
A sales contract executed before a notary constitutes definitive legal evidence. The notary verifies the identities of the parties, confirms the free will of both sides, and, for foreign buyers, ensures that every clause of the contract is fully understood through a sworn interpreter. This process prevents potential ownership disputes before they arise.
- Initiation of the Cadastral Registration Process
Upon completion of the signing process, the notary automatically transmits the official documentation to the Cadastral Authority (Uprava za nekretnine), formally initiating the ownership transfer process. This prevents the buyer from being lost in bureaucratic procedures and makes abuses such as multiple sales of the same property legally impossible.
In summary: In Montenegro, the notary acts as the state’s legal guarantor of the transaction. At Maremont Real Estate & Construction, all processes are carried out in cooperation with authorized and qualified notaries, placing your investment under full legal protection.
In the Montenegrin legal system, purchasing a mortgaged property is a transaction that can lead to serious financial and legal losses if not managed correctly. From a professional perspective, the fundamental risks of this process can be summarized as follows:
- Risk of Loss of Ownership: A mortgage (hipoteka) on a property gives the creditor (usually a bank) the right to sell the property through foreclosure if the debt is not paid. If the title transfer occurs before the debt is cleared, the liability follows the property to you; you risk having your property sold via forced execution if the seller fails to settle their debt.
- Barriers to Title Registration (Clausula Intabulandi): In the Montenegrin cadastre system, a mortgage notation cannot be removed without an official “Erasure Consent” from the creditor institution. If the process of paying a portion of the purchase price directly to the bank to lift the mortgage is not coordinated with the notary and the bank, restrictions on the property will persist even if the transfer occurs.
- Hidden Debts and Additional Obligations: A mortgage on a property can sometimes cover not just the principal amount, but also accumulated interest, execution costs, and tax arrears. In transactions entered without professional Due Diligence, there is a risk of facing a much higher debt burden than initially anticipated.
Maremont Recommendation: The safest way to purchase a mortgaged property is to pay the portion of the sale price equal to the debt directly to the creditor bank via a Notary Escrow Account, and to perform a simultaneous transaction by obtaining a “Consent for Mortgage Removal” from the bank.
When purchasing real estate in Montenegro, the primary cost items you should include in your budget, in addition to the purchase price, are as follows:
Real Estate Transfer Tax (Sales Tax) This is the most significant cost item. The tax rate varies depending on the type of property:
- New Projects (VAT Included Sales): If you are buying a “first-hand” property from a construction company that is a VAT taxpayer, you are generally exempt from the 3% transfer tax.
- Resale Properties: When purchasing from an individual or a non-VAT exempt property, a progressive tax system applies:
- Up to €150,000: 3%
- €150,001 – €500,000: €4,500 + 5% of the amount exceeding €150,000
- €500,001 and above: €22,000 + 6% of the amount exceeding €500,000
- Notary Fees This fee, paid for the official formalization of the transaction, is subject to an official tariff based on the sales price of the property. On average, it ranges between €300 and €1,000.
- Sworn Interpreter and Legal Expenses
- Sworn Interpreter: By law, it is mandatory for foreign buyers to have an interpreter present before the notary. This costs approximately €100 – €200 depending on the volume of the transaction.
- Legal/Consultancy: If you receive professional support for legal auditing and contract preparation, a fee is paid based on the scope of service.
- Cadastre Registration and Administrative Fees These are small-scale fees paid for the completion of the title deed registration and the issuance of the new title deed (List Nepokretnosti). They are usually around €20 – €50.
Summary Note: When buying a €200,000 residence from a new project, your additional expenses remain around 0.5% – 1% of the property value due to tax exemption; however, for a resale property, this rate can rise to 4% – 5%, including taxes.
After Purchase
The time required to move into a property purchased in Montenegro varies depending on the type of property (new construction or resale) and the details of the notarial process. This process can be professionally summarized under two main scenarios as follows:
- Resale (Ready) Properties
If you purchase an existing property that is completed and has obtained its occupancy permit:
Key Handover: In most cases, keys are delivered on the same day the full purchase price is paid and the sales contract is signed before the notary.
Legal Process: Although the title registration (cadastral transfer) into your name may take several weeks, the “transfer of possession” clause approved by the notary allows you to start using the property immediately after payment.
- New Developments (Properties Under Construction)
If you purchase directly from a developer:
Delivery Date: Your move-in date is determined by the “key delivery date” (Rok Završetka) stated in the contract.
Occupancy Status: Physical completion of the building is not sufficient on its own; under Montenegrin law, the technical acceptance process (tehnički prijem) must also be completed. At Maremont, we strictly adhere to project delivery schedules and keep our clients informed at every stage.
- Utility Subscription Processes
The final step before moving in is the transfer of electricity and water subscriptions into your name. With the temporary ownership certificate obtained from the land registry or a notarized sales contract, these procedures are typically completed within 1–3 business days.
Important Note: If the property is purchased for rental purposes, our technical service team carries out final inspections (electricity, plumbing, and technical systems) prior to move-in or tenant placement, ensuring full and flawless delivery of the property.
In Montenegro, there is no state-mandated national earthquake insurance pool equivalent to Turkey’s DASK (Natural Catastrophe Insurance Institution) system.
However, the subject should be professionally and legally evaluated under the following three main headings:
- Is It Mandatory by the State?
Under Montenegrin law, home insurance (or earthquake insurance) is not a legal obligation for individual property owners. The state does not require the submission of an insurance policy during title transfer procedures or residence permit applications.
- The Situation Changes If a Bank Loan Is Used
If the property is purchased using a mortgage loan from a Montenegrin bank, the situation changes. In order to secure its own risk exposure, the bank requires the property to be insured under a comprehensive policy (similar to “full coverage insurance”) that includes earthquake, fire, flood, and related risks. In this case, maintaining and renewing the insurance throughout the loan term becomes mandatory.
- Professional Approach: Why Should It Be Done?
Montenegro is a seismically active region, particularly along the coastal areas. For this reason, although not legally mandatory, Maremont strongly recommends that property owners obtain “Property Insurance.”
Low Cost: In Montenegro, residential insurance premiums are generally very economical on an annual basis (for example, for a 50–60 m² apartment, annual premiums typically start from €50–€100).
Wide Coverage: These policies may cover not only earthquakes, but also fire, water damage (from internal plumbing), theft, and third-party liability.
In summary: There is no DASK-equivalent legal obligation in Montenegro; however, obtaining voluntary insurance to protect your investment is both a common practice and a highly prudent decision.
Insuring your new home in Montenegro, while not a legal requirement, is a very simple and fast-acting process to protect your investment. As Maremont, we can coordinate this process on your behalf with the most reliable insurance companies.
Here is the step-by-step way to insure a property in Montenegro:
- Determine the Insurance Type Usually, two types of policies are offered for residences in Montenegro:
- Basic Structure Insurance: Covers only the skeleton of the building, walls, and roof (against natural disasters like fire, earthquake, and flood).
- Extended Package (Household Insurance): Along with the structure, it covers the items inside the house, plumbing failures, glass breakage, and even damages caused to third parties (for example, water leaking to your neighbor).
- Prepare the Necessary Documents Very few documents are needed when issuing an insurance policy:
- Title Deed (List Nepokretnosti): Required to confirm information such as the property’s square footage, floor number, and location.
- Passport Photocopy: Your identity information as the policyholder.
- Property Value: The purchase price or appraisal value of the property is taken as the basis for calculating the insurance premium.
- Quote and Policy Approval Quotes are obtained from Montenegro’s leading insurance companies (e.g., Sava, Generali, Lovćen, or Uniqa). Premiums are usually paid annually.
- Sample Cost: For a standard 50-60 m² apartment, a comprehensive policy can be started with very economical premiums ranging from approximately €70 to €120 per year.
- Payment and Activation Your insurance becomes active as soon as the policy amount is paid via bank transfer or to the insurance agency. If you bought your house with a loan, you must deliver a copy of the policy to your bank.
How Do We Support You as Maremont? We don’t just help you find your home; we also use our connections with local insurance agencies to ensure you find the most comprehensive policy at the most affordable price.
After owning real estate in Montenegro, renting out this property is a highly strategic and high-yield move, especially considering the surge in tourism and migration waves in recent years.
Here is our analysis prepared by Maremont in light of market data:
- High Rental Yield (ROI) and Payback Period Montenegro offers very attractive rental yields compared to housing prices across Europe.
- Annual Return: An annual return on investment (ROI) between 5% and 8% in Euro terms is possible.
- Payback: A property purchased in the right location can pay for itself in as little as 12-15 years (the European average is 20-25 years).
- Two Different Rental Models We can follow two different strategies depending on the character of your property:
- Short-Term (Tourist) Rental: Especially in regions like Budva, Kotor, and Tivat, you can generate very high income by renting daily during the summer season. Through platforms like Airbnb and Booking, your property turns into a significant Euro-based income stream.
- Long-Term Rental: Provides a secure and stable monthly income for resident foreign white-collar workers and digital nomads in Podgorica (the capital) or coastal cities.
- Euro-Based Earnings and Capital Appreciation Since you will receive your rent in Euros, your investment is protected against currency risk. Additionally, Montenegro’s EU accession process (2028-2030 targets) drives not only the rental yield but also the resale value of your property higher every year.
- Low Tax Advantage Montenegro is one of the most friendly countries in Europe regarding rental income tax. The rental income tax rate is approximately 15%, which is a great advantage compared to the 30-40% tax brackets in many other European countries.
Why Should You Work with Maremont? Even if you are not in Montenegro, we manage your property for you. We transform your investment into a passive income by handling the entire process, including finding tenants, contract management, check-in/check-out controls, and technical support.
The furnishing and decoration process of your new home in Montenegro can turn into an enjoyable experience with the right planning. As Maremont, we offer “Turnkey Furniture and Decoration” support to our investors after property delivery.
There are three main paths you can take to manage this process:
1. Maremont Professional Furniture Packages (The Most Practical Way) If you live outside of Montenegro or have limited time, this is the most preferred method.
Ready-made Packages: Depending on your apartment type (Studio, 1+1, etc.), you can choose one of our pre-prepared furniture packages in modern, classic, or luxury segments.
End-to-End Installation: Everything from white goods to curtains, and furniture to lighting is purchased, transported, and installed in your home by our team. You simply arrive with your suitcase and move in.
2. Sourcing from Local and Global Stores If you wish to shop according to your own taste in Montenegro, you can consider these options:
Large Stores: You can buy ready-made furniture from stores such as Enza Home, Namos, Zećanka, or Eurosalon located in Podgorica and coastal regions.
IKEA and Alternative Solutions: Although there is no physical IKEA store in Montenegro, there are intermediary logistics companies that bring IKEA products from Croatia or Serbia.
3. Custom Design and Carpentry Works If you want to use your home’s space with maximum efficiency (especially for built-in wardrobes and kitchens):
Custom Production: With our local solution partners in Montenegro, we carry out kitchen, bathroom, and wardrobe designs by taking custom measurements for your home. This method is ideal for creating stylish apartments with high rental potential.
Points to Consider:
Logistics and Assembly: Furniture stores in Montenegro may often give additional lead times for delivery and assembly. Be sure to confirm the delivery date before making a purchase.
Customs and Imports: If you are considering bringing your furniture from another country (e.g., Turkey), you need to calculate customs duties and shipping costs in advance.