The selling and buying of properties is without restriction in Montenegro and is regulated by law and legally secure. Ownership is guaranteed and in that respect there are no limitations, the only exceptions being public property i.e. squares and streets.

• When buying a property in Montenegro a transfer tax of 2% has to be paid by the purchaser.

• VAT is payable only on the first transfer of title of newly-constructed buildings or economically divisible units within the framework of such structures. The current VAT rate is 17%.
• The transfer of land (both agricultural and construction land, developed or undeveloped) is not considered as a transfer of goods; therefore VAT is not due.
• Leases of agricultural land and forests that are registered in land registries are exempt from VAT.
• Rentals of apartments, houses and buildings that are used for residential purposes and are leased for more than 60 days are also exempt from VAT.
• VAT does apply to commercial leases. The current rate is 17%..

• The current rate is 9%

• The rate of real property tax ranges from 0.08% to 0.8% of the market value of the real property. A tax statement must be filed by 31st May at the latest. The tax is usually payable in two equal instalments.

!

!

!