Complete Guide to Real Estate Costs in Montenegro (2025): For Investors and Buyers

We have prepared a complete guide to real estate expenses in Montenegro for those planning to buy and wanting to understand all the financial nuances in advance. Montenegro attracts buyers with its beautiful landscapes, warm climate, and convenient seaside location, and it remains a popular destination among foreign purchasers. But it is important to understand that the real cost of property is not just its price, but also all the additional expenses that come with it.

In this report, we have gathered all the key information on how much it really costs to buy and own property in Montenegro. We have examined in detail both one-time purchase costs and annual expenses — taxes, maintenance, and possible payments related to renting out the property.

We paid special attention to the new rules that came into force on January 1, 2024: a progressive property transfer tax now applies, and this is important to take into account in advance. Our property expense guide will help you avoid unexpected surprises and plan your budget wisely.

Guide to one-time purchase costs

In this section, we take a detailed look at all the taxes, fees, and commissions that must be paid when purchasing property. Knowing about these costs in advance will allow you to calculate exactly how much money you will need at the start.

Property transfer tax (Porez na promet nepokretnosti): navigating the new progressive scale

The flat 3% tax rate on the secondary property market is now a thing of the past for most transactions. Since January 1, 2024, Montenegro has had a progressive tax system that applies to purchases on the secondary market.

The new structure is as follows:

For properties priced up to 150
• 000 euros:the rate is 3%.
For properties priced from 150
• 001 euros to 500000 euros:the tax is calculated as a fixed amount of 4,500 euros plus 5% of the amount exceeding 150000 euros.
For properties priced above 500
• 001 euros:the tax is a fixed amount of 22000 euros plus 6% of the amount exceeding 500000 euros.

The tax base is the assessed value of the property, determined by the municipal tax authority. This authority compares the price stated in the contract with market prices for similar properties in the area to prevent undervaluation.

After the transaction is completed, the buyer receives an official notice requiring payment of the tax, which must be made within the prescribed period (usually 15 to 30 days) to avoid penalties.

The new tax system is not just a luxury tax. It has a significant impact on the mid-range segment of the market. According to data from the statistical office

Monstat, the average price per square meter in new developments in the coastal region in the first quarter of 2025 was 2328 euros. Thus, a standard two-bedroom apartment of 70 m² will cost around 162960 euros. This price automatically moves the transaction out of the basic 3% category into the higher 5% bracket.

Progressive property transfer tax scale (effective from January 1, 2024)

Property value (EUR)Tax calculation formulaExample calculation for a specific valueUp to 1500003% of the valueProperty for 120000€: 120000×0.03=3600€150001 – 5000004,500 € + 5% of the amount above 150000 €Property for 200,000€: 4500+(200000−150000)×0.05=7000€Above 50000122000 € + 6% of the amount above 500000 €Property for 600000€: 22000+(600000−500000)×0.06=28000€Primary and secondary markets: the key difference in VAT

When buying a new property directly from a developer who is a VAT (PDV) payer, the buyer

is exempt from paying the property transfer tax.The reason is that the price of such property already includes 21% VAT, which the developer remits to the state.

This creates a powerful financial incentive that fundamentally changes the way new and secondary properties are compared. Let us consider

a property worth 250,000 euros.

On the secondary market
1. the property transfer tax will be 4500 € + 5% of (250000 € - 150000 €) = 4500 € + 5000 € =9500 euros.
On the primary market
2. (when buying from a VAT-paying developer), this tax is0 euros.

Thus, there is a price advantage of 9

500 euros in favor of the new-build property, which is equivalent to 3.8% of the property value. For any propertymore expensive than 150000 euros, the “real” price difference between a new property and a comparable secondary-market property is reduced by the amount of tax saved. This makes new builds significantly more attractive from the standpoint of acquisition costs alone.

Notary and legal fees: ensuring transaction security

Notary services in Montenegro are regulated by the state, and their cost depends on the transaction amount. The fees are standardized, which makes the process more predictable.

Official notary fee schedule (excluding VAT)

Transaction amount (EUR)Base notary fee (EUR)Total fee including 21% VAT (EUR)up to 50007084.705001 – 20000120145.2020001 – 40000170205.7040001 – 60000250302.5060001 – 80000300363.0080001 – 120000350423.50over 120000+10 for every additional 15000(Base fee + 10€/15k€) × 1.21The maximum notary fee cannot exceed 5,000 euros. It is important to remember that all listed fees

do not include VATat 21%, which is added to the final amount. Unlike in some other jurisdictions, notary fees in Montenegro make up only a small share of total acquisition costs, usually less than 1% of the property value.

Detailed real estate market analysis: where is it more profitable to buy? →

Other related expenses: translators and agency commissions

Licensed court interpreter:

Since all legal documents are drawn up in Montenegrin, a licensed court interpreter must be present at the transaction for foreign buyers who do not speak the language.

Oral interpretation (at the notary):
• standard rate is 50 euros per hour.
Written translation (purchase agreement):
• 15–20 euros per page (1200 printed characters). A standard 8–10 page contract will cost 120–200 euros.

Real estate agency commission:

There is some ambiguity here that requires attention.

Dominant model:
• In most cases, the commission is paid to the agency by the seller. It amounts to 5% of the sale price. Thus, for the buyer, the realtor’s services are free of charge. This rule applies to both the primary and secondary markets.
Exceptions:
• When buying on the secondary market, some agencies may charge the buyer, or the commission may be split between the parties. This discrepancy highlights the importance of clarifying the commission structure with the agent in advance to avoid unexpected costs at closing.

Guide to buying property in Montenegro in 2025: step-by-step instructions with examples and case studies

→

Annual and ongoing ownership costs — long-term financial obligations

In this section, you will find a guide to the regular expenses associated with property ownership, which will help you create a realistic annual budget for maintenance.

Annual property tax (Godišnji porez na nepokretnost)

All property owners in Montenegro, both residents and foreigners, are required to pay an annual property tax. The tax rate is set by the local municipality (opština) and ranges from

0.25% to 1.0%of the property’s market value.

Several factors affect the rate: location (rates are higher in popular tourist areas such as Budva and Kotor), property type, age, and condition.

For example, for an apartment worth 100,000 euros, the annual tax may range from 200 to 350 euros.The tax is paid in two equal installments, usually by June 30 and October 31.

Tourist tax for property owners (Turistička taksa)

It is important to clearly distinguish between two types of fees that are often confused:

Boravišna taksa (tourist registration fee):

This is a daily fee of 1 euro per person, paid by all tourists and visitors for staying in the country. Property owners living in their own property are generally exempt from this fee.
1. Turistička taksa (annual tax for owners):
This is a separate annual tax levied on foreign owners of “second homes” (i.e. holiday properties) located in officially recognized tourist zones. It is calculated using a special formula that takes into account the property’s area and local coefficients, and is paid together with the annual property tax. The claim that it amounts to 10–15% of the annual property tax is an oversimplification; the calculation formula is more complex.
Comprehensive analysis of utility bills (Komunalije)

Electricity:

Montenegro uses a two-tier metering system.

Day rate (Viša tarifa - VT):

Applies from 07:00 to 23:00. The cost is about 0.09 euros per kWh (excluding VAT).

• Night/off-peak rate (Niža tarifa - NT):Applies from 23:00 to 07:00, as well as on weekends. The cost is about 0.05 euros per kWh (excluding VAT).
• Average bill:Varies greatly depending on the season and consumption. Average monthly household bills range from 29 euros in the off-season to more than 40 euros in the summer months. A family in an 80 m² apartment can expect monthly costs of 30–100 euros.
• Water supply and sewage:Tariffs vary significantly by municipality.

Budva municipality:

The cost is from 1.60 to 2.70 euros per cubic meter (m³).

Countrywide range:

In other regions, tariffs may range from 0.30 to 1.20 euros per m³.
• Average bill:
A typical household spends 15–20 euros per month.
• Waste collection (Odvoz smeća):
This is a modest monthly payment.
• For an apartment:
5–10 euros per month.

For a private house:10–12 euros per month. In some municipalities, the calculation is based on area, for example 0.06 euros/m².

Heating and gas:
• Central heating and gas supply are practically nonexistent.Heating is usually electric (air conditioners, heaters), which significantly increases electricity bills in winter. Cooking gas is used in cylinders. The initial cost of a cylinder is about 60 euros, and refilling (exchange) costs 12–15 euros.
Communications: Internet and television

Telecommunications services in Montenegro are competitively priced.Home internet:

Basic packages cost 15–25 euros per month. High-speed fiber-optic connections can cost up to 25–50 euros.

Mobile internet:

Tourist SIM cards offer large data packages, for example 500 GB for 10–15 euros.

Cable/satellite TV:

10–20 euros per month depending on the selected channel package.
Maintenance, management, and upkeep
• Management company fees (for residential complexes):
• Standard buildings:
10–25 euros per month per apartment for basic services (stairwell cleaning, maintenance of common areas).

Modern/luxury complexes:

Fees are often calculated per square meter and range from 0.50 to 4.50 euros/m² per month. For a 60 m² apartment, this can amount to 30–270 euros per month. These fees cover landscaping, pool maintenance, security, etc.

Maintenance of a private house:

Septic tank cleaning:
• For houses not connected to the central sewage system, the service costs 50–200 euros per visit. The procedure is required once or twice a year.
Property insurance:
• This is often overlooked, but quite an important expense item. Although insurance in Montenegro is not mandatory.
Cost:

Basic insurance can cost as little as 24 euros per year, while more comprehensive packages with coverage for earthquakes, for example, cost around 135–150 euros for a standard apartment. Sometimes the price is calculated by area and ranges from 0.52 to 1.98 euros per square meter per year — it all depends on the level of protection. But it is important to carefully review the policy terms: often the payout amount under the insurance policy turns out to be too modest and does not cover the actual losses.

Read the detailed article on the cost of living in Montenegro
• →

Summary: property expenses

Total cost calculation: three real-life scenarios

• Summary calculations for three property purchase and ownership scenarios

Expense itemScenario 1: Apartment in Bar (secondary market)

Scenario 2: Apartment in Budva (new build)Scenario 3: Villa in the Bay of Kotor (secondary market)--- ONE-TIME EXPENSES ---

Property price120

000 €

250

000 €

600

000 €Property transfer tax3600 € (3%)0 € (VAT exemption)28000 € (progressive scale)Notary services (incl. 21% VAT)423.50 €605 € (approx.)1500 € (approx.)Interpreter services250 €250 €300 €Total acquisition costs~124274 €~250855 €~629800 €--- ANNUAL EXPENSES ---Annual property tax (estimate)480 € (0.4%)1500 € (0.6%)4800 € (0.8%)Utility bills (annual average)960 € (80 €/month)1800 € (150 €/month)3000 € (250 €/month)Management company / maintenance300 € (25 €/month)1620 € (1.5 €/m²/month)4000 € (garden, pool)Insurance100 €150 €500 €Total annual expenses~1840 €~5070 €~12300 €--- TOTAL COST FOR THE FIRST YEAR ---~126114 €~255925 €~642100 €Generating income: taxes on rental incomeTaxes on rental income for individuals have recently been changed. Previously, a flat rate of 9% applied. The new standard personal income tax rate is15%, and it also applies to rental income.The tax calculation process is as follows:Gross annual rental income:For example, 500 euros/month × 12 months = 6,000 euros.Standard deduction:Legislation may provide for a standard deduction for depreciation and expenses (for example, 30%), which reduces the taxable base. Taxable base = 6

000 euros × 70% = 4

200 euros.

Tax payable:

15% of 4

200 euros = 630 euros
1. .
The tax return for the previous year must be filed with the tax authorities at the location of the property by April 30 of the current year. The shift from 9% to 15% represents a significant increase in the tax burden on landlords. This change, combined with rising property prices and purchase taxes, should be taken into account in any calculations of rental property investment returns.
2. For owners who plan to rent out their property but do not have the ability or desire to manage it themselves, the optimal solution isto hand the property over to a professional management company. Such a full-service arrangement typically includes finding and communicating with tenants, organizing check-in and check-out, monitoring the condition of the property, timely payment of all utility bills and taxes, and resolving any day-to-day issues.For this comprehensive service, which relieves the owner of all hassle, management companies usually charge a commission of around
20%
3. of the rental income. Our company, MD Realty, provides property management services on exactly these standard market terms.ConclusionThe analysis shows that the financial picture of the real estate market in Montenegro has changed noticeably. A progressive property transfer tax has been introduced, and the tax rate on rental income has increased. These steps indicate that the market is becoming more mature and that the state is seeking to generate more revenue from the real estate sector.

At the same time, despite rising costs, the price of buying and owning property in Montenegro remains attractive compared with other European countries. The key is to approach the process with a well-thought-out financial plan that takes all possible expenses into account.

Here is what potential buyers should keep in mind:

Conduct thorough

(due diligence) on all aspects of the property and all related payments before making a purchase decision.Calculate costs separately

for the primary and secondary markets. Buying a new-build property from a VAT-paying developer can provide significant tax savings.

Budget an additional 5–10%

, especially when buying expensive secondary-market property. These funds will cover all related expenses and help avoid unexpected costs.

Work with experienced lawyers and real estate agents

to complete the transaction properly and ensure that all costs are transparent and justified.

If you still have questions, contact us and we will provide a free consultation.

1. Провести тщательную проверку (due diligence) всех аспектов объекта и всех сопутствующих платежей ещё до принятия решения о покупке.
2. Отдельно просчитывать расходы на первичном и вторичном рынке. Покупка новостройки у застройщика, являющегося плательщиком НДС, может дать ощутимую налоговую экономию.
3. Заложить в бюджет 5–10% сверху — особенно при покупке дорогой недвижимости на вторичном рынке. Эти средства покроют все сопутствующие расходы, чтобы избежать неожиданных затрат.
4. Привлекать опытных юристов и риелторов, чтобы грамотно провести сделку и убедиться, что все расходы прозрачны и обоснованны.

Если у вас остались вопросы, свяжитесь с нами, мы проведем бесплатную консультацию.