1. Can foreigners buy real estate in Montenegro?
Yes, foreign citizens are fully allowed to purchase real estate in Montenegro. There are no legal restrictions or limitations for foreign property ownership.
2. What documents are required for Turkish citizens to buy a house or land in Montenegro?
Individuals (natural persons) can buy property using only their passport. However, land purchases can only be made by legal entities (companies). Therefore, foreigners wishing to buy land must establish a company in Montenegro before proceeding with the purchase.
3. How long does the property purchase process take, and what are the main steps?
There is no fixed duration — the process depends on how the buyer and seller plan it. Normally, once both parties agree on all terms, a notary appointment is arranged. Before the meeting, the notary receives all relevant information about both parties and the property to prepare the sales agreement. The agreement can also be prepared or reviewed by each party’s lawyer before signing. Once everyone approves, both parties meet at the notary’s office to sign the contract. Payment terms are agreed upon and stated in the contract. After signing, the buyer transfers the payment either directly to the seller or to the notary’s escrow account by the agreed date. When payment is confirmed, the notary processes the transaction and notifies the Land Registry and Tax Office. Timelines may vary depending on the property’s condition and documentation, so specific cases should be evaluated individually.
4. How can I verify the title deed and legal status of a property?
You can check the property’s zoning status, mortgage records, sales restrictions, or tax debts directly through the relevant authorities, or you may authorize a local lawyer to conduct these checks on your behalf.
5. What are the ownership and zoning restrictions for land purchases in Montenegro?
Until recently, foreigners could buy plots under 3,000 m² in their own name. However, according to new regulations, non-EU citizens (who do not have EU residency or Montenegrin citizenship) can purchase land only through a company registered in Montenegro. Those holding a 5-year residence permit in Montenegro are exempt from this rule. There are no zoning restrictions for construction purposes.
6. What taxes and additional costs apply when purchasing real estate in Montenegro?
Costs vary depending on the region and property type. For resale (second-hand) properties, the transfer tax is typically 3%. For newly built or under-construction properties, no transfer tax applies. Notary fees are minimal and, by common practice, are paid by the buyer.
7. How is annual property tax calculated?
It varies slightly by city or region, but generally it is 0.3% (three per thousand) of the property’s assessed value per year.
8. What are the annual ownership costs (insurance, maintenance fees, etc.)?
Insurance is optional and depends on the property’s condition and the coverage selected. Maintenance fees (HOA fees) vary depending on the building or complex but generally range from €0.5 to €2.5 per square meter per month.
9. Can I rent out the property I purchased in Montenegro even if I’m not a citizen?
Yes, absolutely. Foreign property owners are free to rent out their properties in Montenegro without any restrictions.
10. Does buying a property in Montenegro grant residency?
Yes. If you purchase a property in Montenegro and wish to stay beyond the standard visa-free period, you can apply for a residence permit, regardless of the property’s value. This type of residence permit is issued for one year and can be renewed annually.
11. Is it possible to obtain Montenegrin citizenship through real estate investment?
No, currently there is no active citizenship-by-investment program in Montenegro.
12. How do I apply for a residence permit after purchasing property, and what documents are required?
After completing the purchase, you can apply for residency by submitting the title deed, passport, criminal record certificate, and other necessary documents. Once reviewed and approved, the process is typically completed within about one month.
13. Is earthquake insurance (similar to DASK in Turkey) mandatory in Montenegro?
No. There is no mandatory earthquake insurance requirement in Montenegro.
14. Is a spouse’s signature required during the property registration (title deed) process?
No, not during the purchase. However, if you decide to sell the property later, a spousal consent form (power of attorney) is required under Montenegrin law.
15. Can foreigners purchase jointly owned property (shared title) in Montenegro?
Yes, joint ownership (co-ownership) among foreigners is fully allowed and legally recognized.
16. Is it mandatory to register the purchased property with the local municipality?
No, there’s no separate municipal registration required. The municipality and land registry are automatically notified as part of the official sales and title transfer process.
17. Is there a double taxation agreement between Montenegro and Turkey?
Yes, a Double Tax Treaty exists between Montenegro and Turkey. This means income earned from real estate in Montenegro is taxed only once—in the country where the income is generated. The same principle applies in the opposite direction.
18. Are rental agreements in Montenegro standardized, and is notary approval required?
Yes. All rental agreements must be notarized in Montenegro to be considered legally valid.
19. What happens if a tenant fails to pay rent? How does the eviction process work?
The process follows the terms outlined in the notarized rental agreement. If either party fails to meet their obligations within the agreed period, the legal penalties and procedures stated in the contract apply. In the event of non-payment, the property owner has the right to pursue legal action in accordance with Montenegrin law. Eviction procedures are executed based on these contractual and legal provisions.
20. If I buy a property but don’t use it for long periods, how is security and maintenance handled?
This depends on the property owner’s preference. If the property is part of a managed building or complex, maintenance is typically handled by the property management company. If not, there are private service providers that offer regular maintenance, cleaning, and inspection services for a fee.
21. After obtaining residency, can I bring my family (spouse/children) to Montenegro?
Yes. Once you obtain your residence permit, your spouse and children under 18 can also apply for residency through a family reunification process.
22. After purchasing a property, is showing an address enough for a residence application, or is a rental contract required?
If you have purchased a property and already received your residence permit, you can also apply for residence permits for your spouse and children under 18 based on your ownership — no separate rental contract is required.
23. After buying a property, do I need to transfer utility subscriptions (electricity, water, internet) to my name?
Yes. Once the title deed is officially transferred to your name, you should initiate new utility subscriptions (electricity, water, internet, etc.). For resale properties, it’s recommended to transfer all subscriptions into your own name rather than keeping them under the previous owner.
24. Is property insurance mandatory for foreigners in Montenegro?
No. Property insurance is not legally required, though it’s recommended for added protection.