Real Estate Transfer Tax in Montenegro

Real Estate Transfer Tax in Montenegro

The transfer of real estate is considered to be any acquisition of ownership rights to real estate in Montenegro (sale, exchange, inheritance, gift, as well as other methods of acquiring real estate).

The tax base for the real estate transfer tax is the market value of the real estate at the time of its acquisition, essentially the price of the property achieved or that can be achieved in the market at the time of its acquisition.

What is the rate of real estate tax in Montenegro?

The real estate transfer tax rates are progressive and are as follows:

( This law applies from 01.01.2024.)

1. up to 150,000.00 euros: 3%;

2. over 150,000.01 euros: 4,500.00 euros + 5% on the amount exceeding 150,000.01 euros;

3. over 500,000.01 euros: 22,000.00 euros + 6% on the amount exceeding 500,000.01 euros.

When are you exempt from paying tax when buying property in Montenegro?

When you purchase real estate directly from the developer, you are not required to pay real estate tax.

If you are an adult citizen of Montenegro, acquiring real estate for the first time to meet housing needs, for an area of up to 20 m2 per household member, provided that you do not already own property in Montenegro, you are exempt from paying real estate tax.

If you are obligated to pay real estate tax, the tax obligation arises on the day of concluding the contract or taking possession of the property.

Your duty is to calculate the real estate transfer tax in the tax return submitted to the competent tax authority within 15 days from the date of the tax obligation.