Buying property in Montenegro step by step – what does the process look like at the notary?

Montenegro has become one of the most interesting investment destinations on the Adriatic in recent years. The picturesque coastline, developing tourist infrastructure, and growing interest from foreign investors mean that more and more people are considering buying an apartment or house in this country.

One of the most frequently asked questions by those interested in investing is what the process of buying real estate in Montenegro looks like and what formalities need to be met. Contrary to appearances, the procedure is relatively transparent and can often proceed smoothly, especially with the support of local specialists. Below, we explain step-by-step how buying real estate in Montenegro works – from choosing an apartment to signing the contract with a notary and registering ownership.

Can Foreigners Buy Real Estate in Montenegro?

One of the reasons for the growing popularity of this market is the fact that foreigners can buy real estate in Montenegro on very similar terms to citizens of the country. This primarily applies to apartments, houses, and commercial properties.

In practice, this means that foreign investors can acquire real estate in seaside resorts or tourist towns without major obstacles. Restrictions may mainly apply to certain agricultural lands or areas of special significance, but the purchase of apartments and houses is usually simple and accessible to foreign investors.

Thanks to this, Montenegro has become an attractive alternative to the more developed and often more expensive real estate markets on the Adriatic.

Buying Real Estate in Montenegro – Step-by-Step Process

The process of buying real estate in Montenegro can be divided into several main stages. Although individual transactions may vary slightly, the general scheme looks very similar.

Step 1 – Choosing Real Estate and Negotiating the Price

The first stage is, of course, choosing the right property. The buyer usually determines the budget, location, and type of property – for example, a seaside apartment, a city center flat, or a holiday home.

After finding an interesting offer, the stage of viewing the property and negotiating the price with the seller follows. Many people use the help of a local real estate agency at this stage, which assists in finding a suitable offer and conducting negotiations.

Step 2 – Checking Property Documents

Before signing any contract, it is essential to thoroughly check the property's documents. This stage is often referred to as due diligence.

The following are checked primarily:

• who is the legal owner of the property
• whether the property is free from mortgages and other encumbrances
• whether the building has all the required permits
• whether the property is correctly registered in the real estate registry (cadastre)

The key document is the so-called cadastral extract, which confirms the legal status of the property and the owner's details.

Step 3 – Signing a Reservation Agreement and Paying a Deposit

If the buyer decides to purchase, a reservation or preliminary agreement is often signed. At this stage, the buyer usually pays a deposit, which is most often around 10% of the property value.

The deposit secures the transaction and causes the property to be withdrawn from the market while the final sales contract is prepared.

What Does Signing a Contract with a Notary in Montenegro Look Like?

The most important moment of the entire transaction is signing the purchase agreement before a notary.

In Montenegro, the real estate sales contract must be signed before a notary to be legally valid. The notary acts as an official witness to the transaction and is responsible for its compliance with applicable regulations.

How Does a Meeting with a Notary Proceed?

During the visit to the notary, the following are usually present:

• the buyer
• the seller
• the notary
• a sworn translator (if the buyer does not know the Montenegrin language)

The notary checks the identity of the parties, verifies the documents, and reads the content of the contract. After confirming that both parties understand the terms of the transaction, the documents are signed.

Is it Possible to Buy Property Without Personal Presence?

Yes. If the buyer cannot be present in Montenegro, it is possible to complete the transaction through Power of Attorney. In such a case, an appointed person – for example, a lawyer or an agency representative – can sign the documents on behalf of the buyer.

Payment for the Property

After signing the purchase agreement, payment for the property follows. This most often takes the form of a bank transfer to the seller's account.

The payment terms are precisely defined in the sales contract. In some cases, funds may be transferred to an escrow account, from which they are released to the seller after certain transaction conditions are met.

Property Registration in the Cadastre

After signing the contract, the notary sends the documents to the real estate cadastre, which is the ownership registry.

On this basis, the official change of property ownership takes place. After the procedure is completed, the buyer is entered as the new owner in the registry.

This process usually takes from a few weeks to about a month, depending on the workload of the offices and the completeness of the documentation.

Taxes and Costs When Buying Real Estate in Montenegro

When buying real estate in Montenegro, you should also consider additional costs associated with the transaction.

Property Transfer Tax

When purchasing property on the secondary market, the buyer pays a property transfer tax, which is approximately 3% of the property value.

VAT on New Properties

If the property is purchased directly from a developer, VAT applies instead of property transfer tax, which is approximately 21%.

Other Transaction Costs

Additional costs may include:

• notary fees
• lawyer's fees
• document translation costs
• real estate agency commission

The total costs associated with buying real estate in Montenegro usually amount to about 6–9% of the property value.

How Long Does it Take to Buy Property in Montenegro?

The duration of the entire process depends on the specific transaction and the completeness of the documents. In many cases, the purchase of real estate can be finalized within a few weeks, although sometimes the process may take longer, especially if additional formalities are required.

Is Buying Property in Montenegro Safe?

The process of buying real estate in Montenegro is relatively transparent and based on clearly defined legal procedures. The mandatory presence of a notary when signing the contract and the real estate ownership registry provide an additional level of security for buyers.

However, for foreign investors, it is important to thoroughly check the property documentation before purchasing and to use the help of specialists familiar with the local market.

Buying an Apartment in Montenegro – Where to Start?

The first step when buying property on the Adriatic should be to determine the investment goal and choose the right location. Depending on preferences, it could be a holiday apartment by the sea, a city center flat, or a property intended for tourist rental.

It is also worth using the help of specialists who know the local market and can guide the investor through the entire process – from choosing the property to signing the contract with a notary.

A well-chosen property in Montenegro can not only provide a place to relax on the Adriatic but also be an interesting investment for the future.