Purchase of Real Estate by Foreign Nationals and Foreign Entities

As a buyer you are not yet the owner, so you request the property certificate as a person with a legal interest: on the request tick “Person with a legal interest” and state the purpose (e.g. purchase). If you do not attach proof of legal interest (e.g. a preliminary contract), you sign a statement that you will use the certificate only for the stated purpose and will not misuse the personal data. For the list of checks see the procedure “Checking Property Before Purchase”.

The notarial deed on transferring ownership of real estate is drawn up by the notary in whose official area (the area of the basic court) the property is located (Article 9 of the Law on Notaries). The notary draws up the deed in Montenegrin. If a participant does not understand that language, a court interpreter must be present, and at the end of the deed the notary states that the text was translated (Article 47). At the party's request the notary may also draw up the deed in a foreign language, if the notary is a court interpreter for that language (Article 44).

Domestic and foreign legal entities and individuals are equal with regard to paying property transfer tax (Article 3 of the Law on Property Transfer Tax), unless an international treaty provides otherwise. The taxpayer is the buyer (Article 7). Within 15 days of concluding the contract, file the return with the tax body of the municipality where the property is located and pay the tax at the same time (Articles 15–16). Rates (Article 11): 3% up to €150,000; for value from €150,000 to €500,000, €4,500 plus 5% of the excess; above €500,000, €22,000 plus 6% of the excess.

The application for registration of ownership is submitted to the regional unit of the Real Estate Administration within 15 days of concluding the contract (Article 118a of the Law on State Survey and Real Estate Cadastre). Documents in a foreign language are attached with a translation certified by a court interpreter (Article 118). The Administration decides within 15 days (Article 122). The application contains the name, a parent's name and surname, address and personal number of the applicant, the name of the cadastral municipality, cadastral data on the property and the right requested (Article 115). A foreign national gives the details from the travel document.

Owning real estate does not by itself give a right to stay longer than 90 days. For a longer stay you can apply for a temporary stay permit based on ownership (see the procedure “Temporary Stay Based on Property Ownership”). While staying up to 90 days, a foreigner must report the stay to the police within 24 hours of arriving at the place of stay (Article 96 of the Law on Foreigners).