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In the article we will consider whether to buy property in Montenegro, the types of housing and commercial real estate, pricing, purchasing, taxes, citizenship.
What are the advantages of buying property in Montenegro
The Montenegrin real estate may be of interest to potential emigrants from England, as well as businessmen who want to invest available capital.
Advantages of buying property in Montenegro:
- a large selection of acquisition targets;
- an acceptable level of real estate prices and its contents;
- transactions of sale are issued by the english-speaking specialist, which also helps to choose to buy an object and to execute all necessary documents;
- visa-free regime for the British to purchase a home by the sea to relax and freely visit the country at any time of the year for a comfortable stay in the warm coast;
- there are clear rules for foreign investors;
- environmentally friendly country, where there are no major industrial installations;
- Montenegro is an official candidate for accession to the European Union;
- low tax on the purchase of real estate;
- the property owners in this country receive a residence permit for simplified conditions.
Types of real estate in Montenegro
Buyers from England available in a great range of residential and commercial properties in different regions of the country. Especially popular objects in resort towns and villages located on the shores of the Adriatic sea.
In the Montenegrin real estate market you can find many offers from owners on the sale of second homes and apartments in new buildings from the Builder.
Types of residential real estate in Montenegro
- flat 1-2-3-4-5-room;
- apartments under construction;
- private homes;
- the cottages;
real estate Options for purchase:
- hotels, hotels;
- cafes and restaurants;
- space for shops, salons, offices.
Also in the sale of land plots, the optimum for residential and commercial properties in Montenegro.
The price of real estate in Montenegro
Pricing is influenced by a number of factors: location, class, housing, floor, area, layout, condition of residential property.
The Average price of square meter in new buildings in 2020 – 1 140 euros. The most affordable housing in the Central area of the country, the value of 690 EUR/1 m2. In the cities and towns on the coast of the country – from 1400 EUR/m2. The annual rate of price increase to 3.4%.
The procedure of buying of real estate in Montenegro
Under the current law of Montenegro buyers from England can purchase residential and commercial property in the country and to make the purchased object itself as an individual.
The procedure of the buying of property:
- Inspection of the property.
- Verification of documents for the selected object.
- Drafting of the contract between buyer and seller.
- the Buyer makes a Deposit of 10% of the total cost of housing. In the case of refusal to purchase the money will not be returned.
- the date of the deal.
- licensed In the state notary office to a contract of sale. After signing the document, the buyer and seller, the notary certifies it. The transaction takes place in the presence of a lawyer or a certified translator. A copy of the contract shall remain with the buyer, the second is transferred to the seller.
- within stipulated in the contract, the buyer transfers to the Bank account of the seller the remaining amount for the purchased property (excluding prepayments).
- after Receiving payment for the property, the seller in the presence of a notary writes a receipt – Tabuljarna Isprava.
- the Third copy of transaction, the notary sends the Housing Inventory. Here is the re-registration of property in the name of the buyer. Paperwork lasts for 2-3 months.
- the Buyer receives a Certificate of ownership, which is already indicated by its name as the only rightful owner of real estate in Montenegro.
Taxes when buying property in Montenegro
After the purchase of real estate in Montenegro to the purchaser from England, need to register with the local tax office and get a tax identification number for tax.
Notice for payment of the tax, the buyer receives 10-15 days after the transaction of sale at the notary.
The size of the tax on the purchase of real estate in Montenegro is 3%. To contribute to the payment should be within 15 days of receipt of the notice from the tax office.
When buying a residential property in the building from the developer the buyer is exempt from paying tax. This purchase is subject to 17% VAT already included in the price of residential property. Thus, the buyer will not have to pay the tax after the transaction at the notary.
Residence permit and permanent residence in Montenegro buying property
Foreigners purchasing a residential and commercial real estate in Montenegro, you can get a residence permit for simplified conditions.
Residence permit can claim not only the ownership of the property, but also close family members – spouse and children. If the property is issued in co-ownership with their parents, they can also obtain a residence permit in Montenegro.
Conditions for obtaining a residence permit when buying real estate:
- the absence of encumbrances on the purchased property;
- the property must be included in the Inventory;
- providing a full set of approved documents;
- registration of a residence permit takes place on the territory of the municipality where the property was acquired.
Residence permit in Montenegro is made in the Ministry of the interior. The validity of the residence permit when buying property in 12 months. After this period, you can extend the residence permit for another year.
To Obtain permanent residence in Montenegro only after 5 years after permanent residence on the territory of the country. The maximum period of absence from the territory of the state is 10 months for the entire 5-year period or not more than 6 months in a row.
The Acquisition of real estate is not a guaranteed circumstance for obtaining permanent residence in Montenegro. For citizenship, the alien also need to perform a number of other requirements established by legislation, or invest in real estate in Montenegro from 250 million euros and 100 million euros in the state Fund.