We are ready to help you with answers to frequently asked questions about the contract execution process and other related questions.
The signing of the pre-contract and the main contract is possible only on the territory of Montenegro in the presence of the contracting parties or their legal representatives. The contract must be certified by a notary public. After confirmation of the seller's acquired right to the given property with the appropriate document, the determination of the price of the property is started in the local tax administration.
The assessment of the value of the real estate is carried out in the tax administration of the given Municipality, according to the current prices on the market, which may be higher or lower than the price stipulated in the contract. When transferring ownership of real estate, the buyer pays real estate sales tax in the amount of 3% of the contract value.
In case of discrepancy between the price stipulated in the contract and the price from the tax administration, the tax is calculated based on the estimated value of the object (by the tax administration). Only after the mentioned procedure does the buyer get the absolute right over the acquired property.
After the final calculation, the seller is obliged to submit a notary's confirmation that the payment has been made in full.
The notary submits a request for registration of the new owner in the cadastre. After that, you can get a decision from the cadastre about registration.
Additional costs for buying and legalizing real estate in Montenegro are significantly lower than in other countries. As we have already stated, the real estate transaction tax (ownership transfer) amounts to 3% of the total value of the real estate. In order to carry out taxation, the tax administration performs a direct assessment of the real estate, after which a confirmation ("decision") is sent to the buyer's address.
The tax must be paid within 15 days after receiving the confirmation. If the specified payment is not made within two months, additional interest is paid for each day after the deadline. Therefore, if you did not receive the confirmation by mail, you need to contact the tax administration in person.
The cost of notary services, which deal with the preparation of the sales contract, amounts to about 0.5% of the value of the contract.