Real estate in Montenegro for Ukrainians
Montenegro - a country with a favorable climate, a good standard of living and a favorable location almost in the center of Europe. Local resorts are very popular among tourists. All this can be a reason to buy real estate in Montenegro for personal use or for investment purposes. Let's take a closer look at whether Ukrainians can buy housing in this country, what are the advantages, what are the stages of the transaction procedure and much more.
Can a Ukrainian buy real estate in Montenegro
Foreigners, including citizens of Ukraine, are not restricted in the acquisition of residential real estate in Montenegro. On the contrary, local authorities are trying to attract foreign investment: buyers of housing in this country can apply for a residence permit.
The only restriction is a ban on the purchase of agricultural land, forests, plots in national parks, cultural monuments. Foreigners are also not allowed to buy real estate on islands or less than one kilometer from the state border.
Individuals can buy land plots with an area of no more than 5,000 m². There must be a real estate object on this land. If there is not, then a plan for the construction of the object must be approved.
Why buy real estate in Montenegro
Montenegro's real estate market is steadily developing, which can be one of the main reasons for investors to buy local housing. Since 2017, prices for apartments and houses have shown a steady growth of 7% per year on average. But this is far from the only advantage that a buyer of an apartment or villa by the sea can get.
Here are the main factors in favor of buying real estate in Montenegro:
The country has mountains and sea, it has a warm climate and a good level of ecology;
Montenegro is planning to join the European Union and has a developing economy;
prices for residential and commercial real estate are considered to be among the most affordable in Europe;
when buying housing on the primary market, there is no need to pay taxes, and the real estate from the developer is of high quality and is commissioned ready for living;
in the holiday season bought apartments can be profitable to rent to tourists.
Experts predict that Montenegro's accession to the EU, which will take place before 2030, may provoke a significant increase in real estate prices. Now there is still an opportunity to buy housing at a favorable cost.
How much is the average cost of real estate in Montenegro
Prices for residential real estate in Montenegro in 2024 are at about the same level as prices for housing in Kyiv. The average cost of a square meter in this country - from 1200 to 2100 euros.
Several factors influence the formation of real estate prices:
Region, distance to the sea and view from the window. The closer to the sea coast, the more expensive the accommodation is. Compact 2-bedroom apartment on the first line on the secondary market costs about 100 000 euros.
Type of housing. As in other resort countries, apartments are cheaper than villas. If a 4-room apartment can be bought for 150,000 and more, then for a villa you will have to pay four times more. But it is important to note that the area of villas here is impressive - not less than 300 square meters.
The belonging of housing to the historical value. In some areas of Montenegro, residential houses are protected as historically significant. This also increases the value of real estate. Such a studio apartment can cost from 180,000 euros.
If you need to find budget accommodation in Montenegro, you should pay attention to small towns that are not in great demand among tourists. In such cities, the cost of apartments is relatively low: the price per square meter is about 600-700 euros.
Average real estate prices can be found in Bar: from 1000 to 1600 euros per square meter. In Budva, the price per square meter is already higher and ranges from 1800-2500 euros. The most expensive housing is located on the coast of a large bay of the Adriatic Sea: here the average price for 1 m² reaches 4200 euros.
What taxes and additional fees when buying real estate in Montenegro
When buying residential real estate in Montenegro, the buyer must pay tax in the amount of 3-5% of the transaction amount. The tax does not have to be paid only if you buy an apartment in a new building from a legal entity-developer, which is a VAT payer.
In addition to the tax, there are also mandatory additional fees:
state fee for obtaining a property certificate - 5 euros;
tax for registration in the cadastre - 28 euros.
The buyer must also take into account other expenses for the purchase of housing, as he has to pay the realtor, translator and notary. The amount of the realtor's commission and the cost of the translator's services depends on the preliminary agreements.
How much you have to pay for the services of a notary depends on the value of the real estate. It is worth focusing on the following tariff grid:
the cost of an apartment or house within 5000-20000 euros - 145 euros;
from 20,001 to 40,000 euros - 206 euros;
from 40,001 to 60,000 euros - 302 euros;
from 60,001 to 80,000 euros - 363 euros;
from 80,001 to 120,000 euros - 423 euros;
for every next 15,000 euros - a surcharge of 12.1 euros.
The total cost of notary services may not exceed 5,000 euros.
Thereafter, the owner pays real estate ownership tax once a year. The amount of this tax varies from 0.1% to 1% of the value of the housing and depends on the condition and location of the property. The expenses also include utility payments. If we consider their size on the example of an apartment with an area of 90 square meters, it averages 130 euros monthly.
In which city is better to buy real estate in Montenegro
When choosing a city to buy real estate should be guided by the purpose of purchasing housing. For personal use and permanent residence you should consider such cities as Tivat, Bar, Podgorica, Sutomore, Kotor.
If you want to buy an apartment or villa in a resort town for subsequent renting out to tourists, then you can choose Budva, Herceg Novi, Ulcinj, Kotor or Sveti Stefan. The most attractive for investors are Budva and Budva Riviera. You can also look for apartments and apartments for investment in Becici, Dobra Voda, Rafailovichi, Kunja, Stoliv, Orahovac.
How is the procedure of buying real estate in Montenegro
Start the process of buying real estate in Montenegro can be remotely. It is not necessary to come to the country immediately to choose a suitable apartment or house: you can do it online. But the transaction itself, i.e. the signing of the sale and purchase agreement, must be attended in person.
In general, the procedure for buying real estate in Montenegro includes six main stages:
Searching for a realtor and choosing a property. At this stage, the buyer looks at the sellers' offers and decides which ones interest him. At the same time, the documents for the object of interest are checked (this work should be entrusted to a realtor). If the property is suitable, it is worth discussing the terms of the transaction with the seller.
Search for a translator and notary. It is important to find a court interpreter even for those who know the Montenegrin language, because this specialist not only translates, but also certifies the translated documents.
Signing of the preliminary contract and registration of the deposit. The buyer and the seller sign a contract that sets out the terms and conditions of the transaction. The buyer makes a deposit by transferring money to a bank account. Usually it does not exceed 5-10% of the value of the property. This is convenient if it is not possible to give the whole amount at once. After handing over the deposit, the seller undertakes not to offer this object to other clients. In case of breach of obligation, he returns the deposit to the buyer in double amount. If the buyer changes his mind, the deposit remains with the seller.
Signing of the main contract. To conclude the transaction, the buyer must have a passport with him, and the seller must have an identity card and a document of ownership of the object. The signing of the contract takes place in the state notary body in the presence of an interpreter, notary and realtor. The document is sealed with the seal of the judicial body of Montenegro. Settlement of the transaction is made in non-cash form to the account of the seller or the notary. When the seller receives the money for the immovable property in full, ownership is transferred to the buyer.
Registration of title. To register the title to the purchased residential property, the buyer needs an individual tax number. With this number it is necessary to visit the city administration and write an application to change the name of the owner in the cadastre. Here you will also have to pay the registration fee. State registration documents will be ready within 30 days.
Payment of tax. After the execution of a sale and purchase transaction of real estate on the secondary market, the new owner has 15 working days to apply to the tax office and receive a calculation of the amount of tax. After 2-3 weeks, a corresponding notification comes with a request to pay the tax. There are 15 working days for payment. In case of non-payment, a penalty will be charged.
The buyer has the right to use the purchased property immediately after payment and receipt of the keys.
To safely buy housing in Montenegro for yourself or for investment purposes, to find an object at a favorable price, to avoid possible pitfalls, it is worth seeking help from professionals. The realtors of the real estate agency "Mayak" have extensive experience in the selection of objects in the cities of Montenegro for Ukrainians and knowledge of how to conduct the entire procedure correctly and legally.
