Montenegro property buying costs: transfer tax on a resale, VAT on a new build.
// Short answer
The main one-off cost of buying in Montenegro depends on the seller. A resale pays real estate transfer tax, banded since 1 January 2024 at 3%, 5% and 6%, paid by the buyer within 15 days. A new build from a developer carries VAT instead, at the standard 21% rate. Notary, cadastre and agent fees are real, but official tariffs were not found.
What an agent can charge, who pays it and how to check their licence: real estate agent fees in Montenegro.
Rules and rates as of September 2026. Montenegro changed its residence rules in January 2026 and is negotiating EU membership, and official sources disagree on the income tax rate, so check the dated items again before you sign. Every figure links to its source.
On this page
What are the one-off costs of buying property in Montenegro?
Transfer tax on a resale, or VAT on a new build, plus a notary's fee for the mandatory notarial deed, a cadastre registration fee, and usually an agent's commission. Transfer tax runs 3% to 6% by band. Rates as of September 2026.
| Cost | Rate or amount | Notes |
|---|---|---|
| Transfer tax, up to €150,000 | 3% | Resale; paid by the buyer |
| Transfer tax, €150,000.01 to €500,000 | €4,500 + 5% of the part above €150,000 | From 1 January 2024 |
| Transfer tax, above €500,000 | €22,000 + 6% of the part above €500,000 | From 1 January 2024 |
| VAT on a new build from a developer | 21% standard rate | Instead of transfer tax |
| Notary, cadastre, agent | Not published here | Sources conflict; official tariffs not found |
Sources
How is Montenegro's transfer tax calculated?
On the market value at acquisition, which is normally the contract price. If the price is below market value or missing, the tax authority assesses market value from comparable sales. The banded rates then apply: on €200,000, for example, €4,500 plus 5% of €50,000, which is €7,000.
A government explainer page still describes a flat 3%; that page predates the 2024 bands. The example above is arithmetic from the published bands, not a quote for any property.
Sources
Who pays the transfer tax in Montenegro, and when?
The buyer. The acquirer is the taxpayer, files the transfer tax return with the tax authority within 15 days of the contract date, and pays at the same time as filing. Late filing or payment by an individual is a misdemeanour with a fine of €100 to €1,000.
Some guides describe payment within 15 days of a tax decision instead; the statute text read for this page says self-assessment and payment on filing. The notary also sends the deed to the tax authorities within 15 days.
Do you pay VAT on a new build in Montenegro?
Yes, instead of transfer tax. Acquiring a newly built building on which VAT is charged is not a taxable transfer for transfer tax. PwC gives Montenegro's standard VAT rate as 21%, and no reduced rate for a first sale of a residential unit was found.
One agency says VAT applies to the building value only, excluding land; that was not confirmed. Ask the developer whether the quoted price includes VAT.
How much are notary and agent fees in Montenegro?
Not confirmed. Published guides disagree on the notary fee, the cadastre registration fee and agent commission, and the official notary tariff and cadastre fee schedule were not found. Ask the notary and the agent for written quotes before you sign.
The notary is not optional: a transfer of real estate must be made as a notarial deed. The process: buying property in Montenegro as a foreigner.
// Buying in Montenegro?
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See the $99 report, page by pageWho pays the closing costs in Montenegro, buyer or seller?
The buyer: the law names the acquirer as liable for the transfer tax, banded at 3%, 5% and 6% since 2024. On the first sale of a new build VAT applies instead. Notary fees are owed jointly unless the parties agree otherwise, and the seller pays 15% on a gain unless it was their only home.
| Cost | Rate | Who pays | Set by |
|---|---|---|---|
| Real estate transfer tax | 3% to EUR 150,000; 5% to EUR 500,000; 6% above | Buyer | Law |
| VAT on the first sale of a new build (no transfer tax) | 21% | Buyer | Law |
| Notary fees | Official tariff | Jointly, unless agreed otherwise | Law (notary tariff art. 15) |
| Tax on the gain (sole main home exempt) | 15% | Seller | Law |
Sources
Frequently Asked Questions
What is property transfer tax in Montenegro in 2026?
Is transfer tax still a flat 3% in Montenegro?
Do I pay transfer tax on a new build in Montenegro?
How long do I have to pay transfer tax in Montenegro?
Do foreigners pay more transfer tax in Montenegro?
Header photo: Marcin Konsek, CC BY-SA 4.0, via Wikimedia Commons. All credits: image credits.