Montenegro property tax for foreigners: a banded transfer tax, a municipal annual tax, a flat rate on rent.
// Short answer
A foreign owner in Montenegro meets tax at four points. On a resale purchase: transfer tax of 3% to 6% by band. Every year: real estate tax of 0.25% to 1% of market value, set by the municipality and higher on a second home. On rent and on a gain: 15% according to PwC, though a government page still shows 9%.
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 tax do you pay when buying property in Montenegro?
Real estate transfer tax on a resale, paid by the buyer: 3% up to €150,000; €4,500 plus 5% of the part from €150,000 to €500,000; €22,000 plus 6% above €500,000. These bands apply from 1 January 2024. A new build carrying VAT is outside transfer tax.
The buyer files the return within 15 days of the contract and pays on filing. Foreign and domestic buyers are treated equally. The first-home exemption is limited to Montenegrin citizens domiciled in Montenegro. All costs: Montenegro property buying costs.
Sources
What is the annual property tax in Montenegro?
Real estate tax at 0.25% to 1.00% of the property's market value, on land, buildings and separate units such as apartments. Each municipality sets its own rate within that band. The municipality issues the tax decision by 30 April, and tax is paid in two instalments, on 30 June and 31 October.
A new owner must file a return with the local tax authority within 30 days of acquiring the property. One agency reports coastal municipalities such as Budva and Kotor at or near the 1% top of the band; check the municipal decision for the exact rate before you rely on any town's figure.
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Is a second home taxed more in Montenegro?
It can be. A municipality may set a higher rate on a secondary residential building or apartment, increased by up to 150%. A home counts as secondary if it is not the owner's domicile or permanent residence. It is not secondary if it is the owner's only home in Montenegro.
A home owned by a company always counts as secondary. The consolidated law text read for this page dates from 2016, so later amendments were not checked.
How is rental income taxed for a non-resident in Montenegro?
Non-residents are taxed only on Montenegrin-source income. PwC, reviewed August 2026, puts rental income in the other-income category taxed at a flat 15%. The government's own explainer page still states 9%, the pre-reform figure, so confirm the rate before relying on it.
- Tax base: rent less documented costs, or standard deductions of 30% for ordinary leases and 50% to 70% for property let for tourism.
- Collection: withheld by a payer that is a withholding agent, such as a company tenant; otherwise through the annual return, due by the end of April for the previous year.
- Surtax: PwC lists a municipal surtax on personal income tax; how it applies to a non-resident's rent was not confirmed.
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What is capital gains tax on Montenegro property?
PwC gives 15% on the difference between the sale price and the acquisition price. Exempt: the taxpayer's only and main residence, transfers between spouses on marriage, divorce or inheritance, and gifts to first-degree relatives. The same rate conflict with the government's 9% page applies.
Step by step: selling property in Montenegro as a foreigner.
What is tourist tax in Montenegro?
A per-person, per-night tax set by each municipality within a statutory range of €0.10 to €1.00. The accommodation provider collects it. For household accommodation it can be charged as an annual flat amount, based on beds, the resort's category and an assumed 45 days of full occupancy.
Some consumer guides quote higher figures; no amending law raising the €1.00 cap was found.
Sources
// Buying in Montenegro?
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See the $499 report, page by pageFrequently Asked Questions
How much is property tax in Montenegro?
Is my Montenegro apartment a second home for tax?
What is the tax rate on rent in Montenegro?
When is Montenegro property tax paid?
Do foreigners get the first-home transfer tax exemption?
Header photo: T.Abdullayev (aka Ea…, CC BY-SA 3.0, via Wikimedia Commons. All credits: image credits.