1. Getting Temporary Residence
Foreign property buyers are able to obtain a one-year residency permit based on the ownership of a property in Montenegro regardless of its value.
The following documents are required:
1. Proof of ownership of the property (List Nepokretnosti) that is not older than 6 months.
2. Proof from the bank of a 3 650 EUR deposit into a bank in Montenegro.
3. Copies of each page of a valid passport.
4. Certificate of no criminal record from the country of origin (not older than 6 months).
5. Marriage certificate - for family members.
6. Birth certificate for children under 18 years.
7. Valid medical insurance for a period of not less than 30 days.
8. All documentation must be translated by an official translator.
9. Check if you need to get an Apostille for your documents. In case your country is not a part of The Hague Apostille Convention.
10. Also, within 24 hours of your arrival in Montenegro you need to register your arrival with the local police branch. You will need to be registered there in order to receive the permit.
* Extra notes are in the menu tab Residency
* It takes about 30 days to process all of this for a 12 month stay.
2. Getting Full Residence Permits
The current system requires that after 5 years of temporary residency a foreigner can apply for a permanent residency permission (Stalni Boravak). Permanent residency permission will then last for another 5 years and you will then receive all the rights of a Montenegrin citizen other than the right to vote. After this you will then receive your full passport and become a Montenegrin National citizen. (Državljanstvo)
Montenegro Economic Citizenship Program (MECP) also known as ‘Special investment scheme’ offers foreign and non-EU persons citizenship by admission through a designated investment.
The MECP scheme is capped to only 2000 applications and will run for a limited period of three years.
The processing time takes around 6 months.
o 100 000 EUR Donation in a Government Funds plus
o 250 000 EUR investment in approved real estate in an undeveloped area (in the north of the country), or 450 000 EUR Investment in approved real estate in a developed region (in the south of the country).
o + 7 500 EUR due diligence fee main applicant and for each other dependent 4 000 EUR
o + 10 000 EUR background check
o + 30 000 EUR Advisor and lawyer fee (notary fee is separate)
o + 40 000 EUR Government fee
There are also additional fees such as due diligence fees, notary fees, background check, advisor and lawyer fee. The amount of these fees depends on the size of the families who will submit an application.
3. Why should I invest in Montenegro?
1. Favorable tax climate (corporate tax 9%).
2. Workforce is qualified (highly educated) and wages are relatively low.
3. Strategic geographic position, with exit to the sea.
4. Easy business start-up.
5. High Tourism Demand & Excellent Climate for both summer and winter.
6. Euro is the main currency, as well as being a candidate in EU Membership.
7. Historical destination with natural beauty that is world renowned and a rich culture and history.
8. Favorable treatment of foreign investors.
9. Two international airports that fly across Europe.
10. A stable economy of growth and stable political climate which is in NATO.
4. What are the costs of maintaining residences?
All water, electricity, rubbish, phone, internet, cable TV bills can be paid in the local post office or bank. Some banks offer the possibility to automatically pay your phone or electricity bills from your bank account.
The cost ranges mainly from use, size and other factors such as efficiency of the systems in use.
5. What are other costs with living in Montenegro?
Foreign citizens in Montenegro who have received a temporary residency permit may register a purchased car in their name.
For this you need:
• Copy of certificate of registration of the vehicle (on the previous owner’s name)
• The contract of sale and purchase
• Your passport and a copy of the and the page with the residency permit.
The car has to go through the technical check and be registered.
• An IDL (International Drivers License) is valid as long as you have your own driver’s license from your country of origin and your passport otherwise you can register to get your Montenegrin Driver’s License.
Costs and taxes depend on the characteristics of your car. (Est. Between 200e – 500e for registration.)
6. What are the utilities costs?
Television: Total TV, Extra TV and BBM
Internet Costs: Note you have many options that range in price from prepaid to unlimited data packages with Cable and ADSL. Between 10e and 30e.
7. What is double taxation?
Montenegro has so far signed 44 double taxation treaties with various countries on income and property. Please do check with your embassy/consulate since this is a changing topic due to political policy changes.
44 treaties are now in force with: Albania, Austria, Azerbaijan, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria, China, Croatia, Cyprus, Czech Republic, Denmark, Egypt, Finland, France, Germany, Hungary, India, Iran, Ireland, Italy, Latvia, Kuwait, Macedonia, Malaysia, Malta, Moldova, Netherlands, Norway, Poland, Portugal, Romania, Russia, Serbia, South Korea, Slovakia, Slovenia, Sri Lanka, Sweden, Switzerland, Turkey, UAE, Ukraine and United Kingdom. (updated Feb 10th 2018)
8. Other important notes.
Foreign investors have no restrictions on buying and selling real estate in Montenegro and can do it the same way the locals do. It applies to all commercial and residential properties including plots of land.
There are a few exceptions - Plots at the first line near the Adriatic Sea and lands of national and historic importance belong to the state and can be rented only. This helps to protect the unique nature and preserve environment of the seashore of Adriatic. When an investor chooses a property, as a rule, deposit of 10% of property price is paid to secure the transaction and the investor’s solicitor prepares Draft property purchase contract. After the terms and conditions have been negotiated and the property and its ownership is checked in the cadastre, the price of property is paid in full by cash or bank transaction (if by bank then 21% VAT applies to the sum transferred by bank). When the final purchase contract is signed, the new ownership is registered in the Court.
In terms of additional costs associated with the investment property buying process the investor is responsible for legal fees paid to his/her lawyer who is supposed to prepare Draft and after Final Property Purchase contract and other related Court costs to transfer ownership and register the new owner of property. In addition to all registration fees (which is about 500 euros) the buyer pays the transfer tax of about 3% for re-sale and new build properties. The agency’s commission is between 5% + PDV = 6.05%, usually paid by the seller. The buyer does not usually pay a fee.
9. Simple basics that help sell
Here are a few things to help you sell your home and make you stand out above the rest.
1. Welcome buyers: Make your front door visible and accessible to buyers. Paint the door, clear the clutter from the entrance, maintenance the garden and make it homey and inviting. Fix broken screens, doorbells, roof tiles, shingles and outdoor lighting, and replace your doormat.
2. Clean and Sparkle: Cleanliness implies a home has been well taken care of, so deep cleaning can make the property better and put its best foot forward. Buyers scrutinize homes, especially kitchens and bathrooms. Recaulk and repaint to give these grime-prone rooms a fresh and clean look. Clean rugs and carpets to eliminate unsightly stains or dinginess and eliminate odors and use air fresheners to add a good smell to the room.
3. Clear clutter: Cramped and cluttered rooms turn buyers off and make your house look smaller. Start by using or creating storage to place away excess furniture, toys and personal decorations, such as family photos. Pack up things you don’t use on a daily basis, and put them in storage or ask a friend to hold onto them.
4. Simplicity: Remember that simple homes sell better. Things that are functional and work with the room will make the home sell better. Things that can easily be adapted or used for many types of clients will open doors for your property.
5. Simple common overlooked repairs. Draws, cupboard and room doors and also toilet seats are all things that have to be checked to see for any unnecessary movement. Remember the last thing you want is a potential buyer seeing that he might fall in the can. Also check for leaks, things that might be hanging or falling off, skewed pictures or even little bangs on the wall. Most of these things take a paint over or a simple screw in to make the place look and more importantly feel like it is been taken care off.
10. Banks & Financials
These are the websites of all the banks in Montenegro, seach for transactional costs (platni promet) and that will give your rates for transfering money.
Erste Bank: Erste
Hipotekarna bank: Hipotekarna Banka
NLB Montenegro bank: NLB
Hypo Group Alpe Adria: Hypo Alpe
Societe Generale Group: Societe Generale
Commercial bank: Commercial Bank
Universal Capital Bank: UCB
Prva Banka: Prva Banka
Zirrat Bank: Zirrat
11. Market Prices and Evaluation.
Before listing a price please let us help you understand the market, we do understand that your property is valuable and it is very important. So when it comes to pricing do a comparison of some of the similar types of homes in our location and add your markup with a degree of flexibility. Since it is a negotiation between many properties of many prices and everyone wants a deal. The home should be evaluated with location and size being first in mind as well as potential of development of the location.
12. Why you should work with The RE/MAX Collection
We also work with RE/MAX and list all types of properties but only the ones that have that something special qualifies for the collection.
Only the most exceptional properties qualify for status in The RE/MAX Collection properties that reflect a desire for luxury, quality, character and beauty. Just as the properties presented in The RE/MAX Collection stand above the rest, so does the RE/MAX sales force.
No one is suited better for your needs. Whether it's marketing real estate to a global clientele or helping you find that perfect place you have been dreaming of your whole life, the outstanding agents behind The RE/MAX Collection deliver outstanding results and leave you feeling you had come to the right place.