Are there any taxes to pay?

The most important is purchase tax, which is 3% of the value of your property – valued by the tax office regardless of the purchase price on the contract. Purchase tax is payable as soon as the main contract is signed. It is recommended that you pay the tax immediately as interest rates will charged for every day of delay. In some cases purchase tax is not payable for off plan developments but make sure that you check with the lawyer if this law applies for the property you are buying.

Once you are the registered owner of the property you will need to pay an annual property tax. The amount depends on the size and location of the property – for example, the tax for a two bedroom apartment would be approximately three to four hundred euros per year. In addition to the annual property tax, property owners are also obliged to pay Tourist Tax as well. You will receive the bill in your mail usually in the Spring. It can be paid in the Tax Office (Poreska Uprava).

Income tax would also be levied on any rental income. For more information please contact info@montenegroprospects.com