Property taxes in Montenegro: what do owners need to know?

Property taxes and utility expenses in Montenegro

All property owners in Montenegro are required to pay taxes annually, which is part of the taxation system in this country. The main tax to consider is the property tax. Its rate ranges from0.25%to1%from the assessed value of the property. However, for certain categories, such as hotels in tourist areas, the tax rate can reach5%Every year, local authorities review the assessed value of this property untilApril 30After that, notifications about tax assessments are sent to the property owners. If there is a change in the assessed value of the property during the year, it also affects the amount of tax.

The specific amount of the mandatory payment is determined by various factors, including:

• property type;
• her condition;
• year of construction;
• distance to the sea.

It should also be noted that citizens of Montenegro pay less tax than foreigners who have residence permits or long-term visas.

Stages of tax payment

The tax payment occurs in two stages. The first part must be paid byJune 30.and the second one — untilOctober 31After receiving a notification from the tax service, which indicates the value of your property, you can make the payment. If the tax amount is small, property owners have the right to pay it in a single payment.

Tax benefits

In Montenegro, certain tax benefits are provided. If the property is used as a primary residence, the tax may be reduced by20%Additionally, if there are several family members living in the house, the tax can be further reduced for each additional person.10%but in general, the maximum benefit should not exceed50%from the initial amount of tax.

Tourist tax

In addition to property tax, owners of secondary homes in tourist areas are required to pay a tourist tax. This rule applies to both locals and foreigners. For owners who do not rent out their properties, municipalities set the rate according to the following formula:

• s/15 m² × 45 × n × 0.5,

where:

• s is the total area of the object;
• 15 m² is the basic unit of measurement;
• 45 is the number of days in the tourist season.
• n — the rental cost per day, which can vary from €0.5 to €1;
• 0.5 - occupancy rate.

It should be noted that the rates of this tax vary in different regions, and the deadlines for its payment are approaching.September 30.

Investments in real estate in Montenegro

If you are planning to invest in real estate in Montenegro, it is crucial to consult professional real estate agents to assess the tax implications for specific properties. Specialized platforms offer a comprehensive database of Montenegrin agencies ready to answer any of your questions in Russian.

Example of affordable real estate

Let's consider an example of real estate available for purchase in Montenegro: a luxurious villa priced at1,700,000 €located in Budva. The living area is663 m²and includes6 rooms,4 bedroomsand5 bathroomsThis is an excellent house with a pool and stunning panoramic sea views — the perfect offer for those looking for a comfortable and peaceful getaway by the coast.

In this house, you will find a spacious living room on the first level, equipped with a professional billiard table, as well as a cozy wine room, a comfortable office, a bathroom, and useful technical rooms. On the second level, there is a second spacious living room that includes a fireplace, as well as a kitchen area combined with a dining room. There is also a bedroom with an en-suite bathroom, complemented by a storage room. This house is located in the city of Bar, situated in Montenegro, and is valued at400,000 euros, with a total area of250 square metersThe plot on which this house is located is1300 square meters.

The layout and features of the house

As for the architectural plan, there is a utility room on the first floor with an area of30 square metersThe second floor occupies an area110 square metersIt includes a kitchen-dining room with a fireplace designed in traditional Italian style, three cozy bedrooms, a bathroom, and a terrace that offers a charming sea view. On the outside, there is a staircase attached to the building that leads to the third floor.

On the third floor, also in110 square metersThe spacious area features a large living room with a bar and additional rooms for relaxation and entertainment.

Offers from the company Tradegoria

Our company Tradegoria offers you a unique opportunity to purchase a plot of land in Djenovici, Montenegro, priced at140,000 euros, with an area of830 square metersThis place allows for the construction of a facility with a total area of up to700 square meters...and you can reach the sea in just400 meters.

• Plot in Djenovici:
  • Price:140,000 euros
  • Area:830 square meters
  • Possible building area: up to700 square meters
  • Distance to the sea:400 meters

Apartments in Bečići

Additionally, we are pleased to present to you apartments in Bečići, which can be purchased for153,236 eurosWhen purchasing these apartments, you are guaranteed a magnificent view of the mountains or the sea, as the complex is situated on a hill in a picturesque area with clean air. The building features a rooftop pool with a panoramic view of the sea, as well as a gym for residents.

House in Bigovo

Next in our offer is a house in Bigovo, Montenegro, with a price440,000 eurosand a total area260 square metersThis property is located on the first line of the beach and offers a magnificent view of the sea, just a short distance away.200 metersfrom the beach. Inside this house, there are all modern amenities, including a fireplace installation, five bedrooms, and four bathrooms, and the lot size is400 square meters.

Land plot in Cetinje

We also have a land plot available in Cetinje, Montenegro, with an area of3860 square meters, which is sold for965,000 eurosThis area is located in Lovćen National Park and includes the ruins of an old building covering an area of60 square meters, registered in official documents. This area also has access to electricity and a water source.

Luxury apartments in Budva

In conclusion, luxurious apartments with a total area were presented in Budva, Montenegro.47 square meters, at a cost of203,646 eurosThese apartments are located in the very center of Budva and represent modern residential complexes designed with all the nuances of architecture and design in mind. They feature comfortable living areas and include a reception, as well as furniture created through custom projects in collaboration with a renowned design company.

Spacious apartment in Bečići

In Montenegro, there is an interesting offer on the real estate market — an apartment in Bečići that combines spaciousness with a high level of comfort. For the price of 186,000 euros, you will have the opportunity to become the owner of a 60-square-meter apartment in the complex.“Waterfall Residence”This is a unique opportunity for those who intend to make a deal remotely and obtain a residence permit.

The apartment is located on the third floor and features a spacious terrace that stretches across its entire width, providing the opportunity to enjoy privacy and picturesque views of the eastern side.

New house in Bar

Next, the companySmart & Rich MontenegroWe offer you a new three-level house in the city of Bar for 550,000 euros. The total area of this magnificent property is 326 square meters, while the plot it is situated on measures 498 square meters.

Currently, the installation of furniture in the house is nearing completion, parking spaces are provided, and there is a spacious roof with a panoramic view of the surrounding landscapes.

The interior space includes:

• A comfortable living room with a kitchen area;
• Sanitary unit;
• Utility room on the first floor.

The second floor features large panoramic windows with roller shutters and UV protection.

Cozy apartment in Budva

If you're looking for something smaller and cozier, an apartment in Budva priced at 159,000 euros might be a good fit for you. This property has an area of 57 square meters and includes one bedroom, as well as a fairly spacious living room.

Given the possibility of an online viewing and completing the transaction remotely, this offer will undoubtedly attract the attention of many buyers.

The apartment is located in an area with convenient transportation access, where the following are within walking distance:

• Supermarkets;
• Cafe;
• The old town of the capital, which can be reached in ten minutes.

Luxury apartments

In Budva, luxurious apartments are also available for the price of 590,000 euros. These apartments have an area of 84 square meters and are located just 150 meters from the sea.

The building offers the following services:

• Receptions;
• Restaurant;
• Cafe.

This makes them ideal for the rental business due to daily maintenance.

Land plots in Herceg Novi

Although many are looking for housing, it's worth paying attention to land plots as well. In Herceg Novi, two plots of 3,835 square meters are available. They are located in a picturesque mountain village.StoneThis makes it an ideal location for building an eco-hotel or a farm.

The plots have easy access from the road and are sold only as a set.

Apartments in Baošići

For those planning to spend their vacation by the sea, it's worth considering apartments in Baošići. The spacious accommodation, covering 56 square meters, is just 40 meters from the sea and is being sold for 135,000 euros.

The apartment is fully furnished and includes:

• Kitchen area;
• A large glass-enclosed terrace;
• Separate toilets.

This is a great choice for those looking for comfortable accommodation on the coast of Montenegro.

A unique piece of land in Montenegro

Antarex presents for sale an exceptional plot of land in the picturesque area of Montenegro, in Sutomore. The area of this beautiful location is 1273 square meters, and its price is set at 100,000 euros.

The plot is surrounded by greenery, creating an atmosphere of privacy and tranquility, while also offering a stunning view of the sea. The land is located on a hillside, which adds to the appeal of this place.

In close proximity, you can find the Hai-Nihai fortress, and the site itself directly borders the road, providing convenient access. All necessary utilities, including electricity, are nearby.

The site is divided into two terraces, which allows for the most efficient use of space. Additionally, there is a ready project for the construction of two houses, one of which will be larger, providing future owners with excellent living opportunities.

Elite villa Tradegoria Global Estate

The property known as Tradegoria Global Estate is on the market for €2,950,000. This magnificent villa, located in Bečići, covers an area of 576 square meters and offers the possibility of obtaining a residence permit upon purchase.

The villa includes:

• 25 apartments
• 4 bedrooms
• A spacious rooftop terrace for relaxation and enjoying the views.

The interior is designed according to a custom project, which gives the space a unique style, and the property is fully ready for occupancy at any moment.

Cottage in Bečići

A cottage is also available in Bečići, priced at 1,500,000 euros. The total area of this house is 178 square meters, which also provides the opportunity to obtain a residence permit.

This cottage is located in the upscale Dukley Gardens complex and offers its owners:

• A spacious living room with an amazing view of the sea.
• 2 cozy bedrooms
• 3 bathrooms

Designer furniture and appliances from leading manufacturers have been used in the finishing, and the "smart home" system makes life here comfortable and modern. Located on the first line of the sea and having three private beaches, this complex becomes a true gem of Montenegro.

Apartment in Budva

Tradegoria Global Estate also offers a stylish apartment in Budva, which is for sale for €169,900. This property features a stunning mountain view, covers 73 square meters, and is located on the 10th floor of a modern residential building.

The apartment consists of:

• 2 bedrooms
• Complete furnishing with new furniture
• 2 modern bathrooms

This creates an atmosphere of coziness and comfort for the residents.

Elite apartments in Tivat

Elite apartments are also available in Tivat, with a total area of 190 square meters, priced at 1,330,000 euros.

Studio in Herceg Novi

Sotheby’s Montenegro offers buyers a compact studio in picturesque Herceg Novi, priced at 124,000 euros. The studio covers an area of 43 square meters and is located just 100 meters from the sea, making it an ideal place to live.

All amenities, including:

• Terrace
• Elevator
• Parking

The enclosed area of this complex offers amenities such as video surveillance and security, a swimming pool, and a children's playground.

Three-story villa in Kotor

Finally, Peters Group Real Estate is launching a three-story villa in Kotor onto the market, priced at 895,000 euros. The villa has an area of 310 square meters, and its location in the village of Kavac offers a unique panoramic view of the Bay of Kotor.

This property is just 5 minutes from Kotor and 10 minutes from Tivat, creating excellent investment opportunities. The villa is spacious and offers three floors, providing plenty of options for living and relaxation.

Electricity expenses in Montenegro

In Montenegro, electricity costs are quite moderate compared to other European countries. The price that residents pay for electricity depends on the chosen tariff system and the amount of kilowatt-hours consumed, which is recorded by the meter.

Calculation of waste disposal tariffs

In Montenegro, the calculation of waste disposal costs is done using a simple formula: €0.06 multiplied by s, where s is the area of your living space. For residents of multi-story buildings, the average monthly cost of waste disposal is about €10, while homeowners pay around €20 per month.

Utility communication services

As for communication, the subscription fee for a phone is set at around €18 per month. Internet services are billed in the range of €20-30, while satellite television costs about €10, and cable television will set you back between €15 and €20 per month.

Creation of a homeowners' association

In addition, according to local regulations, all apartment buildings with more than three units are required to establish a homeowners' association (HOA) and register it as a legal entity. The main task of this organization is to maintain the proper condition and protect the surrounding area, as well as to carry out timely repairs of common property and landscaping.

The minimum contribution to the homeowners' association is €0.2 per square meter per month for old buildings, while for new residential complexes, the rates can reach €1.5-2.5 per square meter. In the most luxurious residential complexes, this amount can increase to €30-40.

Real estate insurance

It is important to emphasize that property insurance in Montenegro is not a mandatory procedure. To arrange insurance, you need to provide a passport and documents confirming ownership. The insurance payment is determined based on an annual rate of about €1-2 per square meter.

Payment of utility bills

As for utilities, the bills are sent to your mailing address in Montenegro. You can pay these bills at any bank or post office, as well as at the offices of the providers responsible for water and electricity services. Additionally, there is the option to pay for services online using the websites of the respective companies. Many banks offer internet banking and the possibility of automatic deductions from your account.

Examples of utility expenses

When analyzing utility expenses for various real estate properties, the following examples can be considered:

• For an apartment with an area of 45 square meters in a new residential complex in Budva, where one person lives, the annual expenses will be around €2,650.
• In the case of a business-class apartment with a large area in Bečići, where three people live, annual expenses can reach €7,860.

This includes taxes, tourist fees, expenses for water, electricity, internet and television, waste disposal, and maintenance of common property.

Housing rental

As for the rental market,annual net profitThe rental yield for real estate in Montenegro ranges from 3.5% to 6.5%, according to data from local management companies. Of course, during the high season, long-term rental rates increase, but from September to May, you can find quite attractive rental offers for housing.

Renting accommodation in Montenegro

In cities like Bar and Podgorica, you can find cozy one or two-bedroom apartments for rent at around €400 per month. In Budva, the starting rental price for two-bedroom apartments is from €600. It's important to note that tenants do not have to pay annual or tourist taxes – these financial obligations remain with the property owners. However, all other utility and maintenance costs are the responsibility of the tenants.

Taxation of rental income

In Montenegro, there is a fixed tax on rental income, which is 15% of 70% of the total revenue. The remaining 30% of the income does not require declaration. To ensure proper tax payment, it is necessary to submit a tax declaration before the beginning of spring of the following year, and the tax itself must be paid by March 31. It is also worth noting that to organize short-term rentals, a special permit must be obtained, the validity of which may vary depending on the type of property and is issued after the categorization procedure.

Real estate management

Owners who do not live permanently in Montenegro or prefer not to manage their properties can turn to management companies. These firms are ready to take on all aspects of servicing rental properties. Such companies handle a variety of issues:

• Payment for utilities and cleaning.
• Ensuring the security of the facility.
• Searching for tenants and monitoring the condition of the property.
• Maintenance of the surrounding area.

Furthermore, it should be noted that most property management companies charge a fee only in the case of a successful rental. If the property is not rented out, the owner does not incur any additional expenses. However, the percentage charged for services can reach 20-30% of rental income. Specialists from these companies regularly provide owners with reports on occupancy rates, the condition of the properties, and inform them about important mail and any issues that arise.

Real estate market

Studying the real estate market in Montenegro, one can notice that by the end of 2023, the average price for new buildings reached €1,790 per square meter, which is 28% higher compared to the previous year. The highest prices are observed in coastal areas, where the cost can range from €2,000 to €3,000 per square meter. In elite residential complexes in Montenegro, prices can reach an impressive €10,000 per square meter.

The economy of life in Montenegro

When it comes to living expenses, they are significantly lower in Montenegro than in most European countries. In 2024, the average salary before taxes was €1,026, and after all taxes were paid, it was about €820. Considering the availability of one's own housing, such an income is usually sufficient for a comfortable life in this country.

Conclusion

Thus, for foreign citizens considering the possibility of moving to Montenegro, renting housing appears quite affordable, and the tax system is rather optimal. This creates attractive conditions for both living and investing in real estate, especially in resort areas, which leads to an increase in interest in housing in the country. Comparative assessments of property prices also confirm that the Montenegrin market stands out for its affordability and variety of options for buyers.

Conclusion

In conclusion, property management in Montenegro is an exciting and promising process that requires a careful approach and understanding of local legislation. I have shared the key aspects, such as property taxes and utility payments, which are mandatory for all owners. It is important to remember that the tax burden can vary depending on the type of property and its location, which should be taken into account when planning your finances.

As Montenegro continues to attract the attention of investors and tourists, the real estate market here shows significant growth potential. Proper management of assets, including the division of tax payments and the use of tax benefits, can significantly reduce the financial burden. Additionally, renting out property is a great way to generate extra income, making this country particularly appealing to foreign buyers.

Recommendations

• Contact professional realtors.for a more accurate calculation of tax obligations and to receive advice on optimizing expenses.
• Consider the multitude of successful investment examples that show that the right choice of location and property can lead to high returns.

It is quite interesting that Montenegro is not only a beautiful place to live but also a strategic investment opportunity. Every year, the number of people considering the possibility of purchasing real estate here is increasing, which confirms the stability and attractiveness of this region.

Result

In conclusion, I want to emphasizethe importance of understanding all the nuances when buying and operating real estate in Montenegrofor creating a secure financial future.