The selling and buying of properties are without restriction in Montenegro and is regulated by law and legally secure. Ownership is guaranteed and in that respect there are no specific limitations. The only exceptions being public property, i.e. streets, squares and public objects of special importance etc of which the sale and purchase is not permitted.

The legal procedure is as follows:

• The buying process for foreigners is the same as for Montenegrins, with no restrictions on buying private property.
• The Law on Foreign Investments of Montenegro (the Law) defines Corporative Investing as a right of a foreign legal entity or natural person to establish various types of companies (General Partnership, Limited Partnership, Limited Liability Company or a Joint Stock Company) in Montenegro. The foreign investor may, either alone or together with other foreign or domestic investors, form an enterprise or purchase shares of or interests in an existing enterprise.
• After agreeing a purchase price with the seller a 10% – 20% deposit is usually standard.
• A contract is then drawn up and signed by both parties. A purchase tax of around 3% of the property value is paid. Factor in the cost of an interpreter and document translation, and be aware that lawyers can act for both parties though this can be arranged differently if you prefer. The whole process can take up to two months.
• No Mortgages available in Montenegro, however mortgages are beginning to become available from 50% to 70% loan ¬to-value.
• Registering a property can be completed within a couple of days at the Land Registry office, in a fairly straight forward process with little potential trouble.

Costs of a standard property purchase in Montenegro include the following:

• Legal fees amount to around 1% of property purchases.
• No Inheritance Tax. Property purchase tax is 3%, but not applicable if you buy off plan and is the first registered owner of the property.
• Capital gains realized by selling securities held in the taxpayer portfolio for more than two years shall not be subject to the tax.

Once the agreed amount of money has exchanged hands the purchase is now complete.