Guide to Real Estate Costs in Montenegro (2026): For Investors and Buyers

In this report, we have gathered all the important information about how much buying and owning real estate in Montenegro actually costs. We have examined in detail both the one-time costs of purchase and the annual expenses — taxes, maintenance, possible payments when renting out.

We paid special attention to the new rules that came into force on January 1, 2024: a progressive property transfer tax is now in effect, and this is important to take into account in advance. Notary expenses were recalculated in October 2026 according to the new Notary Tariff ("Sl. list CG" 49/2026), which has been in force since April 9, 2026. Our guide to real estate expenses will help you avoid unexpected surprises and plan your budget wisely.

Guide to One-Time Purchase Expenses

In this section, we examine in detail all the taxes, fees, and commissions that must be paid when buying real estate. Knowing about these expenses in advance, you will be able to accurately calculate how much money will be needed at the start.

Property Transfer Tax (Porez na promet nepokretnosti)

The flat tax rate of 3% on the secondary real estate market is a thing of the past for most transactions. Since January 1, 2024, a progressive taxation system has been in effect in Montenegro, which applies when buying properties on the secondary market. The new structure looks as follows:

• For a property value up to 150,000 euros: the rate is 3%. Example calculation for a specific value: a property for 120 000 €: 120 000×0.03=3 600 €.
• For a value from 150,001 euros to 500,000 euros: the tax is calculated as a fixed amount of 4,500 euros plus 5% of the amount exceeding 150 000 euros. Example calculation for a specific value: a property for 200,000 €: 4 500+(200 000−150 000)×0.05=7 000 €.
• For a value above 500,001 euros: the tax is a fixed amount of 22 000 euros plus 6% of the amount exceeding 500 000 euros. Example calculation for a specific value: a property for 600 000 €: 22 000+(600 000−500 000)×0.06=28 000 €.

The tax base is the assessed value of the property, which is determined by the municipal tax service. This service compares the price stated in the contract with market prices for similar properties in the given area in order to prevent undervaluation.

After the transaction is concluded, the buyer receives an official notice of the need to pay the tax, which must be paid within the established deadline (usually from 15 to 30 days) in order to avoid accrual of penalties.

Primary and Secondary Market: What Is the Difference

When buying a new property directly from a developer who is a VAT (PDV) payer, the buyer is exempt from paying the property transfer tax. The reason is that the price of such real estate already includes VAT of 21%, which the developer transfers to the state.

Let us consider a property worth 250,000 euros.

1. On the secondary market the property transfer tax will be 4 500 € + 5% of (250 000 € - 150 000 €) = 4 500 € + 5 000 € = 9,500 euros.
2. On the primary market (when buying from a VAT-paying developer) this tax is 0 euros.

Thus, a price advantage of 9 500 euros arises in favor of a new build, which is equivalent to 3.8% of the property value. For any real estate more expensive than 150 000 euros the price difference between a new and an equivalent secondary property is reduced by the amount of the saved tax. This makes new builds more attractive from the point of view of acquisition costs alone.

Notary and Legal Fees

Notary services in Montenegro are paid according to the state tariff — the Notary Tariff ("Sl. list CG" 49/2026). It has been in force since April 9, 2026 and replaced the 2012 tariff. The tariff is mandatory and the same for all notaries: discounts and surcharges by agreement are prohibited. The fee for a purchase and sale agreement depends on the value of the property:

In addition to the tariff:

• filing an application with the cadastre through a notary — 15 € (usually it is the notary who files the application);
• each party to the transaction beyond two — +5% of the tariff: if, for example, spouses are buying, there are already three parties;
• participation of a court interpreter — +15 € for each;
• 21% VAT is charged on the entire amount, including surcharges.

The tariff itself cannot exceed 8,000 € excluding VAT. For example, a transaction for 250,000 € with one seller and one buyer will cost 740.52 € at the notary: tariff 597 €, cadastre application 15 €, and VAT. Notary expenses constitute an insignificant share of the total acquisition costs — usually 0.2–0.6% of the property value. If the price in the contract is below market value, the notary has the right to calculate based on the market value.

Detailed real estate market analytics: where it is more profitable to buy →

Other Related Expenses: Translators and Agency Commissions

Licensed Court Interpreter

Since all legal documents are drawn up in the Montenegrin language, for foreign buyers who do not speak the language, the presence of a licensed court interpreter at the transaction is mandatory.

• Oral interpretation (at the notary): standard rate of 50 euros per hour.
• Notary surcharge: for the interpreter's participation in the transaction, the notary adds 15 € to his tariff (plus VAT). The interpreter's own fee is paid to him directly.
• Written translation (of the purchase and sale agreement): 15–20 euros per page (1 200 printed characters). A standard contract of 8–10 pages will cost 120–200 euros.

Real Estate Agency Commission

There is some ambiguity on this issue that requires attention.

In most cases, the commission to the agency is paid by the seller. Its amount is 5% of the sale price. Thus, for the buyer, the realtor's services are free of charge. This rule applies to both the primary and secondary markets.

Exceptions: when buying on the secondary market, the commission to some agencies may be paid by the buyer, or it is split between the parties. This discrepancy highlights the importance of clarifying the commission structure with the agent in advance in order to avoid unexpected expenses at closing.

Guide to buying real estate in Montenegro: a step-by-step instruction with examples and cases →

Annual Ownership Expenses

In this section you will find a guide to the regular expenses associated with owning real estate, which will allow you to create a realistic annual budget for its maintenance.

Annual Property Tax (Godišnji porez na nepokretnost)

All property owners in Montenegro, both residents and foreigners, are obliged to pay an annual property tax. The tax rate is set by the local municipality (opština) and varies in the range from 0.25% to 1.0% of the market value of the property.

The size of the rate is influenced by several factors: location (in popular tourist areas such as Budva and Kotor, rates are higher), type of property, its age and condition. For example, for an apartment worth 100,000 euros, the annual tax may range from 200 to 350 euros. The tax is paid in two equal installments, as a rule, by June 30 and October 31.

Tourist Tax for Property Owners (Turistička taksa)

It is necessary to clearly distinguish between two types of fees that are often confused:

1. Boravišna taksa (Tourist registration fee) — this is a daily fee of 1 euro per person, which all tourists pay for staying in the country. Property owners themselves who live in their own property are exempt from this fee.
2. Turistička taksa (Annual tax for owners) — this is a separate annual tax levied on foreign owners of "second homes" (i.e., resort real estate) located in officially recognized tourist zones. It is calculated according to a special formula that takes into account the area of the property and local coefficients, and is paid together with the annual property tax. It is often estimated at 10–15% of the annual property tax, but this is a simplification: the calculation formula is more complex.

Cost of Utility Bills (Komunalije)

Electricity

Montenegro has a two-tariff metering system.

• Day tariff (Viša tarifa - VT): Applies from 07:00 to 23:00. The cost is about 0.09 euros per kWh (excluding VAT).
• Night/discounted tariff (Niža tarifa - NT): Applies from 23:00 to 07:00, as well as on weekends. The cost is about 0.05 euros per kWh (excluding VAT).
• Average bill: Varies greatly depending on the season and consumption. Average monthly bills for households range from 29 euros in the off-season to more than 40 euros in the summer months. A family in an 80 m² apartment can expect monthly expenses of 30–100 euros.

Water Supply and Sewerage

Tariffs depend greatly on the municipality.

• Municipality of Budva: The cost ranges from 1.60 to 2.70 euros per cubic meter (m³).
• General range across the country: In other regions, tariffs may vary from 0.30 to 1.20 euros per m³.
• Average bill: A typical family spends 15–20 euros per month.

Garbage Collection (Odvoz smeća)

• For an apartment: 5–10 euros per month.
• For a private house: 10–12 euros per month. In some municipalities, the calculation is based on area, for example, 0.06 euros/m².

Heating and Gas

Central heating and gas supply are practically absent. Heating is, as a rule, electric (air conditioners, heaters), which significantly increases electricity bills in winter. Gas for cooking is used in cylinders. The initial cost of a cylinder is about 60 euros, and refilling it (exchange) is 12–15 euros.

Internet, Communications, and Television

The cost of communication services in Montenegro is competitive.

• Home internet: basic packages cost 15–25 euros per month. A high-speed fiber optic connection can cost up to 25–50 euros.
• Mobile internet: tourist SIM cards offer large data packages, for example, 500 GB for 10–15 euros.
• Cable/satellite TV: 10–20 euros per month depending on the chosen channel package.

Maintenance, Management, and Upkeep

Management company fees (for residential complexes):

• Standard buildings: 10–25 euros per month per apartment for basic services (cleaning of the entrance hall, maintenance of common areas).
• Modern/luxury complexes: payment is often calculated per square meter and ranges from 0.50 to 4.50 euros/m² per month. For an apartment of 60 m², this may amount to 30 to 270 euros per month. These fees cover landscaping, pool maintenance, security, etc.

Maintenance of a private house:

• Septic tank cleaning: For houses not connected to the central sewer system, the cost of the service is 50–200 euros per call. The procedure is required once or twice a year.

Property insurance: this is an often overlooked but rather important expense item. Although insurance in Montenegro is not mandatory.

Basic insurance can cost as little as 24 euros per year, while more comprehensive packages with coverage, for example, against earthquakes — about 135–150 euros for an ordinary apartment. Sometimes the cost is calculated by area and ranges from 0.52 to 1.98 euros per square meter per year — it all depends on the level of protection. But it is important to carefully study the terms of the policy: often the payout amount under an insurance policy actually turns out to be too modest and does not cover real losses.

Read a detailed article about the cost of living in Montenegro →

Total: Real Estate Expenses

Generating Income: Taxes on Income from Rental Property

Taxes on income from renting out real estate for individuals were recently changed. Previously, a flat rate of 9% was in effect. The new standard income tax rate is 15%, and it applies, among other things, to income from rent.

The tax calculation process looks as follows:

1. Gross annual rental income: for example, 500 euros/month × 12 months = 6,000 euros.
2. Standard deduction: the legislation may provide for a standard deduction for depreciation and expenses (for example, 30%), which reduces the taxable base. Taxable base = 6 000 euros × 70% = 4 200 euros.
3. Amount of tax payable: 15% of 4 200 euros = 630 euros.

The tax return for the previous year must be submitted to the tax authorities at the location of the property by April 30 of the current year. The transition from 9% to 15% represents a significant increase in the tax burden on landlords. This change, combined with rising real estate prices and purchase taxes, should be taken into account in any calculations of the return on investment in rental real estate.

For owners who plan to rent out their property but do not have the ability or desire to do it themselves, the optimal solution is transferring the property to the management of a professional agency. Such a full-cycle service, as a rule, includes searching for and communicating with tenants, organizing check-in and check-out, monitoring the condition of the property, timely payment of all utility bills, taxes, and resolving any current issues.

For this comprehensive service, which frees the owner from all worries, management companies usually charge a commission of about 20% of the rent. Our company MD Realty provides property management services on precisely such terms, which are standard for the market.

Conclusion

The analysis shows that the financial picture of the real estate market in Montenegro has changed noticeably. A progressive property transfer tax has been introduced, and the income tax rate on rent has increased. These steps indicate that the market is becoming more mature, and the state is striving to receive more revenue from the real estate sector.

At the same time, despite rising expenses, the cost of buying and owning real estate in Montenegro still remains attractive compared to other European countries. The main thing is to approach the process with a well-thought-out financial plan that takes into account all possible costs.

Here is what potential buyers should take into account:

1. Conduct a thorough due diligence of all aspects of the property and all associated payments before making a purchase decision.
2. Calculate expenses separately for the primary and secondary markets. Buying a new build from a developer who is a VAT payer can provide tangible tax savings.
3. Set aside 5–10% on top in the budget — especially when buying expensive real estate on the secondary market. These funds will cover all associated expenses in order to avoid unexpected costs.
4. Engage experienced lawyers and realtors in order to conduct the transaction properly and make sure that all expenses are transparent and justified.

If you still have questions, contact us, and we will provide a free consultation.