How to buy a land plot in Montenegro for a foreigner: features, stages and tips

How to buy a land plot in Montenegro for a foreigner: features, stages and tips

Montenegro is a country with a mild climate, picturesque nature and growing interest from foreign investors. One of the most popular types of investments is the purchase of a land plot. But how exactly can a foreigner buy land in Montenegro and what is important to pay attention to in this process? Below is a detailed overview.

Is it possible for a foreigner to buy land in Montenegro

Yes, foreign citizens can purchase land in Montenegro, but with some restrictions. The basic principle is that foreign individuals have the right to buy land plots that are located within the urbanizovana zona (urbanizovana zona), that is, they are intended for construction.

Agricultural land, as well as land outside the development plan, are not available for direct purchase by individuals who are not residents of Montenegro. However, there is a possible workaround — registration of a legal entity in the country. Such a company can freely buy both agricultural land and land outside urban boundaries.

Stages of land purchase

1. Search for a suitable site
   You can use the services of real estate agencies that work with foreign buyers, or you can search for offers yourself on local platforms. It is important to immediately clarify the status of the land — whether it is included in the development plan.
2. Document verification
   Before signing the contract, the lawyer or agent must verify:

• does the site correspond to the urban development plan;
• who is the owner;
• are there restrictions or encumbrances;
• is there access to the road and utilities;
• is it possible to issue a building permit?

1. Conclusion of a purchase and sale agreement
   The contract is drawn up by a notary, with a translation into a language understandable to the buyer. A foreigner will need a passport and an identification number, which is issued by the Tax Service of Montenegro. Signing the contract requires personal presence, but you can issue a power of attorney for a representative.
2. Payment and registration
   After signing the contract, payment is made. Next, the notary submits the documents to the cadastral service (Uprava za nekretnine), and the ownership right is registered with the buyer. Registration takes from a few days to several weeks.

Additional expenses

• The tax on transfer of ownership is 3 percent of the cadastral value for a land plot of up to 150,000 euros, over 15,000 euros the tax is 4,500 euros + 5% of the amount, above 15,000 euros, over 500,001 euros the tax is 22,000 euros +6% of the amount over 500,001 euros;
• Notary services — from 150 euros and above, depending on the amount of the transaction;
• Translation of documents — from 20 euros;
• Agency commission (if any) — 3-5 percent;
• Registration in the cadastre is a small state fee.

Advantages of buying land in Montenegro

• The possibility of building a villa or a house by the sea;
• The rising cost of real estate;
• Moderate taxes and a transparent registration system;
• The possibility of obtaining a residence permit when registering a business and buying real estate;
• Potential for rental or resale income.

What is important to remember

• Be sure to check the status of the land. Construction on a site outside the urban area is not possible.
• Do not trust the seller's verbal promises — request written confirmations and legal verification.
• Do not forget about the landscape, accessibility of utilities, water supply, roads, etc. This can significantly affect the cost of construction.

Conclusion

Buying a land plot in Montenegro is a real and understandable process for foreigners. The main thing is to act through trusted specialists, carefully check the legal purity of the site and take into account the zoning plan. Given the steady growth of the real estate market and the attractiveness of the country, such an investment can become both the basis for housing construction and a promising asset for long-term investments.