Hailed as the new ‘Monte Carlo’ on the Adriatic, Montenegro has come to the attention of International property investment in the last 2 years making it one of the
Worlds top property hotspots.  This forgotten gem in the Adriatic emerged in 2006 as one of  Europe’s newest  independent countries, catapulting it onto the world’s stage and making it the fastest  growing tourist destination in the world coupled with the fastest growing real estate prices.    

With a spectacular coastline dotted with ancient Venetian towns, the famous UNESCO protected Boka Bay, warm climate, beautiful beaches and friendly people it was only a matter of time before it was rediscovered since the 1980’s when it was part of the former Yugoslavia.    With cheap property for sale at a fraction of what prices were in neighbouring Croatia, and an abundance of first line position properties and land it made an ideal investment opportunity and brought a rush of buyers.

2007 saw the opening of Montenegro’s first five star hotel with many more planned along the coast and in the bay.    With work now underway on Peter Monk’s  super marina in Tivat it is evident that Montenegro has started to attract the rich and famous again to is crystal clear shores.  With numerous new developments of apartments for sale and luxurious seaside villas it is attracting those who want the wild beauty Montenegro has to offer but with first class facilities and service.     Russians, Irish and English have been captured by what this tiny country has to offer and have decided to invest here; the tourist potential is enormous ensuring good property rentals and sustained capital growth.

If you are buying a property in Montenegro it is not necessary to form a company and the property can be bought and owned 100% by a foreigner in their name.  Most buyers buy property in their own name as the property is not liable for any capital gains tax should they wish to resell the property in the future.  

The buyer can form a company if they so wish to, and buy the property in the company’s name, which can also be owned 100% by a foreigner.  Company tax on profits is 9%, plus the client will need to file regular company returns through a Montenegrin accountant.

The steps involved in the buying process are outlined briefly as follows:

• Negotiating an acceptable price and verbally reserving the property, this will depend on whether the buyer wishes to buy the property finished to their specification by the developer or if they are buying the property to develop themselves.   Either options would be fully documented and agreed by both parties.
• The Client would then be introduced to a reputable lawyer who will check all the property title deeds and documentation to ensure the property has 100% clear papers. The Client can also find their own lawyer if they wish to.
• After this process the Lawyer will draw up the contracts; normally the first contract is for 10% of the total property price as a deposit and will reserve the property and take it off the market.      The final contract is drawn up stipulating that the final amount be paid within 4-6 weeks after the first contract; after this the process of changing ownership of the property to the client can occur.  Both contracts are signed in the Municipality courts, contracts are only signed in the courts when proof is shown that the amount is ready to be paid on the same day of the signing.
• If paying by bank transfers the client will need to set up a local bank account or provide the details required for transfer of money to the lawyer's account.   A good lawyer will assist the client in all of these matters.
• There is currently a  2% tax on property bought in Montenegro, this is paid to the Inland Revenue Office after the sale of the property.    The Inland Revenue will inform the clients Lawyer when to pay this amount.
• The title documents are submitted to the local land registry department once the property tax has been paid, requesting the changing of the property name over to the new owner.
• The property is then registered in the buyer's name and the property ownership papers issued to the new owner.

If the Client requires anymore detailed information on the buying process or the Montenegrin legal property system the Vendor will be happy to supply this as they have very detailed knowledge of this system.  The Vendor also suggests the Client seeks their own independent advice on the buying process and any other queries they may have about the Montenegrin system and buying in this country.

• Property can be bought 100% in foreigners name
• No capital gains tax on property
• Very low 2% property tax payable to Inland Revenue
• One of the lowest company taxes in Europe of only 9% on profits
• Property can be resold at any point without any tax penalty
• Quick ownership of property title deeds
• Property can be rented out without any restrictions or need to file additional paperwork
• Continued capital growth predicted on property especially front line
• Fastest growing tourist destination in the World
• Development taking place in Boka Bay of the largest marina in Europe, especially designed for super yacht’s
• Direct flights from Moscow to Boka Bay (Tivat Airport) with plans for expansion of Airport and increased numbers of direct flights