Property Purchase Procedure, Taxes and Related Fees
Foreign investors have no restrictions on buying and selling real estate in Montenegro and can do it the same way the locals do. It applies to all commercial and residential properties including plots of land. There are a few exceptions - Plots at the first line near the Adriatic Sea and lands of national and historic importance belong to the state and can be rented only. This helps to protect the unique nature and preserve environment of the seashore of Adriatic. When an investor chooses a property, as a rule, deposit of 10% of property price is paid to secure the transaction and the investor’s solicitor prepares Draft property purchase contract. After the terms and conditions have been negotiated and the property and its ownership is checked in the Cadastre, the price of property is paid in full by cash or bank transaction (if by bank then 17% VAT applies to the sum transferred by bank). When the final purchase contract is signed, the new ownership is registered in the Court.
In terms of additional costs associated with the investment property buying process the investor is responsible for legal fees paid to his/her lawyer who is supposed to prepare Draft and after Final property Purchase contract and other related Court costs to transfer ownership and register the new owner of property. In addition to all registration fees (which is about 500 euros) the buyer pays the transfer tax of about 3% for re-sale and new build properties. The agent’s commission is between 3 and 8%, usually paid by the seller. The buyer does not usually pay a fee.
Read more about this topic: Montenegro Real Estate Taxes
Famous quotes containing the words property, purchase, taxes and/or related:
“All over this land women have no political existence. Laws pass over our heads that we can not unmake. Our property is taken from us without our consent. The babes we bear in anguish and carry in our arms are not ours.”
—Lucy Stone (1818–1893)
“We are told to maintain constitutions because they are constitutions, and what is laid down in those constitutions?... Certain great fundamental ideas of right are common to the world, and ... all laws of man’s making which trample on these ideas, are null and void—wrong to obey, right to disobey. The Constitution of the United States recognizes human slavery; and makes the souls of men articles of purchase and of sale.”
—Anna Elizabeth Dickinson (1842–1932)
“As I went about with my father when he collected taxes, I knew that when taxes were laid some one had to work to earn the money to pay them.”
—Calvin Coolidge (1872–1933)
“One does not realize the historical sensation as a re-experiencing, but as an understanding that is closely related to the understanding of music, or rather of the world by means of music.”
—Johan Huizinga (1872–1945)