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:
“Abscond. To “move” in a mysterious way, commonly with the property of another.”
—Ambrose Bierce (1842–1914)
“O, let us have him, for his silver hairs
Will purchase us a good opinion,
And buy men’s voices to commend our deeds.”
—William Shakespeare (1564–1616)
“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)
“In the middle years of childhood, it is more important to keep alive and glowing the interest in finding out and to support this interest with skills and techniques related to the process of finding out than to specify any particular piece of subject matter as inviolate.”
—Dorothy H. Cohen (20th century)