Real estate transfer tax in Montenegro

The real estate transfer tax in Montenegro is 3% of the appraised market value.

Who estimates the value on which the tax is paid and how? The value is estimated by a valuer and may be higher than the amount stated in the contract of sale. On the other hand, the valuer cannot estimate a value lower than that in the contract.

When is the payment of this tax due? Immediately after the purchase contract is signed. We recommend that you pay promptly, as interest on the original amount accumulates with time and may be subject to criminal charges and fines.

Is it possible not to pay this tax?

Yes. If a new build property is purchased directly from a builder who has already paid tax on that (new) property, then the 3% transfer tax is not payable. Similarly, citizens of Montenegro who are dealing with a housing issue have benefits or a complete exemption from real estate transfer tax, depending on the number of household members and the area of the property they are buying.