Annual property tax in Montenegro
Who is obliged to pay property tax?
The owner of the real estate registered in the land register as of 1 January of the year for which the tax is determined is the mandatory payer of the real estate tax. If the property has more than one owner, the tax is divided between them according to their share.
How is the tax base determined?
The tax base is the market value of the property on 1 January of the year for which the tax is assessed.
How high is this tax?
The property tax rate is proportional and can range from 0.25% to 1% of the market value of the property.
How is the market value of the property determined?
Criteria include: Purpose, Size, Location, Condition and Other elements that may affect the market value of the property.
Who determines the market value of a property?
At large, that is, its taxing authority.
Are there exceptions to the tax rate?
In special cases, the tax rate may be set higher or lower by municipal resolution. These special cases include: Agricultural land that is not cultivated, Secondary residential building or dwelling, Building constructed illegally, Guest house in a priority tourist site area, Guest house used contrary to the purpose set out in the zoning plan, Building site not in accordance with the zoning plan.
What may be the difference in tax for a secondary residential property (dwelling)?
If the municipality so chooses, it may increase the tax on a secondary residential structure (dwelling) by a maximum of 1.5 times compared to similar dwellings on that site that are not secondary.