Buying a property is accompanied by mandatory complementary costs that are to be payed throughout the process of buying a property in Montenegro.
Besides the agreed property price that will be stated in the main sales and purchase contract (the sales agreement), the complementary costs are:
Paying 3% of the value as the property transfer tax. The value of the property is estimated by public assessors and in most cases the estimated value is the same as the agreed property price stated in the contract.
As the main contract is signed in front of a Notary of Montenegro, the price of the main contract is approximately 500 Euro, depending on the number of pages included, size of the property, value etc.
The main agreed price can be transferred through the Notary escrow account, which provides an additional layer of security. The Notary receives the agreed amount, and once the whole amount is received, it is sent to the account of the seller. In parallel, the process of transferring the ownership to the new owner is initiated by the Notary by submitting the main contract and
all bank statements to the local office of the Cadaster of Montenegro. The Notary escrow account can cost from 400-500 Euro, depending on the Notary.
All fees related to all bank transfers are to be covered by the buyer, as well as fees for the Cadaster.
During the process of signing, a certified court translator shall be present, as the official language used at the Notary is Montenegrin. His/her service is up to 50 Euro per hour. Of course, the translation of the entire sales and purchase agreement can be requested in advance, and the cost for the certified translation of the contract is approximately 300-350 Euro depending on the number of pages.
If the Buyer is unable to be present in Montenegro during the signing, he or she can give a power of attorney to the sales manager or any person willing to sign a contract in the name of buyer. A power of attorney can be obtained at a Notary in the country of residence, or in Montenegro.
In the power of attorney, it is clearly stated which property is the subject of the contract, what is the agreed amount, as well as required info from the Cadaster, so it can be transparent and clear for which property the main sales agreement shall be signed.
Before handing the power of attorney to the Notary, it must be translated by the certified court translator. The cost of it is approximately 30 Euro.
