About taxes in Montenegro

Montenegro has a relatively low cost of living and maintenance of real estate, good rental yields, low taxes and almost complete absence of restrictions on ownership and management. Foreigners have the right to freely buy and sell property, rent it out and inherit it.

1. The tax on the purchase of real estate:
Up to €150,000 - the rate is 3%.
€150,000 - €500,000 - fixed tax €4,500 + 5% of the amount over €150,000.
Over €500,000 - a fixed tax of €22,000 + 6% of the excess.

2. The tax on ownership:
0.1-1% of the estimated value.
It is regulated annually depending on changes in the value of the object.

3. Rental tax:
The rate is 15% of the tax base.
Deduction is possible for expenses incurred.

4. Tax on the sale of real estate:
The rate is 15% (capital gains tax).
Exceptions for transactions between spouses, relatives and the use of real estate as a permanent place of residence.