Since January 1, 2024, Montenegro has raised the tax on the purchase of real estate from € 150,000.
- For objects whose value does not exceed €150,000, the tax rate remained at 3%.
- For properties with an estimated value in the range from €150,000 to €500,000, the tax now consists of two parts: a fixed amount of €4,500 plus 5% of the difference in the value of the property.
- For properties priced above €500,000, you must pay a fixed rate of €22,000 and add 6% of the difference in value.
That is, if the property costs €450,000, then the tax will be €4,500, plus €15,000 euros ((€450 000 - €150 000)*5%). Total €19,500.
These changes in the tax system may lead to an increase in demand for new buildings due to the exemption from property turnover tax when buying from a developer. At the same time, they can affect the price dynamics in the secondary market.
It is logical if the objects, the estimated value of which does not exceed €150,000, will become the most in demand. But the market for more expensive real estate may suffer.
- For objects whose value does not exceed €150,000, the tax rate remained at 3%.
- For properties with an estimated value in the range from €150,000 to €500,000, the tax now consists of two parts: a fixed amount of €4,500 plus 5% of the difference in the value of the property.
- For properties priced above €500,000, you must pay a fixed rate of €22,000 and add 6% of the difference in value.
That is, if the property costs €450,000, then the tax will be €4,500, plus €15,000 euros ((€450 000 - €150 000)*5%). Total €19,500.
These changes in the tax system may lead to an increase in demand for new buildings due to the exemption from property turnover tax when buying from a developer. At the same time, they can affect the price dynamics in the secondary market.
It is logical if the objects, the estimated value of which does not exceed €150,000, will become the most in demand. But the market for more expensive real estate may suffer.
