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FAQ - Questions & Answers

Questions about buying real estate

Yes, as a German and EU citizen you are allowed to buy real estate in Montenegro, be it land, houses or apartments. This is regulated by an agreement between the EU and Montenegro. However, there are certain exceptions: Certain properties such as those in border areas, national parks, state land and some other special zones are excluded from purchase. Before buying any property, the notary checks with the relevant land registry office whether the property can actually be purchased to ensure that everything is legally sound.

Since the entry into force of this agreement (01.05.2010) there is the provision of Art. 63 (3):

“From the entry into force of this Agreement, Montenegro shall grant national treatment to Community nationals for the acquisition of immovable property on its territory.”

https://eur-lex.europa.eu/legal-content/DE/TXT/PDF/?uri=OJ:JOL_2010_108_R_0001_01&from=DE

Basically, all you need to buy a property is your passport. You do not need any other proof.

Once you have decided on a property after viewing it, the purchase process itself can be very quick. Arranging a notary appointment, appointing an interpreter and arranging the appointment itself can usually be completed within 2 days. As long as all the necessary documents are available, the purchase can be completed in a short time.

Yes, it is generally possible to obtain a real estate loan from a bank in Montenegro. However, this is very difficult for foreigners. Although most banks offer such loans, the conditions are often difficult to fulfill. In practice, loans tend to be granted to companies that have been operating successfully for at least five years and are consistently in the black. In addition, the interest rates for real estate loans in Montenegro are comparatively high, which makes financing even more difficult. It is therefore advisable to obtain comprehensive information at an early stage and, if necessary, to examine alternative financing options.

Find out more in our blog article: https://immo-monte.me/2024/10/19/immobilienkredite-in-montenegro-huerden-moeglichkeiten-und-realitaeten/

As a rule, our commission on the sale of real estate is 3-5%. However, this is borne by the seller. For the buyer, there is usually no commission for our agency when buying a property.

When buying a property in Montenegro, there is a property transfer tax, which is usually 3% of the purchase price. This tax is one-off and is levied on the purchase price of the property. It is important to note that this tax is borne by the buyer and is due within 15 days of signing the contract. Other ongoing taxes, such as the annual property tax, may vary depending on the location and type of property.

We have written two blog articles on the topics of“Real estate transfer tax” and“Taxes in Montenegro“. You are welcome to read them in more detail.

Under each property on our website you have the possibility to make an appointment for a viewing. You can also send us an e-mail with a viewing request at“info@immo-monte.me” or call us on +382 (0)69 -209 925.

As a rule, no down payment is required when buying real estate in Montenegro. If a down payment is agreed, this is done individually between the seller and buyer. The amount and conditions of such a deposit may vary from case to case and depend on the agreement of the parties involved.

You should allow around 2-3 months for the property to be transferred to you as the buyer. It depends on the payment options and the processing time at the bank, the land registry and the notary. It can also be quicker, but in the worst case it can also take longer. On average, we can say that it takes around 2-3 months.

In most cases, if the purchase amount is over 150,000 euros, the bank requires proof of the origin of the money. However, this request does not come directly from the Montenegrin bank, but from the central bank.

This proof is then usually sent to the notary, who in turn sends it to the bank.

Questions about renting real estate

Yes, of course we also arrange long-term rental properties in Montenegro. You can find more information on our page“Rental properties in Montenegro“.

We are also happy to look for individual offers to suit your wishes and ideas. Please feel free to contact us directly.

We arrange long-term rental properties in Montenegro. You can find more information on our page“Rental properties in Montenegro“.

There are now many agencies that also arrange long-term rental properties.

Yes, for long-term rentals in Montenegro, a rental agreement is concluded as standard. This is usually done at a notary, which is quite common here. We will guide you through the entire process and support you in mediating between landlord and tenant. Together, we organize viewings and are on hand to answer any questions or requests you may have. We are also happy to be present at the notary appointment to ensure that everything runs smoothly.

No, a long-term rental is not sufficient to obtain a residence permit in Montenegro.

The rental properties for long-term rental on our website are generally not offered exclusively by us. The landlord often takes care of the rental himself or commissions other agencies. It is therefore possible that a property has already been rented out – not through us – and is not currently available. It is therefore advisable to contact us if you are interested in a particular property to check its current availability.

Furthermore, we do not remove rented properties from our portfolio, as they will become available again after a certain period of time, giving you the opportunity to make long-term plans.

Our agency usually takes a commission of one month’s rent, which we receive from the landlord. This means that you as a tenant do not have to pay any commission to us.

General questions about our agency

We broker almost all types of real estate. These include

  • Properties
  • Natural stone houses
  • Apartment houses
  • Vacation homes
  • Newly built houses
  • Shell buildings
  • Wooden houses
  • Apartments / vacation homes for sale
  • Apartments in residential complexes
  • Building projects
  • Apartments and houses for long-term rent
  • commercial properties both for rent and for sale.

What makes your real estate agency in Montenegro special?

As we all know, self-praise stinks, but we – Julia and Senad at heart – form a team that is probably unique in Montenegro. Julia, as a German, and Senad, as a Montenegrin who has lived in Germany for a long time, know the needs and requirements of German customers inside out. We know what they are used to from their life in Germany and therefore have a good sense of which properties meet their expectations and which do not.

Due to the high number of mainly German clients, we have experienced and successfully solved so many different situations and issues in recent years that there is now hardly anything that we cannot help with or for which we cannot find a solution. The services we offer – be it assistance with real estate purchases, residence permits, company formations or other tasks – are a daily routine for us, which means they run smoothly for you.

In addition, we have a dedicated team that is not only hard-working and loyal, but also German-speaking, personable, pragmatic and creative solution-oriented. Our team understands exactly what German customers expect, how they perceive situations and what questions typically arise.

With Senad’s more than 20 years of experience in the politics of Montenegro and Kosovo, we also bring diplomatic skills, the best contacts for all matters and up-to-date political knowledge. Together we are an empathetic and helpful team, always striving to provide you with the best possible service.

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We offer a wide range of services to assist you with your life or business in Montenegro. These include, among others:

  • Support with the application for residence permits
  • Company foundations
  • Opening bank accounts
  • Import and registration of motor vehicles
  • Removal service from Germany to Montenegro
  • Registration of children at school
  • Import and registration of boats and ships
  • Support in the development and implementation of business ideas
  • Brokerage of all types of real estate for sale
  • Brokerage of properties for long-term rental
  • Brokerage of commercial real estate for rent and purchase
  • Help with visits to the authorities

We will be by your side every step of the way and help you find your way around Montenegro quickly and smoothly.

When buying/selling a property, we take a commission of 3-5%, which is paid by the seller.

We generally charge a monthly rent for the brokerage of rental properties, but this is also borne solely by the landlord.

No, unfortunately we cannot offer any assistance with financing a property in Montenegro.

Yes, it is generally possible to obtain a real estate loan from a bank in Montenegro. However, this is very difficult for foreigners. Although most banks offer such loans, the conditions are often difficult to fulfill. In practice, loans tend to be granted to companies that have been operating successfully for at least five years and are consistently in the black. In addition, the interest rates for real estate loans in Montenegro are comparatively high, which makes financing even more difficult. It is therefore advisable to obtain comprehensive information at an early stage and, if necessary, to examine alternative financing options.

Yes, we naturally support our clients who purchase or rent a property through us with legal matters such as drawing up contracts and notary appointments. We are on hand throughout the process to ensure that everything runs smoothly and correctly. Please note, however, that we do not get involved in legal matters that were not arranged through our agency.

We do not offer property management services ourselves, but we do work with reliable partners who do. We will be happy to put you in touch with experienced service providers who will professionally manage your property.

Yes, we work with various partners in the construction industry and can put you in touch with good tradesmen and construction companies. Whether you want to work with these companies is of course up to you. We will help you to find the right contacts so that your renovation or construction project can be successfully implemented.

Questions about setting up a company in Montenegro

No, you don’t have to set up a company to buy a property in Montenegro. According to the agreement between the EU and Montenegro, as an EU citizen you have the right to buy land, houses and apartments.

To set up a company in Montenegro, all you need is your passport.

Later, when you hire yourself as a managing director and apply for a residence permit, you will also need the normal police clearance certificate with apostille and a school-leaving certificate.

The application for company formation takes only 1 day. It takes 5-7 working days for the documents to be fully checked and registered in Podgorica (the head office) and returned to us in Bar. If there are public holidays or weekends in between, it will take longer.

The company form that is chosen by default is the so-called “d.o.o.” – which is equivalent to the “GmbH” in Germany.

No, the “d.o.o.” only needs 1 euro of start-up capital – so in principle no start-up capital and no capital contribution to set up the company.

Yes, you can set up several companies if you wish.

We always say that it makes the most sense to plan at least 1 week’s stay in Montenegro for the company formation.

Montenegro has not yet (as of the end of 2024) used the SEPA direct debit scheme. However, it is to be introduced from January 2025.

The tax rates in Montenegro are not only low, but also clearly structured. Here is a table of the most important corporate taxes:

Steuerart Steuersatz Bemerkung
Corporation tax 9 % One of the lowest rates in Europe
Value added tax (VAT) 21 % (normal) Reduced rates for certain goods and services
Income tax 9 % – 15 % Depending on personal income
Capital gains tax 9 % Tax on gains from capital investments
Social security contributions 15 % – 20 % Employer and employee share
Trade tax None No additional tax for traders

In Montenegro, the total social security contributions for a company that employs staff amount to around 10.72% of the gross salary. These contributions are made up as follows:

  • Pension insurance: 5.5 %
  • Health insurance: 2.3 %
  • Unemployment insurance: 0.5 %
  • Accident insurance: 0.5 %
  • Other contributions: 1.92 %

These figures relate to the employer’s share. The total social security contributions (including employee contributions) amount to around 33.8% of the gross salary, with the employee contribution accounting for around 24%.

The relatively low social security contributions are an important advantage of setting up a company in Montenegro, as they significantly reduce labor costs for companies.

Questions about residence permits in Montenegro

There are the following options for obtaining a residence permit in Montenegro:

  1. Family reunification
  2. Job
  3. Real estate holdings
  4. Founding a company/ job as managing director

No, unfortunately the German pension is not enough income to obtain a residence permit in Montenegro.

Currently you need:

  • Your passport
  • a normal police clearance certificate with apostille (must not be older than 6 months)
  • for spouses the marriage certificate
  • for children the birth certificates

We will obtain the remaining required documents together with you here on site, such as a medical certificate, a local health insurance for 30 days, proof from the tourist office for 30 days, etc.

Allow at least 3 days for us to go through all the “stations” with you in order to obtain all the documents you need to apply for a residence permit.

After applying for a residence permit, it usually takes up to 4 weeks before you can collect the “Boravak” card from the office.

In Montenegro, the residence permit is issued for 1 year. It must be reapplied for renewal at least 2 weeks before expiry.

After 5 years, you have the option of applying for a permanent residence permit.

You will receive a Montenegrin passport if you have regularly renewed your residence permit for at least 10 years. You can then apply for Montenegrin citizenship. Montenegro does not allow you to have two citizenships. So if you would like to have a Montenegrin passport, you would have to take on Montenegrin citizenship at that moment and give up your previous citizenship.

The costs vary and change from year to year in the different areas. Therefore, please ask us about the current costs so that we can give you an accurate and correct list of costs.

If you enter the country with an identity card, you are officially allowed to stay in Montenegro for 30 days.

If you enter the country with a passport, you are allowed to stay in Montenegro for 90 days within 180 days.

It depends a little on what type of residence permit you have – i.e. a job, a property or family reunification.

In principle, you are allowed to stay outside Montenegro for 30 days at a time throughout the year.

Theoretically, it is possible to register with the “inspector for foreigners” in advance and inform them that you need to be abroad for longer for special reasons. There is then the possibility of obtaining a further 60 days as a stay abroad. This gives you a total of 90 days abroad.

If you have your residence permit by founding a company and being hired as a managing director, then, as in the other variants, you have the 30 days that you can spend outside Montenegro anyway. (and a further 60 days via the inspector if they are trips of a private nature/reasons).

In addition, the managing director may spend a total of 180 days per year outside Montenegro if he can prove that the stay abroad was/is of a business nature. This is sometimes – but not always – asked for and a reason is requested.

Basically, in all variants it is always about the fact that if you stay outside Montenegro for longer than the permitted time, you will have difficulties extending your residence permit after one year.

We also describe this in more detail in our blog article on the topic:
https://immo-monte.me/2024/10/17/wie-lange-darf-man-sich-ausserhalb-von-montenegro-aufhalten-ohne-die-aufenthaltsgenehmigung-zu-verlieren/

Questions about banks & accounts in Montenegro

In principle, yes. However, a residence permit is currently generally required in order to open a bank account in Montenegro. Only one bank is currently an exception and also opens bank accounts for foreigners without a residence permit.

Yes, as a rule you need a residence permit to open a bank account at almost all banks in Montenegro.

Only one bank in Montenegro is currently the exception and opens bank accounts even without a residence permit.

Montenegro has a well-developed banking system that has grown steadily over the years. The most important banks in Montenegro include

  1. Crnogorska Komercijalna Banka (CKB) – One of the largest banks in the country and part of the Hungarian OTP Group.
  2. Erste Bank Montenegro – part of the Austrian Erste Group and one of the internationally renowned banks in Montenegro.
  3. NLB Banka – This bank is part of Nova Ljubljanska Banka from Slovenia and is also an important institution in Montenegro.
  4. Hipotekarna Banka – Another domestic bank specializing primarily in mortgages and loans.
  5. Addiko Bank – A member of the Addiko Group, which operates in several countries in the Balkans.
  6. Prva Banka – The oldest bank in Montenegro with strong local roots.
  7. Ziraat Bank – A Turkish bank that also has a branch in Montenegro and focuses primarily on trade with Turkey.

These banks all offer basic services such as account management, online banking and loans, but differ in their special offers and conditions.

Most banks in Montenegro now offer some form of online or mobile banking. However, foreigners should not have too high expectations, especially if they come from countries like Germany, where online banking services are very sophisticated and user-friendly.

Differences to German online banking

While you often have a seamless and fast online banking experience in Germany, it can be a little different in Montenegro. The platforms are often less intuitive and certain features may be missing or limited. Another issue is that the user interfaces are usually in Montenegrin, which can create challenges for non-native customers. Some banks do offer English versions, but these are not always fully translated.

Montenegro has not yet (as of the end of 2024) used the SEPA direct debit scheme. However, it is to be introduced from January 2025.

One of the biggest problems that foreigners can encounter in Montenegro is access to credit. Although many banks in Montenegro offer various credit products, it is usually difficult or impossible for foreigners to obtain a loan on favorable terms.

Loans are more likely to be granted to companies

When banks in Montenegro grant loans to foreigners, it is mainly to companies and less to individuals. However, these companies must meet very strict requirements in order to obtain a loan. As a rule, the banks expect the company to have been in the black for at least five years and to provide clear evidence that it is able to repay both the loan amount and the interest. This means that it is extremely difficult for start-ups or new companies in Montenegro to obtain bank financing.

Loans are less common in Montenegro

Another aspect to consider is that loans are generally less common in Montenegro than in many Western countries. Even locals do not take out loans as standard, as is the case in Germany, for example, whether for a washing machine, a car or even a house. In Montenegro, it is common to make large purchases without external financing.

This difference is particularly evident in the real estate sector. While mortgage loans for building or buying a house are the norm in Germany, Montenegrins often build their houses in stages over many years. As soon as they have saved enough money, another part of the house is built. This process can take several years or even decades, depending on the funds available.

Currently (as at the end of 2024), interest rates for loans in Montenegro are between 4% and 6.5%, depending on the type of loan. Mortgage loans, for example, start at around 4% to 5.1%, depending on the bank and the specific conditions. For consumer loans or other secured loans, interest rates can be slightly higher, around 6.79%.

It is important to emphasize that the exact conditions vary depending on the bank and the applicant’s financial situation. Business or corporate loans are usually subject to similar interest rates, but with stricter conditions, as mentioned above: companies often need to have been operating successfully for at least five years to qualify for a loan.

It depends on the type of account or the purpose for which you wish to open an account.

For a company account, for example, you not only need a passport, but also an extract from the commercial register, which must not be older than 1 month, as well as the company documents and the stamp of the company itself.

For a private account, you need either an identity card on which the registration address is noted or alternatively a registration certificate on which your postal/registration address is noted.

If you open an account as an employee because you have accepted a job, you will also need your employment contract.

Before opening an account, we will discuss with you in detail which documents are required, and of course we will also accompany you to the account opening appointment at the bank so that everything runs smoothly for you.

In most cases, if the purchase amount is over 150,000 euros, the bank requires proof of where the money comes from. However, this request does not come directly from the Montenegrin bank, but from the central bank.

This proof is then usually sent to the notary, who in turn sends it to the bank.

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