Real estate transaction costs and taxes in Montenegro

Cost

Variable

VAT

Nil

Cost

Variable

VAT

Nil

Cost

Excerpt showing actual state - cost EUR 8 per excerpt.

VAT

Nil

Cost

No cost if made via internet (only unofficial data); Official excerpt approx. EUR 5.

VAT

Nil

Cost

Negotiable

VAT

21%

Cost

Negotiable

VAT

21%

Cost

The sale of so-called “new buildings” is subject to VAT (the value of the land plot is excluded). Newly constructed real property are buildings and their parts that were built, delivered and paid after March 31, 2003.

VAT

21%

Cost

The second and subsequent transfer of the building and transfer of the ownership rights/right of use over the land is subject to transfer tax at a rate of 3% of the purchase price.

Stamp duty (court verification of the sale/purchase agreement) approx. EUR 10. Further costs related to registration of the share acquisition within the commercial registry: status change registration within the commercial registry EUR 22.

Private entity: subject to capital gain at the rate of 9%. Commercial entity: capital gains derived from the sale of real estate are treated as taxable income of the company and are subject to general corporate income tax at the rate of 9%. Capital gains are calculated as the difference between purchase and selling price (both prices are calculated on a fair market price basis).

If shares are held as private asset: 9% income tax on capital gains.
If shares are held as assets of a Montenegrin company: 9% corporate income tax on capital gain applies.
If shares are held by a non-resident company: 9% withholding tax applies.