Erbschaftssteuer in Montenegro: Was Expats wissen müssen

Succession and estate planning are essential considerations for foreign investors buying property or relocating to Montenegro. Understanding inheritance laws and the tax liabilities that heir face ensures your wealth and property are protected across generations. This guide outlines the key aspects of Montenegro’s inheritance tax framework.

Succession Principles: Wills vs. Intestacy

Succession in Montenegro is governed by the Law on Inheritance.

• If there is a Will: Property is distributed according to the deceased’s wishes, subject to the “necessary heirs” rule (nužni deo), which guarantees that close family members (spouse and children) receive a minimum percentage of the estate regardless of the will’s terms.
• If there is no Will (Intestacy): The estate is divided among the legal heirs according to the legal succession order, starting with the first line of succession (spouse and children).

Inheritance Tax Rates and Exemptions

The inheritance tax (porez na nasljeđe i poklon) is highly favorable compared to Western European countries:

• The First Succession Line (Exempt): Spouses, children, and parents of the deceased are 100% exempt from inheritance tax. If a property is inherited by immediate family members, they pay 0% tax.
• The Second Succession Line: Siblings and grandchildren are subject to a low flat tax rate of 3% on the market value of the inherited asset.
• Other Heirs: Anyone outside the first and second succession lines pays a flat rate of 3% on the value of the inherited assets.

The Succession Procedure for Foreigners

For real estate located in Montenegro, the inheritance process must take place locally:

1. Notary Initiation: Succession proceedings are initiated before a licensed notary in the municipality where the property is registered.
2. Document Submission: Heirs must present certified death certificates, birth certificates proving relationship, and foreign wills (translated into Montenegrin).
3. Inheritance Decision: The notary issues an official Inheritance Decision (Rješenje o nasljeđivanju), which is then filed with the Cadastre Office to update the title deed.