Comprensión de los impuestos sobre transferencias de propiedad en Montenegro

When purchasing real estate in Montenegro, calculating your transaction taxes is a key part of financial planning. Depending on whether you are purchasing a brand-new property from a developer or a resale property from an individual, your tax liabilities will vary. This guide details Montenegro’s property tax regulations.

1. Resale Properties: Progressive Transfer Tax

For properties that are being resold (second-hand properties), the transaction is subject to the Property Transfer Tax (Porez na Promet Nepokretnosti).

• Tax Scale: Montenegro applies a progressive tax scale based on the property value:
  • Up to €150,000: Taxed at a flat rate of 3%.
  • From €150,001 to €500,000: Taxed at a fixed amount of €4,500 + 5% on the amount exceeding €150,000.
  • Over €500,000: Taxed at a fixed amount of €22,000 + 6% on the amount exceeding €500,000.
• Liability: The tax is legally payable by the buyer and must be settled within 15 days of receiving the official tax assessment from the local tax authority.

2. New Builds: VAT Exemption

If you are purchasing a property directly from a developer who is registered in the VAT system, the transaction profile is different:

• VAT Treatment: The purchase price is subject to standard 21% VAT, which is almost always included in the developer’s advertised list price.
• Transfer Tax Exemption: Because the transaction is subject to VAT, the buyer is 100% exempt from paying the progressive property transfer tax. This makes buying new builds highly attractive from an upfront tax perspective.
• Subsequent Sales: If you sell the property to another buyer in the future, that transaction will be classified as a resale and subject to the 3-6% progressive transfer tax.