We all know that when buying a property, apart from its price, we have to pay additional costs. Here we give you an overview of the related costs:
Sales & Purchase agreement is drafted by the notary and the fees depend on the price of the property that’s being purchased:
- for properties between €20.000 and €40.000, notary fees are €170 + VAT
- for properties between €40.000 and €60.000 notary fees are €250 + VAT
- for properties between €60.000 and €80.000 notary fees are €300 + VAT
- for properties between €80.000 and €120.000 notary fees are €350 + VAT
- for properties over €120.000, for every additional €15.000 the fee is increased by €10, but it must not reach the amount over €5000
*information on fees taken from the official web page of Notaries chamber
Buyer is usually the one who is paying for the notary fees. However, buyer and seller can split the costs if they reach such an agreement. When signing the contract, the buyer should present a valid ID document (ID card or passport) and the seller should present the ownership document and a valid ID.
Administrative tax (registration for transfer of ownership) is €16 and you can pay this to the notary who will make the official payment and registration for you.
Property transfer tax is 3% of the official value of the property. The value is determined by the official evaluator and it can sometimes be slightly different from the purchase price. If you’re buying the property from the investor, you don’t have to pay this tax (but the investor has to be officially registered tax payer).
If you are financing your purchase through a housing loan, keep in mind that you will probably have to pay for the property insurance. In some cases there are also costs of a life insurance, bill of exchange (cca €2), access to the Credit registry of the Central Bank of Montenegro (€3-3.50). A detailed and precise overview of costs related to the housing loan will be provided by your bank.
If you are transferring money from one bank to another when paying for the property keep in mind that you will have to cover the costs for the bank transaction.
When buying a property that needs renovation, a rough calculation of the renovation works is €150 – €300/m2.
Detailed information on sale, purchase or rent of real estate is available with RE/MAX Montenegro agents who will help you throughout the entire sales and purchase process.