Real estate transfer tax: 2026 rates
The main cost when buying a resale property is the real estate transfer tax. Until 2024 it was a flat 3%; since 1 January 2024 a progressive scale has applied. At the date of publication the rates are:
The tax is paid by the buyer. The base is the market value of the property: the tax administration starts from the contract price but may carry out its own valuation if it considers the price understated. After the contract is signed, the tax administration issues a decision stating the amount, which must be paid within the deadline given in the decision. The law was amended in 2026 in connection with VAT changes, and further proposals are discussed in parliament from time to time, so check the current rate with us or a notary before the deal.
- up to €150,000 — 3% of the value;
- €150,000 to €500,000 — €4,500 plus 5% of the amount above €150,000;
- above €500,000 — €22,000 plus 6% of the amount above €500,000.
New builds: 21% VAT instead of transfer tax
The first sale of a new property by the developer is subject to 21% VAT, and in that case no transfer tax is due, so there is no double taxation. The developer charges and remits the VAT, and for the buyer it is normally already built into the price per square metre. When comparing options, look at the total price including tax, not just the price per metre.
Since 1 April 2026, VAT also applies to the sale of construction land for which a building permit has been issued, including as part of the first sale of a new building. Market participants expect this may affect new-build prices. If the apartment has already had an owner, it is a resale and transfer tax applies. You can browse current projects in our new builds section.
Notary, cadastre, interpreter: associated costs
A property sale contract in Montenegro is concluded before a notary. In addition to the tax, the buyer usually pays for the following services and fees:
- notary — the fee follows the official notary tariff and depends on the property value; for a typical apartment it is usually a few hundred euros plus VAT;
- court interpreter — if the buyer does not speak Montenegrin, a sworn interpreter must be present at signing; the cost depends on the volume of documents and the language;
- cadastre registration — after the deal, ownership is entered in the real estate cadastre; the state fees here are relatively modest;
- power of attorney and document translation — if you cannot attend in person, you will need a notarised power of attorney, and foreign documents must be translated and apostilled where required;
- lawyer — optional, for an independent check of the property and the contract.
Real estate agency commission
Agency commission in Montenegro is usually expressed as a percentage of the price, but there is no single fixed rate. The amount, and who pays it — the seller, the buyer or both — is a matter of agreement and depends on the property, the size of the deal and the scope of services. Clarify the terms in advance and put them in writing so the final budget holds no surprises.
Easy Monte checks every property before publishing it and supports the deal until signing at the notary. The whole process is described step by step in our guide to buying property in Montenegro.
Annual property tax and running costs
Once you own the property, you pay property tax every year. It is a municipal tax: each municipality sets its rate within limits defined by law. For residential property the law provides a range of 0.25% to 1% of market value, and for certain categories, such as holiday homes or undeveloped plots, municipalities may apply higher rates. The tax base is determined by the tax administration using its own methodology, so it does not always match the purchase price. The assessment arrives once a year, and payment is usually split into two instalments.
Besides the tax, budget for regular running costs:
- electricity, water, waste collection (a local fee) and internet;
- building maintenance fee — in complexes with a pool, security and a management company it is noticeably higher than in an ordinary building and is often charged per square metre;
- insurance and minor repairs, especially if the property is rented out.
Taxes on rental income and on sale
Rental income earned by individuals is taxed at 15%. The law allows a standard cost deduction (for example, 30% for ordinary long-term letting and higher deductions for registered tourist accommodation) or the deduction of documented actual expenses. Short-term letting to tourists requires registering the property and paying tourist tax; in many cases a lump-sum regime applies, with terms set by the municipality. More on renting in our long-term rental guide.
When an individual sells property at a profit, capital gains tax of 15% is charged on the difference between the sale price and the purchase price, taking documented costs into account. The law provides exemptions in some cases, such as transfers between spouses or between parents and children. Keep the contract, payment records and renovation receipts: they reduce the taxable base. It is best to discuss your specific situation with a tax adviser.
Worked example: a €200,000 apartment
Below is an approximate calculation for a €200,000 resale apartment. The notary, interpreter and cadastre amounts are indicative and are given to show the order of magnitude; exact figures depend on the property and the tariffs on the date of the deal.
Total on top of the price: roughly €7,900 (about 4%), excluding agency commission if the buyer pays it. If the same apartment were bought from a developer as a new build, no transfer tax would be due: VAT is already in the price, and the extra costs would come down to the notary, interpreter and cadastre. Annual property tax on a €200,000 assessment would be between €500 and €2,000 depending on the municipal rate. To put these figures in market context, see our 2026 property price overview and the properties for sale catalogue.
- Transfer tax: €4,500 + 5% × €50,000 = €7,000.
- Notary: roughly €600 including VAT (indicative).
- Court interpreter: roughly €200 (indicative).
- Cadastre registration: up to about €100 (indicative).