Montenegro property investment is on the rise because the market offers capital growth potential on property values and there are great deals on buy to let options in the cities and the upcoming resorts. Montenegro is fast growing and is endowed with beautiful rugged mountains, breathtaking river gorges such as Kotor and fascinating beaches along the Adriatic Sea which have in recent times attracted numerous tourists. This has led to an increase in demand for holiday rentals and apartments which is why investing in Montenegro is essential.
KNOW THE PROCESS
Purchasing property in Montenegro is a simple and straight forward process that involves negotiation of prices between you and the vendor. You then make a deposit to the vendor amounting to 10% of the agreed price, then open a local bank account; you also need a lawyer to act on your behalf. The balance is paid after ten days of signing a contract between you and the vendor, the amount is transferred directly from your bank account. After that, the papers are registered in your name at the local registry.
BUILT PROPERTY AND UNDEVELOPED PROPERTY, THE PROCESS IS DIFFERENT
In this process the routine is a bit different because you will be required to pay for the property in installments. After concluding a deal with the vendor and paying the first deposit of about 5000 Euros, pre-contracts and specifications are drawn up by the developer. Once approved by you, your assigned lawyers also sign for you then the drawn up staged payments begin.
30% Pre-contract minus deposits
30% Foundations complete
30% Roof complete
10% Key handover and snag list.
The final contract is signed by you and your attorney in the notary’s office then later the papers are presented to the local registry and the property is registered in your name.
GET AN INSIGHT ON TAXES
Always avoid being on the wrong side of the law by making enquiries about the taxes that you are eligible to make payments for. When purchasing property in Montenegro it is always advisable to pay purchase tax which amounts to 3% regardless of the purchase price of the property. It is payable as soon as the main contract is signed. Avoid delays as the interest rises with every single day delay. Once you buy property there are annual taxes to be paid and the amount depends on the size of property and its location.
HOW TO PAY UTILITY BILLS FOR YOUR PROPERTY
Water, electricity, garbage, phone, internet and cable TV bills are easily payable at the local post office or bank. Alternatively some bills such as electricity and water can be paid directly to the company’s offices. Some banks offer the option of paying bills automatically from your Montegrin bank account so you need not to worry if you are not physically present to pay your bills.
You may also need to insure your property in case of damages. Currently, there are only two companies that offer this service in the country: Lovcen and Hiscox insurance just make your choice.