Estatemontegroup: How to buy property in Montenegro

Foreign citizens can purchase real estate in Montenegro without any significant restrictions - both for an individual and a legal entity. The only exception applies to a number of lands and properties. What is the best way to get to the Balkan country, how is the buying process going, what are your expenses? A foreign individual can be the owner of the land if the area of ​​the plot does not exceed 5000 sq. M, and at the same time a building located on this plot is acquired. Buying land without construction is possible only if the plot is included in the DUP (detailed urbanization plan). How to start the purchase procedure Real estate in Montenegro is now offered by many realtors who are independently building or working with their Montenegrin counterparts. Therefore, you can look for housing in this country without crossing the borders of your homeland. To do this, you can contact us and choose the appropriate option. Already at this stage, you can sign a preliminary contract and make a deposit of 10% of the cost of the object. The buyer is still recommended to come for a personal viewing of the property. The procedure for concluding a preliminary contract is discussed in detail below. Remote purchase option In Montenegro, you can buy real estate remotely through our trusted representative. A notarized power of attorney to grant him these powers can be issued in Russia, sent by mail and then translated into Serbian in Montenegro. This can be done by a licensed translator - the cost of the service will be about € 15-20 per A4 page. We do this procedure ourselves in Montenegro. How to get there There are many routes to Montenegro from Russia. You can travel to this Balkan country by car, bus, train or plane. Car You can travel by car with a Schengen visa. To get to Montenegro, you can cross the borders: Belarus, Poland, Slovakia, Austria, Hungary, Serbia Belarus, Poland, Germany, Austria, Hungary, Croatia Belarus, Poland, Slovakia or Germany, Austria, Italy - from there by ferry to Montenegro From St. Petersburg by ferry you can get to the German Rostock and from there move southward. Such a journey can take three to four days with stops. Railway Since June 2009, there is a direct train Moscow - Bar. A round-trip ticket costs € 300. Travel time will be from 54 to 60 hours. You can also get from Moscow to Belgrade, and then take a train to Podgorica or Bar. Travel time is two and a half days with a transfer. For such a trip, you will need a Schengen visa. Bus You also need a Schengen visa to travel by bus. In summer, buses from Belarus and Ukraine follow to Montenegro. From here you can get to Montenegro in two days. Regular bus services also depart from neighboring countries - Serbia, Croatia, Bosnia and Herzegovina. Air travel Direct regular flights to the city of Tivat, located on the coast, and to the capital of the country, Podgorica, are carried out from Moscow by Aeroflot, Montenegro Airline and S7. Montenegro Airline, a Montenegro company, operates flights to both Moscow and St. Petersburg. In addition, many charters are open in the country in the summer, tickets for which are on direct sale. Flight time is three hours. The cost of a round-trip charter from Moscow is about € 300, from St. Petersburg is more expensive, by about € 100. Opening a bank account As a rule, transactions are settled in a non-cash form. You can transfer money both from an account in your home country and from an account in a Montenegrin bank. It will take ten minutes to open, you only need a passport. Transferring money from Russia to Montenegro will cost a little more than € 100. When transferring funds, a letter from the tax office is required stating that they have been notified of the opening of an account abroad. Transferring money from Russia will cost from 0.3% to 2%, but not more than € 200. Usually, a transfer from your account in Russia to your own account in Montenegro does not raise any questions. Also, questions do not arise in the case of payment directly to the seller. In these cases, documents on the origin of funds are not required. Preliminary agreement As soon as the object is selected, the buyer signs a preliminary contract (predugovor), which fixes his obligations and describes the purchased property, its price and payment terms. At this moment, a reservation fee ("kapara" - deposit) is paid in the amount of 10% of the value of the property. If the buyer refuses the transaction, the down payment is not refundable. If the seller refused the transaction, he is obliged to return the fee to the failed buyer, but not more than double the amount (if this is stipulated in the preliminary contract). Therefore, a clause on making a deposit must be included in the contract, or a corresponding receipt must be taken from the seller. To conduct a real estate transaction and obtain ownership in Montenegro from a buyer, a foreign passport is required  , and from the seller - a non-confidentiality sheet (certificate of ownership). This document describes the property (footage, description of the site, information about the owner, cadastral number). It also contains records of the existing encumbrances and restrictions of the object (if any). Conclusion of a sales contract The signing of both the preliminary and the final agreement (glavni ugovor) takes place only on the territory of Montenegro, in the presence of both parties or their representatives by proxy. The signatures are certified by the official seal of the notary. After confirming the seller's right to real estate with a relevant document in the local municipality, the value of the real estate is determined. The estimated value is determined by the tax office (“cut of the government”) of the municipality and generally corresponds to the real prices on the market. It can be either higher or (very rarely) lower than stated in the contract. Upon transfer of ownership of real estate, the buyer pays real estate turnover tax in the amount of 3% of the value of the object under the contract. When purchasing real estate from the Developer, the real estate tax is not paid. In case of discrepancies between the transaction price under the contract and its estimated value (understatement), the tax is charged at the estimated value of the object. After the buyer has paid the amount specified in the contract, he submits documents to change the information about the owner of the real estate in the cadastre. Only then does the buyer receive absolute rights to the purchased property. Related expenses Compared to other countries, the cost of buying real estate and registering it in ownership in Montenegro is low. As mentioned above, the amount of real estate turnover tax (transfer of ownership), when buying a secondary property, is 3% of the value of the property. To pay the tax, the tax office sends a receipt ("decision") to the buyer's address, preceded by the exit of the evaluation commission directly to the object. This type of one-time tax must be paid within 15 days after receiving the receipt. If the payment is not made within two months, the accrual of penalties begins (0.03% per day of delay). Therefore, if you have not received a receipt by mail, you must contact the tax office in person. The cost of the services of a lawyer involved in the preparation of the purchase and sale agreement ranges from € 100 to € 500 per transaction, although most companies are ready to provide such services free of charge. The registration fee for notarization in court is about 0.5% of the value of the property under the contract. Entry into the Cadastral Book and certification of a receipt of receipt of money (if any) will also require some insignificant amount. Realtor services are estimated at 5%. In Montenegro, they are usually paid by the seller (in the primary market). In the secondary market, the buyer often pays too. The cost of notary services is paid depending on the value of the object of sale: - 70 euros - for the value of the object up to 5.000 euros; - 120 euros - at the cost of the object from 5.001 to 20.000 euros; - 170 euros - at the cost of the object from 20.001 to 40.000 euros; - 250 euros - for the value of the object from 40.001 to 60.000 euros; - 300 euros - with the cost of the object from 60.001 to 80.000 euros; - 350 euros - with the value of the object from 60.001 to 120.000 euros; - 10 euros - in addition, for every 15,000 euros - for objects, the value of which exceeds 120,000 euros. at the same time, the total amount of the notary's fee cannot exceed 5.000 euros for one real estate object. Drawing up a preliminary contract and additions - 50% of the cost of services. Translation of the contract into Russian by a court translator - from 15 € per page. This is done additionally - after signing the Purchase Agreement. Simultaneous translation at a notary office - from 35 € per hour. A Licensed Court Interpreter is present at the deal. The cost of housing and communal services tariffs. Electricity, 1 kW - 8 eurocents during the day, 6 eurocents at night. Water supply - from 5 € per person per month. Telephone - 5 € per month. Garbage collection - 8-12 € per month. For empty housing, you only need to pay for the telephone and garbage collection. Maintenance cost - depends on various factors - year of construction, location, residence of the owner, etc. Check out our personal experience of buying real estate in Montenegro - give us a call! State registration of the transaction After the final settlement, the seller gives a notarial confirmation that the payment has been received in full, in the absence of the seller in Montenegro at that time. It is enough for the buyer to show the bank's payment orders to the notary about the transfer of funds to the name of the seller. The notary submits an application for entering the data on the new owner into the cadastral register. After that, you can get the Cadastre Decision and the Certificate of Ownership (Non-Clarity Sheet). Mortgages in Montenegro After the crisis, it became almost impossible for foreign citizens to obtain a mortgage loan. However, Montenegrin banks are  We are interested in lending to investment construction. Banks almost do not provide direct mortgages for foreigners, but developers offer in many cases an interest-free payment by installments or payment on schedule. Before the final settlement, the property can be used, but it can be reissued to oneself only after the final payment. Our company provides payment by installments from 1 year to three years. In Russia, there are no mortgage programs for the purchase of foreign real estate, so here you can only get a long-term loan secured by the existing property. House in Montenegro. Features of buying various types of real estate Buying housing under construction In Montenegro, the purchase of housing under construction is in great demand. Depending on the developer, the form of the contract may vary: it is either a preliminary purchase and sale agreement, or an investment / co-investment agreement, or an agreement for participation in shared construction. All of these forms are permitted by law. The contract specifies the area, the boundaries of the acquired property, the finishing materials from which the object is built, the payment terms and penalties in case of delay in payments by the buyer or construction by the seller. The main responsibility of the buyer is timely payments under the contract. After the acceptance of the object by the state commission, the buyer signs the acceptance certificate of the housing, checking its compliance with the contract. After that, according to the standard scheme already described above, the procedure for registering ownership of the property goes through. Legally, the buyer becomes the owner only from the moment of cadastral registration. When buying a housing under construction, that is, when the buyer becomes the first owner of real estate, according to the existing legislation of Montenegro, he is completely exempted from paying real estate tax (3%). True, there is a subtlety: it all depends on how the developer designs a specific object. Therefore, you should check with the developer if the buyer is exempt from this tax. About new buildings in Montenegro Purchase of land and construction of housing Despite the fact that the legislation of Montenegro allows the sale of land plots for construction to foreigners, the process of approving and obtaining a building permit is laborious and time-consuming. To resolve this issue, we advise you to hire our specialist. If there is a finished project, all approvals can be obtained literally in one or two months (with a detailed urban development plan for the territory approved for this territory). When buying building land, you need to make sure that it is urbanized. To obtain a building permit, coordination with local authorities is required. To do this, first of all, you need to obtain a Location Decision from the local municipality, where the application is submitted along with copies of the Confidentiality Sheet and the plan from the cadastre. However, if the object that is supposed to be built exceeds five floors, and its area is more than 500 sq. m, then you should contact the Ministry of Economy. This measure is due to the fact that the high-rise regulations allow the construction of buildings no higher than five floors, since Montenegro is located in a seismically active zone. The decision on the location confirms that construction can be carried out on this site, describes the urban planning technical conditions and the validity period of the document, which is one year. During this time, it is necessary to go through the final approval procedure and obtain a building permit, because the Location Decision itself is not such. After receiving the Location Decision, the development of the Main Project should begin, which includes a number of documents (architectural and urban planning justification, calculation of loads of metal structures, coordination of engineering and technical conditions for water and energy supply, coordination with the fire service, etc.). All these issues are solved by the chief architect (must have a license to work in Montenegro), who independently coordinates them with the rest of the technical services. Average prices for the development of a project are € 15-25 per "square" of the total area, but you can negotiate a lower cost, especially if the object is large. The project must either be ordered or certified by a licensed engineering firm. Subsequently, the Project is submitted for approval to the municipality, where a commission is appointed to check all technical documentation for compliance with building standards, the need for approvals with other government agencies, the amount of payments (taxes on construction) to the budget is determined and a decision is made to issue urban planning approval. The described procedure for obtaining a building permit includes many instances. But more than a year and a half ago, a law was passed, according to which all approvals are made by employees of the urbanism departments. According to it, the project owner must communicate with the authorities only three times: when submitting a project to check upon signing an agreement with the mayor's office (community) on payment of a one-off construction tax after payment of tax - upon receipt of a building permit and a permit to operate the facility For objects less than 500 sq. m. mandatory expert supervision and acceptance by the technical commission are canceled. The technical commission, which issued the construction approval, accepts the house upon commissioning and issues a document that records the completion of construction and payment of all necessary payments in accordance with the issued permit - "I will use it as I can". Further, the house is assigned an address, which will be recorded in the cadastre. Our company can help you coordinate all procedures with local authorities and put housing into operation. Now in Montenegro, many companies offer construction services, but the quality of construction work and compliance with the schedule can only be guaranteed by a licensed company. When building a residential building made of brick and concrete, the cost per square meter starts from € 400 - without finishing works. Rentals in Montenegro For those who have not yet decided to buy a Montenegrin house, you can first spend a vacation here, renting a house for rent, especially since the rent here is one of the cheapest in Europe. A decent apartment in a seaside town will cost about € 50-120 per day, you can find more affordable options. You can also find a refuge upon arrival (everywhere you can find a sign "sobe" - "for rent"), having agreed on everything with the owner yourself. But often such housing is located not on the shore, but on a hill, so the way back to the house can turn into a "climb to Calvary." Still, it is better to worry about renting in advance and rent a house by contacting us. We will meet you at the airport, tell you about interesting places to visit, and offer a tour of the objects of sale. Call us at any time convenient for you!