Every tax you will actually pay as a buyer and owner - purchase, annual, rental and sale - with the numbers first.
Montenegro is a low-tax property market, but "low tax" hides four different taxes that bite at four different moments: when you buy, every year you own, when you rent out, and when you sell. Here is each one, as it stands in 2026.
Resale property carries a progressive real estate transfer tax, paid by the buyer:
| Purchase price band | Transfer tax rate |
|---|---|
| Up to €150,000 | 3% |
| €150,000 to €500,000 | 5% on that band |
| Above €500,000 | 6% on that band |
On a €400,000 resale apartment that works out to €17,000 - €4,500 on the first band plus €12,500 on the second. Model your own number with the transfer tax calculator.
New-build from a developer carries no transfer tax at all. Instead the sale is subject to 21% VAT, which in practice is already inside the advertised price. What remains on a new-build is notary and registration of roughly €300 to €800 - total closing costs under 0.5% of the price.
Annual property tax is set by each municipality within the statutory range of 0.25% to 1.00% of the assessed value, adjusted with corrective coefficients for location, age and use of the property. Two things soften the headline rate: the assessed value is typically below the market price, and the coefficients often pull the effective rate toward the lower half of the range.
For a coastal apartment assessed at €250,000, a mid-range municipal rate produces an annual bill in the region of €600 to €1,200 - usually the smallest line in the cost of ownership, well below service charges in a managed resort.
Rental income is taxed at 15% of the taxable base - and the base is what is left after a standard cost deduction:
| Rental type | Standard deduction | Effective rate on gross rent |
|---|---|---|
| Long-term rental | 30% | 10.5% |
| Tourism rental, sojourn tax paid | 50% | 7.5% |
| Tourism rental via agency or local tourist organisation, average occupancy at least 60 days a year | 70% | 4.5% |
Worked example on €10,000 of gross annual rent: a long-term let pays €1,050; a registered tourism let through an agency at the 70% deduction pays €450. Registration and the sojourn tax are the difference between the first and last row.
Capital gains on property are taxed at 15% of the net gain. Two rules reduce the bill:
Indexation. The acquisition price is adjusted annually for retail price growth between purchase and sale (clan 37d st. 4), so you are not taxed on pure inflation. Documented capital improvements and eligible transaction costs also come off the gain.
Main residence exemption. There is no capital gains tax where the property was your sole and main residence (clan 37g).
Companies do not pay a separate capital gains tax: gains are part of corporate profit and taxed under the progressive corporate income tax of 9% to 15%.
Closing costs, the step-by-step legal process, bank accounts and buying remotely: Buying Property in Montenegro - the full guide >
Between 0.25% and 1.00% of assessed value, set by each municipality within that range and adjusted with corrective coefficients. Assessed value is usually below market price.
On resale, yes - progressive 3% / 5% / 6% by price band. On new-build, no transfer tax; the 21% VAT is inside the advertised price instead.
15% of the taxable base after standard deductions of 30% (long-term), 50% (tourism, sojourn tax paid) or 70% (agency-let tourism, 60+ days average occupancy) - effective rates of 10.5%, 7.5% or 4.5% on gross rent.
15% of the net gain, with the purchase price indexed for retail price growth and improvements deductible. No capital gains tax if it was your sole and main residence.
Almost nothing beyond the price - VAT is included, no transfer tax, and notary plus registration of roughly €300 to €800.