Real estate taxes in Montenegro involve several components, including property transfer tax, annual property tax, and potential capital gains tax. Here’s a detailed overview:
PROPERTY TRANSFER TAX
- Rate: The property transfer tax in Montenegro is generally 3% of the property's market value.
- Who Pays: This tax is usually paid by the buyer.
- Payment Deadline: The tax must be paid within 15 days from the date of the purchase agreement.
ANNUAL PROPERTY TAX
- Rate: The rate varies depending on the location and type of property, typically ranging from 0.1% to 1% of the property's market value.
- Assessment: Local municipalities assess the property tax annually.
- Payment: Property owners are responsible for paying this tax each year.
CAPITAL GAINS TAX
- Rate: Capital gains from the sale of property are generally taxed at a flat rate of 9%.
- Exemptions: There may be exemptions if the property has been owned for a long period or if it was the owner's primary residence.
OTHER FEES
- Notary Fees: Notary fees for verifying property transactions can range from 0.1% to 1% of the property's value.
- Registration Fees: Fees for registering property transactions with the local cadastre office also apply and are generally minimal.