2. About Montenegro
Country Overview
Since 2006 and its declaration of independence,
Montenegro – with its surprising natural beauty,
outstanding biological and geographical diversity,
excellent climate and welcoming locals, quickly
became an attractive destination for tourists and
investors from different corners of the world. It is
considered one of the fastest growing tourist
destinations. Although it is well-suited for
development of all kinds of tourism, its focus is on
becoming an elite tourist destination. As Montenegro
tracks and increase in the number of visitors, its
infrastructure requires improving. With the help of
state and foreign funding, new roads, water, waste
and electricity networks have been greatly improved
in the last couple of years.
The coastline of Montenegro is 295km long, and has
around 75km of beaches (around 110 beaches in
total), with varying types from sand, stone and
pebble beaches of differing lengths. Its beauty
attracts many boat aficionados, who more and more
decide to make Montenegro their home port from
where they can gradually explore the Adriatic. Central
region (most densely populated) is home to the city
of Podgorica – the capital of Montenegro. It is
notable for several interesting touristic attractions
such as Ostrog Monastery, Mount Lovćen and old
historic capital city of Cetinje. North of Montenegro is
known as the centre of Montenegro mountain tourism
and is famous for ski resorts Žabljak and Kolašin.
Due to its beautiful coastline, Montenegro is most
popular during summer months, with the season
officially beginning in June and lasting until the
middle of September. High season months are
typically July and August. In winter time, north of
Montenegro, situated some three hours of drive away
from the Riviera, attracts a large number of skiing
enthusiasts from the region.
General
Name: Crna Gora (Montenegro)
Capital: Podgorica
Population: 625,000
Area: 13,812m2
Coastline: 295km
Currency: Euro
Dialling Code: +382
Climate: Mediterranean on the coast, Continental
inland.
Language(s): Montenegrin; Serbian, Bosnian,
Croatian and Albanian (English is widely spoken)
Borders: Croatia, Bosnia and Herzegovina, Serbia,
Kosovo, Albania and the Adriatic Sea
Airports: Tivat and Podgorica. Also nearby: Ćilipi
airport in Croatia (15km from the border)
Ports: Bar (major cargo port, but also a port for
ferryboats such as Bar-Bari (Italy)), Kotor (most
visited by large cruise ships), Tivat (famous for
luxury mega-yacht marina Porto Montenegro), and
smaller ports in Risan and Zelenika (Herceg Novi).
“Overall, Montenegro’s
excellent climate and beautiful
landscapes make it a wonderful
place to live year round.”
“Montenegro is one of the
fastest growing tourist
destinations.”
“ In particular, it is becoming very popular among yacht
and boat owners, who more and more choose to call
Montenegro their home port.”
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3. Important Public Holidays
New Year’s Day, 1. January (non-working)
Orthodox Christmas, 7. January (non-working)
Orthodox Easter, in April (non-working)
May Day, 1. May (non-working)
Independence Day, 21. May (non-working)
Statehood Day,13. July (non-working)
Geography
”Montenegro country landscape
is rich with beautiful sceneries
and is a joy to explore.”
Longest beach: Velika Plaža
Ulcinj (13km long)
Highest peak: Zla Kolata,
Mountain Prokletije, at 2,534m
Largest lake: Skadar Lake
391m2 of surface area
Deepest canyon: Tara River Canyon
1,300m depth
Biggest bay: Bay of Kotor
(Boka Kotorska) the northernmost bay
in Europe
Politics & Economy
In May 2006, after a referendum, Montenegro’s
parliament declared independence from the State Union
of Serbia and Montenegro.
In 2008, the new country applied for EU membership. In
2010, the Commission issued a favourable opinion on
Montenegro’s application, identifying 7 key priorities that
would need to be addressed for negotiations to begin,
and the Council granted it candidate status.
In December 2011, the Council launched the accession
process with a view to opening negotiations in June
2012. The accession negotiations with Montenegro
started on 29 June 2012.
Montenegro is also a candidate negotiating to join the
Nato.
Classified by the World Bank as an upper-middle-income
country, Montenegro is a member of the UN, the World
Trade Organisation, the Organisation for Security and
Co-operation in Europe, the Council of Europe, the
Central European Free Trade Agreement, and a founding
member of the Union for the Mediterranean.
Montenegro’s official currency is EURO since 2002.
UNESCO World Heritage sites:
Durmitor, Tara River Canyon, old city of
Kotor
National parks: Durmitor, Lovćen,
Biogradska Gora, Skadar Lake and
Prokletije
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4. 10 INTERESTING FACTS
ABOUT MONTENEGRO:
01. Name Montenegro in Montenegrin is “Crna Gora”,
which literally translates as ‘Black Mountain’. The name
was probably given to the country because of thick black
forests that graced its lands during the medieval times.
02. Skadar lake (Montenegro’s largest lake) is a
cryptodepression, meaning its bigger portion is below sea
level.
03. Tara canyon is the deepest canyon in Europe and
second deepest in the world. First is Colorado Canyon in
America.
04. Boka Bay is the southernmost fjord in Europe.
05. One of the oldest trees in the world is located in the
city of Bar, it is an olive tree, more than 2000 years old.
06. In Montenegro, there are two major shrines, a particle
of the Holy Cross on which Jesus Christ was crucified, and
the hand of the John the Baptist.
07. Although Montenegro is not a member of the European
Union, its national currency is Euro.
08. On the mountain Orjen, there is a village which is
considered the rainiest place in Europe, with 5 meters
height of rainwater per square meter.
09. Montenegrins are thought to be the tallest people in
Europe.
10. Montenegro is one of Europe’s biodiversity “hot-spots”,
with a number of species per area unit index 0,837 (the
highest index recorded in all European countries).
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5. 01 Arriving in Montenegro: Contact us prior to your arrival in
Montenegro to arrange a meeting and the list of properties you
wish to see. If you need help arranging your flights and
accommodation, let us know and we will be happy to assist you.
02 Property inspection: We will organise and provide the
property inspection when it suits you best. Our recommendation
is to be very selective of the properties you wish to see and send
us your comments to help narrow down the list. Feel free to ask
us for a suggestion if you haven’t been to Montenegro before or
if you are not familiar with the market.
03 Choosing a property: Once you’ve found the property you
like, do not hesitate to ask for another inspection to make sure
you’ve seen everything and that you are 100% ready to make an
offer.
04 Negotiating: Usually, sellers are open for negotiating,
however, that isn’t always the case. Feel free to rely on our
experience and knowledge to lead the negotiation process with
the seller, in order to establish the final purchase price and other
conditions such as payment terms, date for the contract signing
and any other details relevant to the purchase.
05 Reservation: Once buyer and seller agree with these
conditions, typically a small reservation deposit (from €3.000 up
to 10% of the property purchase price) is paid by the buyer to
reserve the property for a limited period of time, to allow buyer
and his lawyer to perform due diligence and prepare the Sales
and Purchase Agreement (SPA). At this stage, you will sign a
Reservation Agreement (RA) with our agency which details the
reservation deposit, agreed purchase price, payment schedule
and deadline for signing of the SPA.
06 Due Diligence: At this stage, we would strongly
advise every buyer to hire an independent lawyer with
a license to work in Montenegro, who will perform a
thorough inspection of property documentation and
ensure that property is fit for sale and that there are no
potential legal threats. Should the lawyer find any
irregularities, he is obliged to inform the buyer of the
legal situation and advise on whether there are ways to
continue with the purchase or if its best to stop the
procedure. Reservation deposit is returned to the
buyer if a lawyer licensed to work in Montenegro
informs in written that the property is legally not fit for
sale. If you need help finding a lawyer, we are happy to
provide a list of lawyers with experience in real estate,
with whom our clients have worked with in the past.
07 POA: Purchasing procedure typically lasts a week
or two. For this reason, many buyers choose to leave a
Power of Attorney (POA) to their appointed lawyer to
act on their behalf during the process.
08 Sales & Purchase Agreement: Once the lawyer
has finished with the draft version of the SPA, it will be
sent to translation, and then provided to you for final
review. Read the contract carefully and if there are any
questions or comments from your side, please
communicate them to your lawyer, who will make sure
you are 100% happy with its content. Once the buyer
and the seller agree on the final version of the contract,
SPA is signed and certified at the local Notary office
either by you or your lawyer via POA. A court translator
will provide an official translation of the agreement
upon signing.
09 Payment: After SPA is signed, you are obliged to pay
the purchase price as per payment schedule written in
the agreement. Buyer is also obliged to make the
payment of Real Estate Turnover Tax (RETT) in the
amount of 3% of the purchase price within 15 days from
the signing of the contract (please find a more detailed
explanation of RETT in the section “Related Costs”
below).
10 Title Deeds: Upon payment of the full purchase
price, your lawyer will begin with the procedure of
registering your title in the ownership documents. Within
a few weeks, the procedure is finished and the property
is registered in your name.
10 STEPS FOR BUYING A PROPERTY IN MONTENEGRO:
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6. Related costs
Here you can find a short overview of costs buyers should add on top
of the purchase price when they considering a purchase of real estate in
Montenegro.
Lawyer: Lawyers usually charge around €1.000 for their services during the entire process.
Their fee can vary depending on the complexity of the purchase.
The Power of Attorney: POA is certified by a Notary. Costs related to POA usually amount to
around €120 including translation.
Notary: Notary fee for the verification of main Sales & Purchase agreement is calculated based on
the value of the contract. For an example, if the purchasing price is between €80.001 – €120.000,
Notary fee is approximately €350. For each increase of €15.000 on top of €120.000 margin, the fee
is increased by €10. Maximum Notary fee chargeable is €5,000.
Translation: €20 per page or approximately €120-€200 per contract. Oral translation usually costs
around €50 per hour.
Real Estate Turnover Tax: In the amount of 3% of the purchase price within 15 days from the
signing of the contract. If Tax Authority estimates that the market value of the property is higher than
the one stated in SPA, the buyer is obliged to pay the difference in the amount of RETT as well. In
case where the subject of sale is a property which has not been sold before from a Developer who
is a VAT paying legal entity, the buyer is exempt from paying RETT on the full sales price, however,
RETT is still calculated on the portion of the land which the client is purchasing. Ask your lawyer to
check whether RETT has to be paid or not and that this it’s specified in the contract.
Land Registry: Small taxes for the registration of ownership in the Land Registry. Normally around
€20.
Bank Charges: Bank charges should also be taken into consideration when transferring
reservation deposit, purchase price and RETT. Consult your bank to see what are the possible
charges for these transfers.
Other: Such as post, DHL and similar, depending on the situation.
NOTE: BUYERS DO NOT
PAY THE AGENCY FEE
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7. CONSULTATION
We want to make sure you are fully informed and well prepared
for your investment. Please contact us if you wish to arrange a
call or a meeting to discuss any questions you might have in
relation to the procedure of purchasing real estate in
Montenegro and related costs.
DISCLAIMER: Whilst every care has been taken to ensure accuracy, the contents of this publication do not form part of or constitute a representation of warranty by
BLUE REAL ESTATE MONTENEGRO, therefore should be treated as a guide only. Information given here and local laws change periodically. Contact us for more
information. We strongly advise all our clients to appoint an experienced lawyer to represent them in the process of acquiring real estate in Montenegro.
Web www.bluemontenegro.com
Email info@bluemontenegro.com
Tel +382 (0) 67 373 984
Published in January 2016, Rev.01
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