by Alem Zaganjor 
Yes. A foreigner can buy an apartment, a house or a commercial space in Montenegro in their own name, on the same terms as a Montenegrin citizen. You don’t need a residence permit, a local company or any special approval. The exceptions are certain kinds of land, which we cover below.
This guide is for UK and European buyers looking at Bar, where our office is. It covers what you can buy, the process, the real costs and residence. The rules are current as of October 2026.
What can a foreigner buy in Montenegro?
Montenegro’s Law on Property Relations treats foreigners like citizens, apart from a short list of exceptions. You can own outright:
- apartments and studios, new or resale
- houses, together with the land around them (see the limit on agricultural land below)
- offices, shops and other commercial space
- building land (urban plots)
Note that you become the owner when you are entered in the real estate cadastre, not when you sign. The contract gives you the right to be registered.
What are foreigners not allowed to buy?
Article 415 of the Law on Property Relations lists what a foreign person cannot own:
- agricultural land
- forests and forest land
- natural resources and public goods, which include the seashore itself
- cultural monuments of exceptional or special importance
- property within 1 km of the land border, and islands
- areas closed to foreign ownership by a special law for security reasons
There is one exception that matters for house buyers. A foreign individual can own up to 5,000 m² of agricultural or forest land if what they are buying is a residential house standing on that land. It covers a house with its garden. It does not cover an empty field.
Restricted land can be bought through a company registered in Montenegro. A company has its own costs and duties, so talk to a lawyer first.
EU citizens: a 2025 amendment says EU citizens will buy on the same terms as Montenegrins, but only from the day Montenegro joins the EU. Until then the list above applies to Germans and other EU citizens too.
What this means in Bar: none of this affects an apartment in Šušanj, Topolica, Ilino, the centre or Sutomore. It matters for rural plots in the hills, where “land” can turn out to be agricultural land.
How do I know the building is legal?
This is the most important check in 2026. Under the Law on Legalisation of Illegal Buildings, in force since August 2025, a building built without a permit, or not in line with its permit, cannot legally be sold until it is registered or legalised.
A clean title deed is not enough on its own. Lawyers point out that the cadastre has until 2028 to mark every illegal building, so a missing note today doesn’t prove the building is legal. Ask to see the building permit (građevinska dozvola) and the occupancy permit (upotrebna dozvola). For buildings started between October 2017 and March 2025, a construction notification (prijava građenja) took the place of the building permit. Check that the floor area on the title deed matches the flat you saw.
How does buying a property work, step by step?
1. Agree the price and check the documents
Before any money changes hands, check the title deed (list nepokretnosti). It shows the owner and any mortgage, dispute or ban on sale. You can view it free online through eKatastar. The seller must be the person on the deed, and if it is marital property, both spouses must agree.
2. Sign a preliminary contract and pay a deposit
The preliminary contract (predugovor) fixes the price, the date for the main contract and the deposit, usually around 10% of the price. If the buyer walks away, the seller keeps the deposit. If the seller walks away, they must pay the buyer back double. Have the preliminary contract certified by a notary too, especially if the deposit is large.
3. Prepare your paperwork
- a valid passport
- a sworn court interpreter at the signing if you don’t speak Montenegrin
- ask the notary whether you need a Montenegrin tax number (PIB) for your purchase
- if you can’t travel, a power of attorney signed before a notary at home, with an apostille and a sworn translation
4. Sign the main contract at a notary
A property sale contract in Montenegro is only valid if it is made before a notary. The notary checks identities, the title deed and the terms. The contract includes the seller’s consent for you to be registered as owner, known as the clausula intabulandi.
5. Pay by bank transfer
Under the anti-money-laundering rules in force since May 2026, payments above €10,000 must go through a bank, and the notary needs proof of the transfer. Your bank may ask where the money comes from, so have the paperwork ready. You can also pay into the notary’s escrow account, and the seller receives the money once every condition is met.
6. Registration in the cadastre
The notary sends the contract to the cadastre. Registration usually takes from a few weeks to two months. When it is done, a new title deed is issued with your name on it.
7. Pay the transfer tax
The tax administration issues a decision with the amount of transfer tax due, and you pay it by the deadline on the decision.
How much tax do I pay when buying?
Resale property (anything bought from a private owner) carries a real estate transfer tax. Since 1 January 2024 it is progressive:
- up to €150,000: 3%
- €150,000 to €500,000: €4,500 plus 5% of the amount above €150,000
- above €500,000: €22,000 plus 6% of the amount above €500,000
So a €100,000 apartment pays €3,000, and a €200,000 house pays €7,000. The tax is charged on the market value, which is normally the contract price.
New builds bought from the developer pay no transfer tax. Instead, 21% VAT is already included in the price. Since April 2026 the same applies to building land sold with VAT. Foreign buyers pay exactly the same taxes as Montenegrin citizens.
What does a €150,000 apartment in Bar actually cost?
Here is the full cost of buying a resale apartment in Bar for €150,000.
| Item | Amount | Note |
|---|---|---|
| Purchase price | €150,000 | Resale apartment |
| Transfer tax | €4,500 | 3% of €150,000 |
| Notary fee | about €628 | €519 under the April 2026 notary tariff, plus 21% VAT |
| Sworn interpreter | about €200 | Contract translation and attendance at signing |
| Cadastre extracts, admin fees, bank charges | about €200 | Allowance, confirm with the notary |
| Agency commission | €0 | On sales in Bar it is usually paid by the seller. Agree it in writing first. |
| Total | about €155,500 | Roughly 3.7% on top of the price |
If you hire your own lawyer, add their fee and ask for a written quote. A new build from a developer would carry no transfer tax, as VAT is in the price.
What does €150,000 buy? Based on asking prices in our listings in October 2026, apartments in Bar have a median of about €2,600 per m², so €150,000 buys roughly 55 to 60 m². In the city centre (about €2,900 per m²) that is closer to 50 m². In Šušanj (about €2,470 per m²) it is around 60 m², and in quieter residential areas such as Čeluga or Bjeliši (about €2,100 to €2,200 per m²) around 70 m².
What are the yearly costs of owning?
Owners pay an annual property tax to the municipality: by law between 0.25% and 1% of the market value. The municipality sets that value, not your purchase price. In Bar it is based on the floor area, an average price per m² and location, reduced for the building’s age. Bar charges second homes more than homes people live in (its 2019 decision proposal used 0.60% against 0.26%), so ask for the current rate.
Add maintenance, utilities and insurance. Rental income is taxed, and short lets to tourists need registration and a tourist tax.
Does buying property give me residence in Montenegro?
It can. Owning property in Montenegro is a legal ground for a temporary residence permit. The permit is issued for one year and can be renewed a year at a time. You also need to show means to support yourself, accommodation, health insurance and a clean criminal record.
The rules changed on 17 January 2026:
- UK and other non-EU buyers must now show property worth at least €150,000, based on the tax administration’s transfer tax decision.
- Citizens of EU countries, Iceland, Liechtenstein, Norway and Switzerland, and their family members, don’t have to meet that value threshold.
- Permits issued on the basis of property before 17 January 2026 can be renewed without proving the value.
Know the limits. The permit doesn’t give you the right to work. Whether years on it count towards permanent residence is unclear: the government’s guidance says they don’t, but the amended law no longer says so explicitly. It can end if you spend more than 30 days outside Montenegro, unless you notify the authorities in advance of a justified absence of up to 90 days. Implementing rules for the new law are still being adopted, so check with a lawyer before you apply.
Why buy with a local agency in Bar?
Albatros Real Estate is based in central Bar. We list apartments, houses and land for sale and rent in Bar and Sutomore, in five languages. We help you check the title deed, prepare the documents and organise the signing and handover.
Browse properties for sale in Bar, or contact us with your budget and we’ll send you a breakdown of all costs before you commit.
Frequently asked questions
Can a UK citizen buy property in Montenegro?
Yes. UK citizens can buy apartments, houses and building land in their own name on the same terms as Montenegrin citizens. The only restrictions are on certain land, such as agricultural land, forests, and property within 1 km of the land border.
Can I buy property in Montenegro without travelling there?
Yes. You can sign a power of attorney before a notary in your home country, have it apostilled and translated by a sworn translator, and a representative in Montenegro can complete the purchase and registration for you.
Who pays the estate agent’s commission in Bar?
On sales it is usually paid by the seller. Commission arrangements can differ, so agree in writing who pays what before you start viewing.
Can I get residency by buying a €100,000 apartment?
Not if you are a UK or other non-EU citizen applying after 17 January 2026: the property must be worth at least €150,000. Citizens of the EU, EEA and Switzerland don’t have to meet the value threshold.
How long does buying a property in Montenegro take?
With clean documents, you can sign at the notary within a few weeks of agreeing the price. Registration in the cadastre then takes a few weeks to two months.
This guide is general information based on the rules in force in October 2026, not legal advice. For your own purchase, confirm the details with a notary or a lawyer.
