Montenegro has some of the lowest tax rates in Europe. Here’s what you need to know:

✅ 1.1. Property Purchase Tax

• If you are purchasing a new property, the VAT rate is 21%, but this is typically included in the developer’s price.
• For resale properties, the property transfer tax is only 3%.

✅ 1.2. Annual Property Tax

• The annual property tax ranges from 0.1% to 1%, depending on the location and value of the property.

✅ 1.3. Rental Income Tax

• If you rent out your property in Montenegro, rental income is taxed at a flat rate of 9%, which is much lower than in many other European countries.

Montenegro has a foreigner-friendly legal framework for property purchases. Key advantages include:

✅ 2.1. No Restrictions for Foreign Buyers

• Foreigners can purchase real estate in Montenegro without any special permits.
• Property registration and ownership transfer are transparent and straightforward.

✅ 2.2. Residency Benefits

• Property owners can apply for renewable annual residency permits.
• After five years, residency may lead to permanent stay eligibility.

✅ 2.3. Secure and Transparent Legal System

• Montenegro’s land registry system is fully digital and transparent.
• Property transactions are well-regulated, ensuring legal security for investors.

• Investors purchasing real estate through a company benefit from a corporate tax rate of just 9%.
• Tax advantages make investing in Montenegro’s tourism and rental market highly attractive.