Buying a house in Kotor

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Buying a house in Kotor
Buying a house in Kotor

Do you do business in Europe? Do you want to start a new life in a new country? Do you want to spend your summer in a warm European city? Whatever your reason is Kotor is your answer to these questions. 

It is easy and cheap to start living or starting up a business in Kotor, Montenegro. To have residence permit in Kotor there are two options:

- Starting up a company

- Buying a property

If you want to both live and work in Kotor it’s the first option you should be picking. If you want to live permanently or temporarily in Kotor second option is ideal. 

Why buy a property in Kotor?

- There’s no minimum value of property you should be paying in order to have the residence permit. Most European countries have a minimum limit starting from 250 thousand Euros whereas Montenegro has no such limit. You can buy a property as low as 50 thousand Euros or less and obtain your residence permit within 21 days after buying the property.

- The property prices are cheaper than other European countries.

- It’s a good investment as it is easy to let out your property especially during summer to tourist daily, weekly or monthly.

- Even though Montenegro is not in the European Union now, it is expected to join within a few years which will bring the country additional opportunities as a European Union country.

- It’s one of the most popular cities of Montenegro which is socially and economically developing.

- It’s a major tourist destination and tourism is booming each year.

- The foreign investors are treated on the same basis as the domestic investors.

- It has a strategic geographic location with an access to the Mediterranean Sea and having links to other countries.

- Although not the official language, knowledge of English is widely spread as well as Russian, German and Italian.

- Center of entertainment with boat races, festivals, out-door activities and sandy beaches.

Good to know before buying a property: The owner of the property pays the annual real estate tax which differs on the market value of the property from 0.25% to 1%.

What is the process of buying a property in Montenegro?

- Find a real estate agent, a local one who can help you with telling you the pros and cons of the property you are interested in buying. Sometimes a nice looking house might get flooded in winter due to its location. Only a local can give you hints. We cooperate with local experienced real estate agents.

- Stay in the area for a while before investing and see as many houses as you can.

- After finding your dream house, don’t forget to check the ownership papers. You need to make sure that the property has clean titles or a building permission or you have legal access to a property as sometimes you might be sharing your driveway with your neighbor. 

- Negotiate an offer.

- Once the price is negotiated and agreed a deposit is placed with vendor his lawyer or the real estate agent. It’s a non-refundable deposit. It can be between 1000 Euros and 10% of the property value. By doing this you reserve the property and an agreement of reservation is signed by all parties. The property is withdrawn from the market.

- It is recommended to have a lawyer. Your real estate agent may have or recommend one.

- It is recommended to open a bank account as you will need it to pay taxes and some legal fees. 

- Once you and your real estate agent ensure that the property is free from liabilities and clear a contract is signed by the buyer and the vendor or their representatives at the Notary’s and the balance of the property is transferred to the vendor. 

- The notary signs and notarizes the contract and sends a copy to the tax authorities to have the property evaluated according to the contact and market prices. 

- In about 15 days a notice is received from the tax authorities and 3% of the property price is paid as the real estate transfer tax. 

- Finally you can register the property in your name with the help of your lawyer or the notary. 

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