What does a gift contract for a flat from parent to child cost? Half the standard notary fee, plus VAT. For a flat worth 80,000 to 119,999.99 € that is 240 € instead of 480 €, and registering the new owner in the cadastre costs 15 € in taxes and fees.
Parents who want to leave a flat to a child often do not wait for an inheritance but give it during their lifetime. Local searches show what people want to know: next to "ugovor o poklonu stana" (gift contract for a flat) people most often add "sa roditelja na dijete" (from parent to child), "primjer" (example) and "cijena" (price), and next to "opoziv poklona" (revoking a gift) the questions "zbog nezahvalnosti" (for ingratitude) and "rok" (deadline).
This article explains in what form a flat is given, what it costs at the notary, who pays which tax, how the gift counts when the donor dies, and when a gift can be taken back.
Gifting a flat goes through a notary
Under a gift contract the donor undertakes to transfer ownership or another right to the donee free of charge. The Law on Obligations requires a gift of real estate to be in writing and certified, and the Law on Notaries requires legal transactions transferring ownership of real estate to be made as a notarial deed. A transaction not made in that form has no legal effect. A promise of a gift and a gift in case of death must also be made as a notarial deed.
Only a person with full legal capacity can make a gift. If the donor could not understand the meaning of the act at the time, the donor or their heirs can ask for it to be annulled within one year of the gift.
As with a purchase, the donee becomes the owner on registration in the real estate cadastre, and the notary sends a certified copy of the contract to the cadastre and the tax office. What the notary procedure looks like step by step is covered in our article on the purchase contract at the notary.
What a gift costs at the notary
The notary fee is based on the flat's market value, under the same tariff as a purchase contract. For a gift contract between a parent as donor and a child as donee, the fee is 50% of the standard amount.
| Value of the flat | Gift to another person | Gift from parent to child |
| 60,000 to 79,999.99 € | 420 € | 210 € |
| 80,000 to 119,999.99 € | 480 € | 240 € |
| 200,000 € | 558 € | 279 € |
VAT is added to the fee. To register the new owner, the Real Estate Administration charges administrative taxes of 2 € for the request and 3 € for the decision, plus a fee of 10 €.
Transfer tax: who pays, who is exempt
A gift of real estate counts as a transfer under the Law on Property Transfer Tax, and the tax is paid by the donee. The tax is not paid by:
- a first-order donee, that is, the donor's child;
- the donor's spouse and a same-sex life partner: a gift between partners during the partnership has been exempt since the 2020 Law on Same-Sex Life Partnership, and since 10 September 2026 the Law on Property Transfer Tax also names the partner expressly;
- a second-order donee, for one gifted flat, if they lived continuously in a joint household with the donor for at least a year before the gift.
Watch the direction of the gift. Parents are exempt when they inherit from a child, but when a child gives a flat to a parent, the parent is not a first-order donee and the exemption applies only if the joint household condition is met. Other donees, for example a brother, sister, nephew or friend, pay tax at the same rates as on a purchase, on the flat's market value, with a tax return within 15 days of the contract. Rates and worked examples are in our article on property transfer tax.
Capital gains tax: the donor and a later sale
The Law on Personal Income Tax treats as a capital gain not only income from selling real estate but also from transferring it. A capital gain is not taxed if the property is given to first-order relatives, if the transfer is between spouses or life partners and linked to marriage, divorce or inheritance, or if the flat was the taxpayer's only and main residence. For a gift to anyone else, check with a tax adviser whether capital gains tax arises; it is charged at 15%.
It also matters to the donee: if they later sell the gifted flat, the purchase price used is the price at which the donor acquired it, adjusted for retail price growth. A gift does not "wipe out" the gain that built up while the donor owned the flat.
Annual property tax from acquisition is paid by the new owner, with a tax return to the municipality within 30 days. How it is calculated is covered in our article on property tax.
Gifts and inheritance: the forced share
A lifetime gift does not drop out of the calculation when the donor dies. To calculate the forced share, the value of all gifts the deceased made to statutory heirs, whenever made, and of gifts to other people in the last year of life is added to the estate. A gift is valued at the time of death, according to its condition when it was given.
A gift to a statutory heir is normally credited against that heir's share of the inheritance, unless the donor declared that it should not be. If the gift infringes the forced share, only forced heirs can ask for the gift to be returned, within three years of the donor's death. How probate works and how large the forced share is are explained in our article on inheritance and probate.
How to keep the right to live in the flat
In the gift contract the donor can reserve a right for themselves or someone else, or instruct the donee to do or refrain from something. If the donee does not carry out the instruction even within a further reasonable period, the donor can terminate the contract and ask for the gift back. A clause returning the gift to the donor if the donee dies first is also valid. How parents usually structure such a contract is described in RoNa Legal's guide to gifting Montenegrin property to your children.
A right reserved over the flat, for example usufruct, is registered as an encumbrance in the cadastre extract. That makes it visible to anyone who later checks the flat, including a bank or a buyer.
When a gift can be revoked
| Ground | Condition | Deadline |
| Great ingratitude | The donee committed a criminal offence against the donor or someone close, seriously breached a legal duty, or intentionally caused major damage to their property | One year from when the donor learned of it, and at most ten years from the ingratitude |
| Lack of means to live | The donor does not have enough for themselves or for those they must support | Not for real estate if ten years have passed since handover |
A gift cannot be revoked for ingratitude the donor has forgiven, and the right to revoke for ingratitude passes to the heirs. For lack of means, the donee can avoid revocation by undertaking to provide the donor with what they lack, and revocation is not possible if the donor put themselves in need intentionally or through gross negligence. A gift of real estate is revoked by a written statement with a certified signature, and waiving the right to revoke in advance has no legal effect.
If you also want to know how the flat is sold once you have it, the whole procedure is set out in our guide to selling a flat, and you can browse current offers in our real estate listings.
Frequently asked questions
Is tax due when a parent gives a flat to a child? The child does not pay transfer tax as a first-order donee, and a gift to first-order relatives is also exempt from capital gains tax.
Is tax due when a child gives a flat to a parent? In that case the parent is not a first-order donee, so transfer tax is due, unless for one flat the parent lived continuously in a joint household with the child for at least a year before the gift.
Can a gift of a flat be revoked? Yes, for the donee's great ingratitude or because the donor lacks the means to live, under the conditions and within the deadlines set by law.
Can I give away my flat and keep living in it? You can reserve a right for yourself in the contract, for example usufruct, which is registered as an encumbrance in the cadastre extract.
Can my other children challenge the gift? If the gift infringes their forced share, they can ask for it to be returned within three years of the donor's death.
Sources
The concept, form, instructions and revocation of gifts come from the Law on Obligations (articles 576 to 593), and the notarial deed form from article 52 of the Law on Notaries. The forced share and the adding back and crediting of gifts are governed by the Law on Inheritance (articles 28, 30, 32, 42, 43 and 48). Transfer tax is governed by the Law on Property Transfer Tax (articles 4, 8, 9, 14, 15 and 16, with the amendment in Official Gazette of Montenegro 132/2026) and article 67 of the Law on Same-Sex Life Partnership (Official Gazette of Montenegro 67/2020), and capital gains by the Law on Personal Income Tax (articles 37a, 37c, 37d and 37g). The notary fee is taken from the Tariff on Fees and Expenses of Notaries (Official Gazette of Montenegro 49/2026, tariff number 1), and the registration charges from the Real Estate Administration's list of administrative taxes. Fijaka is a listings platform and does not give legal or tax advice; for a specific gift, consult a notary, a lawyer or a tax adviser.