How much is property transfer tax in Montenegro? 3% up to 150,000 euros of the tax base, then 5% on the part up to 500,000 and 6% above that.
The property transfer tax in Montenegro is a local tax. It is paid to the municipality where the property is located, and the revenue is split between the municipal budget and the Equalisation Fund in a ratio of 80:20. That is why buyers end up dealing with the tax office in Podgorica, Budva or Bar rather than with a national one. This guide explains the tax as the law sets it out, with worked examples.
The source for everything below is the Law on Property Transfer Tax (Zakon o porezu na promet nepokretnosti, "Official Gazette of Montenegro" 36/13, 3/23, 28/23, 33/26 and 132/26). Fijaka is a marketplace and does not give legal advice.
Who pays
The tax is paid by the acquirer, that is, the buyer, not the seller. In an exchange each party pays; where property is acquired in co-ownership, each acquirer pays in proportion to their share. On inheritance and gifts the taxpayer is the heir or the recipient of the gift. Montenegrin and foreign persons pay the tax on the same terms.
How much: rates and examples
Since 1 January 2024 the rates have been progressive:
| Tax base | Calculation |
| up to 150,000 € | 3% |
| 150,000 to 500,000 € | 4,500 € + 5% of the amount above 150,000 € |
| over 500,000 € | 22,000 € + 6% of the amount above 500,000 € |
What that looks like on concrete amounts (our calculation):
| Tax base | Tax | Effective rate |
| 80,000 € | 2,400 € | 3.00% |
| 150,000 € | 4,500 € | 3.00% |
| 200,000 € | 7,000 € | 3.50% |
| 300,000 € | 12,000 € | 4.00% |
| 500,000 € | 22,000 € | 4.40% |
| 600,000 € | 28,000 € | 4.67% |
The higher rates apply only to the part of the base above each threshold, so the whole price is never taxed at the top rate.
What the tax base is
The base is the market value of the property at the time of acquisition, established from the document of acquisition, that is, the contract. If the contract price is lower than market value or is not stated, the local tax authority assesses the market value using comparable data on similar properties in the same area. If there is no such data, the assessment is made by a licensed valuer appointed by the tax authority. A lower price in the contract therefore does not mean a lower tax.
By when: the 15-day deadline
The tax liability arises on the day the contract is concluded. When buying a flat that has yet to be built, it arises on handover, that is, on taking possession.
The buyer must calculate the tax in a tax return and file it with the competent tax authority within 15 days of the liability arising, together with the contract, and pay the tax at the same time as filing. Notaries have a separate duty to send the contract to the tax authority of the municipality where the property is. For an individual who does not file or pay on time, the law sets a fine of 100 to 1,000 euros.
When the tax is not paid
- New-build from a developer. Acquiring a newly built property on which VAT is charged does not count as a transfer under this law; VAT is included in the price.
- Building land subject to VAT, from 1 April 2026. An amendment published in the "Official Gazette of Montenegro" 33/26 added building land to the same rule. It applies only when the transfer is subject to VAT; on a sale between individuals, transfer tax is still paid.
- A first home. Adult Montenegrin citizens resident in Montenegro who are buying a flat or house for the first time and own no other home do not pay the tax on the area up to 20 m² per household member. Tax is paid on the remaining area. This exemption does not apply to foreigners.
- Inheritance and gifts within the closest family. A first-order heir, a spouse, a same-sex life partner and the parents of the deceased; for gifts, a first-order recipient and the donor's spouse or life partner.
- Division of joint property on divorce or on the end of a same-sex life partnership.
Same-sex life partners have been exempt from transfer tax since 2020 under article 67 of the Law on Same-Sex Life Partnership (Official Gazette of Montenegro 67/2020): on transfers between partners during the partnership, on inheriting from a partner they lived with until death, and on a share assigned in probate. An amendment published in the "Official Gazette of Montenegro" 132/26, in force since 10 September 2026, wrote same-sex life partners expressly into these exemptions, and a life partner also counts as a household member for the first-home exemption. RoNa Legal's note on the 132/2026 amendment goes through the change article by article.
And the seller?
The seller does not pay transfer tax, but does pay 15% capital gains tax on the difference between the sale and purchase price, unless the property was their only and main residence. Example: a flat bought for 120,000 and sold for 180,000 euros gives a gain of 60,000 and a tax of 9,000 euros. That is why the purchase contract still matters years after the purchase.
If you are selling, it helps to set the price knowing how much tax the buyer will pay; how to check a price we explain in property valuation in Montenegro, and the sale itself in how to sell a house in Montenegro quickly. A property listing on Fijaka is free to post.
Frequently asked questions
Who pays the transfer tax, the buyer or the seller? The buyer. The seller pays capital gains tax if they make a profit.
When does the transfer tax have to be paid? The return is filed within 15 days of concluding the contract, and the tax is paid at the same time as the return.
Where is property transfer tax paid? To the competent tax authority of the municipality where the property is located, for example in Podgorica, Budva or Bar.
Is transfer tax paid on a new flat? No, if it is bought from a developer and the transfer is subject to VAT. There is then no transfer tax, and VAT is included in the price.
Was the transfer tax reduced in 2026? The rates did not change. From 1 April 2026 building land subject to VAT was taken out of transfer tax, and from 10 September 2026 the family exemptions expressly name same-sex life partners, who were already exempt under the Law on Same-Sex Life Partnership.