Who pays the tax on a used car sale? The buyer. The rate is 5% of the vehicle's market value, and the request is filed with the tax office within 15 days of the purchase.
When one private individual sells a used car to another, all the work falls on the seller and the buyer. Local searches show where the questions arise: next to "kako prodati auto" (how to sell a car) people look for "procedura" (procedure) and "brzo" (quickly), next to "kupoprodajni ugovor za auto" (car sale contract) most often "crna gora" and "cijena" (price), and next to "porez na promet vozila" (vehicle sales tax) the words "kalkulator" (calculator) and "polovnih vozila" (used vehicles). "Prenos vlasništva vozila" (transfer of vehicle ownership) is searched separately, with "procedura" and "cijena".
This article follows a sale in order: what to prepare, what goes into the contract, what the notary charges, how the used vehicle tax is calculated under the law in force since November 2025, and what the buyer needs to register the car in their name.
Before the listing
Have the registration certificate and your ID ready, and service records are useful too. If the car is leased, first check the leasing contract and the terms for closing it.
A good listing saves both sides time: clear photos, year, mileage, fuel type and price. How to write a listing that sells, with examples, is shown in our article on writing a listing, and where and how to post a free listing in our article on free classifieds.
The sale contract
The contract is made in writing and serves as proof of ownership at registration. Include at least:
- The parties: name, address and ID number of the seller and the buyer.
- The vehicle: make, model, year of manufacture, chassis number and registration number.
- The price and payment method.
- The date and time of handover, so it is clear from when the buyer uses the car.
- A statement on the car's condition, including known damage.
You can have the signatures on the contract certified by a notary. Under the 2026 notary tariff, certifying a signature costs 3.50 € per signature on one copy of the document, plus VAT. Notaries and companies that carry out vehicle inspections and registration must send the documents on the basis of which a vehicle changes owner to the tax office within 15 days.
Used vehicle tax: 5%, paid by the buyer
Under the 2025 Law on the Tax on Sales of Used Motor Vehicles, Vessels, Aircraft and Aerial Vehicles, the tax is due when a used vehicle is bought or otherwise acquired and the sale is not subject to VAT.
| Rule | What it means |
| Who pays | The buyer or acquirer of the vehicle |
| Rate | 5% |
| Base | Market value at the moment of purchase, based on the contract |
| Request | The buyer files it with the tax office for their place of residence within 15 days of the purchase, with the contract |
| Decision | The tax office issues it within 15 days of the request |
| Payment | Within ten days of the decision being delivered |
| Registration | Without proof of the tax paid the vehicle cannot be registered |
For a car worth 8,000 € the tax is 400 €. If the price in the contract is not realistic, the tax office sets the base using the market value of the same vehicle, of vehicles with roughly the same characteristics, or an appraisal. A transitional rate of 2.5% applied during the first 180 days of the law; now the rate is 5%.
The tax is not paid by a first-order heir, a spouse or cohabiting partner, or a same-sex partner, by a first-order donee and the donor's spouse, cohabiting partner or partner, or by former spouses and partners dividing joint property. An individual who does not file the request in time commits an offence with a fine of 300 to 2,000 €, and for not paying in time 100 to 600 €.
Transfer of ownership and registration
A vehicle is registered in the owner's name, and registration is done by the Ministry of the Interior according to the owner's residence, or a foreigner's temporary or permanent residence. To register after a change of owner you need:
| Requirement | Note |
| Proof of ownership | The sale contract |
| Proof of roadworthiness | No older than 30 days |
| Proof of compulsory insurance | A valid compulsory insurance policy |
| Proof of taxes paid | Including the 5% used vehicle tax |
| No entry in the register of fines | The owner must not be recorded as penalised for a road traffic offence |
The application is made to the Ministry in person or through a vehicle inspection station. The registration certificate is issued for one year. The owner must report any change to the data entered in the registration certificate to the Ministry within 15 days, and the owner's name is one of those data.
Tax for the seller
A seller who sells their own car does not pay capital gains tax: the Law on Personal Income Tax treats as capital gains only income from selling real estate, shares in a company and securities, and a car is not among them.
After the sale, keep a copy of the certified contract with the date and time of handover, and let your insurance company know about the sale. Until the buyer registers the car in their name, you are still shown in the records.
A short checklist for both sides
| Who | What | When |
| Seller | Registration certificate, ID, contract | On the day of sale |
| Both sides | Notary certification of the signatures on the contract | On the day of sale |
| Buyer | Request for assessment of the used vehicle tax | Within 15 days |
| Buyer | Payment of the tax | Within ten days of the decision |
| Buyer | Inspection, insurance and registration | After paying the tax |
You can list the car in our vehicle category, and property transfer tax, which is a separate tax with different rates, is explained in our article on property transfer tax.
Frequently asked questions
How is the used vehicle tax calculated? Market value times 5%. For a car worth 8,000 € that is 400 €. If the price in the contract is not realistic, the tax office sets the base using comparable data or an appraisal.
What does a notary charge to certify a car sale contract? Under the notary tariff, 3.50 € per signature on one copy of the document, plus VAT.
Can a car be registered without the tax being paid? No. Without proof of the used vehicle tax paid, the vehicle cannot be registered.
Can a foreigner buy and register a car in Montenegro? Registration is done according to residence, or a foreigner's temporary or permanent residence, so a foreigner with an approved residence can register a vehicle in their name.
Does the seller pay tax when selling their own car? Not capital gains tax, because under the law that applies to real estate, company shares and securities. The used vehicle tax is paid by the buyer.
Sources
The used vehicle tax is governed by the Law on the Tax on Sales of Used Motor Vehicles, Vessels, Aircraft and Aerial Vehicles (Official Gazette of Montenegro 127/2025, articles 1 to 9, 12, 13 and 16), and setting the base by the rulebook in Official Gazette of Montenegro 134/2025. Registration is governed by the Law on Road Traffic Safety (articles 269 to 272, with the amendments in Official Gazette of Montenegro 111/2026). The fee for certifying signatures is taken from the Tariff on Fees and Expenses of Notaries (Official Gazette of Montenegro 49/2026, tariff number 9), and capital gains from article 37a of the Law on Personal Income Tax. Fijaka is a listings platform and does not give legal or tax advice.