Real estate sales tax
The real estate sales tax rate in Montenegro is 3% of the tax base, or of the market value of the property. Real estate sales tax is not paid for new real estate, but only for used real estate, so if you are buying an apartment in a new building and you are the first owner of the real estate, no sales tax will be paid.
The real estate taxpayer is the real estate acquirer. The subject of taxation is real estate turnover. Real estate turnover is considered to be any acquisition of ownership of real estate in Montenegro.
-Real estate sales tax is not paid by inividuals who resolve the housing issue with these real estate, up to a maximum of 20 m2 per household member.
-Real estate sales tax is not paid by state authorities, local government units, as well as international organizations acquiring real estate for the purpose of conducting their business.
-Real estate sales tax is paid within 15 days from the date of submission of the decision on determining the tax liability
Real estate tax
The annual real estate tax is introduced by the local self-government unit by its regulation.
By real estate are considered:
– Land (construction, forestry, agricultural and other);
– Construction facilities (business, residential, commercial and other facilities);
– Special parts of a residential building (apartments, basements, garages, or garage spaces, etc.).
-The taxpayer of the real estate tax is a legal entity and individual who owns the real estate (land, building, residential and business unit of a building or other construction object) as of January 1, the year for which the tax is determined, and the basis for payment of that tax is the market value of real estate at that date.
-The real estate tax rate is proportional and can range from 0.25% to 1.00% of the market value of the real estate, and its amount is determined by the municipality by its decision, depending on the type, location, quality, age of the real estate.
-A local government unit may set a higher tax rate than the rate set by this law, which may be increased from 25% to 150% of the established rate or as part (from 2.5% to 5%) of the market value.
-The tax liability is determined by a decision of the competent tax authority of the municipality.
-The law prescribes a smaller number of exemptions from the payment of real estate taxes and they mainly refer to the use of state property and public interest objects.
-Tax relief is provided for residential properties that serve as the principal place of residence, for the taxpayer 20% and for each household member 10%, (this relief can be up to 50% of the tax liability determined).