Buying a home in Montenegro: what it really costs

Can foreigners buy?
Yes, houses and apartments freely; land requires a local company.
Costs on top of the price
1-4% · New build: 21% VAT is normally included in the developer price, buyer pays notary + ~1% legal; resale: 3% transfer tax (progressive on higher values) + notary + ~1% legal (GPG 4.01%).
Yearly property tax
Municipal, ~0.25-1% of assessed value (higher rates possible for tourist properties).
Tax on rental income
Around 15% withholding for non-residents.
What holiday rentals earn
No sourced STR gross yield found.
Long-term rent yield
4.4-5.2 (GPG Q2 2026: Podgorica 5.15, Budva 5.01, Tivat 4.36, national 4.84)% gross
Holiday-rental rules
Short-term rentals must be registered and pay a municipal tourist tax per guest-night.

Sources