Property Taxes in Montenegro

Unlike the estate or real estate transfer tax, property taxes are an annual charge levied by a local government on the current market value (as assessed by the local branch of the tax office) of land, commercial, and residential property, and is paid by the owners of real estate within its municipality.

KEY TAKEAWAYS

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Property taxes are based on the assessed value of the property (determined every January 1st for the upcoming year)
Property tax rates vary in municipalities throughout Montenegro
Not paying property taxes can result in a lien against the property, assigned by the taxing municipality
Owning property as a joint tenancy (with equal rights to the property) or when tenancy in common (TIC) occurs, each tenant is liable to property tax

Who pays Property Taxes?

Individual home owners, sole proprietorships, partnerships, and corporations owning real estate in Montenero have to pay property taxes. The tax is assessed on all types of property, including second homes, rental real estate, and primary residences. However, renters in single-family homes, condos, and apartments do not have to worry about paying property taxes.

Property Tax Rates

Property tax rates vary significantly from city to city and municipality to municipality throughout Montenegro. In layman’s terms, your annual property taxes owed are culculated by multiplying the assessed value of all properties by the property tax rate, which ranges from 0.25% to 5.00%. Here are a few things to consider:

Your primary residence is considered your home, the house, condo, or townhouse where you are registered as a (temporary) resident of Montenegro
Secondary residences are defined as all other properties, including properties owned by corporations, other than your principal place of residence

Tax Allowances and Exemptions

Your annual property tax bill can be reduced by 20% for owner-occupied primary residences, and an additional 10% for each registered household member, related to you by marriage or blood (the allowance is limted to 50% of the total tax bill). Real estate used by nonprofits, charitable foundations, and religious institutions in carrying on their charitable, educational, or similar mission, is exempt from property taxes.

Legal entities or individuals engaged in agriculture or food processing that are listed with Montenegro’s Farm Business Register can claim a farm property allowance equal to 90% of the annual tax amount. Hotels and Restaurants occupying structures that are compliant with Montenegro’s building code can legally reduce their property taxes by up to:

15% for 3-star establishments,
30% for 4-star hotels or restaurants,
and 70% for 5-star venues

Paying and Filing your Property Taxes

The municipal assessor determines the value of the property on January 1, and your tax bill is mailed April 30th. The tax bill must be paid in two equal installments: on or before June 30th and October 31st. Should the tax bill be delivered after April 30th, the delinquent date will be extended by the appropriate number of days following the bill’s mailing.

Whenever real estate changes hands, the buyer is required to file a report with the local taxing authority within 30 days of transferring the title deed. Failure to comply with these obligations may subject you to the following potential fines:

2.000,00€ to 20.000,00€ for corporations
500,00€ to 3.000,00€ for sole proprietorships
250,00€ to 2.000,00€ for individual taxpayers

Upon delinquency, liens may be used to collect the tax.

Individuals filing their annual property taxes require their Montenegrin Unique Master Citizen Number (JMBG), a 13-digit identifier used by the tax administration to facilitate tax payments. Corporations submitting their return must provide their tax identification number. In some municipalities, there are electronic filing options available.

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