What are annual property taxes in Montenegro?
Quick Answer:
Annual property tax is quite low—just 0.25% of the property's assessed value per year. The assessed value is typically well below market value, so you might pay €200-500 annually on a coastal apartment worth €200,000. It's collected by your local municipality and is one of Montenegro's more affordable ongoing costs.
All property owners, local or foreign, pay annual property tax on real estate located in Montenegro.
Key points:
- The tax is calculated on the property's assessed market or cadastral value, as determined by the municipality and Tax Administration
- Municipalities set rates within limits defined by national law; typical effective rates for residential property are roughly 0.25-0.5% of property value
- Coastal municipalities with high-value real estate often sit towards the upper part of the range; inland municipalities are usually lower
Example calculation:
- Property valued at €200,000
- Annual tax rate: 0.5% = €1,000 per year
- If two owners: €500 each per year
Payment may be split into two installments per year. Owners receive an annual tax decision (rješenje). In some municipalities, there may be a small discount for paying the full yearly amount in one installment.
Sources:
Law on Real Estate Tax; municipal tax decisions; Ministry of Finance and Tax Administration; NT Realty transaction experience
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