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Buyers Guide
Since a reciprocal arrangement exists between the UK and Montenegro there are no restrictions in buying and selling property (except for land which requires a company to be registered in Montenegro). What is the process for buying real estate in Montenegro? Deposit - Once the price has been agreed a deposit of typically 10% is paid to secure the property. Please note: * If buyer fails to provide the balance of the funds by agreed date stated in the pre-contract, the deposit is lost. * If the seller fails to complete the sale by the date stated in the pre-contract, the deposit + a 10% penalty is paid to the buyer Verify Property Titles and Land Registry - The buyers lawyers will carry out all required steps to confirm ownership of the property. Change in Ownership - Once all outstanding amounts are paid, the change in ownership id registered in court
What fees are paid during the purchase process?
* Legal fees typically 1% of the property prices * Stamp Duty 2% of the property prices * Agency Fee is 3 % of the property prices What property taxes are liable? 1. There is no capital gains tax in Montenegro 2. Corporate Income Tax (CIT) is applied at 9% on the profits of Montenegro resident companies and non-resident entities operating through a permanent establishment in Montenegro 3. Rental income derived by non resident entities in relation to real estate in Montenegro is subject to withholding tax at the standard rate of 15%, subject to the provisions of any relevant double taxation treaties 4. An annual property tax of between 0.08% and 0.8% is applied on the book value (of the previous year) of real estate located in Montenegro. The tax rate on buildings is typically 0.2%
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