Montenegro stands out for its competitive taxes compared to Western European countries. For instance, the property tax on the secondary market is only 3% of the cadastral value of the property.

If you choose to purchase property on the primary market, you'll be pleased to know that there is no real estate transfer tax, significantly simplifying the buying process.

The annual tax that foreign citizens pay in Montenegro, known as the "Property Tax," amounts to 0.6% of the cadastral value of the property, regardless of whether the property was purchased on the primary or secondary market.

As Montenegro prepares for its EU membership by 2025, laws, including those related to taxes, are also evolving. Currently, there is consideration of introducing an additional tax for property owners who cannot prove the source of their income. In the case of selling illegal properties, the seller will be subject to additional tax obligations, the exact amount of which has not yet been determined and is currently under government review.