1.  Due diligence costs for the purchase of real estate
    1. Municipal search
    2. Cost
    3. VAT
    4. Utility search (each service)
    5. Cost
    6. VAT
    7. Land registry search (per search)
    8. VAT
    9.  Company search, per company
    10. VAT
    11.  Survey/Valuation fee, approx
    12. VAT
    13.  Phase 1 Environmental survey
    14. VAT
  2. Costs associated with a contract for purchase of real estate and registering title
    1.  VAT on price
    2. Cost
    3. VAT
    4.  Transfer duty
  3. Tax or duty on the acquisition of shares in a company owning real estate
  4.  Capital gain taxation on future disposal of real estate or shares in a company owning real estate
    1.  Tax on capital gains on the disposal of the real estate itself
    2.  Tax on capital gains on the disposal of shares in a company owning real estate

jurisdiction

Montenegro

1. Due diligence costs for the purchase of real estate

Cost

Variable

VAT

Nil

1.2 Utility search (each service)

Cost

Negotiable

VAT

Nil

VAT

Nil

1.4 Company search, per company

VAT

Nil

1.5 Survey/Valuation fee, approx

VAT

21%

1.6 Phase 1 Environmental survey

VAT

21%

2. Costs associated with a contract for purchase of real estate and registering title

2.1 VAT on price

Cost

The second and subsequent transfer of the building and transfer of the ownership rights/right of use over the land is subject to transfer tax at a rate of 3% of the purchase price.

VAT

21%

2.2 Transfer duty

3. Tax or duty on the acquisition of shares in a company owning real estate

Stamp duty (court verification of the sale/purchase agreement) approx. EUR 10. Further costs related to registration of the share acquisition within the commercial registry: status change registration within the commercial registry EUR 22.

4. Capital gain taxation on future disposal of real estate or shares in a company owning real estate

4.1 Tax on capital gains on the disposal of the real estate itself

Private entity: subject to capital gain at the rate of 9%. Commercial entity: capital gains derived from the sale of real estate are treated as taxable income of the company and are subject to general corporate income tax at the rate of 9%. Capital gains are calculated as the difference between purchase and selling price (both prices are calculated on a fair market price basis).

4.2 Tax on capital gains on the disposal of shares in a company owning real estate

If shares are held as private asset: 9% income tax on capital gains.
If shares are held as assets of a Montenegrin company: 9% corporate income tax on capital gain applies.
If shares are held by a non-resident company: 9% withholding tax applies.