If you plan to build in Montenegro, it’s important to understand the main stages of obtaining a construction permit.
We’ve prepared a short guide to give you a clear picture of the process.

1. Urban Planning Conditions (UTU)

The first step is checking your land: what type of construction is allowed, what parameters apply, and whether there are protected zones (e.g., UNESCO). All of this is stated in the Urbanističko-tehnički uslovi (UTU).

2. Concept and Main Project

An architect prepares a concept for the future building, and then develops the main project with sections (architecture, structural, engineering, etc.). In some cases, an independent revision is required.

3. Communal Fee (“komunalije”)

A one-time payment to the municipality for “communal land development.”
The rate depends on the location: higher on the coast (for example, in Herceg Novi it can range from €50–160/m²).

4. Building Permit

At this stage, the applicant submits:

• proof of land ownership,
• UTU,
• main project (with revision if required),
• payment receipts.

Local authorities usually issue the decision within ~30 days if the documentation is complete.

5. Start of Works and Construction Supervision

After receiving the permit, the municipality is notified, and the builder can start construction.

6. Occupancy Permit (“upotrebna dozvola”)

Once construction is completed, a commission inspects the building, and you receive the occupancy permit. The property is then registered in the cadastre.

Timeframes

• Preparation of UTU & project: 1–3 months
• Building permit: ~30 days
• Occupancy permit & registration: 1–2 months

Timelines depend on the season and workload of local authorities.

FAQ

Do old buildings need to be legalized?
Yes. As of 2025, stricter rules apply: illegal buildings are harder to use for tourism and rental.

How much do projects cost?
Design usually costs “double-digit” €/m². The final amount depends on size and complexity.

⚒️ Eco-Build takes the process “turn-key” — from concept to occupancy.
You get a fully legal property without the headache.

Contact us:
+382 69 283 900
+382 68 793 661

Montenegro remains one of the most attractive countries for buying seaside property: mild climate, transparent laws, and a clear procedure for foreigners.

In 2024, some rules were updated: a progressive tax was introduced for resale properties, while VAT applies to new-builds. Let’s break it down step by step — and show how Eco-Build manages transactions “turn-key”.

Buying in 2025: Key Facts

• Foreigners can freely purchase apartments, houses, and urban land plots.
• Restrictions apply only to agricultural land (can be solved via company registration).
• Resale properties: progressive tax 3% / 5% / 6% (since 2024).
• New-builds (direct from developer): 21% VAT, usually included in the price.

Buyer’s Costs

1. Transfer Tax (resale)

• Up to €150,000 → 3%
• €150,000–€500,000 → €4,500 + 5% on the excess above €150,000
• Over €500,000 → €22,000 + 6% on the excess above €500,000

2. VAT (new-builds)
   Instead of transfer tax, new-build purchases are subject to 21% VAT (usually included in the price).
3. Notary & Translator
   At €100,000 deal → notary fee approx. €350.
   Larger properties = higher fee (max ~€5,000).
   Foreigners need a court translator if they don’t speak Serbian (~€50/hour or €15–20/page).
4. Ownership Registration
   The notary submits the contract to the cadastre. By law, registration must be done within 60 days, but in practice delays may occur (especially in summer).
5. Additional Costs

• Government fees and extracts → tens of euros.
• Bank transfer fees → 0.25–1%.

Timeline of a Typical Transaction

• Property search & due diligence: 3–10 days
• Contract draft & notary: 1–5 days
• Payment & cadastre filing: on deal day
• Tax payment: within 15 days
• Registration: up to 60 days

How Much Extra to Budget?

On average, plan 4–5% of the purchase price for taxes, notary, translator, and related costs.

👉 Example: for a €200,000 apartment, expect €8–10k additional expenses.

Why Eco-Build Support Matters

Even with clear rules, it’s essential to:

• check for encumbrances,
• ensure taxes/fees are paid on time,
• organize notary & translator,
• handle banking operations correctly.

We do all of this for you. Result: clean ownership, registered in the cadastre, ready for living or rental.

FAQ

Can foreigners buy land?
Yes, if it’s urbanized and intended for construction. Agricultural land only through a company.

How long does a deal take?
With documents ready → within a week.

What if tax is not paid on time?
Fines and penalties. We strictly monitor deadlines.

About us

Eco-Build — developer and real estate agency on the Montenegrin coast.
We build, sell, and manage deals: from property search and negotiations to notary and cadastre registration.

Our principle — transparency and safety. With us, buying in Montenegro is smooth and risk-free.

Contact us:
+382 68 793 661
+382 69 283 900

Do you want your seaside property to generate passive income instead of daily worries?
Eco-Build takes care of the entire operational cycle — you receive clear reports and payments, while we carefully manage the property and protect your reputation.

Our commission — 25% of rental income. Transparent, fair, no hidden fees.

What we do for owners

• Marketing & listings: professional photos/videos and texts, publishing on Booking/Airbnb and local platforms.
• Bookings & guests: communication, check-in/check-out, guest support during their stay.
• Property care: cleaning, regular maintenance, quick handling of daily issues.
• Finance & reporting: accounting of income/expenses, monthly reports.
• Legal/admin support: help with mandatory registrations/fees and requirements for legal short-term rentals.

👉 It’s simple: we manage — you earn.
The scale of services is customized to your property (apartment, flat, villa).

How it works step by step

1. Preparation — property audit, recommendations for improvements, content.
2. Launch — listings, calendar & pricing, channel integration.
3. Operations — guests, maintenance, reports, regular payouts.

Example ROI (real case from The Cube)

• High season (May–Sept): €250/night
• Low season (Oct–Apr): €130/night
• Average occupancy: ~60%

Gross annual income: ~€27,570
Net income after management & utilities: ~€18,295

Net yield example:
Property price €250,000 → annual net income €18,295 = ~7.3% net yield.

FAQ

Who handles cleaning and small issues?
We do. Cleaning, monitoring, quick fixes — included.

What about legal requirements?
Guest registration and tourist tax are mandatory. We handle all of this.

Can I get a forecast before launch?
Yes. We provide audit, market analysis, and 3 scenarios (conservative, realistic, optimistic).

About us

Eco-Build — developer and property management company on the Montenegrin coast.
We build, sell, and manage real estate — full cycle with responsibility for results.

Contact us:
+382 68 793 661
+382 69 283 900

From maintenance to rentals: Eco-Build ensures your property generates income while staying in perfect condition.

Investing in real estate is only the first step. To maximize returns and keep your property in top condition, Eco-Build offers full-service property management in Montenegro.

Our Services Include:

• Rental Management – marketing your property, handling bookings, guest check-in/out, cleaning, and support.
• Maintenance & Repairs – regular inspections, preventive maintenance, emergency repairs.
• Financial Reporting – transparent income and expense reports, so you always know your ROI.
• Legal & Administrative Support – permits, local regulations, utility payments, tax assistance.
• Owner Support – photo/video updates, flexible access whenever you visit Montenegro.

Example: Rental Income Potential

For one of our managed apartments in the The Cube residential complex:

• High season (May–September): €250 per night
• Low season (October–April): €130 per night
• Average annual occupancy: 60%
• Gross rental income: €27,570 per year
• Net income after management fees & utilities: approx. €18,295 per year

With a fully managed service, owners receive passive income while Eco-Build takes care of all operations.

Why Choose Eco-Build Property Management?

• Reliable local team with years of experience in construction & real estate
• Transparent commission (25%) covering all services
• Peace of mind: your property is protected, profitable, and always ready for your visit

Secure Your Investment with Professional Management
Let Eco-Build handle the details, so you enjoy the benefits.