Montenegro real estate taxes

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On May 21, 2006, the majority of 55.53% voted in a referendum for Montenegro as an independent state. The Government of the country declared its intentions to join EU and NATO. Shortly after that it became a 192nd member of United Nations in July 2006. In the press release of 29 June the Government “emphasized the readiness and determination to build its development policy on the United Nations’ principles and make an active contribution towards achieving the goals and universal values advocated by the UN”. [1] But the process of integration into European community and economic development began in 1991 when Montenegro proclaimed to be ecological state and thus created favorable tourist conditions and attractive property investment opportunities. The country's Ministry of Tourism and Environment Protection in 2001 unveiled the Tourism Master Plan, a blueprint for all tourism planning and targets up to 2020. In April 2003 Montenegro joined the Council of Europe. According to World Travel & Tourism Council report the Government of Montenegro is successfully implementing the plan and “have adopted most of the recommendations put forward by WTTC in its 2004 Country Report - exceeding both the forecasts and goals that were set”. [2]

Montenegro Republic in Southeastern Europe

Montenegro, officially known until 2007 as the Republic of Montenegro is a country in Southeast Europe on the Adriatic Sea. It borders Bosnia and Herzegovina to the northwest; Serbia and Kosovo to the east, Albania to the south and Croatia to the west. Montenegro has an area of 13,812 square kilometres and a population of 620,079. Its capital Podgorica is one of the twenty-three municipalities in the country. Cetinje is designated as the Old Royal Capital.

NATO Intergovernmental military alliance of Western states

The North Atlantic Treaty Organization, also called the North Atlantic Alliance, is an intergovernmental military alliance between 29 North American and European countries. The organization implements the North Atlantic Treaty that was signed on 4 April 1949. NATO constitutes a system of collective defence whereby its independent member states agree to mutual defence in response to an attack by any external party. NATO's Headquarters are located in Haren, Brussels, Belgium, while the headquarters of Allied Command Operations is near Mons, Belgium.

United Nations Intergovernmental organization

The United Nations (UN) is an intergovernmental organization tasked with maintaining international peace and security, developing friendly relations among nations, achieving international co-operation, and being a centre for harmonizing the actions of nations. It was established after World War II, with the aim of preventing future wars, and succeeded the ineffective League of Nations. Its headquarters, which are subject to extraterritoriality, are in Manhattan, New York City, and it has other main offices in Geneva, Nairobi, Vienna and The Hague. The organization is financed by assessed and voluntary contributions from its member states. Its objectives include maintaining international peace and security, protecting human rights, delivering humanitarian aid, promoting sustainable development, and upholding international law. The UN is the largest, most familiar, most internationally represented and most powerful intergovernmental organization in the world. At its founding, the UN had 51 member states; there are now 193.

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Situated at the shore of Adriatic Sea Montenegro has 117 unique sandy and pebble beaches. UNESCO-protected bay of Kotor and the Tara canyon are of particular value, which enables Montenegro to achieve such success in tourist and property market over the last decade. There are four national parks, which are the most attractive and ecologically best preserved nature reserves (Durmitor, Biogradska gora, Lake Skadar, and Lovcen). The intentions are to establish two more.

Adriatic Sea Body of water between the Italian Peninsula and the Balkan Peninsula

The Adriatic Sea is a body of water separating the Italian Peninsula from the Balkan peninsula. The Adriatic is the northernmost arm of the Mediterranean Sea, extending from the Strait of Otranto to the northwest and the Po Valley. The countries with coasts on the Adriatic are Albania, Bosnia and Herzegovina, Croatia, Italy, Montenegro and Slovenia. The Adriatic contains over 1,300 islands, mostly located along the Croatian part of its eastern coast. It is divided into three basins, the northern being the shallowest and the southern being the deepest, with a maximum depth of 1,233 metres (4,045 ft). The Otranto Sill, an underwater ridge, is located at the border between the Adriatic and Ionian Seas. The prevailing currents flow counterclockwise from the Strait of Otranto, along the eastern coast and back to the strait along the western (Italian) coast. Tidal movements in the Adriatic are slight, although larger amplitudes are known to occur occasionally. The Adriatic's salinity is lower than the Mediterranean's because the Adriatic collects a third of the fresh water flowing into the Mediterranean, acting as a dilution basin. The surface water temperatures generally range from 30 °C (86 °F) in summer to 12 °C (54 °F) in winter, significantly moderating the Adriatic Basin's climate.

UNESCO Specialised agency of the United Nations

The United Nations Educational, Scientific and Cultural Organization is a specialized agency of the United Nations (UN) based in Paris, France. Its declared purpose is to contribute to promoting international collaboration in education, sciences, and culture in order to increase universal respect for justice, the rule of law, and human rights along with fundamental freedom proclaimed in the United Nations Charter. It is the successor of the League of Nations' International Committee on Intellectual Cooperation.

Kotor Place in Kotor Municipality, Montenegro

Kotor is a coastal town in Montenegro. It is located in a secluded part of the Gulf of Kotor. The city has a population of 13,510 and is the administrative center of Kotor Municipality.

Montenegro real estate regulations development

Montenegro has successfully implemented and established laws and strategies, which helped to achieve such significant improvement in the fields of economics and tourism. Adopting best practices of European community Montenegro continues to implement Economic Reform Agenda, adjusts tax legislation to international standards and EU directives.

Numerous legislation activities such as development of new institutions ensure better efficiency of the system and its better adjustment to the needs of citizens, business and society in general. For example, Real Estate Administration (former Republic Institute for Geodetic and Property-legal Affairs), which is supposed to provide certainty and legal safety of real estate, i.e. formalization of property of land and buildings as elementary condition for efficient development. [3] As regards the legislation, new Law on State Survey and Cadastre and Registration of Real Estate Rights are adopted to solve the issues occurred because of imperfections and restrictions noted in the past application of the existing regulations and aimed to establish the accordance with many changes and requirements of economy, to enable realization of future programs and projects in the field of modernization of cadastral system in the state of Montenegro.

Montenegro still continues to develop its legislation system, proposing new Drafts of existing Law and elaborates new normative regulation of relations, which have not been regulated so far in compliance with European norms and standards- “Draft Law mostly contains provisions which have been taken from the former Federal Law, offering a unique, consistent and integral text concerning property-rights relations, and regulating previously unregulated relations.” [4]

Foreign investors have no restrictions on buying and selling real estate in Montenegro and can do it the same way the locals do. It applies to all commercial and residential properties including plots of land. There are a few exceptions - Plots at the first line near the Adriatic Sea and lands of national and historic importance belong to the state and can be rented only. This helps to protect the unique nature and preserve environment of the seashore of Adriatic. When an investor chooses a property, as a rule, deposit of 10% of property price is paid to secure the transaction and the investor’s solicitor prepares Draft property purchase contract. After the terms and conditions have been negotiated and the property and its ownership is checked in the cadastre, the price of property is paid in full by cash or bank transaction (if by bank then 21% VAT applies to the sum transferred by bank). When the final purchase contract is signed, the new ownership is registered in the Court.

In terms of additional costs associated with the investment property buying process the investor is responsible for legal fees paid to his/her lawyer who is supposed to prepare Draft and after Final property Purchase contract and other related Court costs to transfer ownership and register the new owner of property. In addition to all registration fees (which is about 500 euros) the buyer pays the transfer tax of about 3% for re-sale and new build properties. The agent’s commission is between 3 and 8%, usually paid by the seller. The buyer does not usually pay a fee.

See also

Culture of Montenegro culture of an area

The culture of Montenegro is as pluralistic and diverse as its history and geographical position would suggest. Montenegro's culture has drawn influences mainly from Ancient Rome, Christianity, Islam, the Byzantine Empire, the Ottoman Empire, the Republic of Venice, Austria-Hungary, and Yugoslavia.

Economy of Montenegro economy of the country

The economy of Montenegro is mostly a service based economy, currently in the process of economic transition. The economy of this small Balkan state is recovering from the impact of the Yugoslav Wars, the decline of industry following the breakup of SFRY, and UN economic sanctions.

Foreign relations of Montenegro

In a referendum on 21 May 2006, the people of Montenegro opted to leave the State Union of Serbia and Montenegro. This result was confirmed with a declaration of independence by the Montenegrin parliament on 3 June 2006. It simultaneously requested international recognition and outlined foreign policy goals.

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The media of Montenegro refers to mass media outlets based in Montenegro. Television, magazines, and newspapers are all operated by both state-owned and for-profit corporations which depend on advertising, subscription, and other sales-related revenues. The Constitution of Montenegro guarantees freedom of speech. As a country in transition, Montenegro's media system is under transformation.

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