Annual Property Tax
Annual property tax in Montenegro — paid every year by owners based on the assessed market value. Rates 0.1–1 % depending on the municipality and property type. Deadlines: 30 June and 31 October.
You are reading: the annual tax owners pay every year.
Looking for the tax on purchase, inheritance or gift? (PR-PPN form, rates 3/5/6 %)
Open the other guide →Procedure
Anyone (individual or legal entity) who, as of 1 January of the current year, owns real estate (apartment, house, commercial premises, land) in Montenegro. If you bought property during the year, the tax for that year is owed by the previous owner unless the contract says otherwise.
Annual property tax rates by property type (municipal range)
| Property type | Rate |
|---|---|
| Residential (apartment, house) | 0.1 % — 0.5 % |
| Commercial premises | 0.2 % — 1.0 % |
| Construction land | 0.1 % — 0.5 % |
| Agricultural / forest land | 0.1 % — 0.5 % |
| Secondary residence (holiday home) | up to +0.3 % surcharge |
Payment deadlines
| Instalment | Deadline |
|---|---|
| First instalment | 30 June |
| Second instalment | 31 October |
| Single payment (small amounts) | As stated in the decision |
| Late-payment interest | Statutory default interest + 0.03 % per day |
Main exemptions
| Category | Condition |
|---|---|
| Diplomatic and consular missions | Reciprocity |
| Military real estate | State-owned, used for defence |
| Religious buildings | Churches, monasteries, mosques, etc. |
| Cultural monuments | Under protection |
| Public real estate | Roads, parks, public buildings |
| Actively cultivated agricultural land | Worked by a registered farm |
Additional notes
Different municipalities have different rates — Podgorica, Budva and Tivat are usually at the upper end of the range, northern municipalities at the lower end. The exact rate for your municipality is in the annual municipal decision.
Secondary residences (holiday homes, properties that are not the primary residence) may be taxed at an increased rate — up to +0.3 percentage points extra.
The market value in the decision may differ from your contract price — the municipality uses its own valuation commission, usually based on the average €/m² for the zone and property type.
IMPORTANT: this guide covers the ANNUAL tax that owners pay every year. If your tax was triggered by PURCHASE, sale, gift, or inheritance — see the separate guide "Real Estate Transfer Tax" (one-off, 3/5/6 %).
Required Documents
- Property tax decision (from the municipality)
- Property certificate (LN) from the cadastre
- Purchase / inheritance / gift agreement
- Confirmation of previous payments
Legal Basis
- Law on Property Tax (Zakon o porezu na nepokretnosti)
- Annual decisions of local municipalities on property tax
Competent Institutions
- Local tax authority (municipality)
Sets the value, issues decisions, collects tax
- Cadastre Administration
Records ownership and market values