Buying a property is only the first step on the way to owning it. Every owner has to reckon with regular maintenance costs, which vary depending on the type of property, location, and size. In Montenegro, as in other countries, the maintenance of real estate is associated with a variety of fees – from taxes, through municipal fees, to insurance and renovation fund. In this guide, we will outline the average cost of maintaining a property in Montenegro to help future and current owners better plan their budget and avoid unpleasant surprises.
Property Taxes in Montenegro
Owning a property in Montenegro involves the obligation to pay taxes, which can vary depending on the location, the value of the property, and its intended use. It is worth understanding what tax fees will apply to the property owner in order to plan the budget carefully and avoid arrears.
Tax on the acquisition of real estate
At the time of buying a property in Montenegro, each buyer is obliged to pay a one-time tax on the acquisition of the property. It amounts to 3% of the market value of the property. This tax is paid by the buyer and should be paid within 15 days of the acquisition of the property. The amount of tax is calculated based on the market value of the property, and in some cases, its valuation may be subject to review by officials.
Annual property tax
After purchasing the property, each owner must pay property tax every year. The amount of this tax depends on several factors, including the value of the property, its location, and its size. In Montenegro, this tax ranges from 0.25% to 1% of the property value, depending on the region. In larger cities, such as Budva or Kotor, the tax may be higher, while in less popular tourist places it may be closer to the lower end of this range.
Property rental tax
If the owner decides to rent out his property, he is obliged to pay tax on the rental income. In Montenegro, the rental tax rate is 9% on net income, which is a relatively low rate compared to other European countries. However, it is worth remembering that it is necessary to report rental income to the local tax office and pay this tax regularly.
Luxury property tax
If you own high-value luxury properties, which may include villas, large estates, or apartments in prestigious locations, owners may be subject to additional charges. The amount of these fees depends on local regulations, but they can significantly increase the cost of living, especially in regions such as Tivat or Porto Montenegro, where property values are much higher.
In conclusion, property taxes in Montenegro are relatively low compared to other European countries, making the country an attractive place for real estate investment. However, landlords should be aware that regular fees, such as annual property tax and rental income tax, can have an impact on the total cost of living.
Municipal fees: Water, electricity, gas and garbage disposal
The costs of maintaining real estate in Montenegro also include municipal fees, such as water, electricity, gas consumption, and garbage disposal. These costs depend on the size of the property, the number of residents and their lifestyle.
Water
Water fees in Montenegro are relatively low, however, they vary from region to region. On average, property owners can expect bills of between €15 and €30 per month. Water is provided by local water utilities and costs are calculated based on consumption, so for larger homes with a garden or pool, costs can be higher. Often additional fees for sewage are added.
Current
Electricity is one of the main expenses associated with maintaining a property, especially during the winter months when heating systems are used. In Montenegro, electricity prices are around €0.10-0.15 per kWh, which in practice means bills of between €50 and €150 per month, depending on the size of the property and the level of energy consumption. In homes with air conditioning or electric heating, bills can be significantly higher during periods of heavy use.
Gas
Gas is not a widely used source of energy in Montenegro, especially in coastal cities. In some regions, however, it is possible to connect to a gas system or use gas in cylinders for cooking and heating. The cost of bottled gas is on average around €30-40 per month, depending on consumption.
Refuse
Garbage collection is another fixed fee that property owners have to expect. The fees vary by location, but in most cases are around €5-€10 per month. In larger cities such as Podgorica, Budva or Kotor, garbage collection can be a bit more expensive. These fees are typically paid quarterly or annually based on the size of the property.
Seasonal costs
It is also worth taking into account seasonal costs, which can significantly affect the total expenses related to the maintenance of the property. In the summer months, especially in coastal locations, electricity consumption related to air conditioning increases, while in winter heating costs increase. The value of bills can vary greatly depending on weather conditions and the level of comfort that owners are willing to maintain.
Costs of managing a housing community
In the case of properties located in multi-family buildings, such as apartment buildings or blocks of flats, the owners must take into account the additional cost of paying the housing community. These fees cover various costs associated with the maintenance and management of the common areas of the building, and their amount depends on the standard of the property and the number of amenities offered.
Renovation fund and maintenance of common areas
One of the main components of the housing community’s fees is the renovation fund, which covers the costs of ongoing maintenance of the building and any major renovation works, such as repairs to the roof, façade or plumbing. The amount of this fee depends on the technical condition of the building, its age and size. On average, owners of property in apartment buildings can expect to pay between €20-€50 per month, although in luxury apartment buildings with additional amenities, fees may be higher.
Fees related to the maintenance of common areas also include cleaning staircases, corridors, elevators, lighting these areas, as well as taking care of green areas if the building has a common garden or courtyard. These costs are distributed among all residents, which usually makes them lower than maintaining your own home.
Amenities and additional services
In modern apartment buildings, especially in cities such as Budva, Tivat or Kotor, buildings can offer additional amenities such as a swimming pool, gym, reception, security or monitoring. These services can significantly increase the cost of living, but also increase the comfort of life. In buildings offering such facilities, monthly fees can range from €50 to €150, depending on the number and type of services.
Owner-to-Owner Participation in Decision-Making
Housing associations in Montenegro usually operate as assemblies of property owners, who have the right to vote on decisions made regarding renovations, modernizations, and building management. Each landlord pays a proportional share of the fees based on the size of their apartment. Thanks to this, it is possible to jointly decide on the expenses and the level of services provided in the building.
Administrative costs
Administrative costs are also often added to the community fees, which include documentation management, financial settlements, as well as handling requests and repairs. In some cases, the management of the community is entrusted to an external company, which may involve additional costs, but provides a professional approach to property management.
The costs of managing a housing community can be quite varied depending on the standard of the building and the services offered, but they are usually lower than the costs of maintaining the house. For people who value convenience and the absence of maintenance obligations, these fees can be an acceptable cost to ensure the comfort and trouble-free operation of the building.
Maintenance and repair costs
Regular maintenance and repairs are an integral part of maintaining any property. Both houses and apartments require periodic repair work, which can vary depending on the age of the building, its technical condition, and the materials used for construction. Understanding the costs associated with maintaining your property will help you better plan your budget and avoid unforeseen expenses.
Home maintenance
Homes require more involvement from the owner when it comes to maintenance and repairs. This includes taking care of the roof, façade, windows, plumbing, heating, and any other systems that may need to be upgraded or repaired periodically. Homes located in harsher climatic conditions, such as in mountainous regions, may require more frequent repairs, especially after winter.
Average costs associated with maintenance and repairs at home can range from €1,000 to €3,000 per year, depending on the condition of the property and its size. Large works, such as replacing the roof, repairing the foundations or modernizing the electrical installation, can be much more expensive and amount to up to several thousand euros. Therefore, it is worth planning a financial reserve for such expenses, especially in the case of older houses.
Housing maintenance
Apartments, especially those located in modern apartment buildings, tend to have lower maintenance costs compared to houses. Common parts of the building, such as the roof, façade or installations, are maintained by the housing community (in accordance with the previously discussed fees). The owner of the apartment only needs to take care of his premises, which includes repairs inside, such as painting the walls, replacing plumbing or electrical installations, and minor renovation work.
The average annual maintenance costs for an apartment are usually between €300 and €1,000, depending on the size of the apartment and the extent of the renovation work. These costs may increase for major renovations, such as replacing floors, electrical installations or kitchens, but they will still be lower than for maintaining a home.
Seasonal maintenance
Both in houses and apartments, there may be additional costs related to seasonal maintenance work. In the case of homes, this may include snow removal, gutter cleaning, maintenance of heating and air conditioning systems. In apartments, especially those rented for a short time, there may be costs associated with refreshing the premises after the rental season, which includes minor repairs, painting the walls or replacing household appliances.
Emergency repairs
Regardless of the type of property, owners should be prepared for unexpected, emergency repairs, such as plumbing, electrical or weather damage. It is worth having an emergency fund in case of such situations to avoid sudden expenses. It is a good practice to set aside about 1-2% of the value of the property annually for a recovery fund.
Thus, maintenance and repair costs can vary depending on the type of property. Houses require more money and regular maintenance, while in apartments these costs are usually lower, especially in buildings where part of the responsibility lies with the housing association.
Property insurance and other additional expenses
In addition to the basic costs related to taxes, municipal fees, and maintenance, property owners in Montenegro should also include insurance and other additional expenses that may arise depending on the type of property and location.
Property insurance
Property insurance in Montenegro is optional but strongly recommended, especially for single-family homes and luxury apartments. The cost of an insurance policy depends on the value of the property, the scope of coverage, and the insurance company. A basic policy that includes protection against damage resulting from fire, flood or theft can cost between €100 and €300 per year.
In the case of high-value properties or houses located in places exposed to adverse weather conditions, owners can choose to take out additional insurance covering damage caused by, for example, landslides or storms. Such a policy will cost more, but provides greater financial security in the event of unexpected events.
Liability insurance
For landlords renting properties on a short- or long-term basis, it is worth considering third-party liability insurance. Such a policy protects the owner against costs related to possible damage caused by tenants or resulting from improper use of the property. Depending on the coverage, third-party insurance can cost between €50 and €150 per year.
Security and monitoring costs
For luxury properties or homes located in secluded areas, owners may consider installing an alarm system or monitoring services. The cost of installing a security system ranges from 200 to 1000 EUR, depending on the advancement of the equipment and the area of the property. The monthly monitoring fee is on average €20-50, which can be especially useful for people who do not stay in their property all year round.
Other fees
Additional expenses may include costs related to the maintenance of the garden, swimming pool or terrace. Garden care or pool cleaning services can cost between €30 and €100 per month, depending on the scope of the work and how often it is done. Landlords who choose to rent out their property may also need property management services such as property care, rental services, and cleaning after each guest, which generates additional costs.
Notary and legal fees
If you are selling or renting a property for a longer period, the owners may need the help of a notary or lawyer. The cost of such services can vary depending on the type of transaction and its value, but it is worth factoring these fees into your budget in case you need to formalize contracts or make legal changes.
Additional costs such as insurance, protection, or nursing services can increase the monthly expenses for maintaining a property in Montenegro. It is worth analyzing which of these expenses are necessary and what protection they provide in order to consciously manage the budget for the maintenance of the property.
How expensive is it to maintain a property in Montenegro?
Maintaining a property in Montenegro involves a variety of costs that are worth considering before making a purchase decision. Owners must take into account the obligation to pay taxes, municipal fees, costs of managing the community, as well as maintenance and insurance costs. Each type of property – from an apartment in the city center to a single-family home in the mountains – has its own unique requirements that affect the total cost of living. Conscious budget management will allow you to avoid unforeseen expenses and take full advantage of your property, ensuring comfort and security for many years.
