Additional charges
Expenditures for the purchase and maintenance of real estate
When buying real estate in Montenegro is paid:
1. Turnover tax on real estate.
This tax is paid by all Montenegrin citizens and foreign legal and natural persons, except in cases where international treaties provide for other conditions.
Any acquisition of real estate (sales contract, exchange, inheritance, gift, payment or exemption from real estate joint stock company, the acquisition of real estate due to the liquidation and bankruptcy, pursuant to a court or other competent authority, and other ways of acquiring real estate) is the real estate.
The concept of property includes:
* Land (for construction, agricultural, forest, etc.);
* Construction projects (buildings and parts thereof, irrespective of destination).
Exception! Turnover of property would not be considered the acquisition of new constructed facilities, as well as facilities that were constructed, commissioned and paid for after the entry into force of the law on value added tax (VAT). All these facilities are subject to taxation under the Law on Value added tax (VAT).
Therefore, when purchasing a new or apartments to be built, you pay only the VAT rate of 17% and 3% is not paid sales tax on real estate if the seller is a legal entity. In turn, the VAT paid by the investor, including in the cost of home or office.
Rate of sales tax on real estate tax office calculates on the basis of market value of the property at the time of purchase, it is 3% of the tax base.
From paying sales tax on real estate tax:
* Consular and diplomatic representatives of foreign countries who are accredited in Montenegro and the international organizations that are exempt from paying this tax treaties;
* Government agencies, public institutions, humanitarian organizations, state funds;
* Humanitarian and nongovernmental organizations - for the property designated for their program activities for which they were created;
* Citizens who acquire property in the process of returning previously confiscated property in the process of agrarian reform;
* Citizens who acquire real estate (apartment, house) to address housing needs. In the event that they do not have their property (no more than 20 sq m per family member);
* Citizens who acquire property in accordance with the contract for life annuity, which are the heirs of the first stage in relation to the heirs;
* Citizens who purchase individual shares of real estate in the event of termination of common ownership, or by section, the joint ownership of the property to the value of their shares;
* In case of real estate in the economic society as a contribution from the founders, or an increase in core capital in accordance with the Law on Business Associations.
* When buying a property in situations accession procedure, or a merger and separation of business entities.
Since the conclusion of the contract of sale of real estate, or other contract instrument under which property is purchased, at the same time there is the duty of the turnover tax on real estate. In the case of real estate acquisition pursuant to a court decision, the duty from the moment of entry into force of this decision. In the case of an exchange, each party shall pay the tax. The same procedure and when you purchase the ideal proportion of real estate - every buyer pays separately. The sum of charges deducted from the tax base and pay sales tax on real estate is less that amount.
After signing the contract and register it in court within a month a decision is made on the approval of the tax liabilities and, within 15 days from now, you have to pay sales tax on real estate. Failure to pay the tax, assumed a fine ranging from twenty to two hundred times the minimum wage in Montenegro. Also, it is believed the penalty to the responsible person in the company in size from two to twenty times the minimum wage.
NEED TO KNOW!
If you cancel the contract on the transfer of ownership of real estate by the will of the parties, it must be certified by the court within 60 days after its signing (before the land in the book). Taxpayer is entitled to recover his taxes within 15 days from the date of application for refund of tax paid.
2. Stamp and registration fees.
At the signing and registration of the agreement in the main court Buyer pays fees and charges for a listing real estate 8 euros for entry into the inventory of the book - about 12 euros for the certification and submission to the Land Registry books sales contract from 0,01 to 0,25 % of property value, depending on the acquired object;
All together, in rare cases - more than 300 Euro.
3. When buying real estate entity, the cost of registration, depending on the urgency, of 400 to 600 euros.
4. Cost of services lawyer who is preparing the sales contract - less than 300 euros.
5. If necessary, the cost of services of a licensed interpreter - from 15 to 20 euros per page of translation. Certification of the court depending on the number is 10 - 100 euros.
6. Room service real estate agency from 1,5 to 3% of project cost.
ALL TAXES, COSTS clearance and registration paid by Buyers.
Note: If you receive property by inheritance or as a gift, the heir to pay inheritance tax, which corresponds to the turnover tax on real estate. There is the possibility of paying for 3 years.
From payment of tax:
* Heir of the first stage (spouse, parent heirs);
* Heir of the second stage, which carries out agricultural activities on this property, or planning to implement it, if he lived in a joint household with the heirs, ie donor, continuously for at least three years before his death, heirs;
* Heir of the second stage in the succession - giving of one apartment, where he resided continuously in joint heirs, ie donor, sector at least one year before his death, heirs;
* Ex-spouses in the regulation of their property relations in connection with a divorce;
* Donee of the property, which was assigned by him in the process of succession, and which he inherited would be if the donor has refused from the inheritance;
* Republic as the legitimate heir;
* Non-governmental organizations on donated by real estate or property obtained free of charge, which they used for the implementation of program activities for which they were created.
Maintenance costs of real estate in Montenegro.
The main items of expenditure for the maintenance of real estate in Montenegro are: utility bills, paid monthly, and property tax which is paid annually.
By the articles of utility costs include:
1. Electricity (paid for actual consumption based on meter reading) - 30 - 100 euros per month. In the case of nonpayment of electricity for more than two months or if the amount of debt exceeds 200 euro - probably off.
2. Water (paid for actual consumption based on meter reading) - 20 - 50 euros / month.
3. Garbage removal - 5-12 euros per month.
4. Satellite TV - 10 euros / month.
5. Cable TV - 15-20 euros per month.
6. Cleaning a septic tank (private home) - 100-200 euros / 2 times a year.
7. Gardening (private home) - 6.10 euros per hour.
8. Service apartment building in a residential complex (the cleaning of the entrance, concierge, security) - 1-2 euro / month / sqm.
9. Telephony services - about 5 euros.
10. All utility bills, as well as an account of rent each month come to the mailbox and are subject to a monthly payment at any post office or in their respective organizations.
With regard to gas heating, in Montenegro it is not, however, allowed the use of gas stoves and gas cylinders, which greatly reduce the cost of electricity. The cost of such boards from 20 to 350 euros, and the container filled with gas - 60 Euros (it lasts for 3-4 months of use).
Annual property tax.
Any owner of property - physical or legal person - the annually required to pay property tax. In the case where one object belongs to several owners, it is payable by all owners in proportion to their shares.
Exception! Property tax is not imposed:
* Buildings used by agricultural producers, if their activity is the sole source of income;
* Land in state property (streets, parks, forests, national parks, etc.) that do not give up and in the public domain;
* Building national bodies and local authorities, as well as buildings and land of diplomatic and consular missions;
* The building of religious associations, if they are not used for commercial purposes;
* Buildings and land used for scientific, educational, cultural, humanitarian and sporting purposes, if they are not receiving income;
* Ancillary facilities in agriculture and agricultural land, if they are used exactly as prescribed for 5 years;
* Roads, ports, railways, airports, public utilities;
* Dam (dam) and hydroelectric power plants and facilities for flood protection;
* Urban construction land, facilities and land, which serve to prevent water pollution, air and noise protection;
* Building for vocational training, vocational rehabilitation and employment of disabled people (if employed at least 40% of such persons);
* Property tax do not pay property owners in the case where the total cost does not exceed 50 average net wage in the Republic of Montenegro and is not rented.
Obligations to pay taxes come into force: from the date of acquisition of the right, from the date of commissioning of the property or from the date of issuance of permit to operate.
The amount of tax is determined by the tax authority based on market value as at 31 December of the previous year.
When property is purchased, or begins to use the previously unused property, you must file a declaration within 5 days from the date of its purchase or use.
If during the year property has undergone significant changes, however, report on the changes in the 10 days period to the tax authority, the person has already filed a tax return may affect the amount of tax.
The owners of agricultural or forest lands not submitting a declaration and pay tax according to the inventory.
Within 30 days from the date of adjudication property tax must be paid. In some cases, by special permission, allowed payment of taxes in installments (with interest) within a period not exceeding three months from the date of the decision. If the owner does not pay tax or fails to provide timely tax return, do not tell about the changes, or provide false information - he may be punished by a fine of from ten to fifty times the minimum (net) wages in Montenegro. The responsible person in the company for such violation shall be punished by a fine ranging from one to ten times the minimum net wage, and physical - from one to eight times the minimum wage.
In the case when it comes to other real property rights (inheritance, lease, etc.), then the basis for determining property tax will be half its market value, which each year is reduced by the depreciation rate (no more than 60%). In the record taken as corrective elements that may affect the market price, the location of the property and its quality.
Property Tax Rates.
For apartments and residential tax rate is 0.25% of the tax base. In the case where the taxpayer lives in an apartment or his family, the tax is reduced by 30%. With each member of the family tax is reduced by 10% (but the total reduction may not exceed 70%). Tax on apartments and houses for their own use area to 60 square meters, which are home to people older than 60 years is 35%. The tax on houses and flats intended for recreational or temporary accommodation, is 0,5%. Tax on agricultural or forest land, is 2% of the tax base (the sum of the annual inventory of income). If this site is not used in accordance with the law (the appointment of the plot), the tax is 4%. If the cost of land is set on the books, the tax is 0.45%. The tax rate for property for business buildings, their parts and garages is 0,2%, while the tax on manufacturing plants is 0,1% of the approved tax base.
On average, depending on the location, quantity, quality and purpose of the object, the value of the property tax from 50 to 500 euros per year.
In case of purchase of the property to a legal entity, an additional item of expenditure - the cost of maintaining the company (taxes, salary, rent), which is about 300 euros per month.