Land buying order
Procedure of purchasing and registration of land by foreigners
Under the new Law of Montenegro "on property-legal relations" on March 13, 2009, foreign individuals and legal entities, for purchasing of objects movable and immovable property, have equal rights with citizens of Montenegro. In exceptional cases, foreign natural and legal persons may be prohibited from purchasing property located in certain areas of Montenegro, as well as natural resources, common property and cultural monuments of importance, national parks, reserves and properties within 1 km of the border or on the islands. Also provided the restrictions on the acquisition of foreign nationals farmland, forests and forest lands.
Foreign nationals can buy agricultural and forest land area to 5,000 sq ft, provided that they are included in the inventory of buildings. Plots larger than 5,000 sq ft (50 hectare) can only be purchased by legal entity. More information about the registration of companies, see the Registration section of companies in Montenegro.
Foreign individuals as well as the citizens of Montenegro can become property owners by inheritance. Also they have the right long-term lease of property, as well as the right to concessions and so-called BOT-scheme (Build, Operate, Transfer, ie to build-operate-transfer) of real estate for 30 years, with possibility of extension, which is first necessary to obtain consent of the relevant authority (only for the purposes for which the property is intended). Foreign citizens by legal means may transfer ownership of a citizen of Montenegro, as well as other foreign person who is not deprived of property rights.
If you decide to purchase the land, you must decide what your main goal of the purchase. If you are planning to build real estate on it in the near future (for yourself or for sale) you prefer to buy urbanized land, and if it is long-term investment with no specific plans for the nearest future - you can buy land is not urbanized or are in the process of urbanization (it is much cheaper). It is also worth noting that there is another opportunity to obtain a building permit, provided that the land is not within DUP and is not expected to develop in the near future.
All land offered for sale in Montenegro can be divided into:
1. Urbanized areas, ie sites, which adopted a plan of development (DUP - detailed urban plan), or developed a "Local studio locations. "Urbanization" is the relevant public authority, a detailed urban plan identifies the main characteristics of the object, which can be constructed in a particular area: the type of facility, building area, number of floors, etc. All these data must be considered an architect when designing projects.
Under the legislation of Montenegro construction person or entity may be held only on the "urbanized" area of land after the registration of documents for the new owner, project coordination and payment of all taxes and fees. Otherwise, all production work will be deemed illegal, and the constructed object - "self-builded".
2. Land, urban plans that are in development and adoption. Construction in such areas is prohibited and repressed building inspections. By the beginning of construction can begin only after the adoption of an urban plan. Buying such sites, you must understand that the development and adoption DUP - a process that stretched over time and may take several months, and during the approval of the plan are possible adjustments of the original urban project.
3. Land on which an urban plan will be adopted in the future. The timing of such a plan and specifications permitted the property is not always clear. In cases where the land area over 3,000 square meters, there is a case for developing and approving "Local Studio Locations" specifically for your piece of land, the only inconvenience - this time from 6 months to 1.5 years. The total cost of development approval of the site, as a rule, it turns out cheaper than the purchase price of urbanized land.
Thus, we summarize: at the moment, all Montenegro land entered into a single inventory, but not all regions taken DUP.
Now a bit about the value of land. Land prices in Montenegro vary from 3 to 1,000 euros per sq m, it depends on such factors as:
* The presence or absence DUP;
* Location of the land in relation to the sea, mountains, and the geometry of the land;
* The presence or absence of communications (electricity, water supply, sewerage, etc.);
* The prestige of the district;
* Proximity to the motorway;
* The availability of nearby infrastructure.
Do not forget that in addition to conventional and well understood factors, the price may be affected via very exotic local restrictions and conditions, such as the presence in the area of olive trees, cuttings of which is prohibited.
Taking into the point all information, we can proceed to buy land in Montenegro. This action requires only a passport, financial ability and desire, because the procedure of registration of real estate in Montenegro is simplified as posible.
The buying process involves several steps:
1. Stage of negotiations, during which there is:
* Selection of real estate;
* Inspection of selected properties;
* Preliminary negotiations with the owner;
* Verification of legal purity (the history and validity of registration of ownership of an object, etc.);
* Obtain information and documents (copies of the plan, an excerpt from DUP, etc.), the possibility of building on the area of interest.
2. The main stage - the signing of the preliminary and main contract, which includes:
* Final approval of the deal with the Seller and the signing of the contract of agency commission;
* Preparing and signing the preliminary contract of sale of real estate. The contract must be given details of the parties, a full description of the object, the value of the transaction, the terms and conditions for final payment (usually 30 days after signing the preliminary contract), the date of the contract, guarantees, etc.;
* Payment of the deposit - typically 10% of the value of the object (the Seller gives the Buyer a receipt for the amount received advance). Deposit payment Purchaser reserves the object. If the seller refuses to deal, the deposit amount returned to the Purchaser at double the rate in case of refusal of the Buyer - The buyer loses the amount of the deposit. If possible, transfer funds within the period of your stay in Montenegro, we can immediately conclude the main contract and make payment;
* Payment of agency commission in the amount of 1.5 to 3%, depending on the value of the property;
* If necessary, the possibility of the company, with a preliminary agreement for the conclusion of the Basic Treaty with the Montenegrin legal entity established by the Buyer. Funds paid the deposit for the payment of the principal amount can be returned to the Buyer (so that the total amount was paid with foreign currency account jur. Person) or credited to the principal amount of the payment (the book value of the object is below the contract);
* The opening of private foreign currency account of an individual bank or opening bank accounts Montenegrin jur. person (takes 15 minutes);
* Transfer money into your private account of an individual currency in Montenegro, or to the account of a legal entity in Montenegro;
* Preparation of the Basic contract of sale, which shall include: the contracting parties with their full data, including personal identification number, the exact identification of the property, indication of the value of the transaction, the form of payment, etc.
* Signing and registration of the Basic Treaty in court (Osnovni Sud). At the signing and registration of the Basic Court buyer pays the fees and charges for a listing real estate 8 euros for the entry in 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 the purchase price (depending on the acquired object);
* Made the final payment under the Basic Agreement. After the final payment of the Seller provides a receipt (confirmation) to the Buyer that he fully received the payment and authorize the payment of Buyer's inventory books as the new owner (clausula intabulandi).
Further, the contract submitted for registration.
3. The final step - registration of property rights.
* Tax Inspectorate to determine the market value of the acquired property and decides to pay the real estate tax (tax rate is 3% of the market value of the object). Notice for payment of the tax comes from a body called Uprava Prihoda after the transaction (within one month) and pay it in accordance with the laws must be made within 15 days;
* Registration in the Cadastre rights of the new owner of real estate (based on the contract of sale and receipts (clausula intabulandi)) lasts up to 60 calendar days. This is the official maximum period of registration. However, officials often can not cope with the volume of work and complete the registration after 4-6 months, placing an earlier date of registration, under the terms of 60 days.
As a result, the buyer receives the first decision on awarding the cadastral number (uknizhbe), then the certificate of ownership Sheet nepokretnosti. In fact, the buyer becomes the owner after the signing of the Basic contract of sale and registration of the court, legally - from the cadastral registration.
When buying property in Montenegro, in the name of an individual payment for the property to the Seller may be carried out:
* By transferring funds to a private foreign currency account of the Seller in Montenegro with the private foreign currency account to the Purchaser in Montenegro, while the Bank provided support payment (contract, other documents);
* By transferring funds from his private account in the Russian Federation directly to the account of the Seller for the property - for this purpose in the Russian banks need to provide a preliminary contract of sale of real estate to a Russian translation;
* By the transfer of funds through intermediaries - from real estate agency in Montenegro, or a lawyer - for this Russian bank will need to provide an appropriate agency agreement with a Russian translation.
On his private account of an individual in Montenegro funds may go through:
1. Notice of the tax inspectorate of the Russian Federation to open an account abroad, giving notice to the bank and transfer funds from his private account of the individual in Russia on his private account of an individual in Montenegro.
2. Transfer to a private individual account in the Montenegrin daily maximum of 4 000 euros, since small amounts are not subject to any control (the main drawback is the time - perhaps only small purchases). In addition, the regularity of remittances may raise suspicions at the bank.
3. Withdrawals on the card of a Russian bank in Montenegro and their submission to his private account of an individual in Montenegro. The main disadvantage (can be solved with the bank) - Bank limits on spending with the card (daily, weekly, monthly).
4. Shopping Travel Check in Russia and their cashing in Montenegro, with subsequent submission to his private account of an individual in Montenegro.
5. Transfer of funds to the private account of an individual from outside the Russian Federation from the account of any natural or legal person-non-residents, the calculation of which is produced in the territory of the Russian Federation agreed by the parties.
6. Involvement of other non-residents for the payment of a Russian citizen from the territory of the Russian Federation (non-resident fees are not covered by the legislation on currency regulation).
When buying property in the name of the entity in Montenegro and the payment for the property to the Seller only with the account of the Montenegrin legal entity.
At the expense of the Montenegrin legal entity funds may fall in two main ways:
1. In order to increase the share capital or initial creation of the company with a large share capital. The funds can be transferred to the legal entities in Montenegro:
* A private individual's account of the parent company in Montenegro;
* A private individual's account - the founders of the Montenegrin company in Russia (for this purpose in the Russian bank will need to provide draft foundation documents of the Montenegrin company, or documents to increase the authorized capital of Russian translation).
2. In order to provide a loan from the parent or other person. In this case the funds can be transferred to the account of the Montenegrin legal entity in order to provide a loan from the parent or other person:
* A private individual's account of the parent company in Montenegro;
* A private individual's account - the founders of the Montenegrin company in Russia (for this purpose in the Russian bank will need to provide a loan agreement with his Montenegrin company with a Russian translation);
* From the account of another person, not a founder of the company in Montenegro.
Note 1: For any operation involving the Russian banks are fraught with the requirement to provide documents about the origin of funds and evidence of payment of taxes.
Note 2: The Montenegrin banks cashing funds charge a commission on average at a rate of 2-3%. Commercial Bank Budva charge a commission 0,5%. Does not charge any commission Opportunitybank.