According to Serbian Economist, Montenegro has significantly tightened payment rules for real estate transactions: deals worth more than EUR 10,000 must now be processed through the country’s banking system. The new requirements are aimed at strengthening control over the origin of funds, combating money laundering, and increasing transparency in the real estate market.
The law applies to real estate transactions worth more than EUR10,000.
The key requirement is that payment for the transaction must be made from or to a bank account opened in Montenegro. At least one of the parties to the transaction must have an account with a Montenegrin bank. This means that the buyer can transfer funds from a foreign bank directly to the seller’s account in Montenegro, provided the seller has such an account.
If payment was made before the contract was signed, the notary will have to request a bank statement confirming the transfer. A simple statement by the parties that the payment has already been made will not be sufficient. This strengthens the role of notaries and banks as participants in ensuring the integrity of the transaction.
In effect, Montenegro is closing the door on informal payments in the real estate market, which has actively attracted foreign buyers in recent years. Violations are subject to fines ranging from EUR 3,000 to EUR 20,000.
For foreign buyers, the new rules mean they must verify the banking aspects of the transaction in advance. If the seller is a resident of Montenegro and has a local bank account, the buyer will generally be able to pay for the property via a SWIFT transfer from their foreign account. However, in more complex cases—for example, if the seller is a non-resident, the transaction involves a legal entity, or the parties wish to manage payments through the buyer’s account—it may be necessary to open an account at a Montenegrin bank.
In such cases, banks may request documents regarding the source of funds: proof of income, sale of assets, investment documents, or other sources of capital. This aligns with the general logic of European financial compliance, although Montenegro is not yet an EU member.
For the Montenegrin real estate market, the effect will be twofold. On the one hand, the new rules may complicate and slow down transactions, especially for non-residents who are accustomed to more flexible payment schemes. On the other hand, increased transparency may strengthen the confidence of banks, notaries, and foreign investors in the market, particularly against the backdrop of expectations regarding Montenegro’s accession to the EU.
Montenegro remains one of the most popular real estate markets on the Adriatic for foreign buyers. Demand is driven by buyers from Europe, Turkey, Russia, Ukraine, Israel, and the Balkans.
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