03 Apr Amendments to the Law on Real Estate Sales Tax

The Parliament of Montenegro adopted the Law on Amendments to the Law on Real Estate Sales Tax (“Official Gazette of Montenegro”, No. 028/23 of March 10, 2023), the provisions of which shall enter into force on January 1 2024.

The most significant change in this regulation certainly refers to the amount of the tax rate, which until now was fixed and proportional and amounted to 3% of the tax base, however, from January 1 2024, with the entry into force of the Law on Amendments and Supplements to the Law on Real Estate Sales Tax, the tax rate will be progressive and will amount to:

1) on the tax base up to 150,000.00€ – the tax rate remains 3%;

2) on the tax base over 150,000.01€ – a fixed amount of 4,500.00€ + 5% on the amount over 150,000.01€;

3) on the tax base over €500,000.01 – a fixed amount of 22,000.00€ + 6% on the amount over 500,000.01€.