Property maintenance costs in Montenegro

Luckily, property maintenance costs in the country are relatively low by European standards. 

This article explains the basic expenses incurred by property owners in Montenegro.

Taxes

In Montenegro, taxes are lower than in Western Europe. Property tax ranges between 0.25-1% of the property's cadastral value, depending on the property type, location, quality, and age. Rental income tax is paid at a rate of 9%, and inheritance tax is 3%. 

Public utilities

For an 85 m² apartment in Montenegro, utility bills average about €95 per month. 

Electricity and water usage is paid according to the meter. On 1 May 2019, Montenegro’s national electric provider (Elektroprivreda Crne Gore, EPCG) introduced three tariffs for new household clients to choose from. The red tariff is flat (4.4932 €c/kWh, regardless of the usage). The blue tariff rate varies according to the time and level of electricity usage: the first 150 kWh costs 4.8434 €c/kWh during the day, and 2.4217 €c/kWh at night; if the set figure is exceeded, the rates run at 5.5340 €c/kWh and 2.7670 €c/kWh respectively. The green tariff guarantees the delivered energy comes from renewable sources and is 0.2 €c/kWh higher than the basic tariff intended for the energy provider's existing clients.

In Moldova, if you pay your electricity bill on time you’ll get a 13% discount. Water rates are set by the municipal authorities. For instance, those living in the municipality of Budva pay €1.6/m3 of water.

The monthly waste removal fee is calculated using the €0.06/m² rate. 

TV providers charge €10-20 per month, depending on how they deliver the signal. Satellite TV is cheaper than cable TV. A month of unlimited internet access at 60 Mbps or more costs about €25. Maintenance fees for an apartment building in a residential complex (hallway cleaning, security, and concierge services) cost €1-2/m² per month.

The country's gas extraction industry and associated gas delivery infrastructure are currently at an early stage of development. A new gas canister costs €60 and can be replaced for €12.

Insurance

Property insurance is compulsory for mortgaged real estate purchases. It costs €1/m² per year if using the residential property all year round and €1.5/m² per year if using seasonally or occasionally.

Management company fee

The management company rate for residential complex apartments is usually somewhere between €0.2-0.4 /m² per month.

Repairs

If buying a property in need of renovation, the repairs will cost €150–300 m², depending on the materials and work required. 

A non-exhaustive list of repair expenses is provided below.

Construction work of any kind (including extensions, the number of floors, and exterior stone surfacing) must comply with the limits set in the detailed urban plan of the land plot (detaljni plan uređenja or DPU). If remodelling, you must notify the inspection authorities and submit a description of the planned changes. In the case of partial reconstruction, you also need to inform the tenants. Interior renovations do not require a permit.