How inheritance tax works in Montenegro
Montenegro does not levy a separate broad estate or inheritance tax on the value of an estate as a whole. The main Montenegrin transfer-tax issue is immovable property acquired through inheritance, gift or another transfer without consideration.
The general real-estate transfer-tax scale is 3% up to EUR 150,000, EUR 4,500 plus 5% of the amount above EUR 150,000 up to EUR 500,000, and EUR 22,000 plus 6% of the amount above EUR 500,000. The tax base is market value, subject to current-law exclusions and exemptions.
A first-order heir, spouse and parent of the deceased are among the statutory exempt categories. Specific exemptions can also cover some second-order heirs who lived with the deceased, agricultural property used in the required way, first homes and property transferred in certain divorce or probate situations.
Tax rates at a glance
- Standalone inheritance tax
- 0%No separate estate tax
- Immovable property up to EUR 150,000
- 3%
- EUR 150,000.01 to EUR 500,000
- EUR 4,500 + 5%
- Immovable property above EUR 500,000
- EUR 22,000 + 6%
- First-order heirs, spouse and parent
- 0%Statutory exemption
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
FamiliesProperty ownersExpatsHeirsEstate planners
Watch out for
- Do not describe every inherited asset as inheritance-tax-free without checking the asset. The main domestic charge is tied to immovable-property transfer, and the exemption depends on relationship, use and the legal route of acquisition.
- The first-order, spouse and parent exemptions are important but not universal. Second-order and other heirs need to test the household, first-home, agricultural and other statutory conditions.
- After an inheritance, annual local property tax continues and a later sale can create personal or corporate capital-gains consequences.
- Foreign estates can also be taxed or reported in the deceased's, heir's or property's other country. Montenegro's domestic exemption does not settle foreign probate or tax obligations.
Frequently asked questions
Does Montenegro have inheritance tax?
Montenegro has no separate broad estate tax, but inherited or gifted immovable property can be subject to progressive real-estate transfer tax unless an exemption applies.
Are children and spouses exempt in Montenegro?
First-order heirs, spouses and parents of the deceased are among the statutory exempt categories for qualifying inherited or gifted immovable property. The exact transfer and documentation still need to be checked.
Is inherited property taxed again every year?
There is no annual inheritance tax, but the owner can owe local annual property tax after the transfer and may face capital-gains tax on a later taxable disposal.